Mamdani’s East Harlem Grocery Store Site Already Got $25M In NYC Taxpayer Funds Years Ago — Setting Stage For $55M Boondoggle
New York City Mayor Zohran Mamdani is facing growing criticism over a proposal to open a $30 million city-owned grocery store in East Harlem after it emerged that the same location had already secured $25 million years ago for a separate taxpayer-funded redevelopment project — creating what critics describe as an extraordinarily expensive and confusing overlap of public spending, the New York Post reports.
The proposed supermarket would be built at La Marqueta, the longtime food market stretching beneath the elevated Metro-North tracks along Park Avenue between East 111th and East 119th Streets. Mamdani announced last month that the city intends to establish a government-run grocery store there that would be able to undercut surrounding businesses because it would not be responsible for paying rent or taxes.
But city officials confirmed that La Marqueta had already been approved nearly a decade ago for a separate $25 million overhaul through the city’s New York City Economic Development Corporation, meaning the total public investment tied to the site could balloon to $55 million.
“The $30 million is an outrageous number” by itself, said Stephen Zagor, an adjunct associate professor of food studies at Columbia Business School. “You’d expect the doorknobs and cash registers to be solid gold.”
“And to think there is another $25 million allocated years ago for the rest of La Marqueta, which is well past its prime, I’d think they would have to revisit that,” Zagor added.
Under the original 2017 redevelopment blueprint, which EDC officials recently presented to local business leaders, La Marqueta was slated for major upgrades that included a playground, outdoor dining areas, a dog park, and a revamped market space featuring fresh produce, groceries, prepared foods, and communal seating in a food hall-style setup.
Anthony Pena said Mamdani failed to mention the earlier EDC redevelopment plan when unveiling the city-run grocery proposal last month.
City officials have “not been transparent and open about anything they are doing,” Pena said of the La Marqueta plans.
One aspect of the proposal that has drawn particular criticism is a planned parking lot equipped with electric vehicle charging stations.
“Electric vehicles tend to be more expensive so are they catering to a higher-income market?” Zagor said. “It sounds like they aren’t focused on what they are trying to do in serving East Harlem residents.”
Mamdani has earmarked a total of $70 million for five city-operated grocery stores — one in each borough. With the remaining four stores averaging roughly $10 million each, critics say the East Harlem project’s $30 million price tag appears especially difficult to justify.
Pena pointed to another recently announced city grocery project in the Bronx as an example of the discrepancy. On May 18, Mamdani revealed plans for a 20,000-square-foot public supermarket in Hunts Point, located within a residential redevelopment at the former Spofford Juvenile Detention Center site, which closed in 2011.
Industry executives say a typical 9,000-square-foot grocery store in Manhattan would normally cost only a fraction of what the city is proposing for the East Harlem location. The concerns are heightened by the fact that the neighborhood already contains more than a dozen grocery stores.
“They are going to spend $10 million on a 20,000-square-foot store and $30 million on a 9,000-square-foot store],” Pena said. “There is a massive disconnect right now and there are more questions than answers.”
Responding to inquiries from The New York Post, the Economic Development Corporation acknowledged that Mamdani’s proposed $30 million grocery store and the previously approved $25 million La Marqueta redevelopment are entirely separate projects.
According to the agency, the $30 million allocation would fund “the ground-up construction and fit-out of the public grocery store as well as back-of-house needs and parking with EV charging capability,” though officials declined to provide a more detailed breakdown of the costs.
The EDC also clarified that none of the original $25 million redevelopment funding would go toward the grocery store itself. Officials said the supermarket and adjoining parking lot are expected to occupy the northern end of La Marqueta between East 117th and East 119th Streets.
Earlier this month, city officials met with a grocery industry trade organization and presented a redevelopment proposal that had originally been drafted before the COVID-19 pandemic. According to presentation materials reviewed during the meeting, funding for the project “have already been committed” through the EDC, the City Council, and the city’s Neighborhood Redevelopment Fund.
Sources familiar with the planning process said the redevelopment stalled for years because of pandemic-era suspensions of nonessential projects and later due to a major Metropolitan Transportation Authority infrastructure project above La Marqueta that began in 2023.
“NYCEDC is working with the East Harlem community and relevant stakeholders including small businesses to help inform how La Marqueta’s public grocery store can help strengthen neighborhood food access, provide quality jobs and make New York City more affordable for everyone,” the agency said in a statement.
“NYCEDC is also working on the redevelopment of La Marqueta’s retail market and looks forward to sharing more information soon.”
Meanwhile, many current tenants at the historic market say they still have little understanding of the city’s long-term intentions for the property, which was first opened in 1936 by Mayor Fiorello La Guardia as a marketplace for pushcart vendors.
“The EDC’s plans for the spaces have changed so many times,” said Bella Karakas, whose shared commercial kitchen business Eterra opened at La Marqueta four years ago between East 113th and East 114th Streets.
Another longtime tenant, the Urban Garden Center, now faces growing uncertainty as the project evolves.
The business was relocated several blocks south in 2023 from its original 20,000-square-foot location between East 116th and East 118th Streets because of the MTA’s Park Avenue Viaduct reconstruction project.
Its owner, Dimitri Gatanis, said the relocation cut his space in half and severely damaged sales. He remains unsure whether he will ever regain access to his former location and fears additional competition from the city-owned grocery operation.
“Are they going to start selling potted herbs or plants as most grocery stores in the city do?” Gatanis told The Post. “It’s all very murky.”
{Matzav.com}