Crains New York - May 13, 2013 - (Page 3)

IN THE BOROUGHS BROOKLYN For riders, G is for ‘gripe’ Trendy Greenpoint has grown, but, alas, G train service hasn’t Casual clothes trump suit and tie BY ADRIANNE PASQUARELLI On a recent weekday morning, Amy Nielson reached the G train stop on Nassau Avenue in Greenpoint, Brooklyn, and discovered that, as usual, the platform was packed. “The train some days—I’m like, oh my God, I have to move because this is unbearable,” said the sevenmonths-pregnant marketing executive. She swears that crowding has only gotten worse in the past three years, to the point where she often has to let one or even two trains go by before she’s able to climb aboard for her commute to midtown. In the trendy north Brooklyn neighborhood, where the population has skyrocketed and new shops and restaurants are drawing more day-trippers, the mass-transit infrastructure is struggling to keep pace. In the process, Greenpoint’s sole subway line, the G, is drawing more than its share of ire. Locals lambaste it as the “Ghost train” for its all-too-rare appearances, or “Garbage train” for its lack of upkeep. Riders also complain about mysterious gaps that seem to With economy looking up, men dare to wear bright colors and try new styles BY ADRIANNE PASQUARELLI The Dow has topped 15,000, unemployment has hit a five-year low and men are buying clothing—just not suits. Forget three-piece wool ensembles and polished cap-toed shoes: Colored jeans, T-shirts and shawl cardigans are the new uniform du jour as men feel more confident about the economy than they have in years. “Our denim business has been on fire,” said Tom Ott, senior vice president and general merchandise manager for men’s, home and gifts at Saks Fifth Avenue. “What’s really driving it is fabric innovation and color.” With the recession in the rearview mirror, men are feeling more relaxed, and their duds are showing it. Two years ago, as they dressed to impress, fancy suit and sport coat purchases grew at a robust pace, generating around $4.7 billion in U.S. sales. Yet now, at $4.5 billion, the category is on the wane; casualwear is picking up the slack. “In a depressed job market and suffering economy, dressing up helped men stand out,” explained Michael Fisher, trend director of menswear and lifestyle See CASUAL on Page 20 at forecasting firm Fashion Snoops. Now, uniqlo See GRIPE on Page 10 bloomberg news How painful would moving arena be? Depends on how one defines MSG BY AARON ELSTEIN Last week, the Department of City Planning argued that Madison Square Garden had better pick up and move in 15 years to clear the way for a new Penn Station. Which raises the question: Is that enough time for MSG management to recover the nearly $1 billion it is spending to renovate the arena? The answer depends on how one defines Madison Square Garden. Looked at solely as the home of the New York Knicks and Rangers, numerous concerts and other events, 15 years is nowhere near enough time to earn back the cost of an ambitious three-year project that essentially rebuilt the arena from the Recouping $1B renovation cost could take 40 years—or five inside out. But consider the Garden to be the diversified media company that sells for around $60 a share on Nasdaq, and it becomes clear that renovation costs can be recovered in as little as five years, thanks to the vast revenue streams generated by the MSG Networks. The questions of what the Garden is, and how quickly it makes money, are more than an academic exercise now that Mayor Michael Bloomberg’s administration seems inclined to extend for only 15 years the special permit that allows MSG to operate above Penn Station. Replacing the Garden and rebuilding the train station will be all the more expensive if the city accepts MSG management’s argument that it would be owed significant compensation so it can recover the $980 million cost of renovating its building, a project undertaken without any government support or subsidies. “We have a right to a return on our investment,” MSG Chief Executive Hank Ratner said at a recent meeting with Crain’s. MSG wouldn’t comment for this article. Laura Martin, an analyst at STATS AND THE CITY by Emily Laermer BULLS RUN RAMPANT: On May 7, for the first time, the Dow Jones industrial average closed above 15,000. $23.9B 15.4% 11.1% DOW’S GAIN so far in 2013. The current industrial average is more than double the 2009 low of 6470 during the financial crisis GAIN for Nathan’s Famous on May 7, the region’s largest, to $49.59 per share NYSE MEMBERS’ 2012 profit, more than triple 2011’s level $121,890 431,600 $25.8B AVERAGE Wall Street bonus in 2012, up 9% from 2011 NUMBER of Wall Street jobs in March, down 1.3% from a year earlier JPMORGAN CHASE’s 1Q revenue—highest on the Street—down 3.7% from a year earlier Sources: NYSE Euronext, Bloomberg, WSJ Market Data Group, New York state comptroller, Department of Labor, companies istockphoto Uprooting the Garden ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY See UPROOTING on Page 18 May 13, 2013 | Crain’s New York Business | 3

Table of Contents for the Digital Edition of Crains New York - May 13, 2013

Crains New York - May 13, 2013
IN THE BOROUGHS
IN THE MARKETS
REAL ESTATE DEALS
THE INSIDER
BUSINESS PEOPLE
OPINION
STEVE HINDY
GREG DAVID
SMALL BUSINESS
REPORT: TECHNOLOGY
THE LIST
CLASSIFIEDS
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crains New York - May 13, 2013