Issuu

STAYING THE COURSE Javits Center keeping some restrictions PAGE 3

ASKED & ANSWERED Combating construction workers’ suicide crisis PAGE 11

CRAINSNEWYORK.COM

MAY 31, 2021

ECONOMY

MISMATCH The city’s unemployment rate is 11.4% despite the fact that there are more than 300,000 unfilled, available jobs BY CARA EISENPRESS

illi Cooper, a Tony-nominated Broadway actor, has managed to live off 10% of her salary some weeks, between unemployment benefits, teaching gigs and a television part last winter. But she has no intention of trading in her career for another job. Gregory Luce was a violist playing in the pit orchestra for the national tour of Hamilton: An American Musical when the government shut down live entertainment in March 2020. After an intensive computer course, he now hopes to find

BUCK ENNIS

See JOBS on page 22

LUCE is giving up the viola for a job in cybersecurity, but not all of the unemployed are willing and able to change careers.

REAL ESTATE

New Yorkers can apply for rent relief starting June 1, Cuomo says Aid is for households that spend 30% of income on home fees BY EDDIE SMALL

he state’s long-awaited rent-relief program will officially go live June 1, Gov. Andrew Cuomo announced last Tuesday. The $2.7 billion program, run by the Office of Temporary and Disability Assistance, will help renters with up to 12 months of past-due rent, three months of future rent and 12 months of utility bills. The state expects it to serve between 170,000 and 200,000 households. “This critical funding will help ensure New Yorkers who are experiencing financial hardship through no fault of their own will not be thrown onto the streets,” the governor said. The program will prioritize vulnerable New Yorkers who are unemployed or who earn at or below 50% of the area’s median income during the first 30 days, and applications will be processed on a firstcome, first-served basis after that for as long as funds remain available. Households must spend 30% or more of their monthly income on rent to receive assistance for future rent. Previous estimates pegged the amount of funding for the program at $2.4 billion, but this number has been shored up with an additional $100 million in state funds and an See RELIEF on page 22

NEWSPAPER

VOL. 37, NO. 21

GOTHAM GIG

WHO OWNS THE BLOCK

A BROOKLYN DOULA LOOKS TO HELP ALL NEW MOMS

A Kips Bay oasis in Manhattan’s development desert PAGE 6

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REAL ESTATE

BY EDDIE SMALL

he New York Court of Appeals has rejected attempts by two community groups to stop developers from building four towers in Lower Manhattan, effectively putting an end to the legal challenges against the controversial project. Tenants United Fighting for the Lower East Side and Lower East Side Organized Neighbors had filed lawsuits asking the courts to annul the City Planning Commission’s decision approving applications from real estate firms to build their projects in Two Bridges. Although Justice Arthur Engoron

shun Ning, an organizer with the Coalition to Protect Chinatown and the Lower East Side. “There’s not a single shovel in the ground,” Ning said. “It’s important for residents and supporters of our No Towers, No Compromise campaign to know that this is still not a done deal, and our fight against displacement is far from over.” Trever Holland, president of Tenants United Fighting for the Lower East Side, echoed similar sentiments. “Although we are incredibly disappointed by the court’s rejection of our request that they review the appellate division decision, we will continue to pursue all options to stop these towers,” he said in a statement. “This rejection shows that the Two Bridges Community Plan remains the crucial last defense against the towers.” Representatives for the city did not immediately respond to a request for comment.

“THERE’S NOT A SINGLE SHOVEL IN THE GROUND. THIS IS STILL NOT A DONE DEAL”

Housing units The projects from JDS Development Group, Starrett Development, L&M Development Partners and CIM Group would bring about 3,000 housing units across four projects to the area. City planners had ruled that the companies could

CORRECTION In the May 24 issue, incorrect figures for the amount of money raised were cited in the “Know your mayoral candidates” special section. The figures used factored in government-match donations that had not been officially audited by the New York City Campaign Finance Board and added to the candidates’ funds.

UPDATED CAMPAIGN FINANCING These figures reflect the eighth disclosure deadline on May 21 and are current as of May 28. Total receipts (private and public funds)

RAY MCGUIRE -------------------------- $11,736,786 ERIC ADAMS---------------------------- $10,376,213 SCOTT STRINGER ------------------------- $9,895,458 ANDREW YANG --------------------------- $9,489,392 MAYA WILEY ------------------------------ $5,879,088 KATHRYN GARCIA ------------------------ $5,579,383 SHAUN DONOVAN ------------------------ $4,554,861 FERNANDO MATEO ------------------------- $522,895 CURTIS SLIWA ------------------------------ $315,764 SOURCE: NYC Campaign Finance Board

build their projects as of right, meaning they would not have to go through the city’s arduous land-use review process. The developers won over the de Blasio administration with commitments to include roughly 700 affordable housing units in their projects. They have pledged to spend $40 million on upgrades to the East Broadway subway station and $15 million on upgrades to three local playgrounds.

“We appreciate the court’s review and look forward to delivering on those benefits,” James Yolles, a spokesman for the developers, said in a statement.

Clear path The court previously denied an appeal attempt from the City Council and Manhattan Borough President Gale Brewer, who had also filed a lawsuit against the projects arguing that the City Planning

REAL ESTATE

Commission should not have approved the applications for them or allowed them to skip the public review process. The court’s decisions against the lawsuits filed by Lower East Side Organized Neighbors and Tenants United Fighting for the Lower East Side mean the court has now ruled against all three major challenges that had been filed against the projects, which should clear the way for them to move forward. ■

WEBCAST CALLOUT

Restaurateurs behind Upper East Side cocktail bar ink 10-year lease ISTOCK

of the state Supreme Court in Manhattan ruled in favor of the community groups in February 2020, the Appellate Division reversed his ruling about a year later, and the Court of Appeals has now declined to hear their cases. Lower East Side Organized Neighbors is disappointed by the court’s decision, but it is not ending its fight against the towers, said Zi-

HANDEL ARCHITECTS

Court of Appeals rejects community group’s lawsuits against Two Bridges towers

BY EDDIE SMALL

he brothers behind Broome Street Hospitality are opening a new cocktail bar on the Upper East Side. Tom and Anthony Martignetti have signed a 10-year lease for 1,200 square feet at 1020 Lexington Ave. between East 72nd and East 73rd streets. The asking rent was $200,000 per year, and they plan to open the restaurant during the fall. Judson CRE’s Nicholas Judson represented the Martignetti brothers and landlord Rokhsar Realty in the deal. Rokhsar has owned the property since at least 1991, according to property records. “With capacity restrictions now being lifted in the city, we believe we’re at an inflection point for the hospitality sector, which will lead to more leasing opportunities,” Judson said. Bar and Books, a cigar bar, was the most recent tenant at 1020 Lexington Ave. The business also has a location in the West Village, along with two locations in Prague, Czech Re-

public, and one in Warsaw, Poland. The Martignetti brothers also run the East Pole, an Upper East Side restaurant at 133 E. 65th St. They previously operated the restaurants Eastfields and East Pole Fish, but those closed during the pandemic.

Growing optimism The pandemic dealt a heavy blow to Manhattan’s retail sector, and restaurants in particular have gone through an extremely difficult year of strict rules and restrictions governing capacity limits and the amount of space required between tables. Optimism is growing in the sector, however, as the state lifts the last of its remaining pandemic-related restrictions. British furniture retailer Timothy Oulton on Tuesday announced that it will open a roughly 7,200-square-foot flagship store at 901 Broadway in the Flatiron District during the summer, and a report from CBRE said the first quarter of the year, while bleak, might have represented the nadir for Manhattan retail. ■

JOIN US TUESDAY CRAIN’S MAYORAL DEBATES: REPUBLICAN PRIMARY Crain’s New York Business is hosting a series of mayoral debates, where candidates will have the opportunity to speak on key issues affecting the city. The second event in the series will feature top contenders in the Republican primary as they address the economy, health and safety, their vision for New York City, quality-oflife concerns and a variety of other pertinent topics.

VIRTUAL EVENT JUNE 1 Time: 4 to 5 p.m. CrainsNewYork.com/JuneDebate

Vol. 37, No. 21, May 31, 2021—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for no issue on 1/4/21 and 12/27/21, and combined issues on 6/28/21, 7/12/21, 7/26/21, and 8/9/21 by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681. For subscriber service: call 877-824-9379; fax 313-446-6777. $3.00 a copy; $129.00 per year. (GST No. 13676-0444-RT) ©Entire contents copyright 2021 by Crain Communications Inc. All rights reserved. 2 | CRAIN’S NEW YORK BUSINESS | MAY 31, 2021

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BUCK ENNIS

HOSPITALITY

Bucking the trend, Javits Center won’t drop restrictions on capacity until fall

BY CARA EISENPRESS

he Jacob K. Javits Convention Center won’t stop adhering to state capacity restrictions until the fall, and maybe not then, despite pressure from event organizers who complain the restrictions are driving trade-show business out of the city. “They will be looser than now, but I can’t tell you how loose they will be,” Alan Steel, president and CEO of the Javits Center, said of the gathering restrictions. The governor has not yet indicated a change to the limitations on occupancy for events in which not all attendees have been vaccinated. This matters for an industry in which events for hundreds of thousands of attendees are regularly planned a year in advance. Full capacity in particular would make it clearer to organizers how many exhibitors they can accept, how many tickets they can sell and whether it’s profitable to hold an event for fewer people. Even as Broadway works toward an opening date with 100% of seats filled and 15,000 fans fill Madison Square Garden to root for the Knicks, the events industry has felt unnecessarily restricted by the state’s rules. On May 3 Gov. Andrew Cuomo indicated that indoor events could be held at 30% capacity beginning May 19. But when the guidelines came out, they allowed for 100% capacity and zero restrictions at events where everyone shows proof of vaccination, a state of affairs that organizers say is unlikely to happen. Instead, organizers have to set up events to allow for 6-foot social distancing. Everyone must wear a mask and show proof of a recent negative Covid-19 test result.

Mayor Bill de Blasio said in April that all restrictions on businesses would be gone by July 1. The 3.3 million-square-foot Javits Center is operated by the state, via a public-benefit corporation, and Cuomo’s executive orders are still setting the terms. The May 19 rules do not have an end date. A week ago the city saw an average of 12 daily deaths attributed to the disease and 34 hospitalizations, compared with 19 deaths and 47 hospitalizations a week earlier.

Lack of clarity A group of event organizers has been lobbying for months, arguing that large-scale conferences demand clarity at least three months in advance. “Thirty days isn’t enough time to make changes,” said Paul Miller, chief executive of Questex, a citybased event organizer. “By then we have sunk a lot of costs.” Miller canceled the New York International Beauty Show at Javits, scheduled for July, after it became clear that the event, which already had 20,000 registrants, would not jibe with current restrictions. The event brings together salons and spa owners with beauty products. Three other annual beauty events— in Las Vegas; Orlando, Fla.; and Chicago— will go on as planned. Miller said that some exhibitors were booking those instead of waiting until next year. The exhibitors and attendees at many trade events tend to be small businesses that make significant deals in the halls of convention

centers, said Hervé Sedky, president and chief executive officer of Emerald, the largest U.S. events organizer, which is behind the NY Now show, which will be held in early August at Javits. Sedky and others said they took no issue with the state’s strict safety measures and had already put in an industrywide standard for masking, cleaning and distancing that was at least as cautious. Rather, it was the capacity limits and lack of clarity around when and how changes would happen that drove Vision Expo East, a gathering of 9,000 ophthalmic professionals typically held at Javits during the spring, to Orlando. Javits CEO Steel said he had the group’s assurance that it would be back in the city in 2022, although he knew it had chosen Orlando because of the confidence that the event would not be canceled there. But for other organizers, Steel’s assurances and the positive public health news have been enough to go on. The Auto Show, which used to attract close to 1 million visitors, is on for late August. The SALT Conference, a financial gathering, has moved to the city from Las Vegas. The New York Building Congress is planning its centennial gala in November in the new ballroom space recently finished at the Javits Center. The Armory Show, which connects galleries and collectors, is planning its first show at Javits, a move that was initiated before the pandemic. Now its main contingency is how many

“THIRTY DAYS ISN’T ENOUGH TIME TO MAKE CHANGES. BY THEN WE HAVE SUNK COSTS”

fairgoers will be allowed into the space at one time. In March 2020 there were 20,000 total attendees, and Nicole Barry, the executive director of the show, said there are even more galleries booked than normal—200 compared with 180 in the past. Because international exhibitors and collectors may not be able to come, most attendees will be U.S.based collectors and galleries. Usually half of exhibitors are from abroad. It’s not going to be a problem, said Berry. The executive director said she would be able to change the flow of the event to accommodate everyone who wants to attend, but individual time-slot attendance might be limited. Berry said that on Sept. 9, when the show starts, the rescheduled Met Gala would be days away, and the U.S. Open would be winding down to the finals. “We feel like we are part of this movement that gets New York back for visitors,” she said.

