Crains New York - November 12, 2012 - (Page 3)

IN THE BOROUGHS STATEN ISLAND UNDER WATER STREET— LITERALLY: A damaged storefront in lower Manhattan last week New York’s saddest biz strip Hylan Boulevard, an economic lifeline, is teetering on the edge BY ALI ELKIN Many waterlogged south shore Staten Islanders, for whom a car is a necessity, need a mechanic these days. But last week, they couldn’t find one at Guy’s Tire Buys on Hylan Boulevard. Its other store, on higher ground elsewhere on Staten Island, mainly sells tires and parts. But the Hylan shop does more complex repairs— at least before Superstorm Sandy. Last week, though, it was still without power. “We’re operating with half a facility,”said Frank Carbonaro,a parttime manager at the store. “We’re losing business terribly.” Hylan Boulevard, the 14mile-long comHYLAN BLVD.’s mercial artery length in miles that is the lifeblood of Staten Island’s MAX. SBA south shore, disaster loan took the brunt of Superstorm Sandy. The HEIGHT, in feet, storm didn’t just of debris piles fill homes and outside homes shops with seawater and sewage and push boats into backyards. It shut down the businesses that cater to the needs of daily life— supermarkets and salons, dry cleaners and delis. In the two weeks since Sandy struck, much of Hylan Boulevard remained closed for business. Larger stores—a ShopRite, a CVS— were able to reopen quickly, but the mom-and-pop shops that had thrived in recent years, providing services and employment for the island’s growing population, were in the dark last week, their steel shutters closed. Some may never come back. “We have a limited number of businesses, especially the middle- to large-size businesses,” said Linda Baran, president of the Staten Island Chamber of Commerce. “Our economy would take a huge hit, and we would hate to see them leave our borough.” The rising cost of Sandy could total $33 billion for the state. Lost economic activity for city businesses is estimated to be around $5 billion, according to the city comptrol- buck ennis HIT BIG Bleak Friday RETAIL NONPROFITS 14 10 $2M The holidays are already over for shops slammed by storm BY ADRIANNE PASQUARELLI Denise Carbonell and her husband, Derek Dominy, started prepping for the holiday retail season in May. They handcrafted jewelry, metal furniture, wall hangings and pillows in time for the rush of shoppers that normally arrives in November. Instead, a severe tropical storm called Sandy blew in, causing such extensive damage that their holiday business will be essentially wiped out. “It’s our stock and our equipment to make the things we do, our tools and molds,” said Ms. Carbonell, who is dealing with $150,000 worth of damage at her store, Metal and Thread, in Red Hook, Brooklyn. “We do more in those two months [November and December] than in the entire year.” Across the Northeast, retail experts estimate that stores lost about $4 billion in sales for the week that Sandy hit. Footwear seller Steven Madden Ltd., a public company with 100 outposts, took a $1 million hammering, for example, from the weeklong closures of nine local stores. Chief Executive Ed Rosenfeld said in a conference call that this translates to about one or two pennies off the company’s earn- Giving season was supposed to save charities. Until Sandy BY THERESA AGOVINO A few weeks ago, Citymeals-on-Wheels Executive Director Beth Shapiro wasn’t especially worried that donations were down slightly since July.The holiday giving season was approaching, along with the nonprofit’s 26th annual Women’s Power Lunch, its largest fundraiser, which was expected to raise $1.2 million for the charity. Then Superstorm Sandy bore down on the city and Ms. Shapiro’s anxiety rose. In the 10 days after the storm, donations to Citymeals, which delivers food to the homebound elderly, dropped about 50% when compared with the corresponding period last year. Meanwhile, the nonprofit gave out an unplanned 50,000 meals to those affected by Sandy, consuming $500,000 of its annual budget of $17 million. “Of course we wanted to help,” said Ms. Shapiro. “But we need money to prepare meals.” Citymeals is one of scores of charities that rallied to help those affected by the storm, donating food, money and other supplies. Dozens of other groups did the same, even as they were forced to cancel or postpone fundraisers due to the bad weather or out of respect for the storm’s victims. Now nonprofit executives are grappling with how they will recoup the money they lost. And as the traditional giving season begins, these executives can’t help but wonder if donors will be more likely to open their wallets to Sandy-related charities, leaving their organizations strugSee CHARITIES on Page 22 Items made by hand cannot be replaced ings per share—hardly a lethal blow. But scores of merchants like Ms. Carbonell who already struggle to compete with their larger chainstore rivals face far more meaningful losses. In addition to potential sales, many entrepreneurs lost merchandise, store fixtures, tools and infrastructure. Most See HOLIDAYS on Page 21 See SADDEST on Page 22 November 12, 2012 | Crain’s New York Business | 3

Table of Contents for the Digital Edition of Crains New York - November 12, 2012

THE INSIDER
IN THE BOROUGHS
IN THE MARKETS
BUSINESS PEOPLE
CORPORATE LADDER
OPINION
GREG DAVID
REAL ESTATE DEALS
REPORT: HEALTH CARE
THE LIST
CLASSIFIEDS
SMALL BUSINESS
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crains New York - November 12, 2012