Grocers in New York City are reaching out to City Council President Julie Menin, urging her to oppose Mayor Mamdani’s initiative to launch a city-owned grocery store. They’re feeling hopeful—her composed reaction to the proposal earlier this week, which stirred quite the debate, suggested she might lean their way.
Local store owners are hustling to engage with Manhattan Democrats and other council members who will soon vote on whether to back Mamdani’s $30 million plan for a single grocery store. It’s a race against time, they say. Mike Durant, the head of the New York Food Industry Alliance, representing around 3,000 grocery stores, mentioned, “It’s only been five days, but we’re doing all we can to advocate. We want to talk about what’s at stake for existing stores.”
Local grocers are upset over the mayor’s announcement this past Sunday about establishing one of five grocery locations in East Harlem’s La Marqueta. They see it as unwelcome competition in a tough market, especially since it would be funded by taxpayer money.
According to the National Supermarket Association, there are already five grocery stores within a two-block radius of the proposed Park Avenue site and about 15 within five blocks.
“We thought the City Council would support the mayor on this matter,” remarked Carlos Corrado, a grocer from the Bronx. However, Menin delivered just a private statement.
The city’s office noted, “The City Council is looking for effective solutions to tackle food insecurity and manage costs in light of ongoing financial challenges.” Menin’s statement indicated she’s open to reviewing the details of the proposal, weighing its potential effects on consumers and local businesses, including bodegas.
While her office didn’t provide further comments, some in the local food scene believe they might find common ground with her. After all, Menin has a background as a small business owner, having once run a restaurant that suffered due to the impacts of 9/11. She also founded a nonprofit to support small businesses in the wake of that tragedy.
The grocery store in La Marqueta isn’t expected to open until 2029, but officials mentioned that proposals could be sought as soon as June. Local grocers see this as a critical moment to gather support.
“We’re setting up meetings with borough leaders and asked for a chat with them this week,” said Anthony Pena, president of the National Supermarket Association and a supermarket operator.
The first city-run grocery store is anticipated to open in a suburban district within the next year, but details remain sparse. This initiative was part of Mamdani’s ambitious campaign promises that resonated with voters during last year’s election.
He indicated on Tuesday that the city would offer key staples—like bread, milk, and eggs—at lower prices. Pena mentioned that a representative from the New York City Economic Development Corporation had suggested that the city store could potentially provide discounts of about 30% on a selection of items.
Pena stated, “We’re the ones who know our neighborhoods and businesses best.” He also suggested that City Hall should first consult with industry experts, pointing out that making such a significant financial announcement without proper input seems unwise.
A nearby market owner even inquired whether it might be time to sell his business, illustrating the growing concern among local grocers. Bill Cook, part of ACNY Developers, expressed confusion over the decision to place a grocery store in Harlem, especially since they had benefitted from tax incentives to build a grocery space just a short distance away.
The site was part of the city’s “FRESH” program, aimed at encouraging grocery store openings in areas that need them. While the supermarket architect hasn’t secured a tenant for that location, he’s hopeful about charging a competitive rental rate.
“That’s still a more sensible approach than asking taxpayers to foot a $30 million bill,” he said.
Menin has experienced ongoing pushback against the mayor since taking office, dealing with a robust lobbying effort from local grocers. Her criticisms extend to other proposals from Mamdani and Democratic Governor Kathy Hochul, including discussions around a “pied-a-terre tax” and potential property tax hikes to address the city’s budget shortfalls.
As of now, Mamdani’s office hasn’t responded to inquiries regarding the situation.
