Crain's New York Business, February 3, 2025

Is congestion pricing working?

Early data offers some clues in assessing the toll’s successes and trouble spots

By Caroline Spivack and Amanda Glodowski

Four weeks out from the launch of congestion pricing tolls and everyone wants to know: Is it working?

Preliminary data is promising, but even enthusiasts of the toll aren’t celebrating just yet, as it’s likely too early to make denitive claims about the program’s merits.

Crain’s took a look at data from a variety of sources for helpful clues in assessing the initial successes, trouble spots and un-

knowns of congestion pricing. Here’s what we know:

◗ Fewer cars: Tens of thousands of vehicles that would typically travel into Manhattan below 60th Street on a weekday are no longer making the trip.

◗ Speedier commutes: Travel times on bridge and tunnel crossings into the zone

See PRICING on Page 18

FEWER CARS: Tens of thousands of vehicles that would typically travel into Manhattan below 60th Street on a weekday are no longer making the trip.

MORE MONEY FOR MASS

TRANSIT: It’s unclear just how much revenue the toll has generated for the MTA so far because the authority is keeping a tight lid on those gures.

SPEEDIER COMMUTES: Travel times on bridge and tunnel crossings into the zone are way down, but traf c speeds barely changed on some major north-south avenues.

TRANSIT OVER CARS:

More people are riding the subway, bus and commuter rail lines than last year, but it’s unclear if congestion pricing deserves all the credit.

CLEANER AIR: Air pollutants are trending down, but weather patterns are also contributing.

New dining options are shaping up for Bryant Park

Restaurateur lands 18-year lease to operate new eatery

By Aaron Elstein

New dining options managed by restaurateur Jean-Georges Vongerichten, including a replacement for Bryant Park Grill and a Latin-themed eatery, are in the works for Bryant Park, the Midtown oasis that draws 12 million visitors a year. But it will be 2026 before anyone can reserve a table.

Jean-Georges has landed an 18-year lease to operate a new eatery at the park, when the the Bryant Park Grill closes this spring after 30 years in business. e new restaurant, whose name hasn’t been nalized, could be a big culinary attraction considering Jean-Georges’ establishment

See DINING on Page 18

GOTHAM GIG

NY Red Bulls president predicts bright future for soccer in

Pedestrians crossing the street at 59th Street and Park Avenue, which is inside the congestion pricing zone. | BUCK ENNIS

The Porch in Bryant Park is to soon be under new management and renamed Happy Monkey. | BUCK ENNIS

BID leaders say fines for leaving trash bags on sidewalks penalizes their litter-basket services

By Nick Garber

New York City’s business improvement districts are pushing back against a new policy by the Sanitation Department that will fine them for leaving trash bags on the sidewalk — a rule that BID leaders say will penalize them for their longstanding practice of cleaning commercial corridors.

Mayor Eric Adams’ administration says the rule — set to be approved after a Feb. 10 hearing and take effect Aug. 1 — will simply hold BIDs to the same standard as businesses and small residences, which have been required to bin their trash since last year under the administration’s anti-rat containerization campaign.

But BIDs — especially smaller ones in the outer boroughs — say they lack the funding to comply with the mandate and haven’t been offered enough resources or logistical help from City Hall to help them do so. Critics say the policy could also hamstring street-cleaning nonprofit organizations like ACE that employ homeless and formerly incarcerated people and similarly leave trash bags for the city to cart away.

For decades, BIDs have filled holes in the city’s pickup efforts by bagging the trash from overflowing corner litter baskets and leav-

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ing those bags in designated spots on the street for sanitation to collect. Under the new rule, leaving bags on the street would be banned — subject to fines beginning at $75 and escalating to $400 for third and subsequent violations. BIDs would need to instead store trash in rigid bins with tight-fitting lids.

Scott Hobbs, executive director of the Village Alliance in Greenwich Village, estimates that it would cost $300,000 to comply with the rule by installing waste bins at 30 intersections in his district — equivalent to 20% of its annual budget. As a result, the group is one of at least a half dozen BIDs contemplating stopping its litter-basket service if the rule takes effect.

“We would have to stop providing service for those corner baskets,” Hobbs said. “We just can’t afford to containerize it.”

‘A

logical step’

BIDs get all of their funding from annual payments from landlords in their districts, which are set by law and cannot be easily changed year-to-year. Although some BIDs are well-funded and even haul their own trash to city dumps, others have annual budgets as low as $80,000 — with sanitation typically their biggest expense. The city’s 76 BIDs picked up an average of 10,875 trash bags per day in Fiscal Year 2023.

Four BID leaders told Crain’s they support the containerization concept and want to comply but need the city to help — by providing funding to pay for containers or by ensuring that BIDs can legally place the new bins on streets

without interference from other agencies like the Transportation Department.

The BIDs also emphasize that, unlike the businesses and residences already under containerization mandates, BIDs handle the public’s trash rather than their own.

“The mayor has taken a bold stance and framed this as the continued war against rats,” said Jef-

Sanitation Department spokesman Vincent Gragnani said the agency is trying to resolve BIDs’ concerns and has proposed a number of ways for them to comply, including by bringing trash to Sanitation garages or storing it in trucks.

“Our one-on-one meetings with BIDs to discuss how we can work together to keep bags off the curb have included personalized walkthroughs of their corridors to help them find appropriate locations for storing their trash.”

Vincent Gragnani, Sanitation Department spokesman

frey LeFrancois, executive director of the Meatpacking BID in Manhattan. “The commissioner’s execution of it leaves room for improvement, given the lack of involvement from significant city partners like BIDs who represent hundreds of thousands of businesses and hundreds of millions of dollars in investment for this city.”

For months, BIDs have been in negotiations with Sanitation leaders and City Hall officials, including Deputy Mayor for Operations Meera Joshi, who’ve met multiple times with BID leaders since last summer. Their pushback persuaded the city to delay the rule, which was initially planned to take effect as early as August 2024.

“Since we know that containerized trash makes for cleaner streets and sidewalks, and is therefore good for our city’s businesses, getting the trash collected by BIDs off of the curbs is a logical step in this process,” Gragnani said. “Our oneon-one meetings with BIDs to discuss how we can work together to keep bags off the curb have included personalized walkthroughs of their corridors to help them find appropriate locations for storing their trash.”

The policy dispute has put BIDs at odds with Jessica Tisch, who spearheaded the containerization push as sanitation commissioner and has close ties to the business community. Tisch left the department in November to become police commissioner, but the department has forged ahead with the new rule.

“My feeling is that BIDs need to comply with the very same rules that all of their individual members, all businesses on commercial corridors, comply with and have complied with very well for the past nine months,” Tisch said at a November City Council hear-

ing held hours before she was named police commissioner.

‘There’s a lot of resentment’

Laura Rothrock, executive director of the Long Island City Partnership, noted that the Sanitation Department’s much-discussed $1.6 million study about how to containerize the city’s trash focused on residences and commercial waste but made little mention of BIDs, which she called an “oversight.”

It would cost about $200,000 for Rothrock’s BID to buy and install containers, which would severely strain its $2 million budget. The partnership is already trying to install on-street containers at five sites but has faced months of permitting delays from the Sanitation Department and DOT — illustrating the obstacles it might face complying with the mandate.

“There’s a lot of resentment among the BIDs for how this was handled,” said Peter Madonia, chairman of the Belmont BID in the Bronx.

Some BIDs believe the rule would unfairly infringe on their authority as private organizations and are considering suing the city to block it from taking effect, another BID leader said.

Jim Martin, executive director of the street-cleaning nonprofit ACE, testified against the planned rule at a November hearing, calling it “operationally and economically infeasible.” Attempting to comply “will significantly impact our ability to deliver direct services,” Martin said.

Gragnani, the sanitation spokesman, said Jan. 28 that the department will continue to allow those groups to place trash in bags “as part of a coordinated cleanup.”

The city’s business improvement districts fear they will need to cut back on litter-basket service to comply with a new Adams administration rule that will issue fines for trash bags left on the sidewalk. BUCK ENNIS

MTA revives Interborough Express light-rail project with $100 million request for proposals

The authority to issue a contract for engineering and design work on the 14-mile link between bay ridge, Jackson Heights

By Caroline Spivack

The Metropolitan Transportation Authority is reviving an ambitious light-rail project to connect Brooklyn and Queens with plans to spend up to $100 million on engineering.

The $5.5 billion Interborough Express, a rail link between Bay Ridge and Jackson Heights, has progressed sluggishly since Gov. Kathy Hochul first backed the proposal in 2022. Transit officials are now putting the project into gear with a request for proposals from would-be contractors for engineering and design work on the 14-mile people mover.

The initial phase of engineering and design work will span a year and a half, while transit officials simultaneously work to get the federal government to sign off on environmental reviews. The MTA expects to award the contract in the coming months. Once completed, the work will enable the

authority to compete for crucial federal dollars to finance the Interborough Express, and then move onto actually finding a builder to make the light rail project a reality.

The MTA has earmarked $2.75 billion for the project as part of its proposed five-year capital budget to state lawmakers, another indicator that transit officials are eager to pick up the pace. But transit officials may have an uphill battle ahead of them in procuring billions of federal transit dollars, particularly with President Donald Trump back in the White House.

The $5.5 billion Interborough Express, a rail link between Bay Ridge and Jackson Heights, has progressed sluggishly since Gov. Kathy Hochul first backed the proposal in 2022.

MTA documents show that the project’s

construction will be divided into two phases: the first will prepare the 14-mile corridor for the light rail system by demolishing existing structures, constructing new tunnel and bridge structures and repositioning existing freight infrastructure. The second phase will install the light rail system, construct stations, an operation center, order light rail trains and other work to bring the system into service.

Once completed the light rail would give New Yorkers more options to commute between the boroughs without heading into Manhattan first; only the G train travels be-

tween Brooklyn and Queens. The light rail will have 19 stops and link up to 17 subway lines and the Long Island Rail Road — serving roughly 900,000 people along the corridor, according to the MTA. The light rail’s footprint is mostly made up of existing infrastructure from the Long Island Rail Road’s Bay Ridge Branch and the Fremont Secondary line owned by CSX, a major U.S. railroad freight company. This cuts down on construction, but light rail is not without its challenges.

A new class of train cars

Namely, the project requires the MTA to operate a new class of train cars that need specialized maintenance and storage facilities. Annually, such work could cost $83.2 million in 2027 dollars, with the Brooklyn Army Terminal a potential location for light rail facilities.

MTA Chair and CEO Janno Lieber and Queens Borough President Donovan Richards announce an RFP for the design phase of the proposed Interborough Express (IBX). Inset, a preliminary rendering of the Interborough Express light rail project. | MeTrOPOLITaN TraNSPOrTaTION auTHOrITy/FLICKr

Tribeca comeback project stalls amid lawsuits, tenant disputes and defaults

The developer has hit a tangle of setbacks at the four-unit building

By C. J. Hughes

It could have been an easy comeback for once-dominant develop-

er Kent Swig: revamping a prewar rental building, a common occurrence on its historic Tribeca block.

But the redevelopment of six-story 148 Duane St. has seemed to thwart the head of Swig Equities at every turn. Since Swig bought the site of a failed condo project eight years ago, the Civil War-era building has been dogged by lender battles, construction snags and tenant disputes.

The latest blow landed last month, when the lender Axos Financial sued in federal court to possibly foreclose on the mixed-use property near West Broadway because Swig has allegedly been in default since this fall on about $24 million in mortgages.

But problems have swirled around the 33-foot wide building since about 2017, when Swig plunked down $19 million for the renter-filled property. The presence of green fencing since then implies construction work has occurred, but Swig is just now replacing the building’s elevator, according to a new permit from the city’s Department of Buildings, and it is unclear from records what else has been done.

Some delays might stem from the fact that a contractor, K&K Group, dragged Swig to court in 2021 claiming he failed to pay about $3 million of a promised $7 million for renovations, although Swig argued that K&K was inflating the amount. That case wasn’t resolved until two years later.

Swig has also tangled mightily with some occupants. Rent-stabilized husband and wife tenants Timothy and Akiko Tabor, who first sued Swig in 2018 over his apparent reduction of heat and buzzer service and later won a $198,000 judgment in the case, continue to file actions against him, who in the meantime has had to pay to relocate the couple to a swanky Park Place pad.

Another longtime tenant of the fourunit building, Italian painter Cristina Vergano, sued Swig for keeping her security deposit when she moved out and appears to have won. Swig ended up cutting Vergano a check for $25,000, according to a 2021 filing in Manhattan state Supreme Court.

