Showing posts with label small business. Show all posts
Showing posts with label small business. Show all posts

09 May 2009

LET MORE BUDDING BUSINESSES SET UP SHOP ON CITY SIDEWALKS.

Published: May 9, 2009.
by: MICHAEL WELLS and CHEIKH FALL

photo 1 by: Bernay Roman
photo 2 by: Ed Schipul
photo 3 by: Al, flickr user arubow4

For generations, New York's streets were an arena of second chances. During the Great Depression, 14,000 former bankers, brokers and other jobless New Yorkers were able to make ends meet by taking to the city's sidewalks and selling the iconic 5-cent apple - some say, helping popularize the city's "Big Apple" moniker.

Today, New Yorkers are once again looking for second chances - and second jobs - working as street vendors. Only this time, the streets and avenues where famous businesses like Macy's, Bloomingdales and D'Agostino once got their start now offer few opportunities for aspiring entrepreneurs. That's because outdated city laws stifle these once-thriving avenues of opportunity. There are no permits available for would-be pushcart peddlers, and the wait for a general vending license is several decades. The waiting list - overflowing with more than 10,000 names - has been closed since 1992.

Despite the non-existent supply, demand for permits is skyrocketing. Since the economic crisis began, interest in street vending has risen dramatically as a low startup cost, flexible path to self-employment. Leading vendor cart manufacturers are reporting 20%-30% increases in orders since the recession hit; last month, the Street Vendor Project fielded more than 240 phone calls from would-be vendors in need of a permit.

It's like we're going back to the future. During World War I and the Great Depression, the city eased vending restrictions, helping countless New Yorkers pull themselves up by the bootstraps. Although these loosened rules put New Yorkers back to work, they also incited the ire of some powerful business interests, who viewed the stands as competition, and have engaged in a vending tug-of-war with pushcart peddlers and city leaders ever since - resulting in the first hard caps on street vending in 1979.

You might be saying, "Wait a second, I still see street vendors everywhere." It's true: By setting the caps far below vendor supply and public demand, the city unintentionally creates a thriving and exploitive black market, where aspiring vendors "rent" permits from illegal middlemen for more than $8,000. Other vendors are driven underground, where they're unlicensed and unregulated. This just isn't working.

Raising the caps to realistic levels would help bring vendors out of the shadows and into the legal mainstream.

Thankfully, the City Council is currently considering a bill that would do exactly that - by raising the permit caps 10-fold. That would help eliminate the illegal black market and create much-needed jobs.

With an ample number of permits, New York's sidewalks could double as incubators - fostering innovative new start-ups for those short on capital, but large on concept. Sidewalk chefs could have the flexibility to start as mobile food purveyors, rather than diving right into costly retail space. Inventors would be able to test their creations on passersby, instead of relying on Internet word of mouth. Budding entrepreneurs could break new ground while breathing new life into our neighborhoods.

We estimate the move could quickly create 10,000 new jobs.

Mayor Bloomberg's Five-Borough Economic Plan is innovative- but its focus is entirely long-term - and New York needs jobs now. Current city laws put a stranglehold on what could be a vital source of jobs for the city's newly unemployed. By opening up our sidewalks to more vendors, the Mayor and the City Council could open the door to immediate work for thousands of New Yorkers.

Street vendors have demonstrated time and time again that if you allow honest, hardworking men and women to earn a living selling their wares on the city's sidewalks, they'll take care of the rest. Which is why city government shouldn't stand in their way.

** Wells and Fall are co-directors of the Urban Justice Center's Street Vendor Project. **


LET THE REVOLUTION BEGIN!

Thanks for all you do!
Live
your values. Love your country.
And, remember: TOGETHER, We can make a DIFFERENCE!

FAIR USE NOTICE: This blog may contain copyrighted material. Such material is made available for educational purposes, to advance understanding of human rights, democracy, scientific, moral, ethical, and social justice issues, etc. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

23 March 2009

Economic Dirty Bomb Goes Off in New York.



