New at Carnegie: Ford Farewell

TMF Follow-Up: Tony Warren

Crosstown Moves

Brian Breuel’s Path

New in Town: SysNet

Expansions: Caxton

Name Changes

Contracts Awarded: Factiva

Crosstown Moves

Leaving Town

Management Moves

Indicted

Deaths

Corrections or additions?

Published in U.S. 1 Newspaper on May 10, 2000. All rights

reserved.

RCN to Build in Lawrence

E-mail: BarbaraFox@princetoninfo.com

RCN has chosen Lawrence over Ewing and West Windsor

and plans to build more than a half million square feet, at the former

Union Camp site on Princeton Pike, and move in within two years.

The announcement ended a derby that pitted New Jersey against

Pennsylvania

and three New Jersey townships against each other, but it all seemed

to end amicably, especially for RCN, which is getting the space it

needs for growth plus some projected savings in real estate costs.

"Having our own facility will save us $70 million over 10

years,"

said CEO David McCourt at a press conference last week.

Located on 134 acres at Princeton Pike and Lewisville Road, the site

has room for a total of 1.5 million square feet, according to a design

by the Hillier Group that calls for 50 percent of the property to

remain open space. The old Union Camp building will be torn down,

a large circular pond will be dug near the main entrance, and the

historic tree on the property will be preserved.

If the company grows at its current pace — creating 1,960 jobs

in two years — relocating within New Jersey will earn the company

more than $15 million under the Business Employment Incentive Program

and another $12 million under other programs. (As did Merrill Lynch,

RCN negotiated a lease back program so the state pays for its building

and equipment and leases it, free of sales tax, to RCN.)

RCN offers local phone, long distance phone, cable, and Internet

access,

and — with more than 4,300 employees nationally — it builds

a new building the size of a McDonald’s every six days. It has nearly

1 million customer connections and expects to triple that in the next

several years.

"Only three years ago we had a little corner office with four

of us at 202 Carnegie Center," said McCourt. "Now we have

three entire buildings here and a need for a fourth. We are doing

something no one else has ever done — we are building a new

telecommunications

system — and we don’t know how many we will need. We are hiring

18 people a day."

RCN now has 600 workers in 225,000 square feet at the Carnegie Center,

and several of these leases expire over the next two to four years.

Phase I of the construction will double RCN’s current office space

and put an anticipated 1,200 people in four buildings to be completed

by 2002. From 1,500 to 2,000 new jobs will be created between 2002

and 2004. Phase II will be 960,000 square feet and another six

buildings,

including a conference center-hotel.

Construction of the first phase will cost $230 per foot or $110

million,

not including the cost of the land, which had been owned by

International

Paper (Union Camp’s buyer) and a residual partnership from DKM

Properties.

The 560,000 square feet will include five parking garages.

In the final analysis, RCN wanted to own its own space and that

excluded

the Carnegie Center. And though Ewing Township didn’t get the brass

ring, the township’s participation in the site selection process

offered

a chance to put a good spin on a site that had gotten a bad rap from

a previous failed deal. McCourt went out of his way to praise Ewing

as a "fine township" and a potential "great home for our

company," but said that RCN needed more space than the 900,000

feet the Ewing site provided. (Ewing will continue that spin with

its Economic Forum 2000 scheduled for Thursday, May 18, at 5:30 p.m.

at the College of New Jersey’s music building.)

"I have every reason to believe this will be a first class site

— one that is very appropriate for this piece of land," says

Gregory Puliti, Lawrence Township mayor. Richard F.X. Johnson is in

charge of the project for Matrix Development Group, which represented

RCN in the land negotiations, as did attorney Christopher Tarr of

Smith Stratton Wise Heher & Brennan. James Herring is RCN’s vice

president

of real estate, and the King Interests helped with the site selection

process.