The developer also appears to have hit a wall in trying to evict the building’s longtime retail tenant, beachthemed store Bikini Bar. In 2020 he went after owner Aileen Oser over a supposed failure to pay back $26,000 in rent during Covid, though the case does not seem to have gone anywhere, perhaps because of pandemic-era tenant protections. In any case, Bikini Bar’s website claims it will reopen this year.

The hurdles are perhaps humbling for Swig. The grandson of San Francisco-based developer Benjamin Swig and ex-husband of Liz Macklowe, daughter of billionaire developer Harry Macklowe, he made a big splash in the early 2000s with a string of Lower Manhattan office building purchases.

A former dry-goods outpost built during the Civil War, this Italianate-style structure has since at least the 1990s been home to a different type of apparel company, the surf-themed clothingand-gear store Bikini Bar. A mannequin with a straw hat, a vintage Coke sign and a surfboard, naturally, crowd its window even as the store appears closed. About a decade ago, Florida investor Evan Seiden snapped up No. 148 and won approval for a $47 million condo conversion. The building did become a condo, but Seiden never sold any units, records show, and instead unloaded the building to developer Kent Swig, who once controlled a $3 billion portfolio. Swig’s exact plans for the site are unclear, and he could not be reached for comment. But two decades ago he did lead a conversion of the FiDi office tower 25 Broad St. into a luxury-rental building before losing the site to foreclosure in the wake of Lehman Brothers’ 2008 collapse. No. 148 is now adding a new elevator while it continues to battle lenders and tenants in court.

A century before the late 20th century reign of Greenwich Village’s West Eighth Street as the place to buy shoes, this Tribeca block had the market cornered. In the storefront of this five-story prewar building, which extends all the way back to Thomas Street, was the Diamond Shoe Co. In 1926 it took over Nos. 137 and 139, according to historical accounts, and in 1935 it expanded into No. 141 while also restyling the facade to give all three storefronts a uniform look. When president and Hungarian immigrant David Davidowitz died in 1933, the company owned five factories and 90 stores, according to his New York Times obituary. The inscription “Diamond Building” survives over a door at No. 137 today. Restaurants arrived after the shoe stores faded. There was Le Zinc, which opened in the early 1980s a few years after trendsetter Odeon cut its ribbon around the block. More recently Buddha Bar leased a long-vacant space on No. 137’s Thomas Street side in 2021. The upper stories contain condos, courtesy of Los Angeles developer Leonid Pustilnikov, whose $70 million “Diamond on Duane” plan in the mid-2000s created 20 units, state filings show. Two homes were listed as resales on StreetEasy in late January: a one-bedroom for $2.1 million and a three-bedroom for $11 million.

The Hudson River Railroad, which began hauling freight along Manhattan’s west side en route to Albany in 1851, would start its journey at a depot by nearby Chambers and Hudson streets at Bogardus Plaza, where a tall sidewalk clock has stood since 2020. Dry-good businesses sprung up around the train line, and No. 146, developed in 1860 by silk merchants James Benkard and Benjamin Hutton, according to a Landmarks Commission report, was a result. From the 1890s to the 1950s, the five-story, 21,000-square-foot structure housed shoe store Nathaniel Fisher & Co., which installed its own public timepiece: a wall-mounted copper clock that is green with age but still juts from the second story today. A later footwear concern, the Hersh 8 Back Shoe Corp., filed for bankruptcy protection in the 1970s as the area declined. Upstairs in the walkup building are 12 apartments; a fourth-floor studio with 850 square feet and 14-foot ceilings was recently available for $5,300 a month, a listing shows. The Milrod and Drelich families control the site through a leasehold, according to the city register. But the Laboz family’s United American Land, a major SoHo landlord, includes No. 146 on its own website, suggesting some kind of partnership. The Jewish Community Project Downtown, which offers a popular preschool, has leased the retail space since 2005.

This Corinthian column-lined 1860 building, a co-op, sits on land that it has leased from the Drelich family until 2094, based on the city register and other records. The Dreliches themselves also appear to have a stake in No. 146. Land-lease buildings, which require ground rent payments in addition to usual fees, are somewhat common. But something about No. 142’s arrangement spooked would-be buyers of the building’s penthouse, which could not find a taker for 13 years, the unit’s broker told Crain’s last year. The 7,200-square-foot aerie, which was owned by building developer and architect Stephen Corelli, did finally trade in July for $9.3 million. But the sale price came in far below the nearly $20 million Corelli sought when first listing the unit in 2011. Corelli, who has had a hand in other Tribeca conversions, completed his No. 142 project in 1999, in an era when the neighborhood began to attract a surge of interest. According to the register, the buyer of the unit, which has a living room with a fireplace as well as a terrace, was a top executive at a broadcast media company focused on ultimate fighting and wrestling.

No address perhaps embodies the whiplash of changes on this block more than this one. In the 1840s the site contained a small public school serving the block’s African-American residents, records show. Then in 1862 textile merchant Thomas Hope constructed the current building, a five-story white marble and cast iron-detailed structure whose cornice still spells out Hope’s name. Boot-makers, thread-suppliers and an iron works came later. Following them were artists, who commandeered the building’s upper stories as affordable live-work spaces starting in the early 1970s. In 1998 chef Henry Meer opened the restaurant City Hall at No. 131. Officials and lobbyists mixed it up frequently inside the eatery’s soaring dining room, which also reportedly sometimes received mail intended for the actual seat of city government. City Hall shuttered in 2015. Meer then sold the 30,000-squarefoot site to Austrian battery mogul Michael Tojner for $18.5 million, records show. Tojner then embarked on a years-long redevelopment that included clearing out long-term tenants. Last year the eight-unit rental introduced its penthouse for a hefty $78,000 a month, while a column-lined three-bedroom was asking $21,000 this month.

This spacious Civil War-era structure appears to be a combination of three separate buildings (though with four street addresses, confusingly: Nos. 134, 136, 138 and 140). Indeed, since the mid-1980s, it has functioned as a single 18-apartment residential co-op. Around the same time, one of its ground-floor berths welcomed a branch of Washington Market preschool, whose name refers to a historic moniker for an area once lined with storehouses for butter and eggs. The portmanteau “Tribeca,” for “triangle below Canal,” wouldn’t come along until the 1970s. Initially the school only occupied No. 134, but in 2001 it expanded into other storefronts in the building, according to a school history. No upstairs co-op units are currently for sale, but previous floor plans reveal some never strayed far from their artist-loft roots. They have wide-open living areas and windowless bedrooms carved from corners. A notable pre-conversion resident of No. 138 was Tony Shafrazi, who in 1974 infamously spray-painted the words “kill lies all” on painter Pablo Picasso’s antiwar Guernica painting as it hung in the Museum of Modern Art. Shafrazi later became a gallerist who represented the late artist Keith Haring, a neighborhood habitué.

The excavation required to build the IND subway line (offering A, C and E service) in the late 1920s required Church Street to be widened, a step that razed buildings that once stood at Nos. 128 and 130 Duane, according to the Landmarks Preservation Commission, which surveyed the area for its 1992 designation as a historic district. But the 25-foot wide sliver of land remaining at No. 130 proved easy to reinvent. In the 1930s it gave rise to a Shell gas station, based on a city tax photo. Vendors in the 1980s hawked wares from newsstand-style stands and the site was rebuilt again in 2003 with a five-story mixed-use structure. Hotel landlords owned the property in the following decades. The 43-room Duane Street Hotel was a tenant in recent years; Graffiti Earth, a vegetarian restaurant, anchored the retail space. Both closed in 2021, the same year that Hersha Hospitality Trust unloaded the 17,500-square-foot building to Uzi Ben Abraham’s Premier Equities for $18 million. A hotel operated by Sonder, a shortterm rental provider that uses Airbnb’s platform, came next. Premier reportedly has leased a portion of the ground floor to Modern Bread & Bagel, a bakery chain, but it has not started selling treats as of yet.

148 DUANE STREET

148 DUANE ST.

142 DUANE ST.

131 DUANE ST.

137 DUANE ST.

146 DUANE ST.

130 DUANE ST.

134 DUANE ST.

BUCK ENNIS, GOOGLE MAPS

Tax-reform group takes city to court over latest property tax assessments

By Eddie Small

An organization dedicated to reforming New York’s notoriously byzantine property tax system has filed a motion against the city over its assessments for the upcoming fiscal year, arguing that they blatantly disregard a 2024 ruling from the state’s highest court.

The Court of Appeals last year revived a 2017 lawsuit from Tax Equity Now New York that chal-

court ruled in a 4-3 decision that both arguments could proceed.

But Tax Equity — a coalition that includes property owners, renters and civil rights groups — claims in its new motion (filed as part of the 2017 case) that the city has disregarded this ruling. If successful, the motion would make the city redo its latest round of property tax assessments, which officials released last month, said Martha Stark, policy director for Tax Equity.

The motion would require the city to redo its property tax assessments for the upcoming fiscal year if successful.

lenged New York’s property tax system. The group had argued that the current system violates the state’s real property tax law and federal fair housing law by overtaxing rental properties compared to owned homes and by overtaxing communities where most residents are people of color. The

“Despite the city’s expressed desire to make the city more affordable for hardworking homeowners and renters, they are ignoring their ability to do just that in the area where they have the most control: the property tax,” she said in a statement.

Tax Equity is seeking a summary judgment against the city, given that officials must notify property owners by Feb. 20 if their assessment has increased and by how much. If the court does not issue a judgment before then, thousands of property owners will have to pay taxes based on improper assessments, Tax Equity

argues.

The city violated the Court of Appeals ruling by overassessing homeowners in majority-minority and low-valued neighborhoods, according to Tax Equity. Officials also used rent-stabilized buildings as value comparisons for luxury condos and co-ops, which causes heavier tax burdens for cheaper outer-borough residences and lighter ones for luxury Manhattan residences, the group claims.

System dates to 1981

The city can fix these issues on its own without legislation, but “it seems determined not to do so,” the lawsuit says. “Instead, it seems anxious to run out the clock.”

City Hall spokeswoman Liz Garcia slammed Tax Equity’s position in a statement, saying it “would harm the very taxpayers they claim they are trying to protect — particularly working-class New Yorkers — and create negative fiscal impacts that would jeopardize the city’s ability to provide crucial services.” And at the time of last year’s Court of Appeals ruling, former Law Department corporation counsel Sylvia Hinds-Radix

stressed that the judges had said only that Tax Equity had the right to bring the suit, which was returned to a lower court following the decision, where it remains ongoing.

New York’s current property tax system dates back to 1981 and has been harshly criticized for years.

Former Mayor Bill de Blasio’s administration was vocal about problems with it even as it ultimately declined to take major steps toward reform or support the Tax Equity lawsuit. A commission de Blasio formed to study the system did release a report shortly before the end of his second term

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with recommendations for reform that included removing growth caps on assessed values and establishing a new tax class for small residential property owners. The city published its tentative assessment roll for fiscal year 2026, which starts July 1, in mid-January. It placed the market value of all properties at about $1.6 trillion, a 5.7% increase year over year. The market values for condos, co-ops and rental apartment buildings were projected to rise by 7.3%, while the market values for office buildings were projected to rise by 2.7%, according to the Department of Finance.

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The Trump administration’s immigration policies could separate Adams from Hochul

As the mayor cozies up to the White House, it may be left to the governor to resist mass raids targeting undocumented people

How many politicians in America — Democratic or Republican — are any more excited than Mayor Eric Adams for Donald Trump’s return to the White House?

Adams’ embrace of Trump over the last year has been remarkable and is such a stunning contrast to how Democrats in New York treated the former reality TV star eight years ago. Back then, both Andrew Cuomo and Bill de Blasio, despite their own di erences, were governing as anti-Trump Democrats, proud that New York was the seat of the liberal resistance.

for any other Democratic mayor. On Jan. 21, he appeared on Tucker Carlson’s X show.

And he has declined, repeatedly, to criticize Trump when pressed by reporters. He has expressed no qualms with Trump’s executive orders to withdraw the U.S. from the Paris climate agreement, pardon Jan. 6 rioters and end birthright citizenship. In fact, it’s hard to remember when he last o ered a negative word for the incendiary president.

Today, Democrats in New York and elsewhere are not nearly as vocal. If there is, already, actual resistance to Trump policy, like his attempt to revoke birthright citizenship, fewer are performatively oppositional. Even Gov. Kathy Hochul, no fan of Trump, made entreaties during the Trump transition regarding Penn Station, the subway system and the state’s semiconductor industry.