Another state’s gain There’s a lot at stake. In 2019, 6.2 million people—about half of all business tourists— came to the city for various business events. Though Steel said Javits has not lost any longtime shows, any event that leaves New York is another state’s gain in a competitive, profitable industry whose economic impact extends far past the exhibition tables and out to restaurants, activities and shows in the host city. “When other destinations weren’t able to give positive affirmation to their event planners, we were their first choice,” said Mark Tester, chief executive officer of the Orlando Convention Center, referring to 14 shows that had relocated to Orlando from elsewhere, bringing $187.5 million in business to that city. ■ MAY 31, 2021 | CRAIN’S NEW YORK BUSINESS | 3

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IN THE MARKETS

Financial world undertakers starved for work as corporate bankruptcies dry up Large Chapter 11 filings are disappearing as the economy rebounds

“THERE WAS A PRETTY GOOD BLOODBATH IN 2020 THAT HAS TAPERED OFF”

BUCK ENNIS

hen Knotel filed for ruptcy expert told S&P. This unexpected turn of events is bankruptcy protection in January, in- thanks to the government intervenvestment bankers at tions that rescued the economy. The Moelis & Co. swung into action to Federal Reserve’s decision to keep interest rates at zero has rescue the stricken ofgiven ailing companies fice-sharing outfit. Four time and space to restrucmonths later the executure their obligations. tives won a judge’s apConsumers are spending proval to get paid $2.7 again as the economy million for 423 hours of awakens from its coma. work, which averages out That’s good news for to $6,333 per hour. just about everyone exNice work if you can get cept the financial advisers it. Yet bankers are finding and lawyers who specialthat, much to their chaAARON ELSTEIN ize in bankruptcy work. grin, there’s much less bankruptcy work than Slowed pace they had anticipated a year ago. Through April, 12% fewer comAt Houlihan Lokey, a firm on panies have filed for bankruptcy many an ailing company’s speed protection this year, according to dial, a senior executive acknowlS&P Global Market Intelligence, for edged on a recent conference call: a total of 183. Large Chapter 11 fil- “While the bullish elements of our ings have almost entirely disap- firm are operating at record levels, our financial restructuring practice … has slowed from its torrid pace.” “With respect to restructuring activity,” a Greenhill & Co. executive said, “I said last quarter peared. Knotel’s is one of only three that activity had slowed considerthis year involving a company with ably from last year’s frenetic pace, more than $1 billion in liabilities. and that continues to be the case.” “There was a pretty good bloodLack of work has taken a toll on bath in 2020 on large corporate fil- the bankruptcy specialists’ share ings that has tapered off,” a bank- prices. Houlihan Lokey’s stock has

risen only 26% in the past 12 months, and PJT Partners’ is up 38%, well below Morgan Stanley’s 100% gain and Goldman Sachs’ 88%. For the undertakers of the business world, there is hope to be had over the recent uptick in long-term interest rates, although they remain quite low by historical measures. All the Paycheck Protection Pro-

gram’s forgivable business loans have been tapped.

Looking ahead Firms slide into bankruptcy in the manner described by a Hemingway character in The Sun Also Rises: “Gradually and then suddenly.” The high-water mark for Chapter 11 filings was reached in 2010, a year after the financial crisis ended.

Restructuring experts are consoling themselves in the knowledge that financial markets will tighten again one day and they will have another surge of work. Moelis & Co. CEO Ken Moelis reckons his firm won’t have to wait even that long. “I don’t believe it’s peaked for us,” he said on a recent conference call. “There’s a lot of leverage in the system.” ■

REAL ESTATE

‘Discriminatory’ city property-tax system needs a federal civil rights probe, landlords and tenants say BY NATALIE SACHMECHI

s New York City's property-tax system racist? A coalition of property owners, renters and civil rights organizations called Tax Equity Now New York is asking the Department of Justice to launch a civil rights investigation to find out. The group says it wants the feds to dig into the issue of whether the city’s controversial property-tax system is discriminating against nonwhite and low-income New Yorkers. It says it is seeking to bring equality and transparency to overtaxed city residents. Property-tax receipts make up nearly 50% of the city budget. A study published by the NYU Furman Center in 2013, as well as other studies on the issue, established that the current system favors owners of co-ops and condos by significantly undervaluing them and shifts much of the tax burden to rental properties. Tenants of those

buildings are more likely to be Black or Hispanic, the report said. The Community Housing and Improvement Program, an organization representing owners of rent-stabilized apartments, lauded the call to action. “For decades elected officials in New York City have put an unfair tax burden on apartment buildings, making it impossible to keep rental housing affordable,” said Jay Martin, CHIP's executive director. “Right now roughly one-third of the average rent check goes to property taxes. Repeatedly, politicians have failed to demonstrate the courage necessary to fix this inequity. If they are too scared to act, then the federal government should step in and force them to do something." The pandemic has highlighted the inequality in the city and the burden that property taxes have put on owners. “Black New Yorkers, despite living in one of the most progressive cities in the nation, have been

shouldering the burden of the city’s property-tax system for decades,” Tax Equity Now supporter Bertha Lewis said. “With so many people out of work and struggling to make ends meet, our leaders must find a solution to fixing New York City’s regressive property-tax system.”

Decades of criticism The property-tax group filed a lawsuit in state Supreme Court in 2017 challenging the process, which is much unchanged since 1996, but it lost that battle in February 2020, when an appeals court panel said the issue should be addressed by the Legislature rather than the courts. The appellate court’s ruling came on the heels of a preliminary report released by the city’s Advisory Commission on Property Tax Reform in January 2020. The agency was created by Mayor Bill de Blasio and City Council Speaker Corey Johnson in 2018 in response to decades of criticism of

But any momentum pushing the the outdated system, which was a major part of de Blasio’s campaign reforms fizzled out shortly after the pandemic hit the city. in 2013. The goal was to Hearings on the proposed reform the system withchanges that were schedout any losses to city cofuled for March 2020 were fers, but not much has canceled. None were held happened in the meanPROPERTY-TAX until May 2021. time. receipts make A fresh round of hearThe report outlined up nearly that ings will begin in May in several recommendapercentage of Brooklyn with additional tions to address its shortthe city’s budget hearings for residents of comings, including movManhattan, Queens and ing residential buildings with fewer than 10 units into anoth- the Bronx that will be held next er tax class, limiting tax bills for cer- month. But the Tax Equity Now group tain homeowners to a percentage of their annual income and phasing says it’s useless. “Despite acknowledging the funin market value adjustments to a property over five years. damental flaws of its own proper“The property-tax system should ty-tax system for decades, the city be fair, equitable and transparent, has done little but sanction a series which is why the mayor and speaker of commissions, which lack any auinitiated the Advisory Commission thority to take any action beyond on Property Tax Reform,” said Laura reaffirming the existence of the Feyer, a spokeswoman for the may- problem,” said the organization’s or’s office, adding that reform director, Martha Stark, a former should be done legislatively and not commissioner of the city’s Department of Finance. ■ via the courts.

50%

4 | CRAIN’S NEW YORK BUSINESS | MAY 31, 2021

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POLITICS

De Blasio’s final spending proposals could send city off ‘fiscal cliff,’ budget hawks warn $15.7B BY BRIAN PASCUS

AMOUNT of federal funding the city received from the American Rescue Plan

615K

NUMBER of jobs the city lost in 2020, which might not be recovered until the third quarter of fiscal 2024, the IBO says

The IBO said it does not expect the city to recover all of the 615,000 jobs it lost in 2020 until the third quarter of fiscal year 2024, and the city’s hospitality sector may remain 22,000 jobs short until the end of 2025. “The mayor’s recovery budget invests in New Yorkers to create economic growth, which will drive New York City’s recovery for years to come,” said Laura Feyer, a de Blasio spokeswoman. Much of the increased spending occurs because the de Blasio administration is planning to spend $2 billion on expanding its signature universal pre-K program into a universal 3K one. It will make preschool free for 3-year-olds in every school district and be funded initially by federal pandemic recovery funds. The IBO’s analysis pointed out that although it may be laudable to fund universal 3K and other social programs with federal stimulus dollars, there is a concern as to how the expansion will be paid for once Washington’s generosity is exhausted. “It leads to the obvious question of how to fund them when the federal dollars are no longer available,” IBO director Ronnie Lowenstein told the finance committee. “If these programs are to continue, the next mayor and City Council will need to locate alternative funding sources or cut spending in order to maintain budget balance.” The city is planning to fund half of universal 3K’s $753 million annual costs with federal funds through 2025, according to the Citizens Budget Commission, which could give the expanded program enough time to become entrenched in the hearts of voters and the minds of bureaucrats. “It’s unrealistic to think it won’t continue once you establish a pro-

“AS THE ECONOMY RECOVERS, WE ANTICIPATE ADDITIONAL RESOURCES” Andrew Rein, president of the Citizens Budget Commission. “He did not spread it over time and use it as a runway to restructure government in combination with long-run, productivity-based savings.” The Independent Budget Office didn’t offer any rosier projections in its analysis, as it projected annual budget gaps of $3.5 billion and $3.6 billion, respectively, in 2024 and 2025.

Reserve funds During a hearing last Monday with the City Council’s finance committee, de Blasio budget director Jacques Jiha brushed these concerns aside and pointed out that the administration has created $4.6 billion in reserves for the next fiscal year and can count on a recovered economy to bring in strong revenue. “A tax revenue forecast tends to be conservative. As the economy recovers, we anticipate there will be a lot of additional resources for these programs,” Jiha said. “Most of the new investment in education and the economy are funded through the [city] financial plan.”

DE BLASIO

NYCMAYOR’SOFFICE/FLICKR

ity budget analysts are warning that budget proposals by the de Blasio administration to spend billions in federal assistance on an expansion of government could drive the city over a fiscal cliff by as early as 2024. As the de Blasio administration prepares to negotiate a $98.6 billion budget proposal with the City Council in June, independent budgeting groups are raising concerns that billions in federal stimulus funds will go toward social programs that will create gaps once money from Washington runs dry. “It’s not a prudent use of the funds, and it’s a missed opportunity, especially because the city continues to have out-year budget gaps,” said Ana Champeny, director at the Citizens Budget Commission, who added that the $15.7 billion in federal funding the city received from the American Rescue Plan is “front-loaded and not spread out very evenly.” The Citizens Budget Commission anticipates budget gaps as high as $2.6 billion in 2025 and $4 billion in 2026 and argues federal stimulus reserves will dwindle to 12% by 2024 and 7% by 2025. The de Blasio administration plans to spend $9.5 billion of the $15.7 in federal funds by the end of 2022, according to the commission. “What the mayor proposed blows the opportunity to restructure city finances in the long run to fund relief and recovery programs,” said

gram like that, and it’s the largest of the recurring programs,” Champeny said. “Someone will need to identify $750 million in revenues to fund 3K.” When pressed by the City Council to explain how the de Blasio administration plans to close the budget gaps in 2024 and 2025, which will occur under a new administration and be driven by policies instituted during the mayor’s final year in office, Jiha again waved off the concerns and pointed to past precedent. “The city has balanced more than 40 consecutive annual budgets during good times and bad times. The current budget gaps, from our perspective, are manageable,” he said. “But nonetheless, we’ll continue to look for efficiencies.”

‘Pretty manageable’ The administration’s approach has its defenders, notably James Parrott, an economist at the New School. Parrot pointed out that a $4 billion budget hole is “a pretty manageable gap” because city budgets are now close to $100 billion rather than $60 billion. “We’re used to thinking about $3 billion or $4 billion budget gaps as concerning, but given the growth in the overall budget, it’s not,” Parrott said. “I don’t think it’s alarming, and I think the spending priorities that the mayor has chosen are pretty reasonable.” Finding efficiencies and dismissing deficits may not appease budget hawks though, who fear paying for programs with federal dollars today will leave the city exposed. “We need to use these years to be prepared for what happens next, not jumping off a fiscal cliff, and that’s how this budget sets it up,” Rein said. ■

Redefining what you should expect from your accountant. grassicpas.com

MAY 31, 2021 | CRAIN’S NEW YORK BUSINESS | 5

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WHO OWNS THE BLOCK

603–609 SECOND AVE.

KIPS BAY OASIS IN MANHATTAN’S DEVELOPMENT DESERT Building permits are down citywide, but one project bucks the trend BY C.J. HUGHES

Just seven of the 98 buildings were in Manhattan, which was the second-slowest borough after Staten Island, with two. Citywide, it was the lowest total of filings for new apartment buildings since 2011, the report said, “consistent with the continued economic downturn stemming from the Covid-19 pandemic.” ■

621 SECOND AVE. For decades this 3-story, Italianate building was perhaps best known for the retail tenant on its corner, Clover Delicatessen, whose green-and-red neon sign was popular with photos shoots, although its blackand-white cookies had fans too. But in the summer of 2020 and after 63 years, the deli shuttered, a victim of the Covid-battered economy, according to a tribute in the New York Post. Its owner, and the building’s, is the Cuttita family, which controls much of the block; Nos. 617 and 619, mirror-image ex-tenements, also belong to the family. Clodel Realty, a handle the family uses at some addresses, appears to play off the name of its recently departed cookie vendor. Vincent Cuttita, a partner in the law firm Cuttita, had no comment.

609 SECOND AVE. Foundation work is underway for a 65-unit condo tower designed by Fischer + Makooi Architects, the firm founded by the late Karl Fischer, who styled many of the residential towers in Williamsburg during the last condo boom. Its developer, meanwhile, is Horizon Group, a builder whose credits include condos such as 100 Norfolk St., a shimmering 38-unit offering on Manhattan’s Lower East Side, and the Nevins, a 73-unit project at 319 Schermerhorn St. in Downtown Brooklyn, although Horizon usually partners with Adam America Real Estate, among other players, for its projects. The four buildings on the site before, Nos. 609, 611, 613 and 615, were sold by Ely Sakhai, an Iranian immigrant who once owned a chain of restaurants called Pasta Presto. The chain’s first outpost opened in the 1980s at No. 613, said Sakhai, who is also an oil investor. Not all his undertakings have gone his way. Sakhai, an art dealer, was imprisoned between 2000 and 2010 after selling forged paintings. Sakhai said unscrupulous partners took advantage of him.

