New York City officials are attempting to clarify remarks made by a senior vice president suggesting that taxpayer money could be funneled to private grocers experiencing losses due to the city's new, municipally-owned grocery store initiative. The project, which aims to open five stores by the end of 2029 and is projected to cost at least $70 million, has faced significant public backlash.
Waverly Neer, senior vice president of groceries at the Economic Development Corporation (EDC), the agency leading the project, indicated in a recent interview that grants might be considered to support independent businesses alongside the city-owned supermarkets. "Something on the table," Neer stated when asked if private outlets could receive support. "We're exploring a lot of different options and opportunities."
These comments sparked immediate criticism, with many questioning the fiscal logic of using public funds to subsidize businesses negatively impacted by a government-funded project. Critics took to social media to voice their concerns, with one user describing the idea as "utterly insane" and another suggesting it represented a cycle of spending tax dollars to solve problems created by government spending.
Mayor Zohran Mamdani initially proposed the city-owned grocery stores as part of his mayoral campaign, emphasizing affordability. The plan includes selling a "core basket" of essential goods at a 30% discount, though specifics on cost calculation and store operations remain largely undisclosed.
In response to the backlash, an EDC spokesperson issued a statement attempting to walk back Neer's remarks. "We are not currently considering any grant programs for existing grocers," the spokesperson said. However, the statement also noted that the EDC is "looking at the potential for tax abatement, incentives, and zoning benefits through existing City programs to ensure that the City is doing everything in our power to alleviate cost pressures for small businesses across the city."
The EDC stated that its grocery task force is evaluating various programs and policies to support local grocers concurrently with the development of the new city-owned stores. One of the proposed locations includes a $30 million store planned for a vacant lot in East Harlem.