Adams is in his own league. He skipped Martin Luther King Jr. Day festivities in New York to attend the Trump inauguration, which would have been unfathomable

e reason for all this, at this point, is blatantly obvious. Adams is probably not long for City Hall. His federal corruption trial is slated for April, and he’s going to have a tough time winning the primary. He’s polling miserably. Winning re-election as a Democrat or Republican seems like an increasingly remote possibility.

Adams wants Trump’s pardon, and he likely wants it soon. Better to get it before April to decide what to do next.

e pardon can only save him legally, not politically. Getting pardoned by Trump won’t boost his standing in the Democratic primary. Republicans could give him a second look, but he still needs to

change his party registration and win that nomination outright. at isn’t terribly likely, either. Adams’ best bet for any sort of second life is in the Trump administration. He won’t get elected to o ce in New York again. But in MAGA, there’s a form of redemption, and he obviously gets that. As a Democrat, he can be an attack dog for Trump, and there are enough federal jobs he’d be qualied for as an ex-mayor. It’s an alliance that would work for both men.

In the meantime, New York has a mayor who has one eye on

Washington — and legal freedom — and one eye on a possible prison sentence. It’s a strange era, and it’s unclear how well the bureaucracy will respond. ere are, for the rst time in Adams’ tenure, capable, relatively apolitical technocrats overseeing the municipal government. is will spare New York some chaos.

Base vs. broader electorate

e Democratic resistance to Trump will look very di erent than eight years ago because of immigration. Adams himself was deeply

critical of the Biden administration for the migrant in ux and he has embraced Tom Homan, Trump’s border czar, who has promised mass raids targeting undocumented people. Under de Blasio, New York was a proud sanctuary city, and there were large and near-constant protests against Trump’s immigration policies.

Now, much of that is muted. Progressives are still deeply critical of Trump’s Immigration and Customs Enforcement, but there is no longer a major movement to defund that federal law enforcement arm. Adams appears ready to welcome any actions Homan might take in New York, which, if they’re aggressive enough, would draw furious pushback from other Democrats.

e X factor will be Hochul. She is caught between appeasing a liberal base she’ll need for her 2026 primary and a broader electorate that is wary of increased immigration. In 2022, Lee Zeldin nearly beat her, and she’s since pivoted to the center on crime and talked often about addressing New York’s a ordability challenges.

Hochul, no doubt, is weighing all of this. Unlike Adams, she likely has a life in elected o ce beyond this year to worry about.

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

Hochul changes her tune on SUNY Downstate closure

By Amanda D’Ambrosio

Gov. Kathy Hochul is changing her tune about the future of SUNY Downstate’s University Hospital.

e governor plans to preserve inpatient services at Downstate, a departure from a plan revealed

The governor’s pledge to preserve hospital services is a shift from a plan to close Downstate last year.

last year that would have closed the main hospital building, shifted inpatient services to surrounding medical facilities and built an ambulatory health center on campus.

“We are changing the narrative,” said Debbie Louis, the governor’s assistant secretary for intergovernmental a airs at a public hearing on Jan. 22. “ is hospital is not closing down.”

e move to preserve some inpatient services comes with additional funding for the hospital in Hochul’s executive budget, bringing capital funds to renovate the

hospital up to $750 million. It includes $200 million to cover Downstate’s operating losses over two years and is an increase from last year’s $300 million for building renovations.  e boosted funding “makes it possible to have a mix of inpatient and outpatient services,” according to SUNY Chancellor John King. A state-appointed advisory board, which was mandated in last year’s budget, is tasked with using the $750 million to devise a plan to modernize the aging hospital building and ensure it remains nancially sustainable in the years to come. It is unclear what inpatient services will remain.

Band-aid approach?

e shift sparked hope among hospital sta and community members, who feared that a closure might erode access to services including maternal care and Brooklyn’s only kidney transplant center. Still, some are skeptical that the state’s money is a bandaid that fails to address the root of the hospital’s funding challenges:

the safety-net hospital primarily serves those with Medicaid or Medicare which reimburse hospitals at a much lower rate than private insurance. If the hospital is going “to achieve any kind of nancial sustainability, these services must attract a broader range of patients,”

said Dr. Fred Kowal, a member of Downstate’s community advisory board and president of the union United University Professionals, which represents roughly 2,000 faculty and sta .

Mayoral candidate and vocal opponent of the closure, Sen. Zellnor Myrie, who represents the

neighborhoods surrounding Downstate, echoed those sentiments.

“Downstate’s future must include expanded access to critical inpatient services like complex maternal care, kidney transplants and more,” he said. “We will accept nothing less.”

Ross Barkan

Mayor Eric Adams appears ready to welcome President Donald Trump’s immigration enforcement in New York. | AL DRAGO/BLOOMBERG

BXP says cash flow, occupancy will fall

By Aaron Elstein

BXP warned that cash flow will decline in 2025 for the third consecutive year and occupancy would remain sluggish due to continued tepid demand from tenants in the technology arena.

The firm formerly known as Boston Properties owns 10 million square feet of Manhattan office space, including the General Motors Building and 399 Park Ave. Those buildings are fully leased and command premium rents. Trouble is, other BXP-owned buildings aren’t nearly as popular.

“We have a concentration in Midtown South,” President Douglas Linde said on a conference call Jan. 29, referring to the neighborhood popular with tech tenants before the pandemic but where office vacancy rates are now north of 25%. “Overall, tech demand in ’25 is still less than 40% what it was pre-Covid.”

A survey last spring from the Partnership for New York City showed the office-attendance rate among tech workers is 59%.

BXP said it’s in talks with a nontech tenant to take up around 244,000 square feet at 200 Fifth Ave. Demand is picking up at 360 Park Avenue South, a newly renovated building that’s 77% vacant. Another tower at 510 Madison Ave. is finishing up an amenity upgrade and is “a great value in the market,” Linde said.

The developer forecast the occupancy rate across its 53 million square-foot portfolio nationwide would come in around 87.25% in 2025, down from 87.5% last year, according to BMO Capital Markets. Funds from operations would decline to around $6.86 a share for 2025, compared to $7.10 a share in 2024, 2023’s $7.28 and 2022’s $7.53. JPMorgan analyst Anthony Paolone described BXP’s earnings forecast as “particularly weak.” Its stock price fell by 5% in midday trading, to about $70 per share. The shares trade for half their pre-pandemic level, underperforming rivals such as SL Green and Vornado Realty Trust.

BXP officials said they plan to start development this year on a new office tower at 343 Madison Ave., although they haven’t landed an anchor tenant, and construction is unlikely to begin until someone agrees to lease a substantial amount of space.

Leasing activity last quarter was strong at 2.3 million square feet, the most since the spring of 2019. BXP is accepting less to lure tenants, with the average new rents 5% less than older leases at its New York properties. One analyst on the call noted that occupancy is expected to remain flat in 2025 even if the developer leases 3 million square feet and wondered if the same would hold true in the future.

89-unit mixed-use building planned for Jamaica

By Julianne Cuba

An almost-100 unit building is proposed for Downtown Jamaica, records show, just a few blocks from where hundreds of new apartments are slated to come online in the same Queens neighborhood. Records show that Ami Weinstock, whose affiliation with any particular real estate firm is unclear, submitted plans to the Department of Buildings last month to erect a 12-story, 89-unit building at 89-61 162nd St.

The proposed structure would include retail on the ground floor and

low-income housing. It would rise on a roughly 10,000-square-foot lot between 89th and Jamaica avenues, sitting within the Special Downtown Jamaica District — an area established in 2011 to help boost access to affordable housing and business opportunities in the neighborhood. It would be around the corner from 163-25 Archer Ave., where in December Midtown-based developer BRP filed plans to put up a 22-story building with 400 units on what’s now a vacant lot.

An existing 14,257-square-foot building, part of which is currently occupied by a discount store, is now

on the site; Weinstock also submitted plans to raze the structure. It’s not clear when Weinstock acquired the property or if she began the planning early. Scott Plasky, a broker at Midtown-based real estate firm Marcus & Millichap that represents the property, told Crain’s that the building currently standing on the site is in contract to be sold, and the deal  is expected to close in the next two weeks. He declined to provide the sale price or name the buyer, though it was listed last year for almost $5 million. The listing also noted that all of the building’s leases expired at the end

of 2024.

The seller appears to be Carlo Santore of Sor San Realty, records show, which bought the site in 2000 for an unknown amount. Joel Mendelovits, a principal at Brooklyn-based Speedy Expediting, a zoning and code consultant, is listed on Weinstock’s application as a filing representative for the project.

The proposed building would include 1,182 square feet of retail on the ground floor and 60,233 square feet of residential across floors two through 12, on which there will be seven or eight apartments each, records show.

City should rein in spending on hotel program as migrant crisis has ebbed

By every objective measure, New York City’s migrant crisis has ebbed.

Bus loads of migrants stopped streaming into the city after the Biden administration moved to limit border crossings, reversing earlier policies, and the federal government under President Trump has vowed to signi cantly step up deportations. Nearly 80% of the more than 220,000 migrants who arrived since 2022 have left the city’s shelter system.

So why did Mayor Eric Adams just commit to spend another $991 million of taxpayer money for 14,000 hotel rooms for migrants through June 2026? e city has agreed to pay for the same number of rooms as in the prior deal, whether or not they are lled, and also added an option to extend the deal another three years. e city pays an average of $156 per night for the rooms.

e move merits scrutiny, not least because it doubles down on an expensive solution at a moment when the reality on the ground is changing (though the city continues to host about 49,000 migrants).

e arrangement — managed by a non-

pro t arm of the Hotel Association of New York City — also serves to keep a lucrative revenue stream owing to Adams’ political allies as he gears up for a competitive primary challenge in June. Adams, who took o last month to address what aides described as personal health issues, none-

theless found time to meet with the head of the Hotel and Gaming Trades Council, among other union leaders, to discuss his reelection prospects, Politico reported. e Council and Comptroller should look closely at the deal, including any clawback provisions that would save tax-

Kingsbridge Armory redevelopment is an engine for Bronx economic growth

The Bronx is home to what is one of the largest adaptive reuse and preservation projects currently in the United States, the renovation and repurposing of the immense Kingsbridge Armory. Mayor Eric Adams and Governor Kathy Hochul recently announced approval of a redevelopment plan, based on extensive community input. ey selected the development and design team led by Maddd Equities and Joy Construction to reprogram and renovate the Armory and build 450 adjacent units of much needed permanently a ordable rental housing. My rm, in collaboration with FX Collaborative, serves as executive architect.

Superlatives abound for the Kingsbridge Armory. It’s the largest Armory in the country. Its main drill hall has approximately 180,000 square feet of oor space free of columns, with a ceiling over 115 feet high. Opened in 1917, the Kingsbridge Armory has been closed for nearly three decades. In that time several di erent concepts were proposed for its use. None proved viable nor could attract nancing for development. at’s changed.

e rst phase of the Kingsbridge Armory mixed use redevelopment project features 25,000 square feet of dedicated community space, state of the art event venue space, sports elds for local youth academies, cultural and commercial space and a workforce development educational facility. Prioritization of these new facilities re ects the extensive, thoughtful input in the “Together for Kingsbridge Vision Plan.” is ambitious project that denes the future of the Kingsbridge Armory will be transformational for the Bronx.

e redevelopment of this historic and long-underutilized site is also aspirational for the borough, and New York City as a whole. It holds the potential for new and unprecedented economic opportunities. It can be an engine for economic development through direct industrial investment in advanced technologies, bringing 21st Century jobs to Bronx residents.

e renovated Kingsbridge Armory site would o er appealing facilities and resources for large US and international companies seeking an R&D, training and manufacturing presence in an accessible location o ering a sizeable, enthusiastic

workforce.

US government industrial policy now calls for greater domestic self-su ciency and less reliance on overseas sources for semiconductors used in everything from consumer products to defense systems. As a result, we’re seeing a proliferation of new microprocessor manufacturing sites throughout the country. ese include upstate New York locations with inexpensive industrial space and access to ample electrical power. But these thinly populated rural counties don’t have sizeable workforces. Finding quali ed sta is a challenge in small towns.

ese large companies should bring their jobs to where the workers are, by establishing semiconductor and possibly pharmaceutical manufacturing and other high-tech facilities in the Bronx, where they will nd abundant space at the renovated Kingsbridge Armory. e site also o ers reliable electrical power that’s required for chip production, as well as extensive public commuter transportation at the door.

