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THE

47TH STREET BUSINESS

IMPROVEMENT DISTRICT

THE NATION’S DIAMOND DISTRICT

ANNUAL REPORT FY 2013

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47TH

STREET BUSINESS IMPROVEMENT DISTRICT

ANNUAL REPORT

FISCAL YEAR 2013

Section I : Review of Fiscal Year 2013

Neighborhood Needs Assessment

The 47th Street Business Improvement District (47th Street BID) is a not for profit tax

exempt 501 ( c ) 3 organization that was formed in 1997 by the Diamond District's

merchants and landlords to enhance the economic development activities of New York's

Diamond District. The goal of the 47th Street Business Improvement District is to make

the Diamond District safer, cleaner and more beautiful for merchants and consumers who

work and shop in the Diamond District. The 47th Street BID's programs are focused on

supplemental sanitation and security services, maintenance of capital improvements and

the promotion of the Diamond District's merchants. According to reporting agencies, over

the past year sales receipts for 1,300 retail jewelers on 47th

Street exceeded $1 billion

dollars. All economic activity on the street including; retail, wholesale, manufacturing

and importing accounted for over $5 billion dollars.

Forty-Seventh Street between Fifth and Sixth Avenues, known as Diamond and Jewelry

Way, is the trading and communications hub for over 26,000 New Yorkers who work in the

Diamond and Jewelry industries. Over 95 percent of the diamonds which come into this

country goes through dealers on the block, and more precious jewelry is manufactured

in New York than anywhere else in the U.S. While other parts of the city have districts

which specialize in one business or another, no other industry is as concentrated on one

block as the jewelry trade on 47th

Street. With over 2,600 individual firms on the 920

foot block the area is very vertical and thriving with a special energy. The district has a

unique culture and passion of doing business. It is that personal touch which will always

distinguish products of the Diamond District. The district is more than bricks and mortal--the

people of the district are its greatest asset with a rich heritage of skill and experience. Most

businesses have been in the trade for generations and there is no one block in the entire

city with as much personal connectedness.

Because of the high amount of International transactions in the district,

the block is also a major center of finance. Most dealers on the street rent booth

space (in some cases window space) in one of the of the 25 jewelry exchanges which line the

block. In most cities in America, you have to travel to the next mall down the road. In the

47th Street Diamond district, you step five paces to your left or right and you will see a

different jeweler with a totally different selection of items. In each exchange there are

dozens, sometimes hundreds of independent sellers all under one roof. The close

proximity of all these retailers give shoppers the ability to see many different selections

in a very short amount of time.

Our long term vision is to raise public awareness about the district and its importance to

the city and world economy. This will help the district position itself over time to become

the place to buy, sell, manufacture, retail or wholesale precious metals and gems. This

will be accomplished through the further enhancement of our basic services to make the

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district as appealing and alluring as possible.

The major construction project on the street, the International Gem Tower, has been

completed. When fully occupied it will add approximately 750,000 new square footage

of commercial space to the district. The building has received a Certificate of Occupancy

and some commercial tenants have begun to take ownership of their spaces. The retail

level has been sold. They have informed us that tenancy will begin in the second quarter

of 2014. When occupied, the building will bring much new pedestrian traffic to the

district which will help the merchants on the street.

Addressing the Needs of the Consumer – We have sought to make the Diamond District a

more appealing shopping destination for consumers. The major complaints about the

Diamond District resolve around “hawkers” (individuals who solicit for business on the

street). Aware of the “1st Amendment to the United States Constitution – Free Speech

Issues” raised by these activities, the leadership of the BID has done everything within its

limited powers to curb these activities. We also met with the local police department

representatives to try and increase enforcement of harassment cases. We continued to

meet with our legislative representatives and appointed government officials to try to

come to some workable solution to this problem. The poor economic climate coupled

with an ever increasing price of gold has drawn more people to the street seeking to sell

their jewelry. this has led to an increased amount of businesses on the street buying gold

and the attendant "hawkers" who steer potential customer.

A New Industry Economic Impact Study

The BID entered into a contract with, The Fiscal Policy Institute, to produce a new study

of the industry. The last study commissioned by the BID and New York State's Empire

State Development Corporation was completed in 2011. We will be releasing the results

of this survey in 2014.

I. Review of Fiscal Year 2012 Activities

Goals

The BID operated within its assessed budget and ended the year with a surplus that will be used

as a reserve fund.

