By Rebecca Henely
A Long Island City online grocery company has filed for a large tax incentive program in New Jersey, but New York state and city agencies are hoping that Fresh Direct stays — if not in Queens, then at least in the city.
“It would certainly be disappointing if they left,” said state Sen. Michael Gianaris (D-Astoria). “I think it’s important that the business climate in New York continues to be welcoming.”
Fresh Direct, at 23-30 Borden Ave., delivers groceries and caters to Manhattan, Brooklyn and Queens through its website at freshdirect.com. It employs 2,000 people at its Long Island City facility, according to its website.
Erin Gold, a spokeswoman for the New Jersey Economic Development Authority, said the state was not wooing the grocery, but the company had applied to New Jersey’s Urban Transit Hub Tax Credit Program in November.
“Of course, we’re all about creating jobs in the state and encouraging private investment,” Gold said. “Anytime we can do that it would be good news for the state.”
The program offers tax credits equal to up to 100 percent of qualified capital investments made over eight years within a half mile of various types of public transportation in the New Jersey cities of Camden, East Orange, Elizabeth, Hoboken, Jersey City, Newark, New Brunswick, Paterson and Trenton. The program includes other benefits and developers must make a minimum $50 million capital investment in a facility to qualify.
Fresh Direct declined to comment. Officials said the grocery was planning on moving in order to expand.
Despite the filing, New York state is not letting the grocery go without a fight.
“Fresh Direct started in New York and we’re doing everything possible to make sure the thousands of jobs they represent stay in New York,” said Austin Shafran, spokesman for Empire State Development, a state agency that promotes business investment and growth.
City officials said New York was looking at trying to get Fresh Direct to move to a new facility in the Bronx.
Gianaris said if the grocery were to move to the Bronx, it would be preferable to the company moving out of state, but the best option would be for it to stay in the neighborhood.
“My main concern as always is to create jobs in western Queens,” Gianaris said. “Their departure to any other place has been disappointing to us.”
Lou Araujo, co-owner of Spark’s Deli, at 28-31 Borden Ave., said many of his customers come from Fresh Direct and if it left it would have a negative effect on his business.
“It’s one of those things where they’re not the only ones who have left,” Araujo said. “It’s another one that’s due to leave and I’m going to have to wait for six months, a year or longer for someone to occupy that space.”
He said FedEx was planning to move close by soon and he hoped that would balance the loss.
Gianaris said while Fresh Direct would be a loss to the neighborhood, he said ups and downs are a common occurrence in an up-and-coming area like Long Island City and that the neighborhood still has an anchor in the film industry.
“I think the growth has been sufficient enough that the momentum will continue,” he said.
Reach reporter Rebecca Henely by e-mail at rhenely@cnglocal.com or by phone at 718-260-4564.