Combined with the major community cultural, recreational and educational facilities, the repurposed Kingsbridge Armory has the potential to draw signi cant clean, high-tech industrial investment to the Bronx, strengthening the economic

payers money if the rooms are going unused. And the administration should scale back on the number of rooms for any future extensions with HANYC. e trade group has taken on a leading role in the city’s migrant crisis — serving mainly as a middleman by funneling city rent payments to privately-owned hotels where migrants have been housed to comply with the city’s right-to-shelter mandate.

A July analysis by city Comptroller Brad Lander found that the city was paying a reasonable rate for the hotel rooms. It found that the migrant hotel rooms cost more than regular city shelter beds but less than other, temporary emergency migrant shelters the city has now begun closing. But critics have raised questions about whether the Hotel Association enjoys a virtual monopoly over migrant shelters. e migrant crisis so far has cost the city almost $7 billion. e Adams administration has budgeted another $2.7 billion for the next scal year that starts in July, but should be looking to reduce that number rather than locking in long-term deals for rooms the city may not need.

and social fabric of the community.

Employment opportunities in the Bronx will be expanded to a broader range of well paying, high-tech industry jobs, enabled by new educational and job training facilities at the Armory.

e Bronx is the only New York City borough that’s part of the mainland US, not separated by a river or harbor on an island. at physical connection to America should also be manifest in the participation of the Bronx in the transformation of the national economy and industry creating technologically advanced employment opportunities.

Kingsbridge Armory will generate positive perceptions of the Bronx as a smart and desirable place to establish state of the art high tech R&D and manufacturing sites among US and multinational technology companies.

New York City Mayor Eric Adams | BENNY POLATSECK / MAYORAL PHOTOGRAPHY OFFICE

Ariel Aufgang is principal of Aufgang Architects.

Mayor Eric Adams and Gov. Kathy Hochul recently announced approval of the Kingsbridge Armory redevelopment plan, based on extensive community input. | BUCK ENNIS

In the race toward AI, don’t leave New York small businesses behind

From chatbots to predictive analytics, artificial intelligence has become synonymous with modern efficiency. But while AI reshapes industries, there’s concern that its transformative power will remain concentrated in the hands of the few. Over 250 million people across the globe have embraced this technology, and over half of U.S. companies with more than 5,000 employees have fully integrated it into their everyday operations. Small business owners are also embracing the technology, with nearly 50% incorporating AI into their systems in the past year.

of a broader issue: most AI tools are designed with consumers or large enterprises in mind, leaving small businesses struggling to keep pace with innovation.

Despite these advances, there’s a glaring gap that needs to be addressed: the development of AI-powered tools specifically tailored to the unique needs of small business owners. And New York small businesses are no exception.

Small businesses are the backbone of New York’s economy — accounting for 99.8% of all firms and employing 47.1% of the state’s workers. On average, over 70,000 small businesses open every year and significantly contribute to our economy. And yet, as industries race toward adopting AI, New York small businesses are lagging behind, with only 3.3% integrating it into their daily operations. This isn’t mere coincidence — it’s a symptom

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of entry to AI-enabled tools.

This disparity is not just a missed opportunity for small businesses — it’s a missed opportunity for the AI industry as well. These entrepreneurs are increasingly turning to artificial intelligence to handle everyday tasks, from customer service to inventory management, among others. And the benefits are clear: a recent study revealed that small businesses leveraging AI could potentially save $273.5 billion annually, and 6.33 billion hours of work.

While AI has already made significant inroads into large corporations, small businesses typically operate with limited resources, both in terms of finances and personnel, and don’t have the luxury of large IT departments to implement and maintain complex systems. Small business owners wear multiple different hats — including managing their business’s taxes, marketing, vendor payments, payroll, and more. They need more tools to help them reduce hours spent managing their business’s finances, but these tools are often expensive. In fact, for more than 50% of small business owners, cost is the biggest barrier

The Bureau of Labor Statistics projects that by 2030, jobs in AI will increase by 31.4%. From health care to finance, AI is reshaping the way we work, making processes more efficient and decision-making more data driven. Yet, without AI solutions specifically designed for small businesses, our New York enterprises risk falling further behind, unable to fully capitalize on the benefits of AI.

What we need is an influx of AI companies that don’t include small businesses as an afterthought, but as their primary market. This requires creating AI tools that are accessible, affordable, and easy to integrate. For instance, AI solutions could be developed to help small businesses optimize their supply chains, manage customer relationships and their finances, and even predict market trends — all with user-friendly interfaces without a large learning curve.

In addition to enhancing productivity for small business owners, AI has the potential to democratize access to financial solutions. Big corporations have the advantage of large teams of accountants, marketers, and logistics experts, but small

businesses often have to rely on just a handful of employees to handle these crucial functions, especially in competitive markets like New York, where over 50% of businesses fail within 5 years. AI can level the playing field by helping small business owners grow their businesses without extensive education, outside help, and increased expenses.

In the same way that AI is helping large companies grow, it can also empower small businesses to become more profitable, efficient, and competitive. But for this to happen, the AI industry needs to invest in understanding the specific needs of small businesses and develop tools that are truly tailored to meet those needs.

The integration of AI into small businesses isn’t just about improving operations — it’s about ensuring that small businesses can thrive in the dynamic and fast-paced landscape that characterizes New York. As AI continues to evolve, it must not leave the small businesses that are driving our economy behind.

For one of NYC’s most congested neighborhoods, congestion pricing program is a breath of fresh air

For years, Hudson Square has faced a daily ritual that residents and businesses know all too well. Starting around 3 p.m., half of our neighborhood’s streets grind to a halt as vehicles queue for their turn to enter New Jersey through the Holland Tunnel. Congestion in our neighborhood has historically been among the worst in the city, adding to the estimated 117 hours, according to MTA data, that an average NYC driver spends sitting in gridlock each year. People routinely tell business owners in our district that they avoid coming into our neighborhood during peak hours because they don’t feel comfortable crossing the street through the mass off cars and trucks.

tion pricing, traffic declined 11% compared to similar weeks in previous years. But, like the weather, traffic fluctuates constantly and it was back closer to normal before the holiday weekend.

But, something remarkable is happening in our community since congestion pricing started. It is admittedly early days, but our business owners report noticeably reduced traffic heading toward the Holland Tunnel, making simple tasks like hotel doormen hailing taxis for guests significantly easier. In the first week of conges-

Any reduction in traffic means more than just saved time — it’s about creating a safer, more livable neighborhood. For many years, our district has hired crossing guards to help people safely cross the street and keep crowded intersections clear. With fewer vehicles clogging our roads, our guards can more easily maintain safe conditions for everyone. Perhaps one of the most exciting potential positives from congestion pricing would come from making Hudson Square into a more walkable destination. Since we are well served by public transit, with less traffic dominating our streets, people are more likely to wander the district, discovering our neighborhood’s vibrant array of restaurants, cultural institutions, and public art. A more pedestrian-friendly atmosphere is crucial for our local businesses, which thrive when people can easily and

safely access their establishments.

We also know that along with walkable streets, having more public, open spaces has a real impact on people’s physical and mental health. That is why we created pocket parks right at the entrance to the Holland Tunnel. Originally viewed with some skepticism, these green oases are now popular destinations for local workers and residents alike.

In 2022, we completed an ambitious project to plant or retrofit more than 500 trees throughout the neighborhood. These trees now offset more than 90,000 pounds of carbon dioxide annually (the equivalent of roughly 80,000 car trips through the Holland Tunnel), help clean our air, and make our streets cooler. Congestion pricing complements these initiatives, helping us build a greener, more sustainable community where people can breathe and thrive.

Critics of congestion pricing often focus on the cost of the toll, but we must also consider the hidden costs that come with traffic congestion. One hotel owner has told me that he frequently tells guests arriving during peak hours to simply get out of the taxi and walk — sometimes as much as a mile, while pulling luggage — because

traffic is moving so slowly. What sort of message does that send to potential visitors from around the world about the state of New York City?

While it’s still early days, the initial signs of what is happening in Hudson Square demonstrate that smart urban policies can create immediate, tangible benefits for communities.

I’m optimistic that congestion pricing will continue to help us build a more vibrant city — one where people, not traffic jams, take center stage.

Samara Karasyk is president and CEO of the Hudson Square Business Improvement District.

Lilac Bar David is the co-founder and CEO of Lili, a financial technology company.

PEOPLE ON THE MOVE

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

ACCOUNTING

Aronson Mayefsky & Sloan

Aronson Mayefsky & Sloan, LLP, a prominent matrimonial law firm, announced the election to partner of Caitlin Connolly and Lidio A. Duval. Both attorneys focus exclusively on matrimonial and family law and are adept at handling sensitive and high-profile cases involving the valuation and distribution of complex assets.

FINANCIAL SERVICES

Berkowitz Pollack Brant

Connolly Duval

A Harvard Law graduate, Ms. Connolly has extensive experience litigating high conflict cases, utilizing skills previously honed as a special victims prosecutor in the Manhattan District Attorney’s Office.

Mr. Duval, who chairs the Young Lawyer Division, Family Law Section of the NYS Bar Assn, has been recognized by Best Lawyers and Super Lawyers, and concentrates on high-networth cases involving complex business valuation issues.

CONSTRUCTION MANAGEMENT

STO Building Group

Corporate office construction expert Mike Sci has joined the STO Building Group to lead the company’s Facilities Construction Services (FSC) team. As Senior Vice President of FCS, Sci will guide a team that helps corporate real estate teams across the globe manage their post-occupancy construction projects more efficiently and effectively.

Carolyn D’Anna has joined Berkowitz Pollack Brant Advisors + CPAs as chief operating officer. A CPA and HR operations executive with more than 35 years of experience, she comes to us from a national firm where she was involved in a wide range of operations and systems implementations, HR initiatives and retention strategies. Her varied professional background, including 15 years as an auditor, gives her a deep understanding of the strategic planning operations necessary to drive business growth.

LEGAL

Gerstman PLLC

Gerstman PLLC proudly announces the addition of Daniel Sodroski as Partner and Julia Walder as Associate as it expands into commercial leasing alongside its regulatory advocacy practice.

Sodroski, a seasoned attorney with a stellar record in commercial leasing, brings expertise in navigating NYC’s competitive real estate market.

Walder, a rising talent, will focus on both regulatory advocacy and leasing, contributing sharp legal insight.

“Daniel and Julia strengthen our ability to deliver top-tier legal services,” said Managing Partner Brad Gerstman. “Their expertise aligns with our mission to redefine legal support for NYC’s real estate community.”

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Midtown tower lands investor at a half-off valuation

By Aaron Elstein

A big Midtown office owner was forced to slash the value of a Third Avenue tower by half to lure in a partner.

Paramount Group sold a 45% stake in 900 Third Ave. to an unidentified party last month, the Midtown-based landlord said, in a transaction that values the 600,000 square-foot property at $210 million. It’s a disappointing sum considering Paramount had sought at least $400 million when it put the building on the market, the  New York Post reported in 2019.

The deal involving 900 Third came soon after after the value of a separate Midtown office building, 1211 Sixth Ave., was marked down

cisco, a tower in London’s Canary Wharf, and the Petronas Towers in Kuala Lumpur. Today 900 Third is 31% vacant, according to Paramount, which describes the building as Class A. But rents, which average $73 per square foot, are closer to a Class B tower.

Sagging rent collections

Owner Paramount Group had sought more than $400 million for the tower.

by 33% when its owner, a Canadian pension fund, sold about half of Fox News’ home to a Manhattan developer.

900 Third is a 36-story tower developed in 1983 and designed by Emery Roth and Cesar Pelli. Pelli later became famous for designing the Salesforce Tower in San Fran-

Paramount owns 12 million square feet of commercial space in Manhattan and downtown San Francisco. Law firm Clifford Chance moved to Manhattan West last year from 31 W. 52nd St. where it leased 40% of the space. Although law firm Wilson Sonsini recently agreed to lease 132,000 square feet at the building, overall Paramount’s portfolio is just 86% leased. The $500 million mortgage for 31 W. 52nd comes due next year, so does the $860 million loan for 1301 Sixth Ave.

Investors are starting to wonder under what terms the landlord might part with some properties if it can’t refinance them. Paramount shares trade for just $4.60 each.

“The stock is clearly caught in an unfavorable macro environment,”

Evercore ISI analyst Steve Sakwa wrote in a report last month in which he said he was “slashing”

his 2025 forecast because of sagging rent collections.