At the press conference a video presentation to the

tune of "Come On Over" demonstrated the images that were

supposedly

important to RCN, and most were of Princeton. The most crucial

criterion,

nevertheless, was represented by a sign at the intersection of I-95

and I-295. Most of the critical factors for site selection were

predictable:

proximity to employees, proximity to the Hamilton train station (and

hence New York), increased on-site parking, and sufficient space to

support a campus environment — plus one surprising factor,

proximity

to a multiplex movie theater.

The CEO professed not to worry about RCN’s stock prices. "We never

start anything we don’t intend to finish and we always have enough

money in the bank to finish what we start," he says. "If the

capital market stays closed we will use the money we have. The

fundamental

value of the company has not changed. Over time this company will

be worth much more than it is today. If we keep doing what we are

doing you will be back in this room in couple of years and the stock

will be worth $200 a share," said McCourt, explaining why he moved

the company to Princeton in the first place: "Originally we bought

a company, C-Tech, in Wilkes Barre, Pennsylvania, and I had the hope

of growing that company. I began to look around for places where we

would have access to New York and a good pool of people. Boston came

up at the top of my list, and I’m a Boston guy. But here I was telling

my employees that they would work long hours and travel a lot, and

that they would have to make a move to my home town."

Instead, he picked a neutral location. "Coming down here to New

Jersey was the best business decision I ever made," said McCourt.

"It’s been great for me, great for my family, and great for my

employees."

Top Of Page
New at Carnegie: Ford Farewell

Ford Farewell Mills and Gatsch, Architects, Suite

301, Carnegie 103, Princeton 08540-6235. James A. Gatsch, managing

partner. 609-452-1777; fax, 609-452-7192. Home page:

www.ffmg.com.

Carnegie Center is losing one good tenant but new ones

seem always ready to move in. On Monday, May 15, the architecture

firm of Ford Farewell Mills and Gatsch is moving 40 people from the

6,500 square foot building it owns but has outgrown at 864 Mapleton

Road. It will lease 8,000 feet at Carnegie 103 for two years. During

that time it plans to construct its own new headquarters.

Of that permanent location, spokesperson Alison Harris will say only

that the firm is committed to staying in the greater Princeton area

and that negotiations are not final. The firm does architectural

design

and planning, historic preservation, and interior design.

Top Of Page
TMF Follow-Up: Tony Warren

When Anthony Warren left Technology Management & Funding

(TMF) late last fall, he moved a couple of blocks down on State Road

and opened up a different kind of business. TMF was unusual in that

it took an equity stake in early-stage technology companies by

contributing

expertise in how to create and manage commercialization partnerships.

Warren is doing similar work but is now able to contribute cash as

well. He has been named a venture partner with Pittsburgh-based Adams

Capital Management.

Warren says that the sweat equity offered by TMF, or any business

advisor at the early stage, is very valuable. "The problem is

that the entrepreneurs don’t know what they don’t know. They recognize

the check hitting the bank — they see angel money as more valuable

than getting the right piece of advice."

His most successful deal for Adams Capital (ACM) was a Boston-based

firm CoreTek Inc. (www.coretekinc.com). ACM was looking for a company

that worked in the optical data network area. Warren found CoreTek

in 1998 and ACM led an initial round of equity financing in January,

1999. Nortel Networks has just bought this company in a stock

transaction

that was valued — at the height of the market, to be sure —

at $1.43 billion.

The significant factor that piques Warren’s current interest is that

the target company has "proof of principle" research (it has

proved it can do what it says it can do) and an SBIR grant from the

federal government. SBIR grants provide more than $1 billion annually

to fund research in small companies. CoreTek’s work in "tunable

lasers" and MEM (miniature) devices for optical networks were

partly funded by an SBIR grant from the defense department’s Ballistic

Missile Defense Organization.

"I’ve always thought there has been a gap in early stage money

between federal R&D funding and later-stage venture capital,"

says Warren. "This gap has been a major barrier preventing the

result of the SBIR program transferring to the private sector. What

these guys at Adams do, and I have known them for a number of years,

is to be willing to take a seed investment at an early stage and work

hands-on with the company. What I do is identify the company before

the entrepreneur has thought about venture capital."

