P U B L I C S A F E T Y • S A N I T A T I O N • S T R E E T S C A P ES P E C I A L E V E N T S & P R O M O T I O N S • A D V O C A C Y

Madison Avenue Business Improvement District

2 019 A N N U A L R E P O R T60-86 MADISON AVENUE DISTRICT MANAGEMENT ASSOCIATION, INC.

MADISON AVENUE BUS INESS IMPROVEMENT D I S TR I C T BOARD OF DIR EC TORS as of May 2019

E. William JudsonChairJUDSON REALTY, LLC

Peter N. ArmstrongVice Chair924 REALTY ASSOCIATES, LP

William Friedland TreasurerFRIEDLAND PROPERTIES

Gail WinstonSecretary RICHEMONT NORTH AMERICA

Sarah Alvarez STRIBLING & ASSOCIATES

Gayle Baron COMMUNITY BOARD 8

Daniel BouludCAFÉ BOULUD and BAR PLEIADES

Hon. Gale Brewer MANHATTAN BOROUGH PRESIDENT

Will Brightbill COMMUNITY BOARD 8

Susan Buchbinder (Lori Buchbinder, Alternate) BUCHBINDER AND WARREN, LLC

Jordan Claffey RFR HOLDING, LLC

David Cohen HÔTEL PLAZA ATHÉNÉE

Andrea D’Alessandro GEF DEVELOPMENT CORPORATION

Christina R. DavisCENTER FOR ARCHITECTURE

Hon. Bill de BlasioMAYOR OF THE CITY OF NEW YORK

Steven Durels(Elaine Anazagasty, Alternate)SL GREEN REALTY CORP

Debra FechterDIGBY MANAGEMENT COMPANY, LLC

Jed GarfieldLESLIE J. GARFIELD AND CO., INC

Andrea Gaudet(Stacey DeGroot, Alternate)CHANEL

Isabelle HoganTHE MARK

Michele Iannello(Debra Martinez, Alternate)VORNADO REALTY TRUST

Julianne JaffeJJ MARCO

Elie Kik THE CARLYLE

David J. Koeppel 35 EAST 75th STREET CORP.

Heiko Kuenstle THE LOWELL

Ivan Lustig(Andrea Baumann Lustig, Alternate) RESIDENT

Peter Malachi (Addysen Clark, Alternate) HERMÉS OF PARIS

Maria Giulia MaramottiMAX MARA

Thomas C. MartynJP MORGAN PRIVATE BANK

Hon. Keith PowersNYC COUNCILMEMBER

Gerald PozniakJEEVES NEW YORK

Marianne RosenbergROSENBERG & CO.

Amy Roth (Jane Carey, Alternate) WHITNEY MUSEUM OF AMERICAN ART

Thomas P. Schuler (Frances Escano Nunez, Alternate)METROPOLITAN MUSEUM OF ART

John SheehanHSBC BANK USA, NA

Timothy SlabyBARNEYS NEW YORK

Hon. Scott StringerCOMPTROLLER OF THE CITY OF NEW YORK

Brian TwomeyTHE SURREY

STAFF OF THE MADISON AVENUE B ID

Matthew A. Bauer, PhD President

John P. Hunt Vice President for Operations

Mamadou Sene Assistant Director of Operations

PUBLIC SAFETY TEAMAlfred Ervin, SergeantAbdul Ali III, SergeantCompton Van Cooten, SergeantJamiu Bello, OfficerAnthony Drayton, OfficerPearl Floy,Officer / Operations Dispatcher

Tyrone Freeman, OfficerJermel Hardimon, OfficerDavid Hoyt, OfficerDawud Samia, OfficerRalph Vilain, Officer

GLEAM TEAM(employees of THE DOE FUND)Khalifa Ndiaye, SupervisorJames Fulton, SupervisorAr-Rahman Buskey, SupervisorAlfonso BrooksTyrell HartBrian MichelleEdwin RodriguezAlfredo SamonKenneth ScottDaquan StarlingThomas Wadhams