605 SECOND AVE. With six apartments across 4 stories, according to records, this prewar building in recent years was also occupied by a ground-floor hookah bar, ER Bar and Lounge. It appears to be closed. In 2015, at the peak of the last market, the building was sold by HHR Development Corp. to a limited liability company based in Elmhurst, Queens, for $6.5 million. It is worth $2.7 million, according to the most recent city assessment, although the gap between official market values and actual sale prices can be wide.

BUCK ENNIS, GOOGLE MAPS

evelopers may be losing 607 SECOND AVE. their appetite for new apartment buildings. Based on Similar in scale and age to many structures in building permits, proposals this part of Kips Bay, this 4-story, prewar rental is to construct them have plunged to levowned by Brooklyn-based landlord Anna Coniglio, els not seen since around the Great Reaccording to city records. The building has had a cession. long list of violations, stretching back to 1994, But not every builder seems disaccording to the city’s Housing and Preservation couraged by the current market, which Development agency. Among the violations: putin the condo sector is contending with ting up walls to create rooms that didn’t have any steep inventory and deep discounts. windows. A dated-looking two-bedroom rented for In Kips Bay, Horizon Group is mov$2,500 in May, according to StreetEasy. ing forward with a long-simmering Rocky’s Brick Oven Pizza, a restaurant that approject that is bucking trends and appears to have done brisk business during the panpears to have grown. An 18-story, 65demic, occupies the ground floor. The apartment unit condo project is rising at 609 Secbuilding, completed in 1910, has a market value of ond Ave., according to filings. The site, $3.2 million, according to its official assessment. once home to four weathered tenements, has been a hole in the ground for years. A 7-story, 30-unit project previously was intended for the site, near East 34th Street, documents show. 251 E. 33RD ST. What is prompting the bullishness is unclear. David Marom, the This 5-story, 14,700-square-foot office buildmanaging member of Horizon, ing, which houses medical tenants, is owned by which has built condos, rentals and Innovative Development Services. The firm purgated communities across the rechased it for $8.2 million in 2017. Its president, gion, did not return calls for comEdward Bergman, owns Hill and Bay restaurant ment. at 581 Second Ave. But Ely Sakhai, a real estate invesUnusually, No. 251 has three exposures, intor who sold the Kips Bay property cluding along its eastern side, where windows for $27 million in 2014—and talked are framed with distinctive metal shutters. Those with Marom last year about possibly windows appear to have been a factor in delays buying it back—said the timing is besetting 609 Second Ave. as officials forced propitious. Horizon to redesign its building with setbacks to “I think it will do well,” because make sure it wouldn’t cut off light to No. 251. there are not many new condos in the Another complication: Nos. 609 and 251 sit neighborhood, Sakhai said. “Manatop a planned subway station for the extended hattan has been down but will come Second Avenue line. Someday the New York City back.” Transit Authority could create subway entrances Amenities at the building will inon the two properties, according to filings. clude a gym, bike room and roof deck, according to plans. Pricing has not yet been set. In late May the average price of a new condo in Kips Bay, a post-college destination that can feel transient, was $2.2 603 SECOND AVE. million, according to StreetEasy. Other condo projects This 4-story, prewar, tenement-style building is one now in sales mode include of several in the neighborhood owned by the CutHillrose28, a 43-unit offering at tita family, which includes the patriarch, Vincent, 181 E. 28th St. from Forkosh and his son Francis, both of whom are lawyers. The Development Group, and Vu family has longstanding ties to Republican power New York, a 100-unit version at brokers. The late Vincent Albano Jr., chairman of 368 Third Ave. from Minrav Dethe Republican Party in Manhattan in the 1960s velopment. and 1970s, was Vincent Cuttita’s father-in-law. In general, Manhattan has In April a two-bedroom, one-bath, market-rate been slow to add multifamily apartment at 603 Second Ave. rented for $2,200 buildings. Between January a month, although a promotion of two free months and March, developers filed to on its 12-month lease lowered that rent for the put up 98 apartment buildings first year to $1,833. The unit had hit the market in the city, a drop of 32% from in April at $2,350 per month, according to Streetthe previous quarter and 40% Easy. A ground-floor retail space, which features an from the beginning of 2020, acenclosed sidewalk café, was occupied by a restaucording to a report from the rant called Benjamin until 2016. It is vacant. Real Estate Board of New York.

6 | CRAIN’S NEW YORK BUSINESS | MAY 31, 2021

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HEALTH CARE

BY SHUAN SIM

s vaccination rates increase and their patients return, dentists are not simply going back to the way things were before the pandemic. In fact, most are working to ensure their business will be ready in case of another crisis, industry leaders say. The state’s shutdown of elective procedures between March and June affected dental practices too, and it wasn’t until late that summer that patients were willing to once again visit dentists, said Dr. Craig

Ratner said. Patients are seemingly more comfortable returning as they become vaccinated, said Dr. Robert Glickman, associate dean of clinical affairs at New York University’s College of Dentistry, which has about 1,900 students and treats about 300,000 patients annually. As of last Monday, more than 44% of New York’s residents had completed their vaccination, and more than 52% had received at least one dose. In relation, estimates earlier this month by the American Dental Association showed patient volumes around 94% of pre-pandemic levels, Ratner said.

“WITH AT LEAST THREE MONTHS OF NO INCOME, DENTISTS STRUGGLED” Ratner, president of the New York State Dental Association, which has more than 12,000 members. “With at least three months of nearly no income, dentists struggled having to pay staff and keep the lights on at their practices,”

Being adaptable

Having learned valuable lessons from the pandemic, practitioners are making their businesses more adaptable to a future crisis, both medically and financially. “During Covid, what kept patients away was the fear for their safety,” Glickman said. Ensuring that dental offices are not places where disease can

RAISE YOUR VOICE YOUR HAND YOUR SELF YOUR COMMUNITY YOUR EXPECTATIONS YOUR IDEA OF HEALTH

spread easily is actually simple, as many already are used to stringent levels of infection control, he said. “Wearing personal protective equipment such as masks and face shields, making sure aerosols don’t fly everywhere—we’re already used to that,” he said. What was challenging during the height of the pandemic was actually obtaining protective equipment, Glickman noted. “We can’t control the supply chain, but we have learned to stock up before things get expensive, and we’re teaching our students that too,” he said. And practices are learning to be more efficient with their time, Glickman said. Finding out the specific reason for a visit beforehand and figuring out billing before a patient’s arrival, via telehealth tools, can help practitioners decrease the time needed to navigate and deliver

BUCK ENNIS

Dental practices are preparing for the next crisis, medically and financially

care, he added.

Accessing relief Dentists are also becoming better versed in accessing various government relief programs, Ratner said. “The pandemic has really opened our eyes to the need of government

assistance should another crisis of this proportion hit,” he said. Moreover, practitioners are socking away more for a rainy day. “We used to be told to keep a month or two of expenses in reserves,” Ratner said. “That clearly wasn’t enough. Now I’m doubling or even tripling that.” ■

The health of one of us is the health of all of us. Be a Health Raiser at RaiseHealth.com

MAY 31, 2021 | CRAIN’S NEW YORK BUSINESS | 7

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chief executive officer K.C. Crain senior executive vice president Chris Crain

EDITORIAL

group publisher Jim Kirk publisher/executive editor

Politicians need to lay off Amazon’s expansion plans in the city warehouses as distribution centers, which this pledge would do, Amazon would have to go through a lengthy land-use approval process that would require the City Council’s acceptance. Under the pledge, the three mayoral candidates agreed to give Amazon and other e-commerce companies land-use approvals only if they support a new code of conduct. The provisions include an agreement by Amazon to back off its fierce opposition to union organizing. Because of its anti-union stance—and its huge workforce nationally—Amazon has a target on its back. That the company recently beat back a well-publicized union-organizing drive in Alabama has only emboldened unions to go after Amazon that much harder. The three unions involved in this latest effort in New York are Make the Road Action, Workers United LDFS Joint Board and New York Communities for Change. This pledge is a bad idea for the city. Perhaps that is why the other

PUBLIC OFFICIALS SHOULD NOT BE THREATENING COMPANIES THAT WANT TO CREATE JOBS warehouses anywhere in the five boroughs, Politico reports. Most of the jobs Amazon has created recently have been in new warehouses it has opened around the city. Right now, the company doesn’t need special approvals, but by reclassifying the

EDITORIAL editor Robert Hordt assistant managing editors Telisha Bryan,

Janon Fisher deputy digital editor, audience & analytics

Jennifer Samuels associate editor Lizeth Beltran art director Carolyn McClain photographer Buck Ennis data editor Amanda Glodowski senior reporters Cara Eisenpress,

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mazon, the company that the progressive wing of the city’s Democratic Party vilified two years ago for having the temerity to want Long Island City as the site of its second headquarters and to create 25,000 jobs, is again the target of a union-backed campaign—supported this time by three high-profile Democratic mayoral candidates. At a time when Amazon is arguably producing more jobs—6,000 last year alone—than any other enterprise in the city, Scott Stringer, Maya Wiley and Dianne Morales have signed a pledge that could restrict the tech company’s ability to open

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mayoral candidates apparently refused to sign it. At a time when the city is struggling to recover from the pandemic—and the city’s 11.4% unemployment rate is more than double elsewhere in the state—public officials should not be threatening companies that want to create jobs for New Yorkers. What’s more, public officials should not be using the land-use laws as a weapon on behalf of any special interest, including the unions. Amazon is not a perfect company. It has been criticized for

low pay and long hours, and the New York attorney general has filed a lawsuit against the company claiming unsafe working conditions and retaliatory actions against employees who complained about those alleged conditions. But at the same time, Amazon has grown rapidly in New York. It is a key member of the tech community that the city is trying to cultivate. At a minimum, the company should be treated fairly. It should not be singled out with threats to advance a special-interest agenda. ■

account executives Kelly Maier,

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OP-ED

Affordability is a growth strategy for New York City

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BY MAYA WILEY

echnology has ushered in a paradigm shift that has transitioned work virtually and automated jobs. Covid-19 fasttracked the transition that technology began. High-cost rents for small apartments were becoming foolish investments for people suddenly seeking to spend a majority of their days at home or traveling. Our city was primed for a Zoom-induced exodus that would drive down rents, popularize work-fromhome and attract the next generation of New Yorkers. The virus only accelerated this transition, with 44% of workers working remotely full time because of Covid-19. Wealthy New Yorkers fled the city in droves, and our businesses and workers who couldn’t leave suffered. Rents plummeted in Manhattan. Eventually these low rents attracted new residents, and now demand is rising again. In February, increases in lease prices

in Manhattan, Brooklyn and Queens eclipsed the rise in lease prices during the comeback from the Great Recession. Why? Rents were down 11%! Affordability is a growth strategy! The city's streets are returning to life because people want to live here and can at the right price. Now we have an opportunity to grow the right way. We need to think creatively and develop widespread permanently affordable housing to usher a city economic renaissance for all. In fact, we have no choice. Rent cost nearly a quarter of all New Yorkers at least half their salary in 2018. But once the virus hit, many of New York’s actors, artists, hotel maids and restaurant workers lost their steady-paying jobs and turned to unemployment to keep themselves afloat. The people who make our city diverse and dynamic watched their bank accounts dwindle to zero. We need to turn vacant build-

ings and vacant lots into truly affordable housing, raise vouchers for homeless New Yorkers, create housing that our essential workers can actually afford and fix the New York City Housing Authority.

Creative policymaking It’s all right in front of us. We can all see Manhattan office buildings are empty, and the tenants aren’t exactly rushing back. Shuttered hotels aren’t opening soon. Our city owns 1,000 acres of undeveloped land. Developing these untapped assets will expand our affordable housing, create downward market pressure, integrate neighborhoods and lower rent prices, easing the burden partially responsible for the eviction crisis. NYCHA has neglected $13 billion in emergency repairs in the buildings that house 1 in 15 of our neighbors. A $2 billion investment will transform NYCHA. The city will never have a housing demand problem—the world

will always want to live here. Easing the rent burden frees up cash for families to spend elsewhere. New Yorkers will be able to dine more frequently at local restaurants rather than cutting costs at the grocery store. Aspiring entrepreneurs will have more capital to pursue their business ventures, turning shuttered storefronts into new employment hubs. People will travel across the city to take in our great arts and culture, increasing Metropolitan Transportation Authority swipes and aiding our beleaguered transportation system. This affordable New York will expand our economy and grow new businesses. New York needs a mayor who understands that rebounding from this economic crisis takes bold, creative policymaking, and I will bring just that. ■ Maya Wiley is a Democratic candidate for New York City mayor.

customerservice@crainsnewyork.com 877.824.9379 (in the U.S. and Canada). $3.00 a copy for the print edition; or $129.00 one year, for print subscriptions with digital access. Entire contents ©copyright 2021 Crain Communications Inc. All rights reserved. ©CityBusiness is a registered trademark of MCP Inc., used under license agreement. CRAIN COMMUNICATIONS INC. chairman Keith E. Crain vice chairman Mary Kay Crain chief executive officer K.C. Crain senior executive vice president Chris Crain secretary Lexie Crain Armstrong editor-in-chief emeritus Rance Crain chief financial officer Robert Recchia founder G.D. Crain Jr. [1885-1973] chairman Mrs. G.D. Crain Jr. [1911-1996]

8 | CRAIN’S NEW YORK BUSINESS | MAY 31, 2021

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OP-ED

BY JENNIFER HAWKS BLAND

he governor's office recently announced that capacity for indoor venues such as offices, gyms and casinos will increase an additional 25%, bringing businesses one step closer to a full reopening. Crucially, the Great New York State Fair will return. For New Yorkers, the end of the pandemic is in sight—a testament to the tremendous work of our biopharmaceutical companies. Indeed, the biopharmaceutical industry and New York companies such as Pfizer and Regeneron were instrumental in creating vaccines and therapeutics to fight Covid-19. New Yorkers are doing their part to get vaccinated. Nearly half of adult New Yorkers are fully vaccinated against the coronavirus, and 60% have received at least one dose of the vaccine. The results of this effort speak for themselves: Hospitalizations have fallen to the lowest levels since Nov. 20, and single-day positivity rates are at their lowest point since Oct. 28. Without a doubt, biopharmaceu-

tical innovation has paved the way for the Empire State’s reopening. The industry’s tireless work in developing and distributing vaccines and treatments is the reason we are on the cusp of ending the pandemic.