[Note for TomDispatch Readers: Make sure to watch the striking interview Bill Moyers just did with Mike Davis on his TV show, based in part on "Can Obama See the Grand Canyon?" -- a piece Davis wrote for this site. On the show, Moyers also said that TomDispatch is "one of my favorite websites"! Tom]

With a Whimper, Not a Bang… the Old Neighborhood Empties by: Tom Engelhardt

A block from my apartment, on a still largely mom-and-pop, relatively low-slung stretch of Broadway, two spanking new apartment towers rose just as the good times were ending for New York. As I pass the tower on the west side of Broadway each morning, one of its massive ground-floor windows displays the same eternal message in white letters against a bright red background: "Locate yourself at the center of the fastest expanding portion of the affluent Upper West Side."

Successive windows assure any potential renter that this retail space (10,586 square feet available! 110 feet of frontage! 30 foot ceilings! Multiple configurations possible!) is conveniently located only "steps from the 96th Street subway station, servicing 11 million riders annually."

Here's the catch, though: That building was completed as 2007 ended and yet, were you to peer through a window into the gloom beyond, you would make out only a cavernous space of concrete, pillars, and pipes. All those "square feet" and not the slightest evidence that any business is moving in any time soon. Across Broadway, the same thing is true of the other tower.

That once hopeful paean to an "expanding" and "affluent" neighborhood now seems like a notice from a lost era. Those signs, already oddly forlorn only months after our world began its full-scale economic meltdown, now seem like messages in a bottle floating in from BC: Before the Collapse.

And it's not just new buildings having problems either, judging by the increasing number of metal grills and shutters over storefronts in mid-day, all that brown butcher paper covering the insides of windows, or those omnipresent "for rent" and "for lease" signs hawking "retail space" with the names, phone numbers, and websites of real estate agents.

I hadn't paid much attention to any of this until, running late one drizzly evening about a month ago, and needing a piece of meat for dinner, I decided to stop at Oppenheimer's, a butcher shop only three blocks from home. I had shopped there regularly until a new owner came in some years ago, and then the habit slowly died. The store still had its awning ("Oppenheimer, Established 1964, Prime Meats & Seafood") and the same proud boast of "Steaks and Chops Cut to Order, Oven-ready roasts, Fresh-ground meats, Seasonal favorites," but you couldn't miss the "retail space available" sign in the window and, when I put my face to the glass, the shop's insides had been gutted.

Taken aback, I made my way home and said to my wife, "Did you know that Oppenheimer's closed down?" She replied matter-of-factly, "That was months ago."

Okay, that's me, not likely to win an award for awareness of my surroundings. Still, I soon found myself, notebook in hand, walking the neighborhood and looking. Really looking. Now, understand, in New York City, there's nothing strange about small businesses going down, or buildings going up. It's a city that, since birth, has regularly cannibalized itself.

What's strange in my experience -- a New Yorker born and bred -- is when storefronts, once emptied, aren't quickly repopulated.

Broadway in daylight now seems increasingly like an archeological dig in the making. Those storefronts with their fading decals ("Zagat rated") and their old signs look, for all the world, like teeth knocked out of a mouth. In a city in which a section of Broadway was once known as the Great White Way for its profligate use of electricity, and everything normally is aglow at any hour, these dead commercial spaces feel like so many tiny black holes. Get on the wrong set of streets -- Broadway's hardly the worst -- and New York can easily seem like a creeping vision of Hell, not as fire but as darkness slowly snuffing out the blaze of life.

A Stroll in the Neighborhood

Let me take you, then, on a little tour of the new face of my neighborhood. Along the ten blocks closest to my home, the banks (with one exception), the fast food restaurants (Subway, Dunkin' Donuts, Blimpie), and above all the chain drugstores that crowd onto successive blocks (Rite Aid, Walgreens, Duane Reade) still stand. It's the small places that seem to be dropping like flies.

So here we go up those subway steps at 96th where a branch of WaMu (Washington Mutual Bank, placed in receivership by the FDIC in September 2008 and quickly sold to JP Morgan) stands empty. Now, start walking up the east side of Broadway, past Citibank on 96th and the Bank of America at the corner of 97th, until you come to little Alpine Sound Electronics, or the shell of it anyway, where I used to buy my cheap, waterproof watches for my daily swim at the Y. Now it's gone, though an emphatic "sale, sale, sale, sale, sale" sign over the door is a reminder of its final moments.