Message from theChairman & President

The common refrain that we hear fromnew businesses opening on MadisonAvenue is they have moved here to beclose to their leading clients. Indeed,while we are the largest luxury shoppingdestination in North America and hostvisitors from throughout the world, at heartwe are the crossroads of the Upper EastSide ecosystem. New York’s leading socialevents are planned by Upper East Sidersin our restaurants, and their patrons areclothed in our boutiques and coiffed in our salons. These events are often hosted at our hotels, and the looks worn at these galas are later consigned at our resale boutiques. What makesMadison Avenue attractive for visitors is that they have an opportunity to engagewith real New Yorkers in the calm andstylish community that they call home.

It is our honor to present you with thisFY 2019 Annual Report of the MadisonAvenue BID. The BID is led by a Board of volunteers representing the propertyowners, businesses, residents and elected officials of our district. The Board meets regularly to examine andrefine our programming so that it meetsthe changing needs of our membership. What remains steadfast is the work of thewomen and men that wear the MadisonAvenue BID uniform – our Public Safety

Officers and ourGleam Team. Thesededicated individualspatrol and maintainour public spaces in all weatherconditions, and are often the firstrepresentatives of theAvenue that visitorsmeet. We thank themfor their service.

The MadisonAvenue BID is a public-privatepartnership, andworks closely withcity government. We thank Mayor deBlasio, Comptroller Stringer, BoroughPresident Brewer and Council MemberPowers for their efforts. We would alsolike to thank the NYC Department ofSmall Business Services for theirguidance and the many city agencies that we interact with daily to assist our constituents.

Your thoughts and suggestions arealways welcome. Please feel free tocontact us at (212) 861-2055 or atinformation@madisonavenuebid.org with your comments and questions.

E. William JudsonChairman

Matthew A. BauerPresident

Dear Friends,

Gleam Team SanitationService

Public Safety

The Madison Avenue BID’s GleamTeam supplements the services of the NYC Department of Sanitation byassisting property owners and merchantsin maintaining an environment free oflitter and graffiti. Seven days per week,our crew sweeps the District’s sidewalksand curbs, removes dog droppings, linesour trash receptacles, empties fulltrashcans, and places full liners on thecurb for pickup. In the colder months, the Gleam Team removes snow fromcrosswalks, bus stops and fire hydrants.

In the past year, THE GLEAM TEAMCOLLECTED APPROXIMATELY 102,200BAGS OF TRASH from Madison Avenue. Inaddition, during this period the Gleam teamREMOVED GRAFF I T I , S T I CKERS AND FLYERS ON 4 ,342 OCCAS IONS . Manyconstituents took advantage of thesidewalk power washing service offered by the BID free of charge.

The public safety officers of theMadison Avenue BID aid the NYPD indeterring crime and improving the senseof personal safety for all who live, visit or work on Madison Avenue. Ouruniformed, state-licensed and highlytrained officers also act as ambassadorsfor Madison Avenue, providing directionsand other assistance to pedestrians.

In the past twelve months, pedestrians on Madison Avenue made 19,463 REQUESTS FOR ASSISTANCEfrom our uniformed personnel. Our publicsafety officers are on patrol from 9:00amto 7:00pm, seven days per week, 365days per year. Each officer is in constantcontact with the BID’s dispatcher, whocan quickly reach the NYPD. We providebusinesses with decals marked with ourSecurity Hotline number (212) 288-5959,and encourage them to contact us withrequests for assistance. The BID co-hoststhe annual Holiday Safety Seminar withthe 19th Precinct, and is working closelywith the Precinct’s NeighborhoodCoordination Officers.

VirtuosoMadison Avenue has the distinction ofbeing a “Preferred Shopping Destination”of the Virtuoso worldwide network of

luxury traveladvisors, the onlydistrict with thisdesignation inNew York City.Eighty Madison

Avenue businesses are participating inour Madison Avenue Preferred Privilegesprogram, which provides specialamenities and experiences for visitorsbooked through Virtuoso and other luxurytravel agencies. The BID participated in avariety of familiarization tours for bothjournalists and travel agents introducingthe Preferred Privileges Program.