Price controls That fact is apparently lost on policymakers in Washington— many of whom support legislation that would cripple the biopharmaceutical sector by destroying its capacity to innovate when it’s most needed. Congress is considering the Lower Drug Costs Now Act, or HR 3 for short. As its name suggests, HR 3 attempts to reduce Medicare’s drug costs by imposing government-mandated price controls for medication based on prices set in six countries. These price controls would allow the government to set rates on prescription drug sales, forcing drug manufacturers to accept catastrophic losses on the sale of their products. Unsurprisingly, if enacted, this measure would deal a devastating blow to the entire health care sector

by eliminating nearly 200,000 well-paying industry jobs and crushing the medical innovation pipeline. With billions of dollars less to invest in the creation of new drugs and treatments, biopharmaceutical companies would have no choice but to make difficult decisions about how to invest in the creation of new treatments and therapies. In fact, a study by Vital Transformation found that HR 3 would reduce the number of medicines developed by small and emerging biotech companies by more than 90%. In their effort to cut prescription drug costs, lawmakers would effectively destroy the access to care many Americans rely upon. By implementing HR 3, legislators would strip the health care sector of its ability to innovate—to devise effective treatment options that keep

BLOOMBERG

New York’s biopharmaceutical industry saved us, now Congress wants to kill it

vulnerable Americans healthy. What's more, New York’s biopharmaceutical industry, helping to pull the state out of the pandemic, might not have the resources to sustain such progress. HR 3 would damage an industry crucial to our state’s economic recovery and jeopardize the health of those who

depend upon biopharmaceutical innovation for survival. Clearly HR 3 is the wrong legislation, proposed at the wrong time— and we must urge our lawmakers to reject it. ■ Jennifer Hawks Bland is CEO of NewYorkBIO, a trade organization.

OP-ED

BY TED HOUGHTON

ow many more times do we have to hear about turning hotels into affordable housing before we actually do it? Every hotel owner, homeless advocate and mayoral candidate agrees it’s a smart idea. It repurposes hotels emptied out by the pandemic, addresses homelessness, and creates jobs to help fuel the city and the state’s economic recovery. But we have to stop talking about hotel conversions and start doing them. For all the talk, New York has yet to turn even one underutilized hotel into housing. Meanwhile, California has already invested more than $800 million to help nonprofits acquire over 90 hotels that will be turned into more than 6,000 units of affordable permanent housing with on-site services for formerly homeless tenants, with more on the way. Now, legislation introduced in Albany this week finally gives New York the chance to act. The Housing Our Neighbors with Dignity Act, introduced in the state Legislature by Sen. Michael Gianaris and Assembly member Karines Reyes, sets the parameters for how $100 million in new state capital can be spent on hotel-to-affordable-housing conversions. It also provides the regulatory relief necessary to allow these conversions to be done quickly and cost-effectively. The legislation will ensure that the housing created is of high quality,

permanently affordable, and owned and managed only by nonprofits.

Proven model The economic damage caused by the pandemic presents us with a once-in-a-generation opportunity to create affordable housing for homeless New Yorkers out of the city’s now-vacant hotels. We’ve done it before: The 1987 real estate crash made dozens of old hotels available to nonprofit providers who converted them into permanent supportive housing. Thousands of poor and disabled New Yorkers battling homelessness became tenants in newly converted micro-apartments with services downstairs, saving the city hundreds of millions dollars in shelter, health care and other costs. This is a proven model that can and should be replicated—and passing the Housing Our Neighbors with Dignity Act into law gives New York a chance to do just that today. New York City is now financing nonprofits to create more than 1,500 new supportive housing units a year. But even at that record rate, it is clear we are never going to be able to build enough apartments to house everyone who needs a home. Quickly repurposing vacant hotels to produce thousands of new micro-apartments—in addition to current supportive housing production—gives us half a chance to catch up with the overwhelming need. The housing legislation will help

ensure the housing produced from hotel conversions will be of high quality. The bill mandates the new housing units have private bathrooms, kitchenettes and standards of privacy and comfort. At least half of the units in each residence produced under the legislation would be set aside for people experiencing homelessness; the other half would be designated for very low-income New Yorkers. Tenants would pay no more than 30% of their incomes in rent and their housing would be rent-stabilized, so all residents would have full permanent tenancy rights and protections.

State override The bill has broad support from an array of stakeholders, because it will rapidly provide high-quality housing to those in need while creating new construction, service and management jobs. It protects and preserves the unionized hotels so important to New York’s economy, and it prohibits hotels in job-creating industrial business zones from being turned into housing. The bill is a state override of local zoning rules, but it is a state override that empowers the city: The bill protects

BLOOMBERG

The time is right to convert hotels into affordable housing

local control by giving the city housing agency the power to choose which hotels to turn into what type of housing and where. There is no time to waste. The window to obtain distressed hotels is closing quickly as tourism slowly returns and hotel owners start to see a light at the end of the Covid-19 tunnel. We need to acquire hotels for permanent, affordable housing now—while they are empty and available. The bill gives the next mayor a new tool in the toolbox to solve homelessness. This past year we’ve seen too many of New York’s hotels turned into shelters, practically overnight. But lack of funding and the city’s outdated building regulations

mean converting those same hotels into housing can take years. The funding and regulatory relief in the Housing Our Neighbors with Dignity Act would allow us to quickly turn distressed hotels into deeply affordable, permanent housing instead. This win-win bill treats today’s homelessness like the emergency it is. The Housing Our Neighbors with Dignity Act should be passed and signed before the end of this legislative session. ■ Ted Houghton is the president of Gateway Housing, a nonprofit organization working on the redevelopment of supportive and affordable housing.

MAY 31, 2021 | CRAIN’S NEW YORK BUSINESS | 9

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PEOPLE ON THE MOVE

Advertising Section To place your listing, visit www.crainsnewyork.com/people-on-the-move or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com

CONSULTING

EDUCATION

ENERGY & UTILITIES

LEGAL

TELECOMMUNICATIONS

Protiviti

Westchester Community College Foundation

M&S Mechanical

Foley & Lardner

M&S Mechanical has expanded its Corporate Interiors Construction Division and is proud to announce two new Cammalleri professionals joining the team: Salvatore Cammalleri, Vice President, Estimating and Kristin Haufmann, Assistant Estimator. With more than 35 Haufmann years of combined experience and longstanding relationships with architects, engineers and general contractors, they will be instrumental in growing M&S Mechanical’s position in the Tri-State area. M&S is the TriState area’s one-stop-shop for commercial HVAC, plumbing and fire suppression services. The firm’s expert technicians deliver high-quality workmanship backed by a live emergency support service shop.

Jeffrey Greene has rejoined Foley & Lardner’s Trademark Copyright & Advertising Practice Group as a partner in its New York office. Greene, previously a partner at Foley from 2007-2017, joins the firm from Cooley LLP, where he had chaired its Trademark & Advertising Practice. Greene’s practice focuses on strategic foreign and domestic brand counseling and protection, he also advises clients on the trademark and intellectual property aspects of M&A and other business transactions.

BlueJeans by Verizon (part of Verizon Business)

Global consulting firm Protiviti has appointed Kim Bozzella to lead the firm’s worldwide Technology Consulting practice and to serve as a member of the firm’s Solutions Leadership team. In her new role, Bozzella and her team advise clients on technology transformation, modernization and operational risk. Bozzella has nearly 30 years of information technology, financial services and consulting experience. She was also recently named one of Consulting magazine’s 2021 Women Leaders in Technology.

Dolores Swirin-Yao has been named as Executive Director, Westchester Community College (WCC) Foundation and Vice President, External Affairs. In this role, Ms. Swirin-Yao will help shape and lead WCC Foundation’s strategic vision, working with its Board of Directors, its team and President Belinda Miles to ensure the Foundation’s long-term ability and philanthropic role in supporting the College’s values of success, excellence, and opportunity.

PROMOTE. Why not?

CRAINSNEWYORK.COM I OCTOBER 26, 2020 I

ASKED & ANSWERED experts in tax regulation, audit, estate administration, forensic accounting, Few qualities are more vital to the health of any business than financial organizational transformation, advisory services, fundraising and business equilibrium and organizational efficiency. structure. They represent an extraordinary group of professionals from Rarely has the value of both been more strongly felt than in recent months. From stress-tested balance sheets to fast-changing regulations, firms of varying size and renown. To find these honorees, Crain’s consulted with trusted sources in the and reconfigured supply chains to “new normal” working arrangements, business world in general and in the accounting and consulting realms in the Covid-19 pandemic has challenged even the strongest of businesses. particular. The nominations submitted by individuals and firms in the New Standing tall within this chaotic breach are the foot soldiers of profesexperts in tax regulation, audit, estate administration, forensic accounting, Few qualities are more vital to the health of any business than financial York metropolitan area were rigorously vetted. Ultimately, each of the acsional service firms, led by accountants and management consultants. organizational transformation, advisory services, fundraising and business equilibrium and organizational efficiency. counting and consulting notables was chosen for her career achievements In selecting the 86 honorees for this year’s list of Notable Women in structure. They represent an extraordinary group of professionals from Rarely has the value of both been more strongly felt than in recent and involvement in industry and community organizations—and at times Accounting and Consulting, Crain’s sought to spotlight the accomplished firms of varying size and renown. months. From stress-tested balance sheets to fast-changing regulations, 28, 2020 I her effortsCRAINSNEWYORK.COM to help New York reboundI SEPTEMBER from the coronavirus. metropolitan area professionals and problem-solvers who keep businessTo find these honorees, Crain’s consulted with trusted sources in the and reconfigured supply chains to “new normal” working arrangements, Read their biographies and learn how the members of this remarkable es churning. The talented individuals presented here are a diverse group, business world in general and in the accounting and consulting realms in the Covid-19 pandemic has challenged even the strongest of businesses. cohort keep the gears of business whirling. skilled at resourceful innovation and disruptive thinking. These women are The nominations by individuals andadministration, firms in the New Standing tall within this chaoticare breach the soldiersofof profesexperts insubmitted tax regulation, audit, estate forensic accounting, Few qualities moreare vital tofoot the health any businessparticular. than financial York metropolitan organizational area were rigorously vetted. Ultimately, each of the acsional service firms, led by accountants and management transformation, advisory services, fundraising and business equilibrium and organizational efficiency.consultants. counting and consulting notables chosenan forextraordinary her career achievements In selecting the 86 honorees for this list been of Notable structure. They was represent group of professionals from Rarely has the valueyear’s of both more Women stronglyinfelt than in recent andregulations, involvement infirms industry and community organizations—and at times Accounting and Consulting, Crain’s sought to spotlight the accomplished of varying size and renown. months. From stress-tested balance sheets to fast-changing efforts to help New from theCrain’s coronavirus. metropolitan area and professionals and problem-solvers who businessTo York find rebound these honorees, consulted with trusted sources in the reconfigured supply chains to “newkeep normal” working her arrangements, Read their biographies learn how theand members this remarkable es churning. The talented individuals presented here are aeven diverse group, of businesses. businessand world in general in the of accounting and consulting realms in the Covid-19 pandemic has challenged the strongest cohort the gears of business whirling. submitted by individuals and firms in the New skilled at resourcefulStanding innovation and disruptive thinking. Theseare women aresoldiers particular. The nominations tall within this chaotic breach the foot of keep professional service firms, led by accountants and management consultants. In selecting the 86 honorees for this year’s list of Notable Women in Accounting and Consulting, Crain’s sought to spotlight the accomplished metropolitan area professionals and problem-solvers who keep businesses churning. The talented individuals presented here are a diverse group,

LAURA PETERSONskilled at resourceful innovation and disruptive thinking. These women are

York metropolitan area were rigorously vetted. Ultimately, each of the accounting and consulting notables was chosen for her career achievements and involvement in industry and community organizations—and at times her efforts to help New York rebound from the coronavirus. Read their biographies and learn how the members of this remarkable cohort keep the gears of business whirling.