Security Cameras:

The BID was successful in its lobbying efforts to be included in the NYPD's placement of

security cameras. These cameras in addition to the ones the BID bought with a grant

supplied by the U.S. Dept. of Homeland Security has greatly increased the safety and

security of the district. The cameras are utilized by all levels of governmental law

enforcement.

Security

Security Services

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The BID continues to provide a manned security presence five days a week from 10 A.M.

to 6 P.M. Monday through Friday. The BID received a Proprietary Security License from

the State of New York. The company hired by the BID, Mega Protective Services,

supplies three armed retired NYPD officers for daily patrol duties.

Security Consultant

The 47th Street Business Improvement District maintains a contract with Richard Pettigano, a

security expert. Mr. Pettigano has a long career in law enforcement and security. He began his

career working in the United States Department of Justice. He is licensed as a Peace Officer by

the State of New York and New York City. He is an accredited Special Patrolman for the

Diamond District. He has over thirty years experience as head of security for the Diamond

Dealers Club and is a member of the Fraternal Order of Police Officers. Mr. Pettigano has been

an invaluable agent for the BID in relations with crime enforcement agencies at both the local and

federal level.

Sanitation

The BID continues to provide a manned presence six days a week from 9 A.M. to 5:30 P.M.

Monday through Saturday. During the holiday season, Thanksgiving through New Year’s Day, the

BID sanitation coverage was increased to seven days a week to help give support to the area stores

extended holiday hours of operation

Marketing, Advertising & Special Events

Marketing

The ground floor retailer’s success is pivotal to the perception and reality that the

district’s sales are strong and robust. Through their increase in business, the wholesalers,

manufacturers and other businesses in the community will also indirectly thrive and

prosper.

Diamond District Monthly

The BID continues to publish, Diamond District Monthly, an advertising supported

monthly magazine available free in news boxes on the street and in lobbies of select

buildings. Distribution is also done through the mail to jewelers, industry and civic

leaders as well as elected and appointed officials. The newsletter covers information

valuable to all stakeholders in the district. It informs the district's businesses and workers

about the BID's activities. It is also available on the BID's website at

www.diamnddistrict.org by clicking on the DDMonthly button. All previous editions of

the publication are available there. The magazine has now gone to full color on all pages.

A subscription has been requested by the NY Public Library for access by their patrons.

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BID Educational Seminars

The BID ran educational seminars for our stakeholders on the following topics.

Safety & Security For Jewelers - Presentations were made by the local NYPD precinct

and the US Secret Service.

Marketing For Jewelers - Presentations were made by the US Postal Service, Constant

Contact (an email marketing company) and a firm specializing in mobile marketing.

Second Hand Dealers - Presentations were made by the NYC Dept. of Consumer Affairs

and the NYPD.

Energy Saving Programs for Property Owners - Presentations were made by ConEd and

NYSERDA.

Jewelry Designer’s Symposium - The symposium was sponsored by New York City's

Economic Development Corporation.

Local Law 87 for Property Owners - Presentation were made by representatives of

NYSERDA.

Meet & Greet Breakfasts

In order to attack more shoppers to the district the BID ran meet & greet informational

breakfasts for the following groups with high-net-worth members.

Big Apple Greeters

Manhattan Chamber of Commerce

Cosmopolitan Club

Project Runway

Greater NY Chamber of Commerce

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Web Site: www.diamonddistrict.org

The BID’s website is the public representation of both the organization and the district.

There are sections which highlight the BID’s Buyer’s Bill of Rights, information for

consumers about how to buy jewelry and sections on how to contact the BID. Retail

merchants in the district, who are part of our Buyer’s Bill of Rights Program, have

informed the BID that the largest number of visitors to their individual sites come from

links on the BID’s site. This is extraordinary considering that each of these merchants has

an active web-advertising program of their own.

The BID's website also include other useful information about the organization including

a listing of the board of directors, the most recent Annual Report and the BID's financial

information and all historical issues of the BID's monthly publication, Diamond District

Monthly.

Holiday Decorations

The BID’s holiday light pole decorations are changed with the season and holiday. The

end-of-year decorations included decorative greenery festooned with lights, bows and

greenery. The spring-summer decorations had the BID providing live flowering plants

on each pedestrian light pole.