900 Third, at the corner of East 54th St., is close to three subway lines and an 11-minute walk from Grand Central Terminal. But the building apparently hasn’t been

renovated in many years. When the building was put on the market six years ago, the Post reported that the building was about 20% vacant and had below-market leases. This combination, “provide[s] an opportunity for a ‘value-add’

buyer that likes to work on and upgrade assets.”

Paramount CEO Albert Behler said the sale “underscores the underappreciated value of our assets in the market” and “strengthens our balance sheet.”

900 Third Ave. | buCK eNNIS

JetBlue launches new premium tier to entice flyers

By Caroline Spivack

JetBlue is adding a new premium travel tier to its flights with perks including more leg room, two complimentary alcoholic drinks and early boarding as part of the airline’s blitz of higher-end options to draw more travelers to its flights.

The so-called EvenMore seats are located at the front of aircraft or directly behind the airline’s first class Mint seats, and offer a handful of amenities designed toward making customers’ air travels less cramped and more enjoyable. As of Jan. 23, customers can begin booking EvenMore seats through the Queens-based company’s website; the first flights with the new travel tier were to take to the skies beginning on Jan. 28.

How much extra the new travel tier costs fliers varies by flight, but can more than double a standard plane ticket. For instance, a Blue Basic ticket for a March weekday flight from New York to San Francisco would cost $149, while an EvenMore seat on the same flight costs $357.

The new EvenMore tier is a new offering that uses existing mid-cabin seats on JetBlue planes that offer more legroom, and is part of a series of new initiatives from JetBlue to lean into deluxe features as a route toward profitability. Among those efforts is culling dozens of money-losing routes while expanding in high-traffic markets, such as New York, and opening its first airport lounges at JFK Airport and in Boston, to win over customers willing to shell out for travel perks.

Airlines, namely Georgia-headquartered Delta, Illinois-based United and Texas-based American, are reaping the financial benefits of doubling down on their premium cabins to help them recover from the financial hole created by a surge of cheap economy seats in the market this past year.

Delta, United and American all reported spikes in premium seating revenue last year. The trend has left JetBlue and other discount carriers, like the Texas-based Southwest Airlines, scrambling to catch up.

Doubled down on travel perks

JetBlue has struggled to compete with larger U.S. airlines since the Covid-19 pandemic. In 2022, the company reported $260 million in losses and an adjusted loss of $151 million in 2023. Within the first nine months of 2024 JetBlue reported losing $173 million, and the company had its effort to purchase discount carrier Spirit Airline blocked by a federal judge. A separate court last year similarly upheld a ruling that American Airlines cannot partner with JetBlue because it would stifle competition. Leadership at JetBlue has since doubled down on travel perks and adding new routes, particularly in the Northeast.

Equity analysts are hopeful, but still wary of JetBlue’s path to profitability. In a research note Jan. 17, Bank of America downgraded the airline’s stock to a rating of underperform from neutral. UBS and Goldman Sachs restated a sell rating for the company’s stock late last year.

JetBlue’s stocks were trading at over $8 per share — a more than 2% increase from the market’s opening bell — as of midday on Jan. 23.

Also last month, JetBlue noted it has begun accepting payments through Venmo, which is commonly used for peer-to-peer transactions. The option is live for bookings made through JetBlue’s website and will be available on the airline’s mobile app in the coming months, said the carrier.

Other airlines, including Delta, United and American, currently accept payment through PayPal, which is owned by Venmo.

German firm seeks to boot RFR from SoHo hotel after rent dispute

By C. J. Hughes

RFR Holding wants to extend its stay at a SoHo hotel.

The embattled developer, which a judge in October evicted from the Chrysler Building over missed payments to a partner, is trying to stave off a similar fate at posh inn 11 Howard.

RFR, which remodeled the former Holiday Inn at Lafayette Street

vited some “commercial real estate industry businesspeople” it had met at a trade show in Germany to spend the night at 11 Howard and look over the place with the intention of purchasing it.

But “they were no ordinary guests,” the suit says. “They inspected the bones of the premises—examining fixtures, engineering and mechanical elements, rooms, back rooms, event spaces and other areas.”

RFR claims Commerz Real has reneged on a promise to sell it 11 Howard.

into the luxury lodging and operates the 207-room site through a lease today, is accused of failing to pay more than $8 million in rent, taxes and furniture expenses to landlord Commerz Real since 2023, according to court filings.

Last month Commerz, a German asset management firm, told RFR that its lease would be terminated as of Jan. 21, according to a letter that was part of the filings.

But RFR does not seem ready to depart willingly. In fact the firm, whose co-founder is Aby Rosen, has struck back with accusations of its own. On Jan. 22 it sued Commerz for allegedly reneging on an agreement to give RFR first dibs on the 14-story, restaurant-lined, prewar property if Commerz ever decided to sell, according to its complaint in Manhattan’s state Supreme Court.

The agreement, which is indeed spelled out in the 2016 lease RFR submitted in the case, was specifically violated in November 2023, the suit claims. That’s when Commerz executives allegedly in-

Along the same lines, the suit also accuses Commerz of trying to muscle RFR aside to clear a path for a deal. Indeed, Commerz booked the stay for the supposed buyers just two days after sending RFR its first notice about the rent default, which warned that Commerz would cancel RFR’s lease if the developer did not immediately pay up.

The would-be buyers seemed to have taken a pass, based on a lack of a deed in the city register. But for RFR, the hotel seems to have remained out of grasp. When the firm did finally get around to offering to buy the 113,000-square-foot property, on Jan. 6 of this year, Commerz “played hardball” and told RFR that it would instead scrap its lease in 15 days, RFR’s suit says.

The developer, which is currently entangled in a slew of cases involving alleged defaults on loan and tax payments, is asking the court to allow it to stay on at 11 Howard until its lease expires in 2031. RFR also wants a jury to award it an unspecified amount for damages, court papers show.

In 2014 RFR bought 11 Howard St. for $89.7 million and flipped it to Commerz two years later for

$170 million, based on the register. Along the way, the developer spent “tens of millions of dollars” to improve the building by turning a former “low-quality, blighted inn” into a “premiere destination,” the suit says.

The hotel, whose rooms started around $210 a night last month, also features the chandelier-draped restaurant Le Coucou and Latin seafood lounge La Rubia. (A concierge at the hotel also reportedly played a key role in boosting the guise of socialite grifter Anna Delvey, who shacked up at 11 Howard for months.)

Refused to vacate

Owner of Midtown’s Seagram Building and the Financial District’s 17 State St., RFR was ordered to leave the Chrysler Building after falling behind on rent to the college Cooper Union, which owns the land under the Art Deco skyscraper. But RFR has apparently refused to vacate, and the case awaits a judge’s ruling.

RFR may have halted a foreclosure proceeding against 17 State after securing a three-year extension on its loan at the 42-story spire in December.

In the 11 Howard dispute, Commerz has not yet filed a response, and no one answered the phone at the company’s New York office in Battery Park City Jan. 21. Also Michael Haworth, a DLA Piper attorney who has previously represented Commerz in its dealing with RFR there, did not return an email for comment.

In addition Sean Burstyn, the Miami-based lawyer behind RFR’s suit, did not return a call. And an RFR spokeswoman could not be reached by press time.

11 Howard St., Tribeca BUCK ENNIS

SL Green pays off Plaza District mortgage at steep discount

By Aaron Elstein

Bargains in the Plaza District are few and far in between, but SL Green landed a big one when it paid about 50 cents on the dollar to retire the mortgage at 690 Madison Ave., a building that houses jeweler Van Cleef & Arpels.

The shares fell about 1% in midday trading.

$200 million in gains

It isn’t clear why the lender agreed to accept just $32 million to settle the $61 million loan. The lender shown in city records, Bank of China, had no immediate comment. 690 Madison is an 8,000 square-foot property at the corner of East 62nd Street and leased to a division of Swiss luxury giant Richemont, which also owns Cartier.   The benefits of the transaction, revealed as part of the company’s fourth-quarter earnings report Jan. 22, were clear for SL Green.

The developer has specialized in this sort of dealmaking for years.

By paying off the mortgages at 690 Madison and three other Manhattan properties for less than owed, the developer generated more than $200 million in gains last year, it disclosed Jan. 22.  Debt-extinguishment gains accounted for nearly 40% of SL Green’s $570 million in funds from operations, a key performance metric for real estate owners.

“They take advantage of dislocations in the market and have done so for years,” said Alexander Goldfarb, an analyst at Piper Sandler. “It is a core part of their business.”

In addition to gains from paying off debt at a discount, the city’s largest office landlord reported a strong quarter on the leasing front. IBM agreed to take another floor at 1 Madison Ave. and the newly redeveloped tower is now 72% leased. Management said 875,000 square feet worth of leases are

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close to being finalized. SL Green’s 30 million square feet of Manhattan property is now 92.5% leased, up from 90.1% in the previous quarter.

Evercore ISI analyst Steve Sakwa deemed leasing activity “excellent” and BMO Capital Markets analyst John Kim said SL Green produced a “banner 2024.” He noted the firm’s debt load, nearly 11 times higher than operating earnings, is higher than peers.

SL Green has bought and sold dozens of buildings over the last

45 years. It acquired 100% of 690 Madison in 2021 for $74 million after filing a foreclosure action against former owner Ben Ashkenazy. It sold a 50% stake in the property to Jeff Sutton’s Wharton Properties for $34 million in December, around the time it paid off the mortgage at a hefty markdown. The payoff produced a $26 million gain, SL Green said. Early last year SL Green paid just $7 million to pay off the $183 million mortgage for a mostly empty commercial building at 2

CANNABIS BEVERAGE REVOLUTION:

Herald Square. As part of the $1 billion refinancing of 280 Park Ave., it paid off $125 million in mezzanine debt for $62 million. And it repaid the $50 million mortgage on 719 Seventh Ave. for $32 million.

It’s never easy to persuade lenders to swallow losses. But the alternative would have been for banks to manage the properties themselves.

“New York real estate is a WWE steel-cage match every day,” Goldfarb said.

690 Madison Ave. | buCK eNNIS

State Senate health chair on Trump’s impact in the new legislative session

Lawmakers concerned with health care spending are heading into state budget negotiations with a cloud over their heads as federal cuts to Medicaid and other health funding streams loom under the Republican governing trifecta in Washington. Although it’s unclear when the cuts will come, how much they will be and what programs could be affected, Gov. Kathy Hochul last week unveiled a $252 billion executive budget proposal that raises Medicaid spending 14% to $35.4 billion. And while the state was given permission to reap an expected $3.7 billion from a tax loophole on health insurers known as managed care organizations during the waning days of the Biden administration, that funding is one-time, which means lawmakers will have to return cup-in-hand to a much less sympathetic administration or nd other ways to pay for existing services in the coming years.

Crain’s spoke with state Sen. Gustavo Rivera, a Bronx Democrat and chair of the powerful Health Committee, about some of the critical questions at the outset of the legislative session.This interview has been edited for length and clarity.

By Ethan Geringer-Sameth

Federal approval for the managed care organization tax is a one-time payment that could lead to a scal cliff down the road to pay for existing services. Do you have a game plan for plugging that hole in the outyears?

Certainly I’m glad, rst of all, that it was approved before this administration started, because we knew that we were not able to get it under this one…It is great that we got it, but I think that there’s other things that we need to explore. We need to not only explore it, but think about where those expenses are going to be, because ultimately we’ll want them to be as investments, not just expenditures.

What are some possible avenues to explore?

Let’s tax the wealthy. at’s something I’ve been pretty consistent on. I think that we need more revenue overall, particularly to make up for what will be cutbacks from the federal government. e depth of these, the extent of them, or the timing of them are still up in the air, but we know they’re coming. ey’ve made it very clear…I know that we’re not going to be able to make up everything that the federal government gives us. Now, I recognize that, however, we need more revenue so that we can have a conversation about what we can cover.

You introduced a bill in September that would stop the transition to a single [Consumer Directed Personal Assistance Program] broker and allow more scal intermediaries to participate. Since then the state has awarded a contract to Georgia-based Public Partnerships LLC and people are enrolling in the new system. What exactly can change between now and the April 1 deadline to complete the transition? e entire thing can change. We actually can pass a bill that basically restructures the program. It gives a di erent timeline. It restructures the program oversight, the types of things the Department of Health

“Just arresting someone, regardless of whether they are homeless, whether they have a mental health issue, whether they have a substance use issue, doesn’t solve anything.”

can do to make sure that they crack down on bad actors. I still think that it’s actually something that needs to happen, because I do not believe that this is a transition that’s possible by April 1. I just don’t think that that’s the case.

What would this mean for the PPL contract? Would it have to be nulli ed?