New York CityAssociation ofHotel ConciergesThe BID is a corporate member of theAssociation, and with In New York/Where Traveler, hosted a “Meet theConcierge” seminar.

Madison Avenue Map & GuideThe BID distributed Madison Avenue’sofficial multi-lingual map and guide tohotel concierges and via our sidewalknewspaper & information racks.

China-focusedPromotionThe BID created a China-based portal forMadison Avenue www.xiaoyaodao.cn/nymadisonave on a popular tourismwebsite. We also created a WeChat MiniProgram that enables visitors to createcustom itineraries. We hosted networkingevents for our members and tour operatorsfocusing on the Chinese visitor market,and presented our programming with NYC& Company at the ILTM luxury travelshow in Shanghai. The BID entered anagreement with VISA China to promoteMadison Avenue to their premium cardholders. The BID worked with one ofChina’s leading tourism KOLs to create aMadison Avenue video that was shown onher popular social media sites. Weparticipated in Hainan Airlines andUnited Airlines shopping sweepstakesprograms for Chinese residents. Weposted on the official Madison AvenueWeChat and Weibo accounts. The BIDalso worked with retailers to accept theWeChatPay and AliPay payment systems,and partnered with Jeenie to providetranslation services for our members.

TOURISM PROGRAMS

SEPTEMBER

ABT on Madison AvenueTwelve businesses participated in thisfundraising event celebrating the AmericanBallet Theatre’s 2018 Fall Season atLincoln Center. Participating retailersdisplayed ABT costumes and memorabiliain their windows, and hosted an openingnight reception featuring dancers as well as ABT staff & supporters. The eventculminated in a public dance class onMadison Avenue for children 4-12 wherekids learned choreography from JeromeRobbins’ Fancy Free. At the conclusion ofthe event, kids enjoyed a curtain call atparticipating boutiques as they collectedflowers for a celebratory bouquet.

OCTOBER

Obsessorize on Madison Avenue “Obsessorize” was a month-longcelebration of art & style, running from October 4 toNovember 11, 2018.Timed to coincidewith Marie Claire’sOctober issue, fortyparticipating stores within the BIDbrought to life the intersection of art andshopping via a 3D experience in storesand on the sidewalk. The festivitieskicked off with an opening night shoppingevent and the unveiling of the latestSchool of Visual Arts (SVA) public artinstallation on Madison. A VIP Breakfaston “Art & Style” was hosted by MarieClaire and the BID featuring AccessoriesCouncil president Karen Giberson, MarieClaire Accessories Director Julia Gall,and Professor Kevin O’Callaghan, SVA 3-D Design Chairman. The School ofVisual Arts “Obsessorize” exhibition on Madison Avenue showcased Insta-worthy student-designed sculpturestaking inspiration from past decades of iconic accessories.

SPECIAL EVENTS

DECEMBER

32nd Annual Miracle on Madison Avenue75 businesses took part in our annualholiday event benefiting the pediatricprograms of The Society of Memorial Sloan

KetteringCancerCenter. Theevent waspromoted byadvertising inThe New York

Times and AVENUE, and on WCBS-AM,ESPN radio and WBLS. We expanded theballoon campaign that so vibrantly anddistinctly marked all the retailers onMadison Avenue that joined the initiative.We also featured five teams of holidaycarolers and an appearance by Santa!

FEBRUARY

Madison Street to Madison AvenueLunar New YearCelebrationHundreds of visitors placed a red ribbonwith their wishes for the New Year on ourornamental lantern-festooned Wishing Treeat Madison Avenue & East 63 Street. Thoseplacing ribbons on the tree received a redenvelope containing special offers fromparticipating retailers. To support the event,the BID hired Chinese social media KOL’sLeeInNYC (for the NYC-based Chinesemarket) and Suphy Liu (a top 10 Chinese

travel KOL to focuson the MainlandChinese market). Inaddition, NYC &Company KOLsvisited the WishingTree and posted aboutit as well. Our eventwas hosted inpartnership with ourneighboring BIDsand the BundAssociation inShanghai.