BID Board of Directors

47th Street Business Improvement District

- the diamond district –

580 5th Avenue, Suite # 323, New York, NY 10036Ph # 212-302-5739, Fax # 212-302-7835

Class A = Property Owners Class B = Commercial

Class C = Residential Class D = Public Officials

Class E = Non Voting Public Members

Executive Committee Class Alternate Harvey Nagin - President B Nagin Jewelry 66 West 47th Street New York, NY 10036 Ph # 212-719-2185 Fax # 212-719-2194 Email: gem_one@msn.com Stephen Grauer - Chairman B Gerry Grauer

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Gold Art 18Kt.LLC Gold Art 18Kt.LLC 8 West 47th Street, Booth 51-52 New York, NY 10036 Ph # 212-719-1695 Fax # 212-354-6351 Email : steven@goldart18kt.com Dennis Marlow - Secretary B Brian Marlow Solitaire Creations 15 West 47th Street New York, NY 10036 Ph # 212-840-2209 Fax # 212-840-2256 Email: edwardmazzola@solitairecreations.com Robert Hadi Treasurer A ABS Partners Real Estate 2 West 47th Street New York, NY 10036 Ph # 212-400-2340 Cell # 917-684-5510 Email: rhadi@absre.com Jeffrey Mordekai - Executive Committee Member A Petra Jewelers 62 West 47th Street New York, NY 10036 Ph # 212-575-9230 Fax# 212-575-9231 Email: petranewyorkcity@aol.com Ronnie VanderLinden - Executive Committee Member B Diamex Inc. 11 West 47th Street New York, NY 10036 Ph # 212-575-8145 Fax #212-575-8187 Email: Ronnie@diamexinc.com Richard Winick - Executive Committee Member B Manny Winick Manny Winick and Son 32 West 47th Street New York, NY 10036 Ph # 212.302.9555 Fax #212-575-1991

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Email: rwinick@winickdiamonds.com Kenneth Kahn - Executive Committee Member A Arthur Margolin KenArt Realty 10 West 47th Street New York, NY 10036 Ph # 212-354-0200 Fax # 212-944-8266 Email: kkahn@kenartrealties.com Richard Friedman - Executive Committee Member B Cory & Robert Friedman I. Friedman and Sons 10 West 47th New York, NY 10036 Ph # 212-944-8090 Fax # 212-398-1963 Email: ifs@ifriedman.com Michael Toback - Executive Committee Member A Joy Galicki Myron Toback, Inc. 25 West 47th Street New York, NY 10036 Ph # 212-398-8300 Fax # 212-869-0808 Email : Michael@myrontoback.com Avery Weinschneider - Chair Finance Committee B Weisz Jewelry 73 West 47th Street New York, NY 10036 Ph # 212-575-5817 Email: Chanyw@vzw.blackberry.net Board Members S. David Belsky - Chair Audit Committee A SDA Belsky Associates 21 West 47th Street New York, NY 10036 Ph # 212-869-0052 Fax # 212-869-5573 Email: SDBelsky@sdbelskycpa.com Jay Holzer A Dyckman’s 73 West 47th Street

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New York, NY 10036 Ph # 212-819-0355 Fax # 212-869-1037 Email : shholzer@aol.com Christopher Ipek A Altin Realty 74 West 47th Street New York, NY 10036 Ph # 212-719-1318 Fax # 212-719-3493 Email : christopheripek@aol.com Raizy Haas A Jeffrey Torkin & Joe Lipton Extell Development Corp. 805 3rd Avenue New York, NY 10022 Ph # 212-712-6103 Fax # 212-712-6100 Email : rhaas@extelldev.com Lucy Orozco A David Kaplan Valley National Bank 66 West 47th Street New York, NY 10036 Ph # 212-764-6755 Fax # 212-944-9476 Email: Lorozco@valleynationalbank.com Matthew Selig A Leo Ingwer 62 West 47th Street New York, NY 10036 Ph # 212-719-1342 Email : Matthews@leoningwer.com John Kocak B Unique Settings 47 West 47th Street New York, NY 10036 Ph # 201-240-9505 Email : johnk@uniquesettings.com Adnan Aydin A Futurama Jewelry Exchange 62 West 47th Street New York, NY 10036 Ph # 212-944-2038 Email : aa62w47@aol.com