Warren went to the University of Birmingham, Class of 1962, and after

earning his PhD there did postdoctoral work at the University of

Illinois

at Champaign and the University of Toronto. Before co-founding TMF

in 1992 he had been North American president of PA Technologies. Last

year he opened Strategic Technologies LLC to help technologists define

and complete transactions based on their intellectual property.

Adams Capital has two partners in Sewickley, a suburb of Pittsburgh,

one in the Silicon Valley, one in Texas, and one near Philadelphia.

Warren says he has found deals in Virginia, Maryland, Connecticut,

Massachusetts, California, and Minnesota, but has never found a deal

in New Jersey. "It’s not that we are not doing the research. We

have a full time researcher here looking for that stage."

"What I provide is that help at that stage. You can’t afford,

when you are managing a fund, to help a lot of little small companies,

and if you just put money in you are taking extreme risks," he

says.

A "preseed deal" might amount to $600,000, says Warren. Adams

puts in a minimum of $500,000 and prefers $2 million, says Warren,

but there is a need for earlier stage money. "We are thinking

of putting a fund together. The advantage to me is that it enables

me to work with some of these companies. Putting in very small amounts

is very difficult, because you have to do so much due diligence."

Says Warren: "It was time to do something new. Being tied up with

Adams and having the capital to put into a deal does make a

difference."

Strategic Technologies LLC, 947 State Road, Suite

104, Princeton 08540. Anthony C. Warren. 609-688-9990; fax,

609-688-9988.

Top Of Page
Crosstown Moves

TMF: Technology Management & Funding LP, 335 Wall

Street, Princeton 08540. Harry Brener, chairman. 609-921-2001; fax,

609-497-0998. Home page: www.tmflp.com.

TMF has made a temporary move from 770 State Road to Research Park.

The phone and fax remain the same. It is a private limited partnership

that builds equity value in portfolio of early-stage technology

companies

by creating and managing commercialization partnerships.

Web 401K, 666 Plainsboro Road, Suite 1020,

Princeton

Meadows Office Center, Plainsboro 08536. Dan Klein, president/CEO.

609-275-2909; fax, 609-275-8887. Home page: www.web401k.com.

This pension plan administration firm used to be known as Johnson

& Farago, but Peter Farago retired and sold it last year to Dan Klein,

Leyla Howarth, and Ronald Cohen. Now Web401K administers 401K plans

for medium to large companies, ranging from 100 to 6,000 employees

and including several publicly traded companies, says Klein, who is

a 1990 alumnus of the University of Pittsburgh.

By coincidence, he says, many of the clients are law firms. it does

day to day administration and statements, compliance testing, and

filing of IRS documents, mostly for "defined contribution"

plans — in other words, plans that do not require actuarial

services

because they are not dependent on life expectancy. It moved from Suite

1171 last month.

Top Of Page
Brian Breuel’s Path

Wealth Strategies LLC, 116 Village Boulevard,

Princeton

08540. Brian Breuel. 609-951-2249.

Brian Breuel has left the Edward D. Jones stockbrokers’ office that

he established at Princeton Shopping Center to open an office at HQ

that will work closely with wealthy clients and their families.

"After

four and a half years in a storefront, I am looking to provide more

services to fewer clients," says Breuel. "I’m doing the total

planning needs for a smaller number of clients. I’ve got clients with

low six figures to invest, but I know the potential is seven. For

some that need just the financial planning, I am doing some fee-only

financial plans."

Thanks to his own good investments, Breuel had been able to take a

five-year mid-life sabbatical — traveling, living on a sailboat,

and writing novels — before becoming a stockbroker. He has

retained

his stockbroker license, is affiliated with Quantum Alliance as the

broker dealer, is a registered investment advisor, and belongs to

a network of CPAs and estate planning attorneys. An alumnus of

Lawrenceville

School and a 1966 graduate of Princeton University, where he is on

the advisory board for the Center for Human Values, he has a law

degree,

a master’s in science in management, master’s in financial sciences,

a CFP, a CLU, and a CHFC. He has written several financial books,

including "Staying Wealthy" for Bloomberg Press.