Take another sec and check out the other side of the street, where at mid-block a canopy advertising "Moroccan & Indian Home Decoratives… Aromatherapy… Exotic Gifts" still stands, but with a "Store for Rent" sign in the window and a desolate interior -- a couple of ratty shelves, a single chair, a half-filled black garbage bag, and a broom. Right beside it is (or was) a tiny children's clothing store. Its striped awning now sports a gaping hole in its center as if it had been hit by a missile, though its window still says, "Made in New York City… enjoyed worldwide!" Not so much today.

But let's not tarry. Keep going past 98th, by that butchered butcher shop, but do note, next to it, another vacancy, the shell that housed a small wine bar and restaurant, Vinacciolo, that came and went. Only two long, bare, narrow tables remain on a floor scattered with trash.

Now, we're almost at 100th, passing those two towers with their unrented frontages and, on the east side of the street, the classic façade of the old Metro movie house, closed to build one tower, and still empty. The cracked glass of the ticket teller's booth backed by plywood gives the neighborhood that distinctive Last Picture Show feel.

Just above 100th on the west side of Broadway is the store once occupied by Sterling Optical. They moved more than two years ago (I followed them faithfully) and the metal security grill has remained in place ever since. Ditto the storefront next to it, empty but for a little hand-lettered sign on the door, "Fedex Please Knock Hard" -- it better be mighty hard! -- and a tiny "Zagat Rated 2006 Shopping Guide" decal on the window.

Well, you get the idea, if you haven't already experienced the equivalent wherever you live. At 101st, A & S Art/Framing ("custom framing and mirrors"), a sliver of a store, has closed up shop. Between 102nd and 103rd, Planet Kids is emptying out. ("After 18 years we are closing on March 31st...") On 103rd, the Royal Kabab & Curry restaurant has, like the optician, moved on to lower-rent digs without being replaced; and, on 105th, Tokyo Pop, a Japanese restaurant, all of whose wait staff mysteriously spoke English with French accents, has also disappeared, though its papered-over windows uniquely promise a "Pizzabar" in the Spring. (I'm not holding my breath.)

Actually, if you head in just about any direction, the toll is apparent. Go south on Broadway from 96th, for instance, and you pass the same proliferating patches of emptiness. At 93rd, the tiny storefront of the all-detective bookstore Murder Ink, which closed on the last day of 2006 (about the moment when this deepening recession officially began) remains unoccupied.

Further south, there are slaughtered neighborhood restaurants galore. Not surprisingly, even in food-mad New York, people are eating out less and our streets, except perhaps on a Saturday night, seem visibly less populated. Near the corner of 91st, Mary Ann's, a festive Tex-Mex spot, bit the dust; just before 90th, the upscale seafood restaurant Docks Oyster Bar shut its doors so recently that its red "restaurant" sign is still lit ("Docks thanks you all for your loyal patronage over the years but this restaurant is now closed…"); at the corner of 88th, in the spacious two-floor space that used to house Boulevard (on whose paper tablecloths my kids and I drew faces with restaurant-provided crayons), and then a dizzying succession of restaurants whose names escape me, the bar chairs are carefully stored upside down on the bar and a "For Rent" sign is in the window; and, on 77th, Ruby Foo's, a giant pan-Asian joint, described by Zagat's as "Disneyfied," has shut, too.

Only below 72nd street, where the neighborhood gets noticeably tonier, and the banks (TD, HSBC, Capital One, Chase, Bank of America) begin to breed and multiply, and the urban mall stores (Pottery Barn, Barnes & Noble, The Gap, Bed Bath & Beyond) proliferate, do the deaths end (except for a Circuit City branch at the corner of 67th that went down with that bankrupt chain).

Here, stores are still clean, well-lighted places, though a remarkable number of them sport signs that say: "save up to 50%," "up to 70% off…"

9/11, The Sequel

Let's not exaggerate. New York City is not downtown Elkhart, Indiana -- not yet anyway (although the other night on Amsterdam Avenue, just east of Broadway, I noted a block of 12 tiny storefronts, nine of which had been emptied). Yes, rents on avenues like Broadway remain sky-high and, these days, getting a bank loan if you're a small start-up is bloody murder, and the city's zoos are losing their state funding, the hospitals are getting rid of staff, the Metropolitan Museum of Art is having layoffs, the unemployment rate is rising fast, property values are sinking, mass transit riders are facing fare increases as well as major service cuts, and the Greater New York Orchid Society has canceled its annual show. Nonetheless, this global financial capital is still surfing the final modest wavelets of the tsunami of money that flowed through its veins in the good times (some of which continues to head "our" way, thanks to government bailout plans).