APRIL

Madison Avenue Gallery WalkForty-nineparticipatinggalleriespresented over sixty artistand curator talks and tours.ARTnews hostedthe event andpromoted it viaits online andprint channels.

MAY

Madison Avenue High Fashion & Historic PreservationThe BID saluted NYCxDesign through aseries of public architectural walking toursof Madison Avenue held in partnershipwith AIA New York, and joined withGalerie magazine on a VIP paneldiscussion focusing on preservation &contemporary storefront design onMadison Avenue.

JUNE

Madison Avenue Watch WeekEleven watch brands participated in thisannual showcase of the newest collections.The Wall Street Journal and the HorologicalSociety of New York supported the event,which featured a Collector’s Breakfast &tour aided by Assouline and the BaharTeam at Compass.

Monthly Madison Avenue MixersThe BID’s monthly mixers offer MadisonAvenue managers and sales associates agreat opportunity to build business-to-business referrals, and learn more aboutwhat is happening on Madison Avenue.Thank you to Arche, Boers-Li Gallery,Caudalie, Creed, Diptyque, Fred Leighton|Kwiat, Ippolita, Sisley Spa at The Carlyle, Tumi, Velvet ByGraham & Spencer and Yves Delorme for hosting in the past year.

International Business NetworksIn October, the BID supported the WalpoleGroup’s trade mission to New York,showcasing British luxury brands. InDecember, we held an event presentingpromotional opportunities for French-basedbusinesses with the French Embassy in the United States. In January, the BID co-hosted a networking event for Italian-based businesses at the Italian TradeCommission with All About Italy magazine.

Communications& Social MediaWhitewallerThanks to our ongoing partnership withthis cultural magazine, special MadisonAvenue sections appeared in the issuestied to The Salon Art + Design event inthe fall, and the Frieze New York & TEFAFshows in the spring.

Google AdWordsThe BID launched an ongoing program ofonline advertising through Google’s AdGrants program for non-profits, and developeda promotional video with and for YouTube.

Social MediaThe BID posts information on behalf ofMadison Avenue retailers on our social mediaplatforms (@MadisonAveBID), and maintainsthe Madison Avenue TripAdvisor page.

MadisonAvenueBID.orgThe BID manages the official multi-lingualwebsite of the district, which includes aninteractive map, a job board and listingsfor all businesses.

HolidayDecorationThe BID presented its holiday seasonilluminated snowflakedisplays, and reprised itsmember-supported streettree lighting program atnearly sixty locationsthroughout the district.

Tree Well ImprovementProgramWe managed ourmember-supported treewell flower-plantingprogram with newlocations, and continuedto mulch all MadisonAvenue tree wells.

Constituent Services

Additional Beautification ProgramsThe BID’s award-winning modular newspaper rack program continued to serve as a model for NewYork City, and our lamp pole banner program promoted BID and member special events. We areworking closely with the Parks Department to replace trees destroyed by the fall 2018 Nor’easter.

BEAUTIFICAT ION

INDEPENDENT AUDlTORS’ REPORT

To: The Board of Directors of 60-86 Madison Avenue District Management Association, Inc.

We have audited the accompanying financial statements of 60-86 Madison Avenue District Management Association, Inc.(a nonprofit organization), which comprise the statements of financial position as of June 30, 2018 and 2017, and therelated statements of activities and cash flows for the years then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance withaccounting principles generally accepted in the United States of America; this includes the design, implementation, andmaintenance of internal control relevant to the preparation and fair presentation of financial statements that are free frommaterial misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits inaccordance with auditing standards generally accepted in the United States of America. Those standards require that we planand perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financialstatements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of materialmisstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the entity’s preparation and fair presentation of the financial statements in orderto design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinionon the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimatesmade by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of60-86 Madison Avenue District Management Association, Inc. as of June 30, 2018 and 2017, and the changes in its netassets and its cash flows for the years then ended in accordance with accounting principles generally accepted in theUnited States of America.New York, NYDecember 4, 2018

