Gateway Center at Bronx Terminal Market
Since the 1920s the Bronx Terminal Market, located along the Major Deegan Expressway between East 149 Street and Macombs Dam Bridge, had been known as an immigrant food service hub: historically serving the culinary needs of Italians, Puerto Ricans, and today catering to the West Indian community and other immigrant groups. The market has historically thrived due to its proximity to transportation infrastructure (bridges, highways, and transit access); the clustering of related businesses; and its specialized products that are sought by ethnic food outlets throughout the region. For years, the market was not adequately maintained by its leaseholder, although many merchants kept their businesses alive--meeting the needs of restaurants and bodega's around the city while employing about 700 people.
In 2005, the Related Companies inked a no-bid deal with the city to replace the East Coast's largest ethnic food market with big-box stores, and initiated eviction proceedings against the businesses unwilling to accept the city's relocation package. Related Companies built a 957,000 square-foot mall and a 2,610 parking space, multi-level facility known as Gateway Center at Bronx Terminal Market. Aside from the transfer of city-owned property without issuance of a "Request for Proposal," the Gateway Center developer Related Companies continues to receive significant subsidies through the ground lease with the city, and other benefits from the city's Industrial Development Agency.
August 2005 - The Industrial Development Agency approved a Mortgage Recording Tax exemption for the Gateway Center project valued at $7 million. The IDA provided estimates of other public subsidies being provided, mostly through Related Companies' ground lease arrangement with the city:
Approximate value of subsidies for Gateway Mall:
IDA Benefits Value of Subsidy
Mortgage Recording Tax exemption $7 million
Benefits provided through lease
Property Tax Abatement $109.63 million
Sales Tax Exemption $6.09 million
Capital Contribution for Demolition $7.1 million
Relocation Payments $4.1 million
Total Cost to NYC Net of Financing Fee $133.93 million
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