Managing Director and Communications, Media and Technology Northeast Business Leader Accenture

LAURA PETERSON

Laura Peterson’s résumé lists a whopping 10 positions she’s held at the multinational professional services company Managing Director and Communications, Media and Technology Northeast Business Leader Accenture since joining the firm in 2000. In her current role as Accenture the Northeast business lead for communications, media and technology, the enterprising ladder climber presides over a team Laura Peterson’s résumé lists a whopping 10 positions she’s of 3,000 professionals. Peterson is charged with managing a $750 held at the multinational professional services company and Media and Technology Northeast Business Leader million profit-and-lossManaging statementDirector for clients inCommunications, the Accenture since joining the firm in 2000. In her current role as aforementioned sectors as well as the high tech sector. Peterson Accenture the Northeast business lead for communications, media and works with key business leaders among more than 40 clients and technology, the enterprising ladder climber presides over a team Laura Peterson’sstructure. résumé lists a whopping within Accenture’s global management Since 2017, she 10 positions she’s of 3,000 professionals. Peterson is charged with managing a $750 held the multinational professional company has been a board adviser to at Fairygodboss, an online platformservices that million profit-and-loss statement for clients in the Accenture since joining the firm in 2000. In her current role as seeks to elevate women in the workplace. aforementioned sectors as well as the high tech sector. Peterson the Northeast business lead for communications, media and works with key business leaders among more than 40 clients and technology, the enterprising ladder climber presides over a team within Accenture’s global management structure. Since 2017, she of 3,000 professionals. Peterson is charged with managing a $750 has been a board adviser to Fairygodboss, an online platform that million profit-and-loss statement for clients in the seeks to elevate women in the workplace. aforementioned sectors as well as the high tech sector. Peterson works with key business leaders among more than 40 clients and within Accenture’s global management structure. Since 2017, she has been a board adviser to Fairygodboss, an online platform that seeks to elevate women in the workplace.

LAURA PETERSON

PAT WANG Healthfirst

INTERVIEW BY JENNIFER HENDERSON

at Wang, president and CEO of Healthfirst, a nonprofit insurer formed by a group of health care systems, had been working to advance value-based care long before the pandemic. The concept involves paying hospitals and physicians based on their patients’ outcomes rather than on the volume of services they provide. Now, as health care providers face unprecedented financial strain due to the Covid-19 crisis, Wang says such payment arrangements are more critical than ever. Not only do they improve the quality of care for patients—including the 1.5 million plan members Healthfirst serves throughout the city, Long Island and surrounding areas—but they also generate fiscal benefit for the facilities, practices and health centers that serve them. How does Healthfirst contribute to value-based care? What you understand as profit in another health insurance company’s balance sheet at Healthfirst is contractually-driven surplus that goes back to the delivery system. Eighty percent of the premiums we get for medical services flows through value-based payment arrangements, which means that providers benefit when there is a surplus in the premium. If less money is spent on fee-for-service claims, the surplus is part of the contractually-obligated payment stream. What has that meant during the pandemic? For April through June, we are distributing $250 million in those surpluses [about double that of the same period last year], and we’ve expedited the calculation and reconciliation of those amounts to get them out the door faster because the delivery system really needs it. Why are value-based payments vital now and in normal times? In the best of times, we have always been trying to push for this model because it aligns the incentives around trying to keep people healthy and avoiding unnecessary care. The providers are aligned with that goal because they benefit from it if they can reduce avoidable care. Consider Covid-19 to be like a war. In war times, the model has been a lifesaver because there is this artificial depression of utilization, and that’s why the providers have lost so much money—their revenue has dried up. But because we have these risk contracts, the surplus that is there, that’s what has gone out the door to them.

DOSSIER WHO SHE IS President and CEO, Healthfirst AGE 66 BORN Jersey City RESIDES Manhattan EDUCATION Bachelor’s in history and East Asian studies, Princeton University; J.D., New York University School of Law FAMILY MATTERS Wang is married and has one son who lives in Brooklyn. GLOBAL TIES She has lived in Croatia, Taiwan as well as China, where she had more than 20 first cousins. FLARE FOR FOOD Wang has become reacquainted with the joy of cooking as a result of the pandemic. EYE ON MEDICAID About three-quarters of Healthfirst’s members are Medicaid beneficiaries. The insurer’s initial response to the crisis included having its care managers make sure members had medicine and durable medical equipment to stay at home safely. BUDGET CUTS Wang says the magnitude of the state’s Medicaid cuts—instituted to pare back on spending growth—is devastating. “Cuts to us as a Medicaid plan are cuts to hospitals.”

What happens when patients again begin seeking services? We do see utilization coming back, and we have been encouraging our members to get needed care because people have put a lot of stuff off. We have to see whether the bounce back is gigantic or it just brings things back to a steady state. If we go back to a more normal utilization pattern, then the regular incentives of trying to align around good preventive care and avoiding unnecessary care, they just kick in. How can the city safely bounce back from the pandemic? Continue doubling down on the public health measures already in place: wearing masks, social distancing and hand sanitation. We know what to do. But I think a singular focus on getting the schools open for full learning should top the list of what we are aiming for. We should measure our success against that goal. As an employer, I can tell you that we will not be able to get fully back to work until the thousands of employees with school-age children can get their kids back into school. It’s of course better for all children and particularly critical for poorer children. The city’s economic recovery is going to hinge on how quickly and how well we can get that done so that parents can resume their normal lives too. As a longtime resident of the city who has watched us recover from recession, 9/11 and Hurricane Sandy, I believe in the city’s ability to bounce back against the odds. But this time is going test all of us, and we should be sober about the need for everyone to contribute to the solution. What challenges face the broader insurance industry? Balancing the needs and expectations of consumers who need and deserve good health care coverage, expanding access however we can and doing it within an increasingly constrained economic environment. This is especially true with Medicaid, where the state’s budget situation is dire at the same time as people’s needs are increasing. Given that Healthfirst has over 1 million Medicaid members, the potential impact of the state’s budget is especially concerning. For me, our priority has to be enabling as many people as possible to have full access to high-quality care, and it’s going to be a challenge to figure out how to do that in this economic environment. Insurers also need to be mindful of the hurt being experienced by so much of the provider delivery system. The value of our products relies on having strong doctors, hospitals and community resources. Balancing all of this in a financially viable way is going to be a challenge. ■ Reprinted with permission from Crain’s New York Business. © 2020 Crain Communications Inc. All rights reserved. Further duplication without permission is prohibited. #NB20080

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ASKED & ANSWERED

INTERVIEW BY SHUAN SIM

WHO HE IS Managing director of construction, Lendlease America

ay was Mental Health Awareness Month, but Mike Fratianni, managing director of construction for Midtown-based developer Lendlease America, has been working to address mental health challenges all year round. Construction workers face immense stress from the unpredictable nature of their job—exacerbated by the pandemic, he said. The construction sector has a suicide rate of about 53 per 100,000 people—four times the national average. Fratianni, who also heads the mental health and suicide prevention steering committee at Lendlease, says his initiatives are all aimed at getting workers to communicaate more. What affects construction workers’ mental health?

There are fluctuations in the work available, and the workforce rides those ebbs and flows of projects. Also, people like routine, but in construction, it’s common to deal with changing environments all the time, which is stressful. The pandemic increased those changes at the workplace, so many thought they couldn’t keep up.

How did the pandemic create challenges?

It reduced the amount of work available. Job insecurity certainly leads to economic insecurity. For those who do have work, the criteria for how they could work during the

AGE 56 BORN Camden, N.J. RESIDES NoMad EDUCATION Bachelor’s in business administration, Hanover College YEARS IN HIS INDUSTRY 35 SCOPE OF WORK LendLease oversees $3.5 billion in construction work annually, primarily in residential and mixed-use buildings, hospital use and life science facilities. LOOKING AHEAD “Next year our goal is to have all projects start with mental health training and resources available from the get-go,” Fratianni said. FAMILY MAN He and his wife, Leslie, have two children, ages 23 and 25. SPARE TIME “I enjoy biking, carpentry and cooking,” Fratianni said of his hobbies.

pandemic changed all the time. You might have one state mandating shutdowns on projects or others requiring that hours be limited. There were also limits on the number of workers on sites. Until the Centers for Disease Control set standards on some of these issues, it was stressful to adapt to every single change.

How pervasive are these problems?

This is an industry that is 80% men, and that’s the majority of people contributing to the high suicide rate. There is that macho image of a construction worker projecting toughness. People oftentimes are not willing to talk about their problems because they’re afraid someone might think of it as a weakness. But it doesn’t have to be that way. It’s OK to seek help. A lot of times it’s as simple as sharing your problems with others, and people are surprised how many are experiencing the same thing.

How is Lendlease addressing the issue?

We had everyone engage with suicideprevention training and had an open dialogue. We then had a “connector” group who would be intuitive about recognizing signs of mental health issues in the workforce. We then implemented an “assist” group able to deal with someone coming to them with problems and pair them with assistance or programs.

Has it worked?

I’m unaware of any suicides at our projects since the program started. We’ve had a lot more dialogue on stress and hardship, and we’ve had people tap the economic assistance we offered.

What’s next for these programs?

For every project startup now, in every mobilization toolkit, mental health awareness is a part of that. Oftentimes when a suicide happens, people say, “I never expected it from so-and-so.” But that’s unexpected only because we’ve been dismissing the signs. I hope we learn never to dismiss these signs again. ■

BUCK ENNIS

MIKE FRATIANNI Lendlease America

DOSSIER

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INSTANT EXPERT

Ranked-choice voting made (sort of) clear BY BRIAN PASCUS

On June 22, New Yorkers will cast their ballots for mayor using the ranked-choice system for the first time. The new method YANG GARCIA is insignificant if one candidate garners more than 50% of the vote, but if the election is close, the ranked votes become a big factor. After it is determined that no candidate received half the votes, the candidate with the fewest first-place votes is eliminated. The second-place votes on that candidate's ballots are then divvied up among the would-be pols still in the race. At the end of that round of tallying votes, the candidate with the fewest votes is eliminated and the other candidates get the loser's second-place votes. The process continues until only two candidates remain. The one with the most votes becomes the next mayor. A candidate could receive the most total first-choice votes, but if a rival candidate received enough first-choice votes, together with a majority of second-choice and third-choice votes of other eliminated candidates, then she could potentially gain more total votes and win the race.

PAPER BOY PRINCE

The most important players when it comes to ranked-choice voting are the candidates themselves. Eight Democrats are considered legitimate contenders to win the mayoral primary; two Republicans are battling it out for the GOP nomination. But ranked-choice voting also will be used this year to determine the comptroller, the public advocate, the five borough presidents and the City Council races. Aside from the many candidates, the X-factor in determining rankedchoice voting’s success is the New York City Board of Elections, which has come under fire in recent years for its dysfunction and errors. Aside from the main candidates, as many as 13 Democrats will appear on the ballot, including such political novices as Paper Boy Prince, a rapper, and public housing advocate Jocelyn Taylor. These candidates will receive at least one first-place vote and require 11 rounds of elimination before a winner can be determined. That’s because the voting allocations must knock off one candidate per round if no candidate breaks 50% on the initial tabulation of vote counting.

GETTY IMAGES

THE PLAYERS BUCK ENNIS

THE ISSUE

WHAT’S NEXT

ISTOCK

BECAUSE OF RANKED-CHOICE VOTING NEW YORKERS MAY NOT KNOW WHO HAS WON THE PRIMARY UNTIL AS LATE AS JULY 12

YEAH, BUT

The large number of candidates in the Democratic primary this year, together with the confusion caused by implementing ranked-choice voting in a time when many New Yorkers have stayed in their homes because of the pandemic, could create a perfect storm of ignorance and confusion during this election. A March 2021 poll taken by Fontas Advisors of 800 New Yorkers found 50% are still undecided, and more than 41% had heard “nothing at all” about ranked-choice voting or how it works. In addition, the large number of candidates threatens to confuse voters once they open the ballot and see a long list of choices and multiple columns in which to rank them, one through five. Furthermore, voters do not have to rank five candidates; they can simply choose one as their first choice and leave the rest of their bubbles blank, which could have ramifications on how the vote percentages are allocated as the rounds go by.

SOME BACKGROUND

New York is not the first city or state to apply ranked-choice voting to its local elections. Maine is the only state to use it on a statewide level, although the cities of Berkeley, California, and Minneapolis, Minnesota, have been using it for a number of years to determine local elections. The change in New York City’s voting method began during the 2019 elections, when 73% of voters overwhelming approved Ballot Question 1 to amend the city charter and establish rankedchoice voting for primary and special elections beginning in 2021. Ranked-choice voting, it is argued, gives voters more choices and makes it harder for extremists to win primaries.

RANKTHEVOTENYC.ORG

Early voting begins June 12 and ends June 20. The primary for Democrats and Republicans is on June 22, but the election itself likely won’t be decided until as late as mid-July, some political strategists say. That’s because of the unique way absentee, affidavit and mail-in ballots are tabulated in New York state, which allows them to come in one week after the primary. Voter responses to any errors on their ballots could take until July 9 to be returned and counted, leading to an open-ended question as to the result until as late as July 12. While the city may have a primary day for in-person voting on June 22 this year, the novel wrinkle of ranked-choice voting could create New York’s first “election month” just as summer heats up, which could leave more than a few candidates sweating out the result.

12 | CRAIN’S NEW YORK BUSINESS | MAY 31, 2021

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HEALTH CARE

Opposition threatens to wound Blood Center’s planned $750M Upper East Side redevelopment

he New York Blood Center’s $750 million plan to expand its Upper East Side headquarters into a tower of life science research has run up against fierce opposition as it winds its way through the city’s land-use review process. Its proposal, announced in October, is a partnership with Longfellow Real Estate Partners to replace its East 67th Street center with a 16-story, 596,000-square-foot building. The Blood Center would occupy about a third of the building. Longfellow, a Boston-based life science developer, would lease the rest to roughly three to 10 companies. The Blood Center, a nonprofit, has said the redevelopment would enable it to modernize and double its research space and potentially increase blood product collection by a third. Its current building dates back to the 1930s, when it was built as an automotive trade school.

