Billionaires, Small Businesses Rally Against Fresh Direct
Gothamist
By Aaron Marks
FreshDirect is getting a tax break and billionaire competitors local businessmen say it's not fair. Everyone's favorite grocery delivery service has been planning a controversial move from its LIC headquarters to the South Bronx, and today business coalitions joined activists and City Council members on the steps of City Hall to rally against the company's proposed relocation.
FreshDirect is slated to receive $127 million in tax breaks—$80M from the City, $47M from Albany—if their proposal to relocate to the Harlem River Yard in the South Bronx passes. FreshDirect is being considered a wholesaler and not a retailer, and is thus eligible for tax breaks which local groceries and bodegas are not. And the New York Association of Grocery Stores and the Bodega Association aren't having it.
"It is unfair to do this and it creates an unfair, competitive advantage for the rest of the retail food stores on our beloved City," said John Catsimatidis, the billionaire CEO of Gristedes, in a statement read by an aide at today's rally. Councilwoman Latisha James added that "It's an issue of quality, of fundamental fairness," and that "tax dollars should be used in a more fair and competitive fashion."