"We will work on whatever basis is most comfortable for the

client,

whether on a fee basis, commission, or retainer," says Breuel.

Edward D. Jones & Co., 301 North Harrison Street,

Princeton Shopping Center, Princeton 08540. Harvey Field, investment

representative. 609-497-4533; fax, 888-232-3752. Home page:

www.edwardjones.com.

Harvey Field is the temporary replacement for Brian Breuel, who left

the firm in early March. "I’m part of a cadre of people on call

so that when there is an opening of this magnitude we go in and hold

down the fort," says Field, a retired broker who lives in Bucks

County. Edward Jones is the largest brokerage firm organized as a

partnership in the nation. This is an affiliate of St. Louis-based

brokerage with 3,300 offices in 50 states.

Steginsky Capital LLC, 1 Palmer Square, Suite 437,

Princeton 08542. Andrew D. Steginsky CFA. 609-252-9980; fax,

609-252-9981.

After ten years as a director at Schroders, an investment bank in

Manhattan, Andrew Steginsky opened an investment advisory firm to

manage the portfolios of 65 clients. He holds a BA in economics and

finance from Ohio State University, Class of 1981, and recently moved

from Princeton to Skillman with his wife.

Top Of Page
New in Town: SysNet

SysNet Consulting, 650 College Road, Princeton

08540. Romi Raj Singh, president, CEO. Home page:

www.sysnetconsulting.com.

A software firm is moving 18 employees from Yardley, Pennsylvania

to establish a headquarters on College Road and, not coincidentally,

acquire a Princeton address. Move-in date is June 15. SysNet

Consulting

develops software as well as doing consulting and providing short-term

placement. It has branch offices in Connecticut and Chicago plus a

dozen employees in New Delhi. "Ninety percent of our Yardley

employees

live in Plainsboro, says Romi Raj Singh, president and CEO.

"We don’t specialize in any one field but have a range of clients

from small to small and medium businesses, to Fortune 5s and

500s,"

says Raj. Some of the clients are Merrill Lynch, Goldman Sachs,

Hewlett

Packard, and Oracle. The website www.sysnetcorp.com will be launched

with the new office.

Peter Dodds of Keller Dodds & Woodworth helped Sysnet find the space

in the Aegis Group’s new building. Also in the running was space at

the Carnegie Center (which would provide the Princeton address but

was only a sublet) and at Brandywine Realty Trust’s Princeton Pike

Corporate Center (which lacked the Princeton address.) Current

quarters

are at 301 Oxford Valley Road, Suite 101-B, Yardley 19060,

215-369-8009;

fax, 215-369-1009.

Office Furniture by Barringer’s is doing the furnishings and the

company

is using Princeton-based contractors for all his other services as

well. "We want everything from that area," says CEO Raj.

Top Of Page
Expansions: Caxton

Caxton Corp., 315 Enterprise Drive, Plainsboro

08536. Peter D’Angelo, president. 609-275-7200; fax, 609-275-4500.

Caxton Corp. will double its space this fall with an expansion from

19,000 feet at Enterprise Drive to 40,000 feet at a two-story building

being developed by Nexus at 731 Alexander Road, says Don Hawk,

Caxton’s

facilities manager. Caxton will not bring jobs from its New York

office

but will expand its Princeton operations, which employ 65 people.

Caxton does commodities and securities trading and financial services.

As with its current quarters, Caxton will have its name on the

building.

It expects to take possession in October.

Top Of Page
Name Changes

The Hermes Group, 17 Hulfish Street, Suite 280,

Princeton 08540. Mark I. Massad, partner. 609-924-7200; fax,

609-924-7250.

www.thehermesgroup.com.

Kelly Massad LLP and David J. Ambrose have combined to form the Hermes

Group.

Top Of Page
Contracts Awarded: Factiva

Factiva, a Dow Jones & Reuters Company, Box 300,

Princeton 08543-0300. Clare Hart, president and CEO. 609-520-4000;

fax, 609-520-4660. Home page: www.factiva.com.