Still, as you walk past those patches of darkness, a thought almost can't help but form. For the last seven years, we've been waiting for 9/11, The Sequel, to arrive from Afghanistan or some similar place. The media has regularly featured fantasy scenarios in which Islamic terrorists sneak atomic bombs or "dirty bombs" into cities like New York and set them off. ABC's Charles Gibson even highlighted such a possibility in a Democratic presidential debate. ("I want to go to another question... The next president of the United States may have to deal with a nuclear attack on an American city. I've read a lot about this in recent days. The best nuclear experts in the world say there's a 30 percent chance in the next 10 years...") And the Bush administration claimed as one of its great accomplishments the prevention of a repeat of 9/11.

And yet, in a sense, as on September 11, 2001, maybe we were just looking the wrong way. After all, you might say that an economic dirty bomb did go off in downtown New York and this city (not to say, the nation and the world) has been experiencing a second 9/11 ever since, even if in slow motion.

In my neighborhood, back in those fateful September days in 2001, you could hear the sirens, see the jets streak overhead, catch the acrid smell of the towers and everything chemical in them burning, and like the rest of America, watch those apocalyptic-looking scenes of the towers collapsing in clouds of ash and smoke again and again. But if the look then was apocalyptic, the damage, however grim, was limited.

This time around there's no dust, no ash, no acrid smell, no sirens, no jets, and no brave rescuers either. And yet the effect might, sooner or later, be far more apocalyptic and the lives swallowed up far greater. This time, of course, the fanatical extremists were homegrown. Their "caves" were on Wall Street. They hijacked our economy and did their level best to take down our world.

And they may have come closer than most of us imagine. Alpine Sound and Oppenheimer, Tokyo Pop and Planet Kids, Docks and Ruby Foo's have all gone down (and more are surely headed that way). For the people who owned, or ran, or worked in them, unlike the survivors of the original 9/11, there will be no moving bios in the local papers, no talk of compensation, and no majestic memorials to argue about.

For the perpetrators, who have, at worst, gone home pocketing their millions, there will be no retribution. No invasions will be launched, no missiles shot into homes or hideouts. None of them will be pursued to their lairs, or kidnapped off the streets of New York, or from their palatial mansions, or apartments, or estates. None will be spirited to foreign lands to be imprisoned and tortured. None will be labeled "enemy combatants."

Quite the opposite, in 9/11, The Sequel, the U.S. government is willing to pay many of them and their institutions in the multi-billions for their time and further efforts.

In the second 9/11, all the pain and torture is in the neighborhood.

Tom Engelhardt, co-founder of the American Empire Project, runs the Nation Institute's TomDispatch.com. He is the author of The End of Victory Culture, a history of the Cold War and beyond, as well as of a novel, The Last Days of Publishing. He also edited The World According to TomDispatch: America in the New Age of Empire (Verso, 2008), an alternative history of the mad Bush years.

Copyright 2009 Tom Engelhardt

LET THE REVOLUTION BEGIN!

Thanks for all you do!
Live
your values. Love your country.
And, remember: TOGETHER, We can make a DIFFERENCE!

FAIR USE NOTICE: This blog may contain copyrighted material. Such material is made available for educational purposes, to advance understanding of human rights, democracy, scientific, moral, ethical, and social justice issues, etc. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

13 March 2009

Americans See 18% of Wealth Vanish <--- Poof!






The Hole in Our Wallets.

WALL ST. JOURNAL
March 13, 2009.
by: S. MIRTA KALITA

photo 1: Alane Golden c. 2009.
photo 2:
Fabio Stachi c. 2007. Website
photo 3: Lazy Bone c. 2006. Blog

The wealth of American families plunged nearly 18% in 2008, erasing years of sharp gains on housing and stocks and marking the biggest loss since the Federal Reserve began keeping track after World War II.

The Fed said Thursday that U.S. households' net worth tumbled by $11 trillion -- a decline in a single year that equals the combined annual output of Germany, Japan and the U.K. The data signal the end of an epoch defined by first and second homes, rising retirement funds and ever-fatter portfolios.