The Board of Directorshas continued its practice

of conservative fiscal management. The BID’s Finance Committee meetsquarterly to review activities and expenses, provide oversight and plan ourfiscal strategy to ensure that the BID meets its operational goals andobjectives. The BID’s Audit Committee reviews and selects an independentauditor for the Corporation; reviews with the independent auditor the scopeand planning of the audit prior to its commencement; and, upon completionof the audit, reviews and discusses with the independent auditor anymaterial risk and weaknesses in internal controls identified by the auditor,any restrictions placed on the auditor’s activities or access to information;any significant disagreements between the auditor and the Corporation’smanagement; and the adequacy of the Corporation’s accounting and financial reporting processes. The Audit Committee also annually considers the performance and independence of the auditor; reviews the financialcontrols developed and implemented by the President and other employeesof the Corporation, and receives and makes recommendations to the Boardregarding conflicts of interest reported pursuant to the Corporation’s conflict of interest policy. The NYC Department of Small Business Services setsstandards for our fiscal management procedures. If you would like acomplete copy of the BID’s audited financial statements, or additionalinformation on procurement policies and current contracts, please feel free to contact the BID office. The BID has 137 registered members.

Skody Scot & Company, CPAs, P.C.520 Eighth Avenue, Suite 2200, New York, NY 10018 (T) 212-967-1100 • (F) 212-967-2002 www.skodyscot.com

SS

William Friedland Treasurer & Finance Committee Chair

Debra Fechter Audit Committee Chair

F I S C A L R E P O R T

2018 2017

ASSETSCash $333,273 $449,814Program revenue receivable 12,902 123,342Property and equipment, net 371,015 173,098Prepaid expenses and other assets 47,770 53,073

Total assets $764,960 $799,327

LIABILITIES AND NET ASSETS

Liabilities:Accrued expenses $230,827 $227,294

Total liabilities 230,827 227,294

Net Assets:Unrestricted 534,133 572,033Temporarily restricted _ _

Permanently restricted _ _

Total net assets 534,133 572,033

Total liabilities and net assets $764,960 $799,327

STATEMENTS OF F INANCIAL POSIT IONJune 30, 2018 and 2017

STATEMENTS OF ACT IVIT IES

June 30, 2018 and 2017

Support and Revenues:Unrestricted:

Assessment revenue $1,757,000 $1,757,000Contributions in-kind 291,500 311,325Contributions 5,000 4,161Program service revenue 148,681 132,481Interest Income 574 820

Total support and revenues 2,202,755 2,205,787

Expenses:Program Expenses:

Marketing and promotion 610,568 645,317Security 766,147 717,492Sanitation 467,377 433,165Community services 74,555 18,639Public improvements 100,222 93,534

Total program expenses 2,018,869 1,908,147

Management and general 208,456 316,073Fundraising 13,330 11,478

Total expenses 2,240,655 2,235,698

Increase/(Decrease) in Net Assets:Unrestricted (37,900) (29,911)Temporarily restricted _ _

Permanently restricted _ _

Increase/(decrease) in net assets (37,900) (29,911)

Net assets, beginning of year 572,033 601,944

Net assets, end of year $534,133 $572,033

ADMINISTRATION/ CAPITAL FY2019DEVELOPMENT SECURITY SANITATION PROMOTION IMPROVE. TOTAL BUDGET

REVENUE:Assessment Revenue _ _ _ _ _ $2,022,000 $1,907,000Interest Income _ _ _ _ _ 700 700In-Kind Promotions Contributions _ _ _ _ _ 250,000 250,000Program Service Revenue _ _ _ _ _ 119,100 121,600Community Service Contributions _ _ _ _ _ 2,500 2,500

