Crains New York - May 28, 2012 - (Page 2)

IN BRIEF AS SECRETARY OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT IN THE Clinton administration, Andrew Cuomo helped create the Upper Manhattan Empowerment Zone, funded with a $100 million commitment each from the city, state and federal governments. The feds paid up, and the city has made good on most of its commitment. The state, however, has not. In the past few years, funding for UMEZ, also a signature initiative of Rep. Charles Rangel, has slowed to a trickle. According to the state Division of the Budget, the state owes $25 million and has paid just $4.4 million over the past 10 years. Now that he’s governor, Mr. Cuomo is “working to fund the balance of the state’s commitment,” a budget spokesman said. A MANHATTAN JUDGE PUT OFF FOR TWO WEEKS A SUIT BY THE OPERATING ENGINEERS’ union that sought to block the city from implementing new crane licensing requirements. State Supreme Court Judge Paul Wooten last week set June 6 as the day for oral arguments on the request by International Union of Operating Engineers Local 14-14B for a temporary restraining order preventing the rules from being implemented. The operating engineers argued that new crane licensing rules would “unlawfully dilute safety standards.” The new rules followed several high-profile crane collapses, but the dispute has as much to do with money and power as safety. The new rules could break Local 14’s monopoly by allowing out-of-town operators to get licensed here, potentially reducing labor costs. Developers and the city have said the new rules would increase safety. TALENT SCOUT: Lynne Meadow has nurtured artists like playwright Terrence McNally at the Manhattan Theatre Club. buck ennis BY THE NUMBERS Weekly shift of the city’s economy SOCKED IN Yes, home prices in March saw their biggest gains in 20 years, but don’t count on that continuing. Job figures are weakening, and ditto for data on China, Brazil and certainly Europe. Broadway’s real star this theater season Lynne Meadow’s 40-year run at MTC BY MIRIAM KREININ SOUCCAR The Tony Awards aren’t until June 10, but the Manhattan Theatre Club already feels like a winner. All four of the nonprofit theater company’s plays this season were nominated in a major Tony category—either best actor, best play or both—the most nods it has had in years. Leading the pack are Venus in Fur, the daringly dark comedy that is nominated for best play and best actress, and Wit, nominated for best revival and best actress for its star, Cynthia Nixon. Although Lincoln Center Theater’s hit Other Desert 3.57% $6.9B 2.4% RISE IN NYC’S major crimes for the year to date, as of May 13 Source: NYPD Source: NYS comptroller RISE IN NY STATE TAX collection in April, AREA’S April consumer price down 4.7% index vs. from a year a year earlier earlier Source: Bureau of Labor Statistics Cities scored five nominations and is favored to win best play, according to theater wags, Manhattan Theatre Club had more nominations this year for shows in which it acted as the lead producer than any other nonprofit theater group. “Every show we selected and produced was nominated, and that’s a really good track record,” said Lynne Meadow, artistic director of MTC. “We’ve had many good seasons,but we’re really in a moment here.” There couldn’t be a more fitting season for Ms. Meadow to shine. Next month, she celebrates her 40th anniversary in her role, making her one of the longest-reigning artistic directors in theater today. She’s also one of the few women in such a leading role in the industry. Ms. Meadow runs the company with See BROADWAY on Page 20 GRADUATION Last year, a larger percentage of high schoolers got their diplomas in Staten Island than in any other borough. 75% High-school graduation rate 69% 67% Kids wear out retailers High costs, low margins force many chains to rethink their plans BY ADRIANNE PASQUARELLI The kids are all right. But the companies that make their clothes might not be. Earlier this month, American Eagle Outfitters Inc. announced it would shutter its 22-store kids’ division, 77kids, after just four years in business. With more and more firms, from high-end designers like Stella McCartney to fast-fashion chains like Forever 21, launching their own children’s lines, it’s become nearly impossible to make a profit. “There are a lot of players versus five years ago,” said Lisa Walters, retail principal at consultancy Retail Eye Partners. “It makes it very difficult for a new player to enter.” For the first three months of the In addition to American Eagle year, apparel and accessories for chiland Ms. McCartney, a host of redren through age 14 generated tailers including Aéropostale Inc., $9 billion in U.S. sales, but that repJ.Crew Group Inc., Lululemon resented just a 1.3% increase over and Marc Jacobs have expanded the year-earlier period, accordinto the pint-size category since ing to market research firm 2006. To stand out, the players NPD Group Inc. must continually differentiate American Eagle decided with design and price. In addi77kids was simply not worth the tion to dealing with the most effort.Last year,the division had fickle of customers, the costs after-tax losses of $24 million on of operating a children’s line sales of $40 million—1.3% of can be high and the margins, the company’s total 2011 sales. It well, small. was enough for Chief Executive “It’s hard to make money in the Robert Hanson, who joined the Pittskids’ business,” said Patty Leto, senburgh-based company in January, to ior vice president of merchandising pull the plug. for children’s wear at trend forecastRetail analysts noted that the ing firm the Doneger Group. youth brand, which may now be PETITE LUXURY: “The cost to make a garment, sold completely or partially to a From designer whether it’s an adult’s top or a kid’s Stella McCartney’s third party, was inconsistent, waSee KIDS on Page 7 kids’ line. top, is pretty much the same.” 64% 60% Staten Island Queens Manhattan Brooklyn Bronx Source: County Health Rankings & Roadmaps ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY CORRECTION Fifth & Pacific said its Adelington private jewelry label is not up for sale. Its status was misstated in the May 21 “Liz wears out welcome.” vol. xxviii, no. 22, may 28, 2012—Crain’s New York Business (issn 8756-789x) is published weekly, except for double issues the weeks of July Fourth, Labor Day and Christmas, by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at New York, N.Y., and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved. 2 | Crain’s New York Business | May 28, 2012

Table of Contents for the Digital Edition of Crains New York - May 28, 2012

Crains New York - May 28, 2012
Contents
Kids’ Lines Behave Badly for Retail Industry
City’s Scarcest Resource These Days? Engineers
Taxi! Follow That Cab’s Fare Increase
Nasdaq Attack the Facebook Fallout in the Markets
Bronx Retail Strip Goes From Famously Bad to Bustling
It’s the Return of the Automat
The Insider
Real Estate Deals
Opinion
For the Record
The Week on the Web
Classifieds
Taking Urban Farming to a New Level
Anne Fisher: Manufacturing Jobs Make a Comeback
Hot Jobs
Movers & Shakers: Russian Banker Shares His u.s.plans
Gael Greene: Fighting the Crowd at Primola
The Week Ahead

Crains New York - May 28, 2012