Life science hub Working with CBRE, the Blood Center issued a request for proposals and selected Longfellow to turn

its renovation into something larger: a hub for the life sciences, inspired by Mayor Bill de Blasio’s $500 million initiative to turn New York City into a global leader in the sector akin to what Boston—Longfellow’s home base—has become. “It evolved into something grander when we knew there was a great opportunity ahead to have a significant role in the city’s developments in the life sciences,” said Rob Purvis, the center’s executive vice president and chief of staff. Purvis said the Blood Center sought funding through the city’s LifeSci initiative but was told there wasn’t sufficient funding and it would support the project advancing as a public-private partnership. The development would be held by Longfellow’s strategic venture fund, whose investors include “globally prominent” names in commercial real estate, co-founder and senior partner Jamie Peschel said. Longfellow would pay for the construction of the building, and the Blood Center would get its new space for free. “How can New York City get a brand-new blood center for nothing? That’s what Longfellow is do-

ing,” said CBRE CEO Mary Ann Tighe, who helped broker the deal. First the plan must get the approval of the City Council, given that it requires rezoning the site to allow for a larger building. Ahead of an advisory vote on the project May 25 by Manhattan Community Board 8, more than 350 residents have submitted written comments. All but about two dozen said they were against the current plan, citing concerns as varied as the shadows it would cast on nearby St. Catherine’s Park to the precedent it might set to rezone a midblock residential lot to allow for commercial use. Others have voiced fears over the highly infectious pathogens that would be studied inside, although Purvis said the Blood Center’s existing building has housed such a lab space for decades and plans to only rebuild it rather than expand it.

Councilman’s concerns Among the project’s critics are Upper East Side Councilman Ben Kallos, a crucial voice given that City Council members have traditionally voted on rezoning plans in

A RENDERING of the New York Blood Center’s proposed $750 million redevelopment with Longfellow Real Estate Partners

COURTESY OF ENNEAD ARCHITECTS, RENDERING BY DBOX

BY MAYA KAUFMAN

lockstep with the representative for the relevant district. “I’ve never seen a project like this in my life,” Kallos said. “I’ve never seen a project this far along that hasn’t made any concessions to the community. I’ve never seen a project like this that is being this hostile to the elected officials.” Purvis said the team has briefed more than 25 local and citywide organizations and elected officials on the project in the past two years and has appeared before the com-

munity board twice. But he acknowledged that the team has not made “significant changes” since presenting it to the community board, as critics have asserted. “There certainly could be modifications made in the future,” he said. The Blood Center has spent at least $200,000 since last year to hire consulting firm Kasirer to lobby elected officials on its behalf. If approved, the project could break ground next year and be completed by 2026. ■

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REAL ESTATE

Online fundraising startup inks 15K-square-foot lease at Industry City campus BY EDDIE SMALL

ndustry City has inked another new lease on its campus, signing online fundraising platform Fundraise Up to a three-year, 15,000-square-foot deal. Fundraise Up has opened its second headquarters at the Sunset Park complex. The company was founded in 2017 and just recently finished its Series A funding round. It uses artificial intelligence to help nonprofits, among them Unicef

little capital—in hopes that the space will be quickly outgrown,” Kathe Kramer Chase, Industry City’s director of leasing, said in a statement. The pandemic increased the growth rate for Fundraise Up, as in-person fundraising events largely came to an end last year, Fundraise Up CEO Peter Byrnes said. “The need for an optimized way to capture donations became more essential with the halt of in-person fundraising events in 2020,” he said, “so the speed at which we operate has grown drastically within the last year.” Jeff Fein, senior vice president for Industry City, represented the landlord internally in the lease. Fundraise Up did not use a broker. Other startups based at Industry City include payment application company Square and used photo and video equipment platform MPB. Furniture brand West Elm recently expanded its footprint at the campus, adding a 15,000-squarefoot outlet store, to bring its total

The developers behind the rezoning, which included a $1 billion expansion of the complex, ultimately determined that this support was not enough, however, and they withdrew their application in September. The property owners have since shifted their focus to using the space they already have.

Market struggles

USA, the American Heart Association and the World Health Organization Foundation, raise money. Asking rents at the 35-acre, 16-building Industry City campus range from $15 to $40 per square foot. Fundraise Up is in Building 3, and it has an eye on potentially expanding. “The goal is to be up and running immediately—while spending very

BUCK ENNIS

“THE GOAL IS TO BE UP AND RUNNING ... WHILE SPENDING VERY LITTLE CAPITAL”

presence at Industry City to 128,000 square feet.

Rezoning nixed Industry City went through one of the most contentious rezoning efforts in recent New York history last year.

Brooklyn Councilman Carlos Menchaca announced in July that he was opposed to the rezoning, but multiple other members of the council spoke up in favor of the project and the economic benefits it would bring to the city in its effort to recover from the pandemic.

New York’s office market has struggled in the pandemic as companies have instituted widespread work-from-home policies. Brooklyn saw about 230,000 square feet of office leasing activity during the first quarter, a nearly 50% drop quarter-over-quarter and a 40.7% drop year over year, according to a report from Colliers International. The borough’s availability rate last quarter was 24.1%, up from 23.9% during the fourth quarter of 2020 and 23.1% during the first quarter of last year. ■

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RETAIL

German startup promising 10-minute grocery delivery preps for Brooklyn launch

he race is on to deliver groceries in a New York minute. Promising 10-minute delivery of food and household goods, Gorillas, a startup founded in Berlin, said last Monday that it was gearing up to launch its first U.S. location, in Bushwick. The firm’s service extends out to Williamsburg, Downtown Brooklyn, Carroll Gardens and Cobble Hill. The company is backed by more than $300 million in venture capital and plans to use the Brooklyn location as a launching point for the rest

Gorillas operates more similarly to FreshDirect, sourcing and then distributing products directly. Founded last May and valued at $1 billion in a private investment round in March, Gorillas has already launched in more than 20 European cities, including Amsterdam, London and Munich. Gorillas leases street-level retail locations—sidestepping a tight market for warehouse space—and turns them into micro fulfillment centers, optimized with software to help about a dozen employees quickly pick and pack orders. Those orders are shuttled via e-bike to a customer’s door. Charging a $1.80 delivery fee, Gorillas hires couriers as employees, rather than using the gig model popularized by Instacart, DoorDash and Uber. The concept prizes speed over variety. Gorillas has about 2,000 products lined up for its Brooklyn location, compared with about 60,000 at the Brooklyn Navy Yard Wegmans. But Gorillas will offer a variety of local products along with

“GROCERY SHOPPING IN NEW YORK CAN HONESTLY BE PRETTY PAINFUL AT TIMES” of the city and other U.S. markets. The firm enters a crowded grocery market in New York, with FreshDirect, DoorDash and Instacart already competing for market share with brick-and-mortar stores. Whereas DoorDash and Instacart send pickers into grocery stores,

the essentials, such as Black Seed Bagels and OddFellows Ice Cream. “The experience of grocery shopping in New York can honestly be pretty painful at times,” said Ashwin Wadekar, chief of staff for Gorillas, who is helping oversee the company's U.S. expansion. “We’ve seen the lines out the door and crowded markets. We can get you the groceries before you’d even be in the supermarket door.”

50% growth “Groceries in a flash” is becoming an increasingly common sales pitch throughout the five boroughs. Fridge No More—backed by a recent $15 million funding round—is pledging to expand throughout the city from its hub in Gowanus. Fifteentwenty promises Upper East Siders their money back on any grocery order that does not arrive within 20 minutes. The pandemic has propelled the U.S. market for online groceries to just under $100 billion in sales, up about 50%, according to research from eMarketer. Two decades ago a category of online brands such as Kozmo, Urbanfetch and Webvan similarly

GORILLA

BY RYAN DEFFENBAUGH

offered rapid delivery of groceries and other goods—but they went bust at the turn of the century during the dot-com bubble. To avoid a similar fate, Gorillas and its rapid-delivery competitors say they have two things in their favor: The pandemic has trained consumers to order items online, and custom software can help get groceries packed and out the door quickly. Burt Flickinger, a supermarket consultant and managing director

of Strategic Resource Group, said the pandemic badly damaged some local grocery stores and restaurants that relied on in-person customers—creating an opportunity for grocery delivery companies to grab a share of consumers’ weekly food budget. But the market is growing crowded quickly. “For Gorillas to be so successful so soon in a competitive market like Berlin is a good indicator they can be successful in New York and the U.S.,” Flickinger said. ■

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ARTS & CULTURE

BY CARA EISENPRESS

new relief fund wants to help theater workers return to the city so they can go back to work. The Places, Please Project seeks to raise and distribute $500,000 between June and next April to cover about two months of rent for performing artists and others whose careers depend on the stage while tens of thousands of laid-off workers wait for their jobs to return. “Things are opening up, but it’ll be a stumbling process,” said television actor Kyle Jarrow, who is one of two industry performers leading the fundraising effort. Many in the industry, from writers to stagehands, actors to ushers,

rent is less expensive or gigs continued to be booked. Restaurateurs report losing their servers and hosts, who used to pay the bills through hospitality work between dance or acting tryouts and rehearsals. More than a tenth of the city-based performing artists who responded to an Actors Fund of America survey said they had left the state as of the end of February. In April 25,000 city residents were employed in the performing arts, spectator sports and related industries, up 27% from the 19,600 in January but just over half of the 46,800 in February 2020. This number is far fewer than the total employment in the city. The Broadway League said its theaters employ around 100,000, and a report from state Comptroller Thomas di Napoli found 128,400 city residents drew their primary earnings from working in the arts in 2019. However you count it, thousands aren’t at work, and returning to jobs is not as easy as circling Sept. 2 on the calendar— the date Hadestown will become

“THE PROBLEMS THEATER WORKERS ARE FACING ARE NOT INSTANTLY FIXED” left the city last year, according to anecdotes from those in the industry, who all know several people who moved away to places where

BLOOMBERG

Relief fund wants to help performing artists move back to New York

the first Broadway show to reopen. Outdoor performances and some indoor shows have already begun. “The problems and struggles that theater workers are facing are not instantly fixed,” Jarrow said. If someone is offered a shortterm gig, such as at a city-run vaccination site or through the state-led NY Pops outdoor pop-up series, that artist might have to decide if it is worth it to find a place in the city and pay rent for just a few weeks of

work, he explained. “For a lot of workers, it’ll be piecemeal,” Jarrow said, adding that “there will be more gigs the more restarted it gets.”

Necessary gusto The same problem affects workers who stayed in the city but have struggled each month to pay rent and could use help getting to the finish line. Though apartment prices in the

city have fallen in the past year, New York is still the country’s most expensive housing market, with the average monthly cost of a Manhattan apartment at $3,650 in April. In the U.S. as a whole, the typical market-rate rent is much lower, around $1,730, according to Zillow’s observed rent index. When the eviction moratorium ends, those who survived by not paying rent will have to make up what they owe. When the government shut theaters in March 2020, actors, directors and theater owners didn't think the lights would be off so long. Broadway was coming off a record 2018–19 season, during which artists performed for 14.8 million audience members, and the industry grossed $1.8 billion, with a far larger economic impact. If theater workers don’t return, the industry might not be able to open with the expected gusto of a long-awaited comeback. “There is a whole generation of theater workers who have those skill sets—those aren’t jobs that anyone can step into,” Jarrow said. “And if you don’t have the workers, you can’t reopen the industry.” ■

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Joe Bublé leads Citrin Cooperman’s tax practice and is a partner in the firm’s New York City office. He concentrates on strategic tax planning, mergers and acquisitions, and sophisticated tax research for businesses and individuals. He has extensive experience with the taxation of partnerships, limited liability companies, C corporations, S corporations and highnet-worth individuals.

JOE BUBLÉ, CPA

Partner, New York City Citrin Cooperman (212) 697-1000 jbublé@citrincooperman.com

and their clients may be left scrambling to properly navigate the complex maze of the Cares Act and the Consolidated Appropriations Act of 2021. Contained within these two major pieces of Covid-19 relief legislation are tax provisions affecting all facets of individual and corporate tax credits and deductions. Robert L. Tobey: The intersection of PPP loans and business taxes will be a challenge for many borrowers and their CPAs this year. The IRS saved us one major headache by ruling that expenses paid for with forgiven PPP funds will be deductible. But on the state level, how

these forgiven loan funds will be treated for tax purposes will vary by state. The first round of PPP funds was mostly distributed in 2020 but typically will be forgiven in 2021, which will add complications in preparing financial statements and tax returns this year. We expect to see additional recovery legislation in 2021, which will add complexities for accountants and clients alike. Finally, dealing with the IRS and other tax authorities to resolve issues will continue to be challenging during the pandemic. Getting amended returns to claim refunds from the carryback of net operating losses also has been discouraging for taxpayers and practitioners.

