Crains New York - July 23, 2012 - (Page 2)

STATS AND THE CITY HARD TIMES REDUX After topping out at 10% in the thick of the recession, then beginning a steady decline, the city’s seasonally adjusted jobless rate began to rise last summer. In June, it hit a threeyear high—nearly 2 percentage points above the national average. 11% 10% 9% 8% 7% 6% 5% FYI A CRAINSNEWYORK.COM 10% 8/08 9/09 2/10 6/12 Source: NYS Department of Labor Daffy’s ducks out buck ennis newscom RUNNING NUMBERS Source: Metropolitan Museum of Art RECORD ATTENDANCE at the Met Museum in fiscal year just ended 6.3M 156 Source: Academy of TV Arts & Sciences SATURDAY NIGHT LIVE’S total Emmy nominations, a record REQUESTS for RISE in New York H1-B immigration metro area visas for NY tech consumer prices jobs; 42% of total in June, vs. a year requests earlier Source: Brookings Institution Source: Bureau of Labor Statistics 22K 1.6% GOOD BOUNCE After two quarters of declines, venture capital funding for startups in the state recovered a bit in the second quarter. $831M $539M $568M $500M $336M nother longstanding local retailer has bitten the dust. Last week, discount chain Daffy’s, based in Secaucus, N.J., announced that after more than half a century in business, it had reached the end of its financial rope. Rumors of trouble at Daffy’s had been rife in retail circles for months. Most recently, reports surfaced that Daffy’s was facing heavy pressure from rivals including Century 21 and T.J. Maxx— not to mention flash-sale websites like Gilt Groupe—and was struggling to pay its vendors. Chief Executive Marcia Wilson, daughter of late founder Irving Shulman, had been searching for a financial partner for two years before time finally ran out. All of the company’s 19 stores, including eight in Manhattan and one in Philadelphia, are expected to close by October. Among those will be the chain’s big new flagship store in the old New York Times Building on West 44th Street. Daffy’s demise comes on the heels of New York discounter Syms Corp.’s downfall. After taking on a heavy debt load via its purchase of struggling Filene’s Basement in 2009, and facing mounting competition and a sagging economy, Syms pulled the plug last fall. —adrianne pasquarelli 2Q 2012 Source: CB Insights 2Q 2011 3Q 2011 4Q 2011 1Q 2012 ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY THIS WEEK IN CRAIN’S IN THE BOROUGHS-------------------------- 3 IN THE MARKETS ----------------------------------4 THE INSIDER -----------------------------------------------6 SMALL BUSINESS ------------------------------9 OPINION --------------------------------------------------------10 FROM AROUND THE CITY----12 REPORT: REAL ESTATE -------------13 REAL ESTATE DEALS -------------------18 FOR THE RECORD ---------------------------19 CLASSIFIEDS -----------------------------------------20 NEW YORK, NEW YORK ----------25 SOURCE LUNCH --------------------------------26 OUT AND ABOUT ------------------------------27 BUSINESS PEOPLE Sales of vegan goods at Denise Mari’s Organic Avenue are nearing $20 million. P.7 CORRECTIONS Con Ed offers both a defined-benefit pension plan and a 401(k). This information was misstated in Greg David’s July 9 column, “Con Ed dispute sheds light on labor reality.” The Intrepid Sea, Air & Space Museum held nine “Operation Sleepover” events in 2009, the program’s first year, for 1,500 guests. It will host 20 sleepovers this year, bringing in approximately 4,000 guests. This information was misstated in the July 9 “Museums dream big with sleepovers.” The name of the Chicago Public hotel’s room-delivery service is Public Express. This information was misstated in the July 16 “Ian Schrager goes Public.” City Opera’s unions threatened to picket outside General Manager and Artistic Director George Steel’s home. This information was misstated in the July 16 “Fat lady? She’ll have to wait.” The name of Italy’s Sorgente Group was misspelled in the July 16 “A jewel of a building.” Robert White’s company is Real Capital Analytics. The name was misstated in the July 16 “Building on a dream.” Insperity is a human-resources provider. This information was misstated in the July 16 “How to get big-firm perks.” vol. xxviii, no. 30, july 23, 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. BIKE-SHARE PROGRAM