Certainly, PPL could be one of the scal intermediaries, but not the single one. ey would probably have to put another proposal forward.

The contract has been granted. What can be done to change that, legally speaking?

I’ve not looked at the contract in detail, but I know that it exists because of statute, and we could change statute. I’m sure there are ways for the contract to be terminated by either party. It’s the way the contracts work.

The president issued an order repealing a policy that limited

immigration enforcement in hospitals and other so-called “sensitive locations.” Is there anything the legislature can do to protect patients and loved ones from immigration raids while they are seeking medical care?

Absolutely, not only medical settings but across the board. ere’s a bill that my colleague, Andrew Gounardes, carries, which would make it so that there’s no cooperation between state agencies [and federal law enforcement]…I believe that we need to defend New Yorkers. We know most poor, working class folks, particularly many, many undocumented folks, people who might be at risk of these dragnets by the federal government, are in the city of New York and get served by public institutions. What about in private hospitals?

I haven’t spoken with every single one, but I’ve not gotten any indication from any of these folks that they’re not on the same page as I am.

7 face fraud charges over $44M in Covid funds

By Anne Michaud

Seven people were charged in federal court on Long Island on Jan. 22 with stealing $44 million in Covid-19 relief funds, in what prosecutors claim is the largest case involving money intended to keep employees a oat during the pandemic.

e defendants allegedly led more than 8,000 quarterly payroll tax returns between November 2021 and June 2023 in an e ort to claim more than $600 million in pandemic relief funds through three programs: the Employee Retention Credit, the Sick and Family Leave Credit and the Paycheck Protection Program.

One of the defendants, Jamari Lewis, even bragged about his fraud in a rap song, the indictment alleges. Prosecutors said Lewis, 26, who raps under the name “Mr. Chaketah,” recorded a track titled “I’m So Sophisticated (IRS).” Lyrics include, “ at government bread I ran that shit up, like how am I gon’ lose?”

Defendants used the money to buy jewelry, designer clothing and luxury cars, the indictment said. ‘Shamefully took advantage’

But is there anything that statutorily can be done to affect that one way or the other?

I couldn’t tell you at this moment.

Democrats have increasingly embraced Gov. Kathy Hochul’s push to expand involuntary psychiatric commitment and treatment for New Yorkers with severe mental illness. Where do you stand on that? Do you think there needs to be more exibility to allow for these types of involuntary or court-ordered treatments?

I think that the real conversation needs to be about making sure that we actually have somewhere for these folks to receive services. Just arresting someone, regardless of whether they are homeless, whether they have a mental health issue, whether they have a substance use issue, doesn’t solve anything. Arresting somebody does not solve anything. Because if we put someone through a system and we don’t actually have services for them, if we don’t have a bed in a psych ward, in an institution, if we don’t have that, then it doesn’t matter…some of my colleagues, particularly some of my more conservative colleagues, could give a shit about where these people wind up as long as they’re not in the streets, as they say.

“ e defendants shamefully took advantage of a global health emergency to line their pockets with millions of dollars that were intended for struggling families and small businesses just trying to stay a oat and lavished themselves with luxury goods,” said U.S. Attorney John Durham in a statement.

Six defendants were arrested on Jan. 22, pleaded not guilty in federal court in Central Islip and were released on bond. According to the indictment, they are Keith Williams, 46, of West Hempstead; Janine Davis, 41, of Wheatley Heights; Morais Dicks, 55, of Dix Hills; James Hames Jr., 65, of Campbell Hall; Ewendra Mathurin, 32, of Queens Village; and Ti any Williams, 41, of Brooklyn. Lewis, a Queens resident, is expected to be arraigned at a later date.

Christopher Cassar, a lawyer for Keith Williams, said, “We feel the government is overreaching with these charges, and they will be unable to prove conspiracy, tax crime or any attempt to defraud the United States government.”

Another defense attorney, Darnell Crosland, issued this statement: “Morais Dicks rmly denies the allegations against him and is determined to clear his name. While the indictment includes multiple defendants, it is crucial to distinguish Mr. Dicks’ actions and intentions from those of others.”

Attorneys for the other defendants could not immediately be reached.

State Sen. Gustavo Rivera, a Bronx Democrat and chair of the powerful Health Committee BUCK ENNIS

Northwell Health to add $37M cardiac unit at former St. Vincent’s Medical Center site in West Village

By Ethan Geringer-Sameth

Northwell Health is opening a new cardiac catheterization lab in the West Village, part of a growing industry strategy to decentralize hospital services and reduce overhead.

The health giant is opening a new cath lab for cardiac emergencies and elective procedures at Lenox Health Greenwich Village, a satellite emergency department and ambulatory surgery center affiliated with Upper East Side-based Lenox Hill Hospital. Part of a $37 million project, the program will allow the free-standing outpost to accept heart attack patients via ambulance for the first time, giving the site an influx of visitors who are currently being sent to other hospitals. It will also create an 11,000-square-foot inpatient unit to allow patients from the cath lab and surgical units to be admitted for short stays, with the most severe cases still being transferred out.

The new cath lab and inpatient unit will harden the site’s footprint in the neighborhood, filling a niche left by St. Vincent’s Medical Center, which occupied the same building and closed in 2010. It is expected to

perform 1,000 procedures in the first year, according to Avinash Ramsadeen, a spokesman for the hospital. As part of the current construction, Lenox Health will add an electrophysiology lab for treatment related to the heart’s electrical activity, expand its blood and microbiology lab space and pharmacy and install a kitchen to allow food services for the first time.

Expanding their outpatient footprint

Health systems across New York have been expanding their suite of cardiac cath labs in recent years with rising cases of heart disease and a growing demand for treatment. The labs offer treatments ranging from the routine opening of blood vessels to more invasive surgical techniques, making them lucrative for the large health systems that have consolidated in recent years while expanding their outpatient footprint.

What is now Lenox Health Greenwich Village opened in 2014 following a model in use in West Coast health systems to decouple emergency departments from hospitals, which are expensive to

build and do not admit a majority of patients who visit, said Tracy Feiertag, the facility’s vice president. In the years since it has added to its services, performing a growing number of procedures at its emergency department, ambulatory center and physicians practices while avoiding the cost of ad-

mitting patients. Its emergency department is currently only equipped to take stroke patients, sending 350 cardiac patients to Lenox Hill Hospital alone in 2024, according to the health system, which brought in $13.6 billion in the first three quarters of last year. That does not in-

clude the patients Feiertag said are sent to closer hospitals, the most acute going to Bellevue Hospital Center and Mount Sinai Beth Israel before it began the process of closing down. Those patients will be able to be treated onsite once the lab opens, which is expected in June, Feiertag said.

LARGEST VENTURE CAPITAL FIRMS IN THE NEW YORK AREA

Landlord using rental concessions to abuse 421-a benefits at Jamaica project, lawsuit claims

By Eddie Small

A landlord is abusing the state’s polarizing 421-a affordable housing tax break at its recently completed residential project in Jamaica, a new lawsuit claims.

Midtown-based developer Shorewood Real Estate Group has received millions of dollars in benefits from the program at its multifamily project known as 1 Archer Ave. despite not following its rules, according to the lawsuit, which was filed on behalf of tenants in the building Jan. 24 in New York County Supreme Court. It essentially accuses the firm and its CEO S. Lawrence Davis of manipulating the use of concessions, or months of free rent, to get around 421-a’s requirements.

Under the 2016 amended version of the tax break, apartments with rents under a certain threshold were still entitled to rent-stabilization protections, while apartments with rents above the threshold were not, the suit explains. In 2023, when Shorewood finished its Archer Avenue project, this threshold was about $2,952, according to the lawsuit.

When tenant and plaintiff Vimal

Rampaul moved in, Shorewood listed his rent at $2,955 per month, just over the threshold, which Shorewood said disqualified him from receiving any rent-stabilization benefits, according to the suit. However, Shorewood did not factor in the two free months of rent it offered Rampaul when he moved in, which made his actual rent roughly $2,533, well below the threshold, the lawsuit claims.

Shorewood disguised this lower rent by saying that the two free months it offered Rampaul were part of what it called an early occupancy agreement, which also required him to waive all of his rights to a rent-stabilized apart-

ment in order to occupy the unit, according to the lawsuit. The company did this same practice at more than 100 units in the building “solely to evade the requirements of the rent-regulations,” the lawsuit says.

The suit accuses Shorewood of violating New York’s rent stabilization laws and asks for an unspecified amount of money in damages. Newman Ferrara attorneys Lucas Ferrara and Roger Sachar filed the suit following an investigation from the housing watchdog group Housing Rights Initiative. The lawyers and watchdog group frequently work together on cases involving alleged 421-a violations, including ones that accuse landlords of manipulating rent concessions to get around the laws.

“The state of New York has granted landlords like Shorewood incredibly lucrative tax breaks in exchange for providing rent stabi-

lized leases,” said Michael Shank, organizing director at Housing Rights Initiative. “By failing to hold up their end of the bargain, these unscrupulous landlords are defrauding not just their tenants, but every taxpayer in the state.”

The suit names Davis himself as a defendant largely because a judge already rebuked Shorewood last year in a separate case for the practices laid out in the 421-a lawsuit, according to Housing Rights Initiative and court documents.

“A judge yelled at them for doing this,” Sachar said. “A judge told them, ‘You can’t use these license agreements,’ and they don’t care.”

421-a expired in June 2022

The controversial 421-a program provided developers with a tax break if they designated at least 30% of residential units in their projects as affordable. It expired in June 2022 and was replaced in last year’s state budget with the comparable program 485-x. Last year’s budget also included an extension of the completion deadline for projects already in 421-a.

“This case brings fuzzy math into focus and reinforces the need

for zealous oversight of those who benefit from taxpayer largesse,” said Ferrara, who also works as an adjunct professor at New York Law School.

Shorewood purchased the Archer Avenue site in 2018 for about $19 million, property records show. The 23-story, 318,000-square-foot building includes 315 apartments — 95 affordable and 220 market-rate — along with 179 parking spots and 22,000 square feet of ground-floor retail space, according to Shorewood’s website. It has seven available apartments ranging from $2,415 per month for a one-bedroom to $3,995 per month for a two-bedroom, according to Street-Easy.

Shorewood’s other projects include a 233-unit residential development at 1100 Myrtle Ave. in Bedford-Stuyvesant and a 164unit residential development at 34-20 Junction Blvd. in Jackson Heights. The company also recently bought 350 Grand Concourse in Mott Haven for $28.5 million, where it appears to be planning a mixed-use project. It did not respond to a request for comment on the 421-a lawsuit by press time.

1 Archer Ave. | COSTar

are way down, but traffic speeds are barely changed on some major north-south avenues.

Transit over cars: More people are riding the subway, bus and commuter rail lines than last year, but it’s unclear if congestion pricing deserves all the credit.

Cleaner air: Air pollutants are trending down, but weather patterns are also contributing.

Public attitudes have begun to shift, with drivers who were previously skeptical of the plan noting and taking to social media to tout faster travel times and less money spent on gas.

Namely, the “rebound effect” is currently underway, says Charles Komanoff, a New York-based transit economist — that is, the dust is still settling from the initial shock to the system, and people are choosing if they value time or money more in their new routines.

“Has

ness district, MTA data shows.

congestion pricing had an impact? Definitively, yes. The question is, is it going to last? That’s the

As a result, the MTA says evening commute times on river crossings have dropped between 10% and 30%. Travel times on most east-west two-way crosstown streets have also dipped — an average of 25% on Canal Street, for example. Some north-south avenues have seen smaller decreases, or essentially the same traffic levels. Ninth Avenue and Second Avenue have stubbornly resisted traffic reductions and have actually seen a bit of an uptick.

big elephant in the room.”

Ahmed Darrat, transportation engineer and chief product officer, Inrix

“The one thing we can say with certainty,” he said, “is that no two people have the same exact time and price sensitivities.”

Here’s what we know so far about how congestion pricing is performing on the core promises that led to its implementation.

Fewer vehicles on the road

In the first week of the toll, from Jan. 6 to Jan. 10, an average of roughly 539,000 vehicles entered Manhattan’s central business district, a more than 8% decrease in traffic compared to the same time in the previous year. The trend continued into the second week of congestion pricing but was less dramatic, at a 5% reduction, according to MTA data. (The above includes vehicles on non-tolled roads in the district, such as the FDR Drive and West Side Highway.)

On an average weekday, 490,000 vehicles have entered the congestion zone, and an additional 63,000 have stayed on the nontolled roads in the central busi-

DINING

From Page 1

at 1 Central Park West has two Michelin stars.