Crain’s: How is the Biden administration likely to affect readers’ tax planning strategies this year? Tobey: C Corporations, passthrough shareholders and highnet-worth individuals would all lose significant Tax Cuts and Jobs Act tax benefits under Biden’s proposed tax plan. While it remains to be seen whether his administration will be able to pass any significant tax reform this year, it is wise to assess which of your tax strategies could be affected. For example, tax deferral strategies this year could be largely obsolete if the tax rates increase in 2022. Businesses may want to consider delaying major deductible expenses into future years if the tax rate is expected to increase under the new administration. Biden’s plan also calls for the phaseout of the Section 199A deduction for taxpayers earning more than $400,000, which will affect many pass-through shareholders’ tax planning strategies. Sussman: President Biden has proposed a number of significant tax policy changes for individuals, corporations and estates, and with Democrats now in control of Congress, it is more likely that some of these proposals will become law. If so, the timing of these changes will have the biggest impact on tax-planning strategies. If, for example, increased tax rates and limited deductions for individuals earning more than $400,000 a year were to take effect in 2022, then 2021 income-tax planning would take this into account. The same is true for estate planning—in anticipation of future reductions to the lifetime estate and gift tax exemption, individuals may seek to finalize their estate-planning strategies now under the current law to maximize their tax benefit. Crain’s: The Consolidated Appropriations Act of 2021, nearly 6,000 pages long, contains a number of tax provisions that

will affect individuals and businesses. What expanded or extended provisions are most significant? Which can provide the most benefit to taxpayers? Sussman: In addition to the provision stating that expenses paid with forgiven PPP loans are now deductible, the act includes the extension of the $300 charitable deduction for non-itemizers for 2021 (the maximum increased to $600 for married couples filing jointly); a permanent reduction in the medical expense deduction floor, which allows individuals to deduct unreimbursed medical expenses exceeding 7.5% of adjusted gross income instead of 10%; permission for taxpayers to roll over unused amounts in their health and dependent care flexible spending arrangements from 2020 to 2021 and from 2021 to 2022; and the temporary allowance of 100% business expense deduction for food or beverages provided by a restaurant. Each of these provisions can yield favorable tax outcomes for taxpayers and should not be overlooked in tax planning. Crain’s: What tax incentives should employers keep in mind when planning their 2021 workforce? Tobey: The employee retention tax credit is a huge factor to keep in mind when deciding to retain, furlough or terminate any employees. The new stimulus package allows for a credit of up to $14,000 per employee for qualifying wages paid from Jan. 1 to June 30 of this year. Because this is an immediate credit, it can potentially turn 70% of up to $10,000 of eligible wages paid per employee per quarter into a significant source of cash flow. Joe Bublé: It should be noted that the Employee Retention Tax Credit applies to eligible employers whose business operations were fully or partially suspended because of Covid-related issues.

MAY 31, 2021 | CRAIN’S NEW YORK BUSINESS | 17

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ECONOMY

JOBS NUMBERS CONTINUE TO RISE IN THE CITY Total nonfarm employees in thousands; not seasonally adjusted 4.7K 4.5K

4.3K 4,124.7 4.1K 3.9K 3.7K

Apr ’20

Jan ’20

July ’20

Jan ’21

Oct ’20

Apr ’21

SOURCE: State Department of Labor

THE CITY’S UNEMPLOYMENT RATE FALLS BY 0.3%, BUT IT IS NEARLY DOUBLE THE NATIONAL RATE Unemployment rate; seasonally adjusted

New York City

U.S.

20%

ISTOCK

15%

City jobs numbers tick up in April as economy reawakens from pandemic BY CARA EISENPRESS AND AMANDA GLODOWSKI

ew York City’s job count increased in April, showing a slightly stronger growth spurt than the country as a whole as the government slowly started lifting restrictions on restaurants and stores. The city added 35,100 jobs in April, though the economy remained far smaller than it was before Gov. Andrew Cuomo closed businesses in March 2020 in response to the pandemic. In January 2020 there were a record 4.7 million jobs in the city, the result of a decade of growth. The city and the state have been slower to reopen than other parts of the country where many restrictions ended in the fall. The city’s unemployment rate fell 0.3% in April, to 11.4%. Nationally, unemployment rose by 0.1%, to 6.1%, about half of the city’s rate.

“I USED TO POST AND GET DOZENS OF RESPONSES. NOW IT’S NOTHING” If you were to eliminate New York City from the calculations, New York state’s 5.7% rate would be more in keeping with the national picture. The city began to regain its old form in April, with the weather improving, cases of the virus dropping rapidly, vaccinations ongoing, restrictions on restaurants and

BY THE NUMBERS

bars easing, tourism behave more seats than beginning to return and fore the pandemic more public schools welthanks to city programs coming back students. that have permitted Yet employers actually 11,000 food-related busiadded fewer jobs than nesses to serve customTHE CITY’S they did in February and ers on streets and sideunemployment March, according to state walks. rate in April, Department of Labor fig“I used to post and get down 0.3% from ures, which are not seadozens of responses,” March sonally adjusted. In said Greg Baxtrom, the March the city’s economy chef and owner at Prosadded 39,700 jobs, and it pect Heights restaurants added 47,500 in FebruOlmstead and Maison ary. Yaki. “Now it’s post and MAXIMUM weekly unemploy“So much has hapnothing.” He said he is ment benefit pened in the last couple offering $18 per hour for in New York, weeks that it is a little difline cooks, more than the with the federal ficult to remember that city’s $15 minimum supplement the jobs report is for April, wage. which is forever ago,” said Help wanted Elise Gould, senior economist at the Economic Policy InstiThe reasons for the high unemtute, in Washington, D.C. “It is ployment number are debated by moving so fast.” economists, with some arguing that the federal unemployment Where the jobs are supplement—which makes New In April, as Cuomo was letting York’s weekly benefit maximum New York City $804—is too high. Others point to restaurants wel- former employees’ care responsicome customers at bilities, especially among parents half of their maxi- whose children aren’t in school mum occupancy, and whose day care center has up from 35% for closed. Although a slower return to half of February work because of unemployment and March, jobs at benefits could be holding back the eateries and bars economy, caution around public increased by 15,200, bringing the health should reduce criticism of total up to 186,700—more than in the benefits, said James Parrott, diprevious months but still about rector of economic and fiscal poli60% of the industry’s number be- cies at the New School. “People are making decisions on fore the Covid-19 pandemic. That is likely fewer than the jobs what is best for them and their famthat could have been added, as ily,” Parrott said. “You don’t want busy restaurants report that they people having a sense of abject descannot find all the employees peration to take any job at any they’d like to hire. Many restaurants wage.” ■

11.4% $804

11.4%

10% 6.1% 5%

0 Jan ’19

Apr ’19

Jul ’19

Oct ’19

Jan ’20

Apr ’20

Jul ’20

Oct ’20

Jan ’21

Apr ’21

SOURCE: U.S. Bureau of Labor Statistics; state Department of Labor

NEW YORK CITY HAS OUTPACED NATIONAL JOB GROWTH IN THE PAST THREE MONTHS Month-over-month rate of change in total nonfarm employees in thousands; not seasonally adjusted New York City

1.5%

1.19% 0.82%

U.S.

0.98% 0.83%

0.86% 0.76%

Mar ’21

Apr ’21

0.0

-1.5% -1.83% -2.39% -3.0%

Jan ’21

Feb ’21

SOURCE: State Department of Labor; U.S. Bureau of Labor Statistics

HOSPITALITY AND RESTAURANTS DRIVE JOBS NUMBERS IN THE CITY Number of jobs added by industry, in thousands. Displaying top increases in New York City from March to April. Figures not seasonally adjusted Leisure and hospitality Food services and drinking places Accommodation and food services Restaurants and other eateries Full-service restaurants Professional and business services Education and health services Arts, entertainment and recreation Health care and social assistance Professional, scientific and technical services

19.9 15.2 14.8 11.5 8.4 6.8 5.8 5.1 4.2 3.9

SOURCE: State Department of Labor

18 | CRAIN’S NEW YORK BUSINESS | MAY 31, 2021

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COMMERCIAL REAL ESTATE

British furniture brand to open 7,200-square-foot flagship location in the Flatiron District

ritish furniture brand Timothy Oulton is opening up a flagship store in Manhattan’s Flatiron District despite the bleak retail market. Timothy Oulton has leased about 7,200 square feet at 901 Broadway by East 20th Street, the company announced last Tuesday. The lease is for 10 years, and the company plans to open the store during the late summer. The monthly asking rent was $60,000. “I’ve always said, you can’t influence market conditions; you can only concentrate on your business philosophy and brand and just

changed much in response to Covid-19.” The store has 45 retail galleries across the globe, seven of which are in the U.S., including one at 200 Lexington Ave. in Kips Bay. The Flatiron District store will be its largest retail location on the East Coast.

Attracting buyers Compass agents Robin Abrams and Rebecca Olshan represented Timothy Oulton in the deal, and Compass agent David Graff represented landlord Karass Broadway. London-based firm Paddy McCormack + Co. consulted for Timothy Oulton on the deal as well. Karass purchased 901 Broadway for $24.6 million in 2009, property records show. McAlpine Contracting will build out the $1 million store for the furniture brand. The project “will revitalize this currently vacant retail space to attract buyers to this vibrant neighborhood at the time when the retail industry is beginning to recover in Manhattan

“IT’S A GREAT SIGN FOR RETAIL THAT SPACES LIKE THIS ARE SIGNING LEASES” keep going,” company founder Tim Oulton said. “We are in it for the long haul and have had a pretty clear and consistent vision in mind for a while, so our strategy hasn’t

TIMOTHY OULTON

BY EDDIE SMALL

and nationally,” McAlpine Vice President John Nolan said. Manhattan’s retail market had a difficult start to the year, with leasing activity dropping quarter over quarter and year over year for the

seventh time in a row during the first quarter, according to a report from CBRE. The amount of ground-floor retail availabilities increased from 264 to 275—a record high—and the

average asking rent fell year over year and quarter over quarter to $618 per square foot. The report, however, said the first quarter of the year may have represented the nadir for Manhattan retail, given the steady increase in vaccinations and the city’s reopening. Graff said he is optimistic that Timothy Oulton’s deal is good news for the future of the Flatiron District’s retail sector. “I think it’s a great sign for retail in the Flatiron District that spaces like this are signing leases,” he said. “It’s not the largest space in the Flatiron District, it’s not the smallest, but it certainly is one of the best.” ■

2021 Events New York’s top industry thought-leaders, influencers and rising stars join Crain’s for stimulating fireside chats, panel discussions and honoree celebrations.

Check out Crain’s virtual programs at CrainsNewYork.com/Events For sponsorship opportunities, contact Kate Van Etten at kvanetten@crain.com MAY 31, 2021 | CRAIN’S NEW YORK BUSINESS | 19

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Advertising Section

CLASSIFIEDS POSITIONS AVAILABLE Senior Associate (The Carlyle Group Employee Co. LLC – New York, NY) Mult pos avail: Conduct analyses of companies, bus models, relevant ind metrics and ind in support of priv equity activities, incl buyouts, venture, growth capital, energy, mezzanine, and GLVWUHVVHG ) 7 5HTV D 0DVWHU·V GHJUHH (or foreign equiv) in Math, Fin, Econ, 6WDWL RU D UHO ÀHOG DQG \UV RI H[S LQ the job offered or in a private equity, OHYHUDJHG ÀQ RU LQYHVW UROH ,Q OLHX RI D 0DVWHU·V GHJUHH LQ VWDWHG ÀHOG DQG \UV RI H[S ZLOO DFFHSW D %DFKHORU·V GHJUHH LQ VWDWHG ÀHOG DQG \UV RI H[S LQ WKH MRE offered or in a private equity, leveraged ÀQ RU LQYHVW UROH 0XVW KDYH \UV RI H[S LQ HDFK RI WKH IROORZLQJ DQDO\]LQJ and structuring leveraged buyouts; performing fundamental analysis and YDOXDWLRQ SHUIRUPLQJ DGY ÀQ PRGHOLQJ LQFO XVH RI 06 ([FHO IXQFWLRQDOLWLHV conducting sector research and comparative analysis; structuring of leveraged EX\RXW 0 $ VSLQ RII DQG UHÀQDQFLQJ transactions; and communicating invest recs and value creation strat to VU PQJPW DQG FR LQYHVWRUV RU H[WHUQDO institutional investors in written reports DQG SUHVHQWDWLRQV ([S PD\ EH JDLQHG concurrently. Resumes: O. Okeke, The Carlyle Group Employee Co. LLC, 1001 Pennsylvania Ave NW, Washington, DC, -RE ,'

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PUBLIC & LEGAL NOTICES Notice of Qual. of 28 W. 36th Street Sole Member LLC, filed with the SSNY on 3/1/2021. Office: NY County. LLC formed in DE on 2/22/2021. SSNY is designated as agent upon whom process against the LLC may be served and shall mail process to: 28 W 36 St, Ste 301, NY, NY 10018. Address required to be maintained in DE: 850 New Burton Rd, Ste 201, Dover, DE 19904. Cert of Formation filed with DE Sect’y of State, 401 Federal St, PO Box 898, Dover, DE 19901. Purpose: any lawful act.

Notice of Formation of ROSS VALLEY VENTURES, LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 03/16/21. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: Philip R. Rupprecht, Frazer Ryan Goldberg & Arnold, 1850 N. Central Ave., #1800, Phoenix, AZ 85004-4561. Purpose: any lawful activities.

Notice of Formation of CHERRY GARDEN DEVELOPER, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 04/08/21. Office location: NY County. Princ. office of LLC: 30 Hudson Yards, 72nd Fl., NY, NY 10001. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207. Purpose: Any lawful activity.

Folium Ware LLC. Articles Of Organization filed with Secretary of State of New York (SSNY) on 03/12/21. Office: New York County. SSNY has been designated as agent of LLC upon whom process may be served. SSNY shall mail a copy of process to the LLC, 118W 123rd St Apt 31, New York, NY 10027. Purpose: Any lawful purpose.

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PUBLIC & LEGAL NOTICES NOTICE OF FORMATION of Essential Absolutely LLC. Arts of Org filed with SSNY on 1/05/21. Office location: NY County. SSNY designated as agent upon whom process may be served and mail copy of process against the LLC to 1200 East 53rd Street, #6F, Brooklyn, NY 11234. Purpose: any lawful act. REXUAN Properties New York LLC filed w/ SSNY on 4/23/21. Office: New York Co. SSNY designated as agent for process & shall mail to: 40 W 116th St., #A712, NY, NY 10026. Purpose: any lawful.