TOTAL REVENUE _ _ _ _ _ $2,394,300 $2,281,800

EXPENSES:PROGRAM EXPENSES:Total Personnel Costs 142,061 704,575 524,747 168,984 39,442 1,579,809 1,617,949

Direct CostsProgram Equipment _ 5,000 _ _ _ 5,000 5,000Program Supplies _ 26,000 _ 5,000 _ 31,000 45,000Program Expenses _ _ _ 80,000 _ 80,000 82,500Legal Expenses _ 10,000 _ 2,000 _ 12,000 12,000Newsbox Maintenance Expenses _ _ _ _ 26,000 26,000 26,000Newsbox Publisher Relations _ _ _ _ 7,800 7,800 7,800Treewell Improvement Program _ _ _ _ 25,500 25,500 25,500Holiday Decorations _ _ _ 62,425 _ 62,425 62,425In-Kind Expenses _ _ _ 250,000 _ 250,000 250,000Community Service _ _ _ 2,500 _ 2,500 2,500Liability Insurance _ 32,800 _ _ _ 32,800 32,000

Total Direct Costs _ 73,800 _ 401,925 59,300 535,025 550,725

TOTAL PROGRAM EXPENSES $142,061 $778,375 $524,747 $570,909 $98,742 $2,114,834 $2,168,674

GENERAL OPERATING:Rent and Utilities _ _ _ _ _ 192,000 23,000Messengers and Postage _ _ _ _ _ 3,400 3,400Office Supplies _ _ _ _ _ 8,000 8,000Office Expense _ _ _ _ _ 9,000 9,000Office Equipment/Depreciation _ _ _ _ _ 5,500 5,500Telephone _ _ _ _ _ 7,700 7,700Insurance _ _ _ _ _ 7,500 6,250Interest _ _ _ _ _ 50 50Maintenance _ _ _ _ _ 2,200 2,200Professional Fees _ _ _ _ _ 25,000 30,000Printing _ _ _ _ _ 7,200 7,200Meeting Expenses, Travel & Conferences _ _ _ _ _ 5,500 5,500

TOTAL GENERAL OPERATING _ _ _ _ _ $273,050 $107,800

Expense Contingency _ 2,000 2,000 1,000 1,000 6,000 5,000

TOTAL EXPENSES $142,061 $780,375 $526,747 $571,909 $99,742 $2,393,884 $2,281,474

EXCESS REVENUE OVER EXPENSES _ _ _ _ _ $416 $326

BUDGET OF THE MADISON AVENUE B ID , F I SCAL YEAR 2020Approved by the Board of Directors on May 1, 2019

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THE MADISON AVENUEBUSINESS IMPROVEMENTDISTRICT (B ID) is a public-private partnershipestablished in 1996, withthe goal of enhancing thequality of life for thecommunity and its visitors.The 60-86 Madison AvenueDistrict ManagementAssociation (DMA), a not-for-profit corporation, is under contract with theCity of New York to managethe BID and supplementservices to the community.A special assessmentlevied on local propertyowners supports theservices of the BID. TheBID focuses on publicsafety, sanitation,promotion and advocacy for the district – striving to make Madison Avenue a more attractive anddynamic place in which toshop, live, work and visit.The BID extends from East57th Street to East 86thStreet on Madison Avenue,as well as the commercialareas of its adjacent sidestreets. The districtincludes approximately 250 buildings and 800businesses, and featuressome of the world’s mostcelebrated boutiques,restaurants, hotels,galleries and residences.

DESIGN: Kenny Funk, Coffee Cup Design Studio COVER PHOTO: Kenny FunkSPECIAL EVENTS: Andrew Werner Photography OTHER PHOTOS: Madison Avenue BID

The BID operates a Public Safety and Sanitation Hotline for its members. 9:00AM to 7:00PM. Seven days a week. 365 days a year.Help is never more than a phone call away. (212) 288-5959

Madison Avenue Business Improvement District 29 East 61st Street, 3rd Floor, New York, NY 10065Phone (212) 861-2055 Fax (212) 861-7838information@madisonavenuebid.org www.madisonavenuebid.org