Posts Tagged “Crain’s”
Last month the produce vendors at the Hunts Point Terminal Wholesale Market sued New York City, naming as a defendant the Business Integrity Commission, a law-enforcement agency that regulates public food markets and haulers and carters, among other industries. Known as BIC, the agency has long been a source of contention for the produce executives, who claim it oversteps its authority, according to Crain’s New York Business.
Hunts Point is the world’s largest produce wholesale market and thousands of 18 wheelers deliver fresh fruits and vegetable to the complex each week.
The lawsuit accuses BIC of defrauding the produce market and of being duplicitous because although the agency’s role is to root out corruption and remove employees who have ties to organized crime, it awarded a consulting contract several years ago to an obscure security firm whose principals had extensive criminal records. BIC required the market to pay the firm, Global Consulting, $100,000 to prepare a report on security procedures at Hunts Point, Crain’s reports.
Two years of negotiations between the city and the Hunts Point Terminal Produce Market over a new 30-year lease and a revamped facility have led to a dead end and a lawsuit. The two sides agree on only one point: They are at an impasse.
The last time any meaningful discussion took place between the market and the city, which owns the land at the 113-acre site, was in January. That’s when the market, operated by 41 merchants who are part of a cooperative, rejected the city’s offer to extend its lease by 10 years while it continued to work on a deal to renovate the 46-year-old facility.
The on-again, off-again exclusive lease negotiations between the city and the Hunts Point Terminal Produce Market have been extended for the third time, this time through October 31st, according to a recent article on Crain’s New York Business.com.
Hunts Point is the world’s largest wholesale terminal market. Located in New York City’s, South Bronx, it is a cooperative with 115 merchants. Thousands of refrigerated big rigs deliver loads of fresh fruits and vegetables to the market each week from across the USA, as well as from Canada and Mexico.
The extended negotiations are between the Economic Develpment Corp. and the Hunts Point co-op. Hunts Point officials have been threatening to move the humongus facilty to New Jersey for years.
The incentive is a public hearing the merchants requested of city council members to discuss the city’s Business Integrity Commission, which has regulatory authority over the market. The hearing is set for Oct. 23.
Last June the federal government offered $10 million to help modernize Hunts Point. The market, which opened in 1967, faces many challenges ane the one state-of-the-art terminal is now showing its age.
Buildings are in need of renovation and a shortage of cold storage has many companies storing fresh produce in trailers parked in front and/or in back of their units. Loading docks are not refrigerated.
There are complaints trucker access into and out of the market is poor and that roads are in disrepair or just cannot handle the heavy traffic.
Everyone agrees on one thing: something has to be done. Numerous negotiations, talks, meetings, task forces and committees over the years failed to come to a solution. Politics. governments and red tape all contributed to a slow moving process.
New Jersey has aggressively made bids to move Hunts Point to the Garden State. However, the Hunts Point co-op continues negotiating with New York City on rebuilding the facility at its current location. In reality, most Hunts Point tenants prefer remain right where they are.
The current 10-year lease on the market expired in May 2011, and on June 19, 2012, the federal government offered $10 million to help modernize the large market, but first the market’s merchants and the city must agree to a new lease.
The merchants in reality have little use for New York City’s Business Integrity Commission stating the agency is assessing needless fees and penalties for various infractions, including parking violations within the market. The situation reached an impasse in late August when the merchants decided not to renew their exclusivity agreement to negotiate a new lease with the city, citing their differences with the commission as the reason.
But don’t hold your breath, it will probably be a cold day in hell before Hunts Point uproots to New Jersey, or anyplace else.