Crains New York - April 1, 2013 - (Page 1)

NEW YORK BUSINESS PAGE 6 WWW.CRAINSNEWYORK.COM APRIL 1-7, 2013 PRICE: $3.00 REBUILDING NY Building unions labor for traction Storm chasers follow Sandy Despite pickup in construction activity, developers still have edge in negotiations As lawsuits over insurance pile up, attorneys swoop in for their piece of the pie BY DANIEL GEIGER In another sign of a rebound in the housing market, the Zeckendorf brothers announced in December that they will build a 44-story, $500 million condominium tower across from the United Nations. Predictably, given the location and the siblings’ track record as arguably the most successful ultrahigh-end residential developers in the city, the units are expected to fetch tens of millions of dollars apiece. What is surprising, though, is that those apartments will be built using a special package of SAVINGS work-rule and wage DEVELOPERS concessions from may reap by electing to use construction unions nonunion that is expected to contractors shave as much as 20% off labor costs—a savings of millions of dollars. Such agreements became common during the recession. Their continued use as the market recovers, especially by developers of some of the city’s priciest projects, marks a departure from past recoveries, when labor costs typically have bounced back with a vengeance to drive construction costs to new highs. This time around, early indications are that the old, notoriously volatile pattern may be changing— a shift that most observers credit to the striking rise of nonunion contractors in recent years. “A [developer] today has options,” said Louis Coletti, president of the Building Trades Employers Association, a group that represents union contractors. Instead of simply “take it or leave it,” these days developers of all but the BY MATT CHABAN At the mouth of the Lincoln Tunnel, in plain view of 52,000 daily commuters, stands a giant LCD billboard with a picture of a crumbling home. “Not getting paid?” the copy reads. “Call 855-21-SANDY.” “This is personal,” explains Marty Ged, a partner at Boca Raton, Fla.based law firm Ellis Ged & Bodden. Mr. Ged was born in Point Pleasant Beach, N.J, a block from the boardwalk, in the house his grandfather bought after World War II. Now the house is condemned. A week after Superstorm Sandy, Mr. Ged was back in his home state after a decade practicing law in Florida. He has already set up two offices in Jersey, with another planned for Staten Island. 30% NEWSPAPER Cash Float crain compoposit image: istockphoto, newscom See UNIONS on Page 24 FPO See LAWYERS on Page 22 The story of a secret warehouse that kept city stocked with greenbacks during storm BY AARON ELSTEIN Jamie Lopez wasn’t as alarmed as some people were when Superstorm Sandy slammed New York. He’d seen his share of crises during multiple tours of duty in Iraq and Afghanistan. Still, the timing could have been better. The storm struck on just his third day as executive director for Northeast operations at Garda, a Montrealbased security and logistics company responsible for keeping 5,000 of the area’s See CASH on Page 22 ATMs filled with cash. “I remember thinking this was my REPORT HEALTH CARE Hospitals face financing crisis as they retool for Obamacare PAGE 13 AIMING TO SETTLE: Wilkie Farr & Gallagher partner Mitch Auslander said insurers want to stay out of court. THE LIST Highest-paid hospital executives and employees PAGE 16 buck ennis VOL. XXIX, NO. 13 ® newscom CRAIN’S CHRISTINE QUINN gives biz the chills with sick-leave bill THE INSIDER http://www.crainsnewyork.com

Table of Contents for the Digital Edition of Crains New York - April 1, 2013

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

Crains New York - April 1, 2013