Past downturns have been mere blips compared with the losses Americans faced last year, which set them back to below 2004 levels. "In the postwar period, we've never had anything other than very modest declines. That life experience led many people to think that houses were a one-way bet," says Douglas Cliggott, the chief investment officer of Dover Management LLC.

The decline in Americans' net worth, which was the first in six years, follows an extraordinary boom. Not accounting for inflation, household wealth more than doubled from 1990 to 2000, and then, after a pause, rose nearly 50% before the bust of 2008.

While the value of their assets was falling, Americans' total debt remained roughly flat. Total household debt increased by half a percentage point in 2008 as families faced tighter lending standards and many started trying harder to live within their means. After years of splurging with an eye on their rising assets, that phenomenon, known as the wealth effect, now cuts the other way, spurring frugality.

Dawn Cortese, a mother of three boys, recalls the giddy days when she worked as an account executive for Pfizer Inc. and its stock price surged on sales of hit drugs such as Viagra and Lipitor.

"I'd look at my 401(k) and we'd feel comfortable, happy.... I was never very cautious," says Ms. Cortese, 40 years old, of Oakland, N.J. If her boys and their friends wanted burgers or pizza after a roller-hockey game, she obliged. A cleaning lady scrubbed her four-bedroom house and a landscaper mowed her lawn.

Eighteen months ago, Ms. Cortese quit Pfizer to start an event-planning business. She did well initially, turning a Sweet 16 party into a Hollywood set with lights and megaphones one weekend, or a country-western retirement party with a rodeo bar and mechanical bull the next. But last fall, business dried up. Her party props began to collect dust in the basement.

She has moved on to a new business: selling skin-care products through Arbonne International LLC, mostly through word of mouth and catalog sales.

Ms. Cortese's husband, Chris, says his job at a corporate-trade company is relatively stable. But the two are looking to get back on a firmer financial footing.

They've put their house, a gray McMansion in a development carved out of a mountain, on the market, for $799,999 -- $100,000 less than it was worth a year ago, Ms. Cortese says. The family's total portfolio, including stocks, retirement plans and college funds, is down 35%, the Corteses say.

"Even though my husband has a good job, I'm just looking at our portfolio and trying to do what's best," Ms. Cortese says, citing coupons and cooking at home as new survival tactics. If they can sell the house, they have their eye on a less-expensive property or would be open to renting for a few years. "My dad always said, 'Dawn, live below your means.' That's what I am trying to do."

Overall, the quarterly Fed report, known as the flow of funds report, underscores the new strain on the U.S. consumer: Mortgages and credit-card debt alone totaled $13 trillion, or 123% of after-tax income. In 1995, for instance, it was 83% of income.

Collectively, homeowners had 43% equity in their homes -- the lowest level since records have been kept. Amid foreclosures and tighter lending, the total amount of mortgage credit was down last year for the first time since the Fed started keeping track in 1945.

The recession that began in December 2007 has reversed a particularly long boom. "What's misleading about this being the biggest drop is that it was preceded by one of the biggest rises," says David Backus, an economics professor at the New York University Stern School of Business. "Even where it's come down to is not a low level compared to the last 50 years of history."

In all, the net worth of U.S. households stood at $51.48 trillion at the end of 2008, the Fed data showed. Besides being down 17.9% from a year earlier, it was down 9% just from the third quarter.

The net-worth figure encompasses all of families' assets -- housing, stocks, personal property -- minus their total debts.

Americans' assets have taken further hits in the first two months of 2009, a period not covered in the quarterly report.

Although stocks have risen for three straight days, they remain down roughly 16% since the fourth quarter, when Americans' portfolios of stocks and mutual funds were worth $8.76 trillion.

The national median home price, meanwhile, was $170,300 in January, down nearly 15% from a year earlier.

Among those hurt are small-business owners.

"Many people in the small-business sector were putting up their house" as collateral, intertwining their personal and business credit, notes Jane D'Arista, a research associate at the Political Economy Research Institute at the University of Massachusetts-Amherst. For many, "there's no channel for credit now," she adds. "The hit to the American family is so broad and so deep."

Deidre Helberg in Freeport, N.Y., once owned two homes, operating a day-care center out of one. She sold that home and business and put the profits into a business called Helberg Electrical Supply. "That money's all gone now," she says bitterly.

The past few years, while mostly profitable, were a game of juggling working capital and credit. "If you don't have capital, your credit rating is shot," she says. "And if you do have capital, you're supposed to invest it back into the business. That's part of the sacrifice, and there is not one company in America that has not gone through that sacrifice."