However, it could take up to 10 months after Bryant Park Grill closes for the new restaurant to open because extensive renovation work is planned, Bryant Park Corp.’s executive director, Dan Biederman, told a Manhattan community board committee on Jan. 27.

Jean-Georges is 25% owned by Seaport Entertainment Group, a public company that raised $175

Those takeaways come as little surprise to Bruce Schaller, a former deputy commissioner of traffic and planning at the city’s Department of Transportation, given the density of commercial vehicles on Manhattan thoroughfares.

“Stand on an avenue and count how many vehicles you think pay the $9 fee — they’re mostly taxis, Uber, Lyft, buses and trucks, right?” said Schaller, a transportation consultant. “The traffic mix is so heavily weighted toward vehicles that gotta brake. It slows things down.”

Schaller’s theory is supported by a Bloomberg analysis of more than 75,000 vehicles outside of that company’s 59th Street office, which showed that after congestion pricing took effect, the share of private vehicles dropped by 6 percentage points, yellow taxis increased by 7 percentage points, for-hire vehicles (like Uber and Lyft) fell by 1 percentage point, and commercial vehicles like vans, box trucks and large freight vehicles was basically unchanged.

Overall, more than half of all vehicles entering the congestion zone are passenger cars (57%), with an additional third being tax-

million in cash after it was spun off from a real estate developer last year. Pershing Square, a hedge fund run by billionaire Bill Ackman, has disclosed a 38% ownership stake in Seaport Entertainment.

Lease must be approved

Jean-Georges’ lease for the Bryant Park space hasn’t been signed yet, Biederman said, and must be approved by the city Parks Department and the New York Public Library. While well known and successful, not every Jean-Georges concept succeeds.

with bated breath. Without the cash, more than $16 billion in projects to upgrade the region’s mass transit would be at risk. Ongoing legal challenges and the Trump administration are a looming threat to the program.

Still, in early February the MTA will issue $500 million in shortterm bank notes to help kick off projects funded by the incoming toll revenue, ahead of a larger bond blitz in about a year.

More people on mass transit

is, or Uber and Lyft rides (36%). Small trucks make up just 4% of the vehicle mix entering the zone, and large trucks are only 0.5%, according to MTA traffic data.

Fewer cars means less gridlock; delays of more than three minutes have notably improved at several major intersections along Manhattan’s busiest streets, said Ahmed Darrat, a transportation engineer and the chief product officer of real-time traffic analytics company Inrix.

For instance, at the intersection of Park Avenue and 57th Street, almost 20% of vehicles during the week of Dec. 9th experienced more than three minutes of delays. The first week of congestion pricing, that figure dropped to 1%, according to Darrat’s analysis of Inrix data.

“Traffic is moving more smoothly,” said Darrat, who served in management and transportation advisory roles at Seattle’s DOT and mayor’s office. “Has congestion pricing had an impact? Definitively, yes. The question is, is it going to last? That’s the big elephant in the room.”

More money for mass transit

It’s unclear just how much revenue the toll has generated for the MTA so far because the authority is keeping a tight lid on those figures. Janno Lieber, the MTA’s chair and chief executive, said at a Jan. 29 board meeting that toll revenue is in the ballpark of what the authority anticipated. Less clear is how much toll evasion is eating into early returns. The authority has said it will publicly share those numbers at its February finance committee meeting and provide monthly toll updates in subsequent meetings.

Transit officials are waiting for the revenue generated by the toll

Bryant Park Grill is one of the nation’s highestgrossing restaurants, with $30 million in annual revenue.

The Tin Building by Jean-Georges, a food court in the South Street Seaport, produced a $25 million net loss over the nine months ending last Sept. 30, Seaport Entertainment disclosed.

While Bryant Park’s indoor restaurant space is under reno -

Early ridership data from the first weeks of congestion pricing indicates that at least some motorists are migrating to mass transit as travelers adjust their commuting habits.

For instance, throughout the second full week of the program, MTA ridership data shows that more people traveled on the subway, the bus and the Metro-North and Long Island Rail Road commuter rail networks each day compared to the same January week last year. But there are too many variables and day-to-day fluctuations (think weather and the gradual return to office) to know definitively at this point why that may be, Chris Pangilinan, the MTA’s vice president of paratransit, said at a Jan. 29 board meeting.

The impact on the city’s buses, however, is clearer. Over the past three weeks, bus speeds across Hudson and East River crossings have significantly sped up. The most dramatic amount of commuter time saved has occurred on routes traversing the Midtown Tunnel, said Pangilinan.

Weekday and weekend ridership has spiked on express buses and local routes entering or traveling within the zone. Overall, the uptick amounts to a roughly 1.5% weekday ridership increase on buses and a 7.9% jump on weekends, according to MTA ridership data.

The new toll, however, doesn’t appear to have deterred people from coming back to the office altogether. Return-to-office figures from research firm Kastle show that during the first three weeks of January, office occupancy averaged 53.5%, a slight uptick from 41.6% during the same weeks in 2024 and 41.7% in 2023.

Safer to drive

The early days of congestion pricing appear to have had a significant impact on collisions in

vation, it isn’t clear if an outdoor dining area run by the grill next to the library will remain open, Biederman told  Crain’s . But a watering hole called the Porch will stay open near the park’s Sixth Avenue entrance with minimal if any interruption, he said.

Ultimately it will be renamed Happy Monkey, following the theme of a Jean-Georges-owned establishment in Greenwich, Connecticut, that describes itself as a “fun-loving Latin restaurant.”

“The general design and feel is what we’ll port over to the Porch,” Matt Partridge, chief financial of-

parts of Manhattan. There have been just 21 car crashes so far this January combined for the neighborhoods of Midtown, Hell’s Kitchen, Murray Hill and the Theater District, according to a Crain’s analysis of city traffic data.

That’s a marked reduction from January 2024’s 74 crashes, though the data was incomplete for January as of press time. There were 99 crashes in January 2020, before the pandemic, city traffic data shows.

It’s also worth noting that congestion pricing launched Jan. 5, so the month of February will be the first full month of data transit officials and observers will have to draw on for takeaways.

Better air quality

Data suggests that Manhattan’s air is also at least a little bit cleaner. A Crain’s analysis of the air quality index — a scale created by the Environmental Protection Agency that measures how clean or polluted the air is in a given location – shows that on a daily basis, AQI improved by about 8% in January 2025, compared to the same days in 2024. For reference, air pollution was up about 5% between 2023 and 2024 during the same period.

The air quality improvement comes with a big caveat: the impact of weather patterns. A low-pressure system that helps flush out pollution has hovered over New York since December, says Mark Wysocki, former New York state climatologist and a senior lecturer of earth and atmospheric science at Cornell University.

“The low-pressure is sort of like opening the window in your house and allowing the fresh air to come in,” said Wysocki. “And then with the high pressure, it’s like closing the window and letting that air build up.” The real air pollution test, Wysocki said, will be in the summer, when New York tends to experience high-pressure systems that allow smog to linger.

Air quality instruments and the toll-collecting cameras will enable transit officials to measure those precise impacts as the year progresses. Komanoff, who created a predictive congestion pricing model 18 years ago with more than 160,000 equations to test reactions to the policy, will also have fewer theoreticals at long last.

“Only empirical evidence of how the world is actually running will reveal the price sensitivities,” said Komanoff.

ficer Seaport Entertainment, told the community board.

Bryant Park Grill is one of the nation’s highest-grossing restaurants, with $30 million in annual revenue, and its nearly $3 million in rent accounted for about a tenth of the park’s annual revenue, according to a financial statement from the park’s nonprofit operator. Biederman told the community board in December that a new restaurant could produce $40 million in revenue, which would produce an unspecified boost in income for the park, which is managed without city funding.

Toll scanners at 60th Street and Park Avenue | BUCK ENNIS

Hotel Association of NYC Foundation scores $991M city shelter contract despite drop in migrant arrivals

By Nick Garber

Mayor Eric Adams’ administration plans to award a new contract totaling nearly $1 billion to the hotel trade group that has sheltered migrants in city hotels since 2022. The planned award signals that the city expects to continue sheltering a large population of asylum seekers for years to come, even as declining numbers of new arrivals have prompted the Adams administration to reduce its budget for migrant care and close some large-scale shelters.

The $991.3 million pact with the Hotel Association of New York City Foundation would start retroactively on Jan. 1, 2025 and run through June 2026 — with the city reserving the right to renew it for three years into 2029. It builds on a previous $1.1 billion emergency contract that HANYC received in September 2022, which expired at the end of 2024.

Like the previous contract, the new one will cover a maximum of 14,000 hotel rooms, a spokesman for the Department of Homeless Services said — although not all rooms may be filled on a given night. The city has paid hotels an average of $156 per room — in line

with market value — and tries not to exceed paying about $185 a night, DHS has said. The city pays for each room whether or not it is occupied.

Previously known mostly as a trade group for the hotel industry, HANYC has taken on a leading role in the city’s migrant crisis — serving mainly as a middleman by funneling city rent payments to privately-owned hotels where tens of thousands of migrants have been housed to comply with the city’s right-to-shelter mandate.

The vast majority of the contract money goes straight to the hotels, but HANYC will continue to collect a $20,000 monthly fee from the city to cover administrative costs under the new contract, DHS spokes-

man Nicholas Jacobelli said.

The new award is a full-fledged contract, as opposed to the emergency contract that HANYC had been operating on through December. The potential three-year renewal is also new — under the emergency deal, the city could only extend the contract for a few months rather than renew it.

Vijay Dandapani, president and CEO of the Hotel Association and its associated foundation, said in an email that HANYC had been selected for the contract after bidding on an open solicitation that the city posted in October. He said he had “not seen or reviewed the details” of the new contract, which is expected to become official after

a Jan. 28 hearing. Jacobelli said in a statement that over 80% of the more than 220,000 migrants who entered the city since 2022 have left the city’s shelter system, thanks to the administration’s “whole-of-government response.” But more than 49,000 migrants remain in the city’s care.

“In order to continue providing shelter services to all in need, new arrivals and long-term New Yorkers alike, we must maintain adequate capacity to meet the demand for shelter,” Jacobelli said. “This contract will allow us to do just that by ensuring that emergency capacity is available now and in the future.”

Fewer migrants, lower budget

The city is currently housing migrants in 187 different facilities, including 13 large-scale relief centers, according to DHS. About 108,000 people are in the city’s shelter system overall, including a more recent influx of non-migrant unhoused people that has put a new strain on the system, Adams said when he unveiled his budget last month.

The shelter contracts have tech-

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nically been awarded not to the Hotel Association itself, but rather to its charitable foundation — a linked nonprofit established in 2019 with the stated goals of awarding scholarships to hospitality students and researching the industry’s policy priorities.

A July analysis by city Comptroller Brad Lander found that the city was paying a reasonable rate for the hotel rooms. But critics have raised questions about whether the Hotel Association enjoys a virtual monopoly over migrant shelters. More than 200 other vendors applied for the emergency contract, yet City Council contracts chair Julie Won said in 2023 that the solicitation “seemed to be written with HANYC in mind.”

All told, the migrant crisis has cost the city $6.9 billion through December, and the Adams administration has budgeted another $2.7 billion for the next fiscal year that starts in July — down from a previous estimate of $4 billion. City Hall said it revised its cost projection thanks to its own cost-cutting efforts and the declining number of asylum seekers entering the shelter system. The current migrant population of about 49,000 is down from a high of 69,000 in January 2024.

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With the migrant population declining, the city has closed some shelters, like this one at a Quality Inn in Springfield Gardens, Queens. | buCK eNNIS

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Senior Data Engineer – positions offered by WarnerMedia Services, LLC (New York, NY). Desgn & dev data platform to efficiently & cost effectvly address various data needs across the bus. Hybrid work schedule. Salary range is $179,982/yr - $192,000/yr, based on qualifications. Email resume to wbdi@wbd.com. Reference: 8111599

Associate Director (Apollo Management Holdings, L.P.– New York, NY) Mult. Pos. Avail. Offering salary range of $145,000 - $215,000 / year. Provide operational spprt in the prep. of the annual comp. budget & long-term business planning. Oversee the equity budgeting process & provide regular business segment, comp., & forecast updates. F/T. Position based in New York, NY; telecommuting permitted up to twice per week. Submit resumes to pkotakonda@apollo.com & reference Job ID: 8192577.

