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Owner says $7.7B Second Avenue subway expansion will drive NYC store out of business after 30 years

Owner says $7.7B Second Avenue subway expansion will drive NYC store out of business after 30 years

The East Harlem business landscape is about to change drastically. After over 30 years of operation, construction supply companies, including Tile Stone, are set to close their doors as the Metropolitan Transportation Authority (MTA) takes over their property for the expansion of the long-awaited Second Avenue Subway.

Lu Nicaj, the owner of Tile Stone, announced that the shop must close due to the MTA’s plans, which involve significant acquisitions along 2244 Second Avenue through eminent domain. “It feels like I’m getting a raw deal,” said Nicaj, who is 59 years old. “They’re basically pushing me out of business. I’m shutting my doors for good.”

This week, MTA board members officially approved a $1.9 billion contract for Phase 2 of the Second Avenue Subway project, which will include new metro stations at 116th and 125th Avenues.

The property in question, located primarily along Second Avenue and 125th Avenue, also consists of 33 apartments, according to officials.

The Tile Stone storefront at 2250 Second Avenue had to initiate a “liquidation sale” on Tuesday, as the space is too small to accommodate the necessary inventory. As a result, Nicaj had to rent additional vacant lots from the same landlord to manage what he needs.

Although his storefront isn’t directly on the eminent domain list, Nicaj claims that the MTA’s plans would still seriously impact his business since the adjacent property at 2244 Second Avenue will be taken over. “I don’t see how I can continue operating after being here for 32 years,” he remarked, noting that he is already moving 75% of his inventory to a warehouse located upstate.

“This situation essentially pushes me out of business,” he continued. “When contractors come in wanting supplies now instead of asking me to hold, I’m stuck in a small shop. So I end up leasing extra space that looks more like a warehouse than anything else.”

Many New Yorkers affected by this project will receive assistance from the MTA, which reportedly allocated $10 million for similar eminent domain actions during the subway expansion’s first phase.

During a meeting with MTA officials, Nicaj expressed his concerns about relocating his warehouse, stating that it simply wouldn’t be feasible. “We’re planning another meeting to discuss potential compensation,” he shared. “I’ve got my lawyer preparing for a fight against the MTA.”

He also noted that finding affordable rental options nearby, especially around East 106th Street, seems unlikely. “It just doesn’t work to have my store here and then my warehouse being ten blocks away,” he added.

The MTA did not respond to requests for comment.

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