Crains New York - May 28, 2012 - (Page 8)

THE INSIDER by Jeremy Smerd and Shane Dixon Kavanaugh N Behind Booker’s Bam bashing ewark Mayor Cory Booker (below) may have had his own political interests—and those of his backers—in mind when he took a stunning swipe at the re-election campaign of President Barack Obama May 20, calling its attacks on Mitt Romney’s private equity background “nauseating.” Mr. Booker, a Democrat and professed Obama backer, has rarely kept his sights on higher office a secret. Some speculate that the Brick City mayor could run for governor of New Jersey in 2013 or eventually for the Senate seat held by Frank Lautenberg, who is 88. Either way, insiders said, Mr. Booker will need the continued help of financial industry supporters who have showered him with cash since he’s been in office. “The reality of today is that people running for higher office must look to Wall Street for financial support,” said political consultant Basil Smikle Jr., who ran for the New York state Senate in 2010 with newscom backing from that sector. “These guys have a vested interest in who wins significant positions in government. And that’s not a bad thing.” Mr. Booker has made no bones about supporting big business. Since his election in 2006, he has raised hundreds of millions of dollars for Newark’s schools, parks and police from some of the country’s wealthiest executives. Top Wall Street investors, meanwhile, have donated heavily to his political campaigns, to a nonprofit he founded called Newark Now and to a federal political action committee he launched last year. Despite a rising national profile, Mr. Booker has vulnerabilities. Violent crime, although it has dipped since January, still plagues Newark. Unemployment in the city hovers around 14%, nearly five points higher than when the mayor assumed office. One of Mr. Booker’s top deputies was accused last year of extortion and funneling money into the mayor’s nonprofit. This month, a story by The StarLedger revealed that missteps by the mayor and his office during negotiations with the New Jersey Devils left the city on the hook for millions of dollars. One of his critics said bluntly, “There’s a national illusion of Cory Booker that doesn’t exist if you go to Newark.” SENATE DEMOCRATS Dim prospects DEMOCRATIC INSIDERS concede that the party’s prospects of recapturing the state Senate have become grim. The cash-strapped minority would have to hold on to two seats targeted by Republicans and pick up at least two more. It would then have to persuade a splinter group of four Democrats, led by Bronx Sen. Jeff Klein, to rejoin the conference. “It looks pretty bleak,” said an operative who helped Democrats take the Senate in 2008. “There’s no way back to the majority without Jeff’s crew.” That assumes Queens Sen. Joseph Addabbo beats back a spirited challenge by Republican Councilman Eric Ulrich. Assemblyman George Latimer must also win an open Senate seat against developer Bob Cohen in Westchester County. In 2010, Mr. Cohen narrowly lost to Democrat Suzi Oppenheimer, who is retiring. While both districts lean Democratic, Mr. Addabbo and Joseph Addabbo Mr. Latimer are not prodigious fundraisers. Their opponents are expected to be well financed. “Those two races will cost the Senate Dems a million bucks, easily,” said a Democratic insider. That will suck resources from races they might otherwise win, such as the one to replace retiring Republican Sen. James Alesi in Monroe County. Senate Democrats’ central war chest held just $212,000 in January, but owed $1.5 million. Senate Republicans’ main account had $5 million. Still, Democratic Senate Campaign Committee Chairman Michael Gianaris insisted his party will have millions by the fall to defend the two vulnerable seats while playing offense in up to six other races. He said his conference is banking on a strong turnout for Barack Obama in the presidential election. “The Republicans can gerrymander and use their deepMichael Gianaris pocket special interests,” he said. “But the demographic tide is coming down on their heads.” Waste carters seek rate hike Rate caps that limit what commercial waste carters can charge in the city were last raised in 2008, ending 11 years of status quo. Haulers, who don’t want to wait that long for the next increase, have been gingerly cajoling the Business Integrity Commission for months. Last month, they requested a “fuel surcharge” to offset rising gas prices, but Commission Chairwoman Shari Hyman wasn’t fooled. She said a multiagency team is studying the rate cap and would finish this summer, at which time she will make a recommendation to City Hall. Somewhat ominously for the carters, she told them that raising the cap would affect all New Yorkers, meaning that price increases would be passed along by businesses. administration, to find new ways to make New York a better place.” In Liu of taxes City Comptroller John Liu used his report last week on income distribution to argue for tax increases on the wealthiest 1% of New Yorkers. But the report omitted data on taxes. His office later said city filers with at least $1 million in income—who account for less than half of 1% of filers—earned 33% of city income and paid 36% of all city personal income taxes in 2009. In 2008, the top 1% of city filers— those earning more than $500,000—hauled in 41% of state income and paid 52% of state income taxes. Meet & Mingle WITH THE HONOREES AND THE SMALL BUSINESS COMMUNITY Crain’s welcomes noted entrepreneur and digital economy visionary Esther Dyson as the keynote speaker for this year’s event. Crain’s 2012 Top Entrepreneur Honorees: -- Clint White, President; Sean Keepers, Creative Director; and Simona Tanasescu, Vice President; WiT Media. -- Charles Feit, CEO; OnForce Solar, Inc. -- Laura Geller, President and CEO; Laura Geller Makeup. -- Matt Blumberg, Co-founder, CEO, and Chairman; Return Path. -- Joe Meyer, President and CEO; Chinedu Echeuro, Founder; HopStop. -- Tony Shure and Colin McCabe, Co-founders; Chop’t Creative Salad Co. DATE: Monday June 18, 2012 PLACE: Sentry Centers 730 Third Avenue TIME: Networking Breakfast: 8:00-8:30AM Program: 8:30-9:30AM Shake-up helps casino bill Gov. Andrew Cuomo’s takeover of the New York Racing Association board removes an obstacle to a constitutional amendment allowing Las Vegas-style casinos, said Gary Greenberg, a part-owner of Vernon Downs in Oneida County. The association’s problems include shortchanging bettors $8 million in winnings and an alarming increase in horse deaths at Aqueduct. “They were a sore eye to the public,” said Mr. Greenberg. “You cannot have the problems NYRA was causing when you are trying to get a referendum passed for non-Indian casinos in 2013.” buck ennis Burden to move on Talk of Amanda Burden fishing for a job in the next administration grew louder after a May 20 New York Times profile mentioned she could stay on. But Ms. Burden (right), who is close to the leading mayoral contender, City Council Speaker Christine Quinn, indicates she will not remain the city’s planning czar. “[Mayor] Michael Bloomberg gave me an extraordinary opportunity to help shape the city over this past decade,” she told Crain’s. “In 2014, it will be time for me, and for a new REGISTER TODAY: www.crainsnewyork.com/events-smallbiz2012 Or call the Events Hotline: (212) 210-0739. For sponsorship opportunities, please contact Trish Henry at thenry@crainsnewyork.com or (212) 210-0711. 8 | Crain’s New York Business | May 28, 2012 PLATINUM SPONSOR: For daily political and government news, subscribe to CRAIN’S INSIDER @ www.crainsnewyork.com/insider http://www.crainsnewyork.com/events-smallbiz2012 http://www.crainsnewyork.com/events-smallbiz2012 http://www.crainsnewyork.com/insider

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