IS M.I.A. The will put another $1 billion on taxpaylaunch of the city’s much-ballyhooed ers’ tab.The funds’ returns on their inbike-share program has been put off vestments were expected to reach 8%. until August, a month after its sched- Oops turns out they made less than uled debut. The so-far-invisible, a quarter of that: 1.7%. That disapCitigroup-sponsored program aims pointment comes on the heels of two to put 10,000 rentable sets of wheels excellent years: The funds returned on the streets within a year, but the 23% in 2011 and 14% in 2010,accordTransportation Department is cur- ing to Comptroller John Liu. … LIrently not talking firm dates.The pro- BOR’S LABORS. Everyone agrees that gram appears to have “hit some snags,” the process of setting the London insaid Councilwoman Letitia James. terbank offered rate, or LIBOR, is Friday, Mayor Bloomberg blamed deeply flawed, if not criminal. But it faulty software. … EMIGRANT SELLS looks increasingly as though it may be BRANCHES. Emigrant Savings Bank’s easier to fix it than totally trash it. owner,the Milstein family,is selling off With investigators around the world all but two of the still trying to figure bank’s 32 branches to out which banks Apple Bank for Savcheated and when, reings. The $10 billionforms may take some asset Emigrant will time. … THE DAY THE keep a location on TALK STATION DIED. East 42nd Street and No more chatter on one in the Hudson radio station FM Valley, plus two online News 101.9. Under operations. … EMowner Randy PLOYERS CATCH A Michaels, the former —Rev. Al Sharpton, on WORKERS’ COMP rock station did a oneSylvia’s Restaurant, whose BREAK. New York year spin as New founder, Sylvia Woods, companies will pay York’s only all-news died last week less on their workers’ FM station. Now it’s compensation premidone.“I felt it was time um rates for the first time since 2008. to make a change,” Mr. Michaels said. Rates to policyholders will actually Today, the name is New Rock 101.9, drop 1.2% in the upcoming year. The and alternative rock is what it offers. state’s compensation insurance rating … CON ED’S HEAT WAVE. The Con Ed board recently recommended a cost in- lockout of 8,500 unionized workers crease, but the governor opposed the slogged through a third week amid move.… PENSION PAIN. Underperfor- both soaring temps and tempers. Con mance by the city’s five pension funds Ed responded to a union request to in the fiscal year that ended June 30 regulators to end the lockout with a HOORAY! WOODBURY COMMON IN THE BRONX? A Manhattan developer is hoping to build an outlet mall in the Bronx. It would be the first such Woodbury Common-type shopping center in the city. Keep your credit cards handy. OY VEY! LINSANITY MEETS CO$TLY END. The New York Knicks let Jeremy Lin walk rather than match a $25 million offer from Houston. The move wiped $36 million off the value of Madison Square Garden Co.’s stock last week and sent some team sponsors to the exits. ‘More than a restaurant, it has been a meeting place for black America.’ 62-page salvo insisting it had everything under control,courtesy of a contingency plan that has 5,000 managers working 12-hour shifts. No way, the union fired back. … R.I.P., QUEEN OF SOUL FOOD. World-famous Harlem restaurateur Sylvia Woods died at age 86 after suffering from Alzheimer’s. The Queen of Soul Food, Ms. Woods founded Sylvia’s Restaurant on Malcolm X Boulevard in 1962 and owned it until her death. —lauren elkies and daniel massey STORIES TO WATCH THIS WEEK July 24: Forum on city’s plan to ban sales of soft drinks larger than 16 oz. at certain food locales. July 25: City Council slated to vote on New York University’s campus expansion. July 25: Planning Commission holds a public meeting for Chelsea Market’s proposed expansion. July 26: The New York Times Co.’s second-quarter earnings report to be released. 2 | Crain’s New York Business | July 23, 2012 http://www.CRAINSNEWYORK.COM

Table of Contents for the Digital Edition of Crains New York - July 23, 2012

Crains New York - July 23, 2012
Contents
In the Boroughs
In the Markets
The Insider
Business People
Small Business
Opinion
From Around the City
Report: Real Estate
Real Estate Deals
For the Record
Classifieds
New York, New York
Source Lunch
Out and About

Crains New York - July 23, 2012