IDA approved $8.6 million in real estate and tax benefits for the first two supermarkets under the recently-created FRESH program. On February 9, 2010, the New York City Industrial Development Agency, a component of the City’s Economic Development Corporation, approved tax incentive packages to assist in the development of two new Bronx supermarkets. The financial incentives are the first awarded under the City’s Fresh Retail Expansion to Support Health (FRESH) program approved by the City Council in December 2009. The City created the FRESH program to provide zoning and financial incentives to encourage the development of supermarkets in areas identified as being under-served by stores offering a full range of fresh produce, meats, and dairy products. 6 CityLand 152 (Nov. 15, 2009).
The IDA awarded $3 million in real estate and tax benefits to Foodtown Supermarkets in order to build a new grocery store at 283 East 204th Street in the Norwood section of the Bronx. The 11,000 sq.ft. store will replace a 7,500 sq.ft. store destroyed by a fire in December 2009. The IDA approved incentives consisting of payments in lieu of City real property taxes, exemptions from City and State mortgage recording taxes, and exemptions from City and State sales and use taxes.
In a second approval, Western Beef received $5.6 million in tax benefits from IDA in order to build a new supermarket at 2050 Webster Avenue in the Tremont section of the Bronx. Western Beef will invest approximately $11.5 million to acquire and renovate a 65,000 sq.ft. building on the site to construct a new 35,000 sq.ft. store. It will also build a 20,000 sq.ft. warehouse and provide a total of 41,000 sq.ft. of parking. The incentives awarded by IDA include payments in lieu of City real property taxes, exemptions from City and State mortgage recording taxes, and exemptions from City and State sales and use taxes.
According to the IDA, the two supermarkets combined will retain 90 existing jobs and provide approximately 65 new job opportunities.
IDA: Board of Directors Meeting Press Release (Feb. 9, 2010); Notice of Public Hearing (Feb. 4, 2010).