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Immigrant Grocers Poised to Sue as City Pushes Ahead With Five Taxpayer‑Backed Supermarkets

A pending lawsuit could challenge whether government-funded discounts are lawful and threaten to slow the city’s plan to underwrite steep grocery markdowns.

Overview

  • The Multicultural Business Coalition says it is ready to file federal antitrust and predatory‑pricing claims and state tortious‑interference and discrimination claims as soon as this week, asserting the plan would harm immigrant‑owned neighborhood grocers.
  • The Economic Development Corporation has issued an RFP seeking operators for five city‑owned supermarkets that would sell a core basket of staples at about 30 percent below retail, with roughly $70 million in city capital and bids due Oct. 16.
  • EDC officials led prospective vendors on a site tour of a vacant La Marqueta lot on Wednesday, where insiders said the proposed $30 million East Harlem store faces long lead times, an estimated 2029 opening, and unanswered operational limits such as no on‑site deli or kitchen.
  • Prospective operators expressed skepticism that the model is financially viable without steady public payouts, and the RFP asks bidders to estimate an 'Affordability Payment' though officials have not finalized reimbursement rules, price benchmarks, or responses to wholesale spikes.
  • Local grocers warn subsidized city stores could undercut thin‑margin businesses and force closures, so legal filings and the Oct. 16 procurement deadline are the key near‑term events to watch for how the city will balance affordability goals with market and fiscal risks.