Crains New York - July 9, 2012 - (Page 2)

STATS AND THE CITY RANGLING VOTES Rep. Charles Rangel appeared to have won the the 13th Congressional District’s primary, but as the final votes were tallied, the Harlem Democrat’s razor-thin margin became even slimmer, reflecting a major erosion of support for the 21-term congressman. FYI A News Corp. goes splitsville CRAINSNEWYORK.COM 44% of voters picked Rep. Charles Rangel 56% chose among five others RUNNING NUMBERS AVG. DOMESTIC RISE IN AVERAGE airfare through department store NYC in 1Q, up 6% sales for five over a year months ended earlier in June, vs. Source: a year earlier American Express Source: Financo Source: Census Bureau Source: Daily News GOOD SHOW The lights are shining bright on Broadway this year. 25.4% % increase in ticket revenues, y-o-y 10.4% 9.8% 11.1% 11.6% 12.5% Jan. 2012 Feb. 2012 March 2012 April 2012 May 2012 June 2012 Source: The Broadway League ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY THIS WEEK IN CRAIN’S IN THE MARKETS --------------------------------- 4 THE INSIDER ---------------------------------------------6 SMALL BUSINESS ------------------------------8 BUSINESS PEOPLE ---------------------------9 EXECUTIVE MOVES ----------------------------9 REAL ESTATE DEALS -------------------11 OPINION --------------------------------------------------------12 GREG DAVID--------------------------------------------13 FOR THE RECORD ---------------------------14 CLASSIFIEDS -----------------------------------------18 FROM AROUND THE CITY----23 NEW YORK, NEW YORK ----------25 SOURCE LUNCH --------------------------------26 OUT AND ABOUT ------------------------------27 SNAPS --------------------------------------------------------------27 REPORT THE ARTS City’s historical museums enjoy rebirth with major renovations, high-profile exhibitions. P. 15 CORRECTIONS Damien Cohen is the new chief marketing officer at law firm Holland & Knight. His name was misstated in the June 25 Executive Moves. Richard I. Lesser will become president and chief executive of the Boston Consulting Group, effective Jan. 1, 2013. He is currently the chairman of North and South America. These facts were misstated in the June 25 Executive Moves. Jim Goldman, chief executive of Godiva Chocolatier, said in regard to working with the hunger-relief organization Feed, “This is by far the most extensive thing we’ve ever done in terms of cause-related programming.” The quote was printed incorrectly in the June 25 “Sacking hunger globally.” vol.xxviii,no.28,July 9,2012—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. CON ED LOCKOUT HEATS UP. Temperatures and tempers reached a boiling point after negotiations between Consolidated Edison Inc. and the union representing many of its employees fell apart over pensions, health care and wages. The company locked out 8,500 members of the Utility Workers Union of America Local 1-2 and called on 5,000 managers to temporarily replace them. Despite a heat wave, only isolated outages were reported as of last Friday; the utility reduced power to a number of Brooklyn neighborhoods as a safety precaution. … SEE YA, DINGY OL’ PENN STATION. It may be makeover time for Penn Station. The Metropolitan Transportation Authority hired a firm to propose ways to optimize the flow of commuter traffic through Penn Station, beautify the hub and improve its commercial amenities. A report should be delivered at the end of the year. … BERNIE’S BRO MAKES A DEAL. Peter Madoff, younger brother to Ponzi schemer Bernard Madoff, copped a plea with prosecutors for his part in the epic fraud. Peter Madoff pleaded guilty to charges he doctored documents that helped conceal the fraud that wiped out close to $20 billion and ruined thousands of investors. But he said he was largely kept in the dark. “At no time did I suspect my brother had stolen from anyone,” he said. … SHOPPERS, REJOICE! After 25 years of wishing, Nordstrom’s dreams are coming true. The Seattle-based retailer is planning to open its first real department store in Manhattan—in a skyscraper to be built at 225 W. 57th St., two blocks south of Columbus Circle. The company took its time finding an ideal space with soaring ceilings and an open-floor plan. Extell Development Co. is slated to start on the site by 2013, with the store expected to open by 2018. … CITY’S ECONOMIC DEVELOPMENT CORP. ADMITS A DOOZY. New York City’s Economic Development Corp. said in a settlement that it illegally lobbied the City Council on behalf of projects dear to Mayor Michael Bloomberg’s redevelopment agenda. A three-year investigation found that the city’s economic development arm had worked with related groups like the Flushing Willets Point Corona Local Development Corp. and the Coney Island Development Corp. to appeal to lawmakers to support projects in Willets Point, Queens, and Coney Island, Brooklyn. State law prohibits local development corporations from lobbying. … A CITY COUNCIL TRIFECTA. The City Council, led by Speaker Christine HOORAY! THE 1,500-PERSON-CAPACITY McCarren Park Pool finally reopened in Brooklyn after 28 years of delays. OY VEY! THE POOL’S REOPENING WAS MARRED by scuffles with a lifeguard, police injuries and arrests. Undercover cops reportedly are standing by. Quinn, approved zoning changes to limit the size of bank branches and other large storefronts on the Upper West Side. The measure, opposed by many business groups, follows recent council votes to override mayoral vetoes of a “living wage” bill and an act that will create a board to judge the “social responsibility” of banks that seek to do business with —lauren elkies the city. STORIES TO WATCH THIS WEEK July 10: Business groups in Queens launch a six-month food, retail and tourism push. July 10 and 12: Second-quarter Manhattan officelease and residential rent data released. July 12: NYC Taxi and Limousine Commission is expected to vote for a fare increase. July 13: How many billions did traders at JPMorgan Chase lose? 2Q earnings may tell the tale. 2 | Crain’s New York Business | July 9, 2012 newscom $332 3% $3.3M No.3 VALUE OF U.S. flags imported from China in 2011 NY’S RANK in gambling revenue, with $5.4B, topping NJ by $1B fter long pooh-poohing the idea, News Corp. Chairman and CEO Rupert Murdoch announced that his media empire will split into two publicly traded companies: One will focus on entertainment, the other on publishing. Mr. Murdoch said the separation was not a way to insulate his highly profitable Fox film and television assets against fallout from the News of the World phone-hacking scandal or the broader publishing industry’s digital disruption. “No doubt there will be those naysayers who see the announcement as an indication of concern about the long-term potential of the publishing industry,” said Mr. Murdoch, whose most cherished newspaper titles include The Wall Street Journal and the New York Post. No doubt, indeed. In the nine months through March, News Corp.’s entertainment business saw revenues rise 9%, to $18.7 billion, and operating profits climb 23%, to $4.2 billion. Publishing revenues, meanwhile, fell 4%, to $6.2 billion, and operating profits plunged 22%, to $458 million. Mr. Murdoch, 81, insisted a new company would “finally highlight the relative strength” of his publishing titles. Investors will have to hold their breath, since the separation will take about a year to complete. Mr. Murdoch will serve as chairman of both companies. News Corp. exec Chase Carey will helm the entertainment venture. A publishing chief has yet to be named. http://www.CRAINSNEWYORK.COM

Table of Contents for the Digital Edition of Crains New York - July 9, 2012

Crains New York - July 9, 2012
Contents
In the Markets
The Insider
Small Business
Business People
Executive Moves
Real Estate Deals
Opinion
Greg David
For the Record
Classifieds
From Around the City
New York, New York
Source Lunch
Out and About
Snaps

Crains New York - July 9, 2012