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DFI Services LLC, Arts of Org. filed SSNY 03/12/21. Office: NY Co. SSNY designated agent of LLC upon whom process may be served & mail to National Registered Agents, Inc., 28 Liberty St., NY, NY 10005, also the registered agent upon whom process may be served. General Purpose.

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Notice of Qualification of VALENTINA KOVA HQ, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 04/02/21. Office location: NY County. LLC formed in Delaware (DE) on 03/30/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with DE Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St. - Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

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FORIGRIS LLC, Arts. of Org. filed with the SSNY on 03/01/2021. Office loc: NY County. SSNY has been designated as agent upon whom process against the LLC may be served. SSNY shall mail process to: The LLC, 1 Columbus Place, Apt N40D, NY, NY 10019. Reg Agent: U.S. Corp. Agents, Inc. 7014 13th Ave., Ste 202, Brooklyn, NY 11228. Purpose: Any Lawful Purpose.

Notice of Formation of SRJ Beauty, LLC. Arts of Org filed with Secy. Of State of NY (SSNY) on 3/11/21. Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to 1 River Place, Apt # 1121, New York , NY 10036. Purpose: any lawful act.

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FROM PAGE 1

a job in the growing field of cybersecurity with a starting salary of $60,000. The experiences of these two New Yorkers not only reflect the wrenching decisions the unemployed have had to make in the past 15 months but also the shifting jobs landscape in the city. The good news is that there are hundreds of thousands of jobs available in New York; the bad news is that, although there are enough unemployed workers to fill them, not everybody is like Luce—willing and able to change careers.

Double-digit rate In April companies in the city posted 338,988 job openings, according to an analysis of data from labor market analytics firm EMSI done by the Partnership for New York City, a business group. At the same time, the city had 468,751 unemployed workers—1.38 workers for every opening. While that gap is improving—last summer there were 3.35 out-of-work New Yorkers for every available job—the unemployment rate in the city is still in the double digits, at 11.4%.

crease in New York are in management, sales and technology, where job descriptions ask for a different set of skills than many laid-off service workers possess. Through most of last year, the tech sector had the greatest need for new workers, with hiring demand double that of finance, triple that of marketing and five times larger than hospitality or education, according to a report by the Center for an Urban Future that tracked openings from April to November 2020. Not all skills translate between industries. Four out of five open jobs ask applicants to have a bachelor’s degree, data from the Partnership for New York City show. But 43% of the city’s labor force has no more than a high school or high school equivalency degree, Opportunity @ Work, an organization that aims to improve economic mobility, found. But by ignoring that a retail worker might transition into a professional services firm’s customer service group, “you’re overlooking a talent pool,” said Yscaira Jimenez, an entrepreneur in residence at Opportunity @ Work. “A big number of them have skills, either through their jobs or a vocational program.” With more people working remotely, many tech firms looking for employees are broadening their search. In many cases, they are choosing to hire workers from elsewhere in the country if they have the skills they need. They are doing this rather than trying to retrain or settle for workers in New York coming from other industries such as retail. Since the start of 2020, Greenhouse, which makes applicant tracking and recruiting software, has seen the percentage of citybased jobs that offer remote work as an option triple. Just this year, that number has increased by 25%. Most of Greenhouse’s customers are technology companies. In March 2020, Attentive, a tech firm that specializes in text-message marketing, had slightly more than 200 employees. Now it has 750. But whereas 90% of them once were based in the city, now more than half don’t live here. It is not just the tech industry that is having trouble finding workers.

“I’M LUCKY I’M ABLE TO STAY AND GO BACK TO WHAT I LOVE” The reasons for this mismatch are many. Some experts point to the federal unemployment benefit supplement that in some cases makes remaining unemployed more lucrative than returning to work. To encourage people to go back to work, at least 23 states have ended the supplement early. But in New York City, many economists say, the benefit—which maxes out around $800 a week—is hardly the only force behind the labor market’s mismatch. Some New Yorkers like Cooper have decided to wait until their industry reopens—in her case in September. With public schools not fully open and child care slots down, other workers have new caregiving responsibilities that make working impossible. Meanwhile, the roles expected to in-

RELIEF FROM PAGE 1

additional $277 million in federal funds, according to OTDA. The state appears to have set up a robust system to distribute the money, said Assemblywoman Linda Rosenthal. “They seem to be aware of the great need out there,” she said. “I’m looking forward to June 1.”

The process Landlords and tenants will both be able to apply for funding under the OTDA program, which will also require monthly progress reports on the number of households that applied for and received help. Landlords who receive funds from

the program must agree to waive any late fees tenants have on past rent and not evict or increase the rent on their tenants for one year except for limited circumstances. “It’s been a long time coming,” said state Sen. Brian Kavanagh, “but I’ve spoken with the [OTDA] commissioner, and we’re optimistic that they’ve got the details right and that they are ready to take what will hopefully be a very high volume of applications right out the gate.” Renter applicants will have to provide personal identification, social security numbers and proof of residency, occupancy, income and rental amount. If they are applying for help with their utility arrears, they will need to provide a copy of a gas or electric bill as well. Landlord applicants will need to

JOBS GO BEGGING

ENBAR is CEO of tech boot camp Flatiron School.

339K

NUMBER OF available jobs posted in New York City as of April

469K

NUMBER OF unemployed workers in New York City as of April

As restrictions have been lifted on dining at restaurants and business has improved, owners are all scrambling to find workers at once. Many restaurants closed or operated with a fraction of their former workforce during the pandemic, and now owners find many of their old employees have moved on. The general manager at Crave Fishbar, a seafood restaurant with two locations in Manhattan, moved to South Carolina with his girlfriend, a maître d’ and social media manager at the eatery, and won’t be back. For the first time, owner Brian Owens has had to hire a recruiter to help find a replacement. He is also looking to rehire 130 full-time workers to join the 20 he kept on during the winter, bringing the number of employees back to prepandemic levels.

A workforce in flux When the government closed businesses and schools in March 2020, most workers did not know how long they would be out of a job. Fifteen months later, the economy’s realignment has become clearer. But unsettling factors are holding some back from seeking work: a 20% drop in the number of child care jobs, uncertainty over how public schools will look come September and a feeling that low-wage jobs simply do not offer worthwhile salaries. These factors have led to a significant number of workers who are not expecting to return to their prepandemic jobs, according to research economist James Parrott of the New School. The federal Bureau of Labor Statistics looked at the effects of the provide a completed W-9 tax form, an executed lease with their tenant applicant, proof of rent due and banking information so they can receive a direct deposit payment.

Slow going Housing activists on both the landlord and tenant side have long complained about the slow pace of the state’s rollout of its second rent-relief program. OTDA had previously said it expected to launch the program sometime in May. “It’s about time,” said Judith Goldiner, attorney-in-charge of the Civil Law Reform Unit of the Legal Aid Society. “I don’t know what took so long. People are feeling pretty desperate.” Cea Weaver, coordinator for the Housing Justice for All Campaign,

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JOBS

pandemic shutdowns on its 10-year employment projections. It concluded that if presumably temporary changes, such as professional jobs remaining remote, took hold, employment in food services and at drinking establishments would grow at a 1.3% rate through 2029, compared with the 7.3% rise predicted in the baseline projections, which came out not long before the Covid-19-related shutdowns started. But workers don’t always get the memo that there may be fewer jobs available in their particular industry. That leaves the workforce trying to read the labor market as they make decisions about whether to look to gain the skills they need to change industries or stick to their old careers. That kind of workforce retraining ought to be a job for the current or future mayor, Parrott said, or 150,000 to 200,000 New Yorkers could be left behind even as the economy recovers. “There will be a lot of people who need assistance in getting reconnected to the job market,” he said. Luce, the viola player, spent much of last year in reflection, sustained by state unemployment benefits coupled with the extra amount from the federal government. By summer he had turned his attention to how vulnerable the internet was to hackers. In November he learned the programming language Python on the online learning platform Coursera, which partnered with New York state to offer free training. Then he applied to Per Scholas, a nonprofit training organization,

which runs a tuition-free cybersecurity program. He is not alone. Per Scholas will turn out 600 graduates in cybersecurity, cloud services and software engineering this year, compared with 400 in 2020. Coop Careers, which trains underemployed college graduates to become data analysts and digital marketers, said it served 70% more people in 2020 than in 2019. This year it will enroll 576 participants between its spring and fall cycles. Flatiron School, a for-profit tech boot camp, saw a 179% increase in new students in July 2020 compared to July 2019. Other apprenticeships, such as the production assistant program run by the city, continued to churn out talent throughout the past year. “People are realizing, ‘I can be passionate about music and work in that field but have tech skills,’ ” said Adam Enbar, Flatiron’s CEO. Cooper, the actor, is not going to switch careers, though. She liked television acting and teaching master classes to vocalists, but she said her calling is as an actor. Recently she started Zoom rehearsals for a play that she hopes will get backing, and she is planning a solo concert. She is not giving up on acting for now. “I’m lucky I’m able to stay and go back to what I love,” she said. But for Luce, working in cybersecurity will provide “a step up from Hamilton” and career growth that seems limitless. “You can do pretty well as a musician, but the issue with the tour is you’re on the road all year long, and there is definitely a time horizon to that,” he said. ■

expressed skepticism that the number of households the state expects to help will be sufficient. “With only 170,000 to 200,000 people served and unemployment still nearly double that of February 2020, New Yorkers need ongoing aid,” she said. The state’s previous $100 million rent-relief program, administered by the Division of Homes and Community Renewal, distributed about $47.5 million to more than 18,000 households and was widely criticized for not effectively getting out its money. “We are pleased to see the state set a date for launching its rent-relief program,” Real Estate Board of New York President James Whelan said. “We share the goal of full participation by eligible tenants and

owner acceptance of rental arrears payments, and we stand ready to partner with the state on efforts to educate New Yorkers on how to utilize the program.” Community Housing Improvement Program Executive Director Jay Martin echoed this sentiment, describing the landlord organization as “relieved” to have a launch date for the program. Although questions remain about how it will work and how many tenants will use it, accepting applications is a major step forward, he said. “This is by no means the end of this saga, but it is an important first step,” he said. “Once the money starts getting out the door, we can give some people peace of mind that bills are getting paid and rent arrears are being taken care of.” ■

22 | CRAIN’S NEW YORK BUSINESS | MAY 31, 2021

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GOTHAM GIGS

TIA DOWLINGKETANT AGE 44 RESIDES Bedford-Stuyvesant EDUCATION Bachelor’s in culture and deviance studies, John Jay College of Criminal Justice HELPING HANDS DowlingKetant credits her mother, a minister in the Bronx, with launching her passion for the social services. Before becoming a doula, Dowling-Ketant worked at nonprofits serving the homeless and domestic violence survivors. ALTERNATIVE MEDICINE She is certified in hypno-birthing, a method that uses hypnosis and relaxation techniques to help women manage pain and stress during childbirth. GRIM STAT Dowling-Ketant’s services are meant to address a major problem: Black women in the city are eight times likelier to die of pregnancy-related complications than white women.

BUCK ENNIS

DOWLING-KETANT coaches women before, during and after delivery.

Helping women navigate childbirth To level playing field for moms, Brooklyn doula takes part in city program BY MAYA KAUFMAN

s a doula, a trained companion who provides nonmedical guidance and emotional support to pregnant women, Tia DowlingKetant has assisted in more than 170 births. She knows firsthand the difference the role can make. Her journey started when she became pregnant in 2013. Six months in, she and her husband were watching a movie when she started hemorrhaging. She was hospitalized for a month and spent the rest of her pregnancy on bed rest. When it came time for delivery, her friend Tanisha Evans-Marin, a doula, was by her side. Evans-Marin coached her through her cesarean section and was there when Dowling-Ketant again began hemorrhaging and was rushed to the operating room. The experience was “slightly traumatizing,” she said, but her doula never blinked.

At the time, Dowling-Ketant worked for Adult Protective Services, helping New Yorkers with physical or mental impairments. Several months after giving birth to her son, she signed up for a dayslong doula workshop, got certified and never looked back. From her Bedford-Stuyvesant apartment, Dowling-Ketant founded Metoodoula in 2016. She works with three to four dozen clients a year. Each one gets three to four prenatal visits, support during birth and a postnatal visit for $3,000. She and her clients discuss their pregnancy-related questions and preferences for where they want to give birth. After birth, she checks in to see how they are feeling and offers help, whether with putting together a breast pump or bathing the baby for the first time. “I think of myself as a tour guide to birth,” Dowling-Ketant said. “If you think about a place you’ve never been before, what is the most

helpful? Someone who has been to that location, knows all the great places to eat, knows all of the easy ways to get around.” Her client roster currently numbers 11. Once they hit 37 weeks, she is on call and prepared to rush to their side as they go into labor. Insurance typically does not cover doulas. To serve women who could not otherwise afford it, she takes part in By My Side, part of a federally funded city Department of Health program to reduce racial inequities in birth outcomes. It offers free services to residents of central and eastern Brooklyn. “It evens the playing field,” Dowling-Ketant said. In March she started co-leading an eight-week mentorship program to help other doulas grow their businesses and discuss work issues, from boundary-setting to the maternal mortality crisis. Once again, Evans-Marin is with her. This time, they’re working together. ■

“I THINK OF MYSELF AS A TOUR GUIDE TO BIRTH”

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