The process has wreaked havoc on her personal credit, as late fees accrue on mortgage payments.

Her son, a high-school senior, wanted to attend a private college but now is looking at state schools.

The last straw came late last year when Ms. Helberg was turned down for a credit line badly needed to pay a vendor. "I had $2 million in sales revenue and couldn't get $50,000," she says.

Ms. Helberg is hoping the Obama administration's stimulus package and "green" focus will help, noting that she sells solar panels, wind turbines and energy-efficient street lights.

Signs are emerging that Americans, in ways big and small, are pulling lessons from their collapsed empires. Of 46 economists responding to a recent Wall Street Journal survey, 43 predicted the new era of thrift will persist beyond the end of the recession.

That's evident in the Cortese household. The other day, Ms. Cortese says, her son asked if they could go to Abercrombie & Fitch, the retailer.

He didn't need anything in particular, "just wanted to go shopping," she recalls. She told him no.

And when her boys get their allowance weekly, it comes with a message.

Spend a little, give a dollar to church and, their mother advises, "put the rest in the piggy bank."

Write to S. Mitra Kalita at mitra.kalita@wsj.com

Printed in The Wall Street Journal, page A1


LET THE REVOLUTION BEGIN!

Thanks for all you do!
Live
your values. Love your country.
And, remember: TOGETHER, We can make a DIFFERENCE!

FAIR USE NOTICE: This blog may contain copyrighted material. Such material is made available for educational purposes, to advance understanding of human rights, democracy, scientific, moral, ethical, and social justice issues, etc. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.


04 March 2009

Another one Bites the Dust.

Crain's NY
by: Miriam Kreinin Souccar

photo: ALANE GOLDEN, c. 2009.

March 04, 2009 3:28 PM

Premier NY Prop Rental Company to File for Bankruptcy.

Buckled by the recession and other factors, Props for Today will seek protection from its creditors. The prop supplier owes $900,000 in back rent.

Props for Today, a 28-year-old prop house that supplies furnishings for productions like 30 Rock and Saturday Night Live, is expected to file for bankruptcy protection in the next week or so, a victim of the deepening recession, last year’s writers’ strike, and the loss of a state tax break.

The impending bankruptcy was disclosed in a bankruptcy filing by Props for Today’s parent company, Interieurs Inc., on Tuesday. Another of Interieurs’ companies, Props for Yesterday, is also expected to file for bankruptcy protection soon.

Dyann Klein, owner of the companies, is seeking to reorganize after a particularly difficult period.

The decrease of film making and television in New York, which began with the writers' strike and has continued and been escalated by the loss of the tax incentives, has impacted everybody in this industry," Ms. Klein said. “I believe I will be able to implement necessary changes in reorganization in Chapter 11 and emerge as a much stronger, healthy company that will continue to be the leader in prop rentals in the industry for years to come.

Props for Today is one of the premier prop rental companies in New York City. Given the ups and downs of the local production industry, it diversified into new businesses over the years, like renting out furniture for weddings and special events.

The last month has been especially hard for New York’s TV and film production businesses because the state’s tax incentive program ran out of money. No pilots were filmed in New York , and the city has already lost one television series, Fringe, which is relocating production to Vancouver.

According to Interieurs’ Chapter 11 filing, the company owes about $900,000 in rent on its 83,000-square-foot space on W. 34th Street to Vornado, its landlord.

Annual rent on the property is about $1.5 million. In December, Vornado initiated a non-payment proceeding against Interieurs in the Civil Court of the City of New York, seeking possession of the premises, according to the filing.


LET THE REVOLUTION BEGIN!

Thanks for all you do!
Live
your values. Love your country.
And, remember: TOGETHER, We can make a DIFFERENCE!

FAIR USE NOTICE: This blog may contain copyrighted material. Such material is made available for educational purposes, to advance understanding of human rights, democracy, scientific, moral, ethical, and social justice issues, etc. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

02 February 2009

Longer notice now needed for layoffs in NY

Post: Crain's NY
By:
Daniel Massey
Photograph: A. Golden, eyewash design, c. 2009.

February 02, 2009 3:49 PM

Tougher new law requires 90 days notice before layoffs or closings – up from 60 days.