REQUEST FOR PROPOSALS

NYRA Bid: RFQ # 2025-0005, Cisco Support and Licensing

This is a Request for Quotation to solicit bids from qualified vendors to provide Support and Maintenance Renewals for its existing Cisco Hardware at Aqueduct Racetrack, Saratoga Race Course, and Hawthorne Data Center. M/W/DBE participation is encouraged.

The bid document, including specifications and requirements, may be obtained via an email to procurement@nyrainc.com¬ or please register as a vendor on NYRA’s bidding portal at no cost. www.bidnetdirect.com/new-york/nyra.

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Appl. for Auth. filed with Secy. of State of NY (SSNY) on 01/02/25. Office location: NY County. LLC formed in Delaware (DE) on 12/20/24. 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., P.O. Box 898, Dover, DE 19903. Purpose: Any lawful activity.

Notice of Qualification of AM LENDER LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 11/14/24. Office location: NY County. LLC formed in Delaware (DE) on 11/12/24. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co. (CSC), 80 State St., Albany, NY 122072543. DE addr. of LLC: CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with DE Secy. of State, 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

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242 EAST 75 LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 11/13/24. Office location: NY County. LLC formed in Delaware (DE) on 11/06/24. 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. DE addr. of LLC: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with DE Secy. of State, John G. Townsend Bldg., 401 Federal St. - Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

Notice of Qualification of 501 EAST 87TH, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 11/12/24. Office location: NY County. LLC formed in Delaware (DE) on 11/04/24. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to 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, DE Div. of Corps., John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

Notice of Formation of HARTFORD CT HOLDINGS LLC Arts of Org filed with Secy of State of NY (SSNY) on 10/7/24. Office Location: NY County. SSNY designated as agent upon who process shall be served and shall mail copy of process against LLC, to 156A EAST 83RD STREET, NEW YORK, NEW YORK 10028, USA. Purpose: any lawful act.

Notice of Formation of STEINWAY 111-43 NY PROPERTY, LLC Arts of Org filed with Secy of State of NY (SSNY) on 1/6/25. Office Loc: NY County. SSNY designated as agent upon who process shall be served and shall mail copy of process against LLC, to 111 West 57th Street, Unit 43, NY, NY 10019 .Purpose: any lawful act

SYLLABUS HEALTH LLC Arts. of Org. filed with the SSNY on 1/16/24. Office: New York County. SSNY designated as agent of the LLC upon whom process against it may be served. SSNY shall mail copy of process to the LLC, 392 Central Park W. Apt 18B, New York, NY 10025. Purpose: Any lawful purpose.

Orwashers’ original UES location sold to new owners for $14.6M

By Julianne Cuba

The Upper East Side building that has long been home to the original Orwashers Bakery has sold to new owners, records show.

Brooklyn-based real estate firm Peak Capital scooped up the 6-story building at 308 E. 78th St.,

The bakery has expanded to include a wholesale business and two other brick-and-mortar locations.

which houses the famed bakery and a restaurant on the ground floor and a few dozen apartments above, for $14.6 million, according to a deed that appeared in the city register Jan. 24.

Founded in 1916 by the Orwasher family after emigrating from Hungary, the eponymous

baked goods shop has become a New York institution known for its homemade breads, including rye and pumpernickel, as well as its Eastern European desserts such as rugelach, babka and black and white cookies. The business was passed down from generation to generation within the Orwasher family until 2008, when it was acquired by local small business owner Keith Cohen.

In addition to the original Upper East Side storefront between First and Second avenues, the bakery has expanded to include a wholesale business and two other brick-and-mortar locations, one on the Upper West Side that opened in 2016 and another in Roslyn Heights, Long Island.

Owned nearly two decades

The Orwasher family continued to own the building for nearly two decades after parting ways with the business. Abram Orwasher —

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Purpose: any lawful act

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grandson of the family patriarch, Abraham Orwasher — sold the property to Peak Capital, signing the deed himself, records show.

Peak Capital’s Alex Rabin and Juan David Gomez, both principals and managing partners at the Williamsburg-based firm, re-

Notice of Qualification of DAVANTI LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 11/11/24. Office location: NY County. LLC formed in Delaware (DE) on 03/21/22. Princ. office of LLC: 32 Ave. of the Americas, 26th Fl., NY, NY 10013. NYS fictitious name: DVTI NY LLC. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co. (CSC), 80 State St., Albany, NY 122072543. DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with DE Secy. of State, 1351 W. North St., Ste. 1014, Dover, DE 19904. Purpose: Any lawful activity.

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ceived a $9.3 million mortgage from a limited liability company called FCR DC JV Holdings as part of the transaction, documents show.

It is unclear what Peak’s plans are for the building’s 35 rental apartments or its 3,250-square-

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foot commercial space occupied by Orwashers and the restaurant Heidi’s House. Rabin said the bakery maintains a long-term lease in the building but declined to comment further. Orwashers did not return a request for comment by press time.

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308 E. 78th St. | buCK eNNIS

Gansevoort Square residential tower plan advances despite local councilman’s pushback

By Nick Garber and Eddie Small

Mayor Eric Adams’ administration is advancing plans to build a large residential tower on the cityowned site of Manhattan’s last meatpacking plant — but is contending with some unexpected opposition from the local City Council member.

On Jan. 29 the city released a request for proposals for its Gansevoort Square project, which calls for developers to build up to 600 housing units and groundfloor retail on the site, located on Little West 12th Street between 10th Avenue and Washington Street in the Meatpacking District. At least half of the residential units ideally would be permanently affordable, and the city has specified that they should be funded by the developer rather than public subsidies.

The city in October first announced the project, made possible after the operators of the century-old Gansevoort Meat Market agreed to end their lease early thanks to a $31 million buyout from the city’s Economic Development Corp. — a payment that the city did not mention at the time.

The Whitney Museum of American Art, which has the rights to most of the market site, will use it to expand its existing adjacent building, and the nearby High Line will construct a new maintenance building on another sliver of the block.

An additional 11,000 square feet will be set aside as public open space, owned and operated by the Whitney.

Proposals for the housing project are due April 30, and the EDC expects to choose the winning team by the end of the year. Officials then hope to see the land-use review process wrap up by the end of 2026 and the project completed by mid- to late-2027.

The housing site covers 10,000 square feet of the roughly 66,000-square-foot block. Because the city is giving itself a small section of the public site, a developer will need to build tall — more than 500 feet high, according to a December presentation by EDC — to accommodate the 600 homes that the city is requesting.

That has sparked early opposition from preservationists — complicating the political landscape for local Councilman Erik Bottcher, who will get final say on the

project once it reaches the City Council next year. The neighborhood group Village Preservation has come out against the project, labeling the tower “ludicrously oversized.”

Bottcher sought pause

On Jan. 28, the eve of the RFP’s release, Bottcher posted on X that he had asked the EDC to pause the solicitation, calling the planned tower “obviously out of scale for the Meatpacking District.” The stance was unexpected, given that Bottcher has typically aligned himself with pro-development causes.

“Is it possible to be both YIMBY while also feeling that 60 stories is a tad bit tall for the West Village? Asking for a friend,” he wrote cheekily in a follow-up post.

Bottcher’s office declined to comment further. His name was conspicuously absent from the Adams administration’s Jan. 29 press release celebrating the RFP, which instead featured supportive quotes from leaders of the Whitney, High Line and Gansevoort Market — as well as Adams’ omnipresent ally, Queens Assemblywoman Jenifer Rajkumar.

The meat market cooperative that occupied the building agreed to leave in August, in cooperation with the city. After nearly 100 years, its operators were looking for a more modern facility even before the city announced its housing plans.

The Whitney gained its right of first offer to expand onto the meat market site as part of its 2009 deal with the city that paved the way for its current home. Its new expansion building could be as big as 300,000 square feet — larger than its existing building — while the High Line’s new building would be about 30,000 square feet.

The city’s RFP says the development would follow the rules of the 485-x tax break that requires 25% of units to have rents below 60% of the area median income, which is about $93,000 for a family of four.

The program was included as a 421-a replacement in last year’s state housing deal, although it has been met with little to no enthusiasm from the real estate industry.

The city estimates the Gansevoort project will create 2,600 construction jobs, more than 160 permanent jobs and $940 million in economic impact. The Adams

The city wants to build a 600-unit residential tower at the current site of the Gansevoort Meat Market (foreground). The Whitney Museum and High Line will also construct expansion buildings on the site.

administration is billing it as part of the mayor’s “Manhattan plan,” laid out in this year’s State of the City address, that calls for building 100,000 new homes in the borough over the next 10 years.

The Adams administration has made increasing the city’s housing supply a top priority and notched a major victory on that front in December, when the City Council passed its package of zoning reforms known as City of Yes, meant to make it easier to build residential projects across the five boroughs. Adams also set a moonshot goal in late 2022 of building 500,000 homes in the city over the next decade and announced plans in last year’s State of the City address to preserve or build affordable housing on 24 public sites in 2024, a goal the city said early this year it had surpassed.

NY Red Bulls president predicts bright future for soccer in the U.S.

Marc de Grandpré, who started with the beverage company in 1999, now also serves as general manager of the team

Marc de Grandpré has long been obsessed with sports, but soccer was not always one of them.

Growing up in Quebec, his main athletic passions were hockey and baseball. He has fond memories of going to Montreal Expos games before the team moved to Washington, D.C., and remains extremely disappointed that a strike ended the Major League Baseball

“When

he offered me the job, he gave me a FIFA rulebook on soccer. So I read it, and now I know most of the rules.”

season in 1994, when the Expos were putting together a strong playo run.

“I was certain it was a conspiracy theory against Montreal,” he said. “ e league didn’t want a small-market team winning it all.” ese days, however, soccer plays a huge role in his life, given his job as the president and general manager of the New York Red Bulls. e franchise, one of the region’s two Major League Soccer teams, has had a strong run of success since it was founded in 1996, n-

ishing rst in the league three times and enjoying an ongoing streak of 15 consecutive playo appearances. De Grandpré hopes that the World Cup’s arrival in the U.S. next year will help the franchise and the sport grow in popularity.

De Grandpré rst joined beverage company Red Bull in 1999, just two years after the rm launched in the U.S. His job was to help market the energy drink in the Northeast, and although its brand is well known today, there was limited interest in it back then.

“We couldn’t get in anywhere,” de Grandpré said.

“We’re like, ‘What are we doing here? Is this going to work?’ And ultimately, we got one distributor. We got a few accounts around Boston College picking up, and then it snowballed.”

His shift from marketing the energy drink to running its namesake soccer team was abrupt and partly based on being in the right place at the right time. He was working in the company’s Hoboken o ce one day in 2006 when Red Bull co-founder Dietrich Mateschitz happened to walk in.

“He said, ‘All right, come with me.

We’re going to go to New York City.

We’re buying a soccer team,’” de Grandpré said. “And that’s how my story in soccer started.”

De Grandpré started running

By | Eddie Small

the team with virtually no understanding of the sport, which he freely admitted to Mateschitz. But the billionaire businessman, who passed away in 2022, was mainly interested in having someone he trusted run the team.

“When he o ered me the job, he gave me a FIFA rulebook on soccer,” de Grandpré said. “So I read it, and now I know most of the rules.”

Never should have left

De Grandpré took to the job quickly as a longtime sports fanatic, although he did leave the franchise and the company in 2008 to explore other opportunities, which included stints at Qualcomm and IMAX. He returned to the Red Bulls in 2014 and now says he probably never should have left in the rst place.

Soccer has yet to become as popular in the U.S. as it is in many other parts of the world, but de Grandpré remains optimistic that its pro le ultimately will rise.

ere is an immense amount of talent in the MLS, and he stressed that it is still very young compared to the country’s other pro sports organizations.

“We’re only in our 20s as a league,” he said, “so we’ve got a lot of runaway growth to do.”

Age 50

Grew up Mount Royal, Quebec

Resides Old Tappan, New Jersey

Education Bachelor’s in business studies, Southern New Hampshire University; MBA, Southern New Hampshire University

Family life De Grandpré has been married for almost 24 years, and he and his wife have two children, a 21-year-old son and a 17-year-old daughter.

Surf’s up He recently took up sur ng and says he is already “absolutely hooked” on the pastime. “It’s tough to surf in the winter, when it’s freezing, but I’m going to try to get out there,” he said.

Red bull rivals The Red Bulls see New York City FC, the Philadelphia Union and D.C. United as their main rivals in the league. A rivalry is also brewing with the Columbus Crew, a team de Grandpré says the Red Bulls “always seem to run into” in the playoffs.

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Marc de Grandpré

Marc de Grandpré at the New York Red Bulls stadium | BUCK ENNIS