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Yale Zoland A Robert Zoland Zolands 75 West 47th Street New York, NY 10036 Ph # 212-575-8875 Fax # 212-827-0113 Email : yale@zolands.com Danielle Azeroual A Noel Morrison Premier Realty 36 West 47th Street – Room 1005 New York, NY 10036 Ph # 212-768-3433 Fax # 212-764-6844 Email : danouche71@aol.com Alon Mor A Mor Diamonds 62 West 47th Street, Suite # 401 New York, NY 10036 Ph # 212-921-4221 Email : alon@abemor.com Jack Elo A Elliott Elo The Elo Group 42 West 48th Street, Suite # 206 New York, NY 10036 Ph # 212-997-5540 Fax # 212-997-5539 Email : groupelo@aol.com Marc Beznicki A King Mark Jewelry 62 West 47th Street, Suite # 310 New York, NY 10036 Ph # 212-921-0746 Email : mbeznicki@yahoo.com Moris Yeroshalmi A 45 North Station Plaza, Suite 315 Great Neck, NY 11021 Ph # 516-482-0276 Fax # 212-656-1338 Email : my@abcny.us Sammy Abramov B Pziporah Abramov A.A. Pearls and Gems 10 West 47th Street, Unit # 5 New York, NY 10036

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Ph # 212-730-1731 Email : aapearl@aol.com Isaac Chetrit A Jack Yadidi AB & Sons Group, LLC 25 West 36th Street., 2nd Floor New York, NY 10018 Ph # 212-226-4020 Fax # 212-226-5342 Email: Ichetrit@aol.com Michael Oistacher B Elizabeth Oistacher Manhattan Gold & Silver 45 West 47th Street New York, NY 10036 Ph # 212-398-1454 Jules Yitzchok Fleischer B Jewelry by Alexander 4 West 47th Street, Booth # 36A New York, NY 10036 Ph # 212-575-0008 Email : julesfleischer@gmail.com Sunny Yung A Central Management Corp 55 West 47th Street New York, NY 10036 Ph # 347-534-3128 Fax# 212-213-9325 Email : sun@55w47.com John Glaister - Resident C 55 West 47th Street – Penthouse New York, NY 10036 Ph # 212-832-7454 Email : John.Glasiter589@westernman.com Matthew Schneid - Community Board 5 E 450 7th Avenue, Suite 2109 New York, NY 10123 Cell # 516-361-9827 Email : matthewschneid@gmail.com Reuven Kaufman E Diamond Dealers Club 579 Fifth Avenue, Suite 1018 New York, NY 10017 Ph # 212-355-2330

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Fax # 212-355-2342 Email: reuven@reuvenkaufman.com Hon. Michael Bloomberg D Mayor of the New York City Hon. Christine Quinn D Speaker of the New York City Council Hon. John Liu D New York City Comptroller Hon. Scott S. Stringer D Manhattan Borough President

Section II 2014 Goals

1. Security

We have applied for licensure from the NYPD to have Peace Officers in the

district. We will continue to press for this.

2. Light Poles

The BID has identified the replacement of the 19 light poles it currently owns on

the street with taller, more modern more energy efficient light poles. The project

has been approved by the Public Design Commission, Community Board 5, and

the NYC Planning Commission. The funds are now at the NYC Department of

Transportation and we envision a Spring 2014 installation.

3. Educational Seminars

The BID plans on continuing its series of educational seminars for its various stakeholders.

The BID has seminars planned on; Exporting For Manufacturers, Anti-Money Laundering

Requirements for Jewelers and Disaster Preparedness for Businesses.

4. Meet & Greet Breakfasts

The BID plans on continuing its very successful program of Meet & Greet Breakfasts with

groups and organizations of high-net-worth individuals. We have scheduled events with;

The Organization Women In International Trade, The Junior League of New York,

Women In Construction, and the Greater NY Chamber of Commerce.

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III. Contracts

The BID has contracts with the following vendors;

George Artz Communications, Inc. -123 Williams Street, NY, NY 10038

Mega Protective Services, Inc. - 269 Barbey Street, Brooklyn, NY 11207

Atlantic Maintenance - 154 Conover Street, Brooklyn, NY 11231

I V. Organizational Information Michael Grumet has been the executive director of the BID for the past seven years his

tenure has been characterized as a “revitalization” of the BID. Mr. Grumet’s background

includes over twenty years working in the not-for-profit sector. He has done fundraising

and marketing for a variety of nonprofit organizations.

The remainder of the full time staff is comprised of, Natalia Cheviakova, the BID’s

executive administrator.