Just as job losses are mounting, thousands of private employers in New York must now give an even earlier heads up to workers of mass layoffs, plant closings and relocations.

The New York State Worker Adjustment and Retraining Notification Act went into effect Feb. 1 and is more expansive than the 20-year-old federal law that had previously set notification standards. Indeed, the New York law is considered the strictest in the country by some employment lawyers, who note that it applies to more employers, requires additional advanced notice and is more easily invoked than the federal WARN statute.

Employment lawyers and business advocates say the new set of rules come at the wrong time for businesses and make it harder for them to cope with the recession.

“In this economic climate, there are going to be a lot of companies that have to make changes for business reasons,” said attorney Marc Mandelman, co-chair of the Managing Change/Reductions in Force group at law firm Proskauer Rose. “These new deadlines will be extremely difficult to meet.”

The federal law required employers with 100 or more full-time employees to provide written notification of mass layoffs and closings, but the New York law applies to businesses with 50 or more full-time workers.

The new law also requires 90-day advance notice to employees and government officials, compared with 60 days in the federal rules.

And notification is now required when at least 25 employees lose their positions, if they make up one-third of the workforce, or when a company lays off at least 250 full-time employees. The federal WARN act is triggered when 50 workers who represent one-third of the workforce are let go, or if 500 workers are laid off.

The Business Council of New York State says some 13,000 small businesses that weren’t affected by the federal statute will now be covered by the state law. Many of them can’t afford to hire labor attorneys to assist with the process, the council argued.

“It makes it more difficult to do business in New York State,” said a spokesman for the group.

But a spokesman for the New York State AFL-CIO, which represents 2.2 million workers, said the law provides employees a much-needed cushion to help deal with the harsh effects of unemployment.

“Every day counts when you’re losing your job,” the spokesman said. “You have to pay the bills, pay the rent and provide for your family. Any extra time helps you deal with the horror of losing your job.”

The law empowers the State Department of Labor to hit violators with penalties of $500 per day and hold them liable for back pay and employee benefits. Under the federal law, redress is more limited.

Employers are exempt from the requirements if they can show unforeseen hardship or attempts to actively seek capital or business that would have prevented the layoff, plant closing or relocation.

But Gerald Hathaway, an employment attorney at law firm Littler Mendelson, says the exemptions don’t go far enough. New Jersey’s WARN law, for example, applies only to businesses that have been around for three years or more. He says startups and even Broadway shows now have to factor giving 90 days notice into their business plans.

“Any entrepreneur starting a business has to ask himself six months in, ‘Am I going to make it?’” Mr. Hathaway said. “If I don’t, now I’m on the hook for giving three months notice. It calls to question survivability.”



LET THE REVOLUTION BEGIN!

Thanks for all you do!
Live your values. Love your country.
And, remember: TOGETHER, We can make a DIFFERENCE!

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21 October 2008

Friend’s of the U.S. Chamber of Commerce - a Petition.

Today, I signed up as a member of Friends of the U.S. Chamber and wanted to share with readers a little bit about this a new grassroots initiative brought to Us by the U.S. Chamber of Commerce. Friends of the U.S. Chamber is brought to you by the U.S. Chamber of Commerce, the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region. Their goal is twofold.

Firstly, their forum provides the People another opportunity to join hundreds of thousands of concerned People across the country and allows them to add their voices to the debate on important issues impacting People and their communities. Secondly, it's supposed to help educate citizens regarding key bills and issues they care about and to enable the People to respond to action alerts by writing elected legislators.
My first course of action was to sign the "Dear 44" - a petition to the next President of the United States. Will the next President favor policies that encourage job creation, lower energy prices and prosperity? - OR - will he take the road of higher taxes, higher energy prices, more regulation, more litigation and more Union corruption?

If you'd like to make your voice heard - please sign the "Dear 44" petition to tell Senators' Obama and McCain you too want a President who supports the pro-growth agenda. When You go to the site, You can opt to
receive updates on the issues You choose that are of specific interest to You and also to receive e-mails asking you to Take Action on these specific interests. These tools and resources are designed to promote, protect and advance You and Your community's local business interests. Check it out & pass it on!


LET THE REVOLUTION BEGIN!

Thanks for all you do!
Live your values. Love your country.
And, remember: TOGETHER, We can make a DIFFERENCE!