Factiva has signed a contract to house 500 employees at the new

building

on the Dow Jones campus, finished in 1998 but never fully occupied.

Some Factiva employees already work there and Factiva will take

140,000

square feet or nearly half of the available space by fall.

Factiva has two stand-alone products from Dow Jones Interactive and

Reuters Business Briefing, and will launch two of its own products:

Factiva Intranet, used by corporate computer networks, and Factiva

dot.com, sold to individuals. Soon, says a spokesperson, Factiva will

be the largest online revenue generator for Dow Jones.

Top Of Page
Crosstown Moves

Booktrader of Hamilton, 2402 Nottingham Way,

Hamilton

08619. Carina Koesar, owner. 609-890-1455.

The store has moved from 104 Flock Road to 2402 Nottingham Way.

Resource New Jersey (IFSIA), 220 Evans Way,

Branchburg

08876. Timothy Bronish, vice president and sales manager.

908-704-9777.

This firm moved from 134 Stanhope Street to a larger office in

Branchburg

and changed its name fromm Source Sehadi. It sells carpeting and tile

supplies.

Top Of Page
Leaving Town

basysPrint, 745 Alexander Road, Unit 4, Princeton

08540. Jeffrey Vargo, president. 609-419-8900; fax, 609-419-0678.

The firm is in the process of moving to Atlanta, but will accept phone

calls at this number. It does networking and systems integration for

printing equipment manufacturers.

Princeton University Population Index, 169 Nassau

Street, Princeton 08540. Geraldine Hancock, business manager.

609-258-4873;

fax, 609-258-1655.

The Population Index, a publication of Princeton University’s Office

of Population Research, printed its final issue in the winter of 1999

and is shutting down. Inquiries can be directed to Carol Dyer at the

University’s Office of Population Research, 609-258-3556.

Top Of Page
Management Moves

Novo Nordisk Pharmaceuticals Inc. (NVO), 100

Overlook

Center, Suite 200, Princeton 08540-6213. Bill Poole, president.

609-987-5800;

fax, 609-921-8082. Home page: www.novonordisk.com.

Bent Johnsen has been named vice president of marketing for U.S.

Diabetes

division of Novo Nordisk, based in Denmark, a world leader in insulin

and diabetes care. Johnsen went to the University of Aarhus in

Denmark.

Top Of Page
Indicted

Conair Corp. executives CEO Leandro Rizzuto, 62, and

imports

director Arthur Taylor have been indicted on charges that they

hid $4.3 million in kickbacks and defrauded the government of tax

revenues. Allegedly they pumped up the cost of shipping goods so that

shippers could funnel taxfree money into a Swiss bank account, a cash

payment, or a check to a third party. Rizzuto’s attorneys say he is

innocent and Taylor’s attorney had no comment.

Arraignment, on charges of conspiracy and fraud over a seven year

period, was scheduled for Tuesday, June 9 in Uniondale, New York.

Conair is based in Connecticut but the shipping depot, declared to

be a foreign trade zone, is in East Windsor.

Top Of Page
Deaths

Margaret Stella, 62, on May 2. She was co-owner of the

Black Forest Inn and executive secretary at Norelco in Hightstown.

Elsie DiBoise Mongiello, 75, on May 3. She owned Mom’s

Peppermill, Old Yorke Inn, and the Coach & Four Restaurant.

Marcia Sternberg, 65, on May 3. She worked in the

advertising

department of the Princeton Packet and at the New Jersey State Museum.

Patricia Thompson McManimoon, 70, on May 4. She was a

supervisor at Educational Testing Service.

Esther Arnhold Seligmann, 82, on May 5. She taught modern

dance and Alexander Technique at Princeton Ballet School, the Arts

Council of Princeton, and Westminster Conservatory. A memorial service

will be Friday, May 12, at 11 a.m. at Mountain Lakes.

Charlotte Smithey Meschonat, 68, on May 6. She had

been an accountant at ETS.


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