NYC small businesses allege city retaliation over Mamdani’s supermarket plan

**East Harlem Small Businesses Allege City Retaliation Over Mamdani Supermarket Plan**

Small business owners in East Harlem are accusing New York City officials of retaliating against them after they began organizing opposition to Mayor Zohran Mamdani’s proposal for government-owned supermarkets. Members of the Multicultural Business Coalition, or MBC, claim local merchants have faced increased sanitation fines since volunteers began visiting businesses and residents to gather support for a lawsuit challenging the city’s grocery-store initiative. The coalition says sanitation inspectors started issuing what merchants describe as unusually heavy citations roughly two weeks after their organizing campaign began. The allegations have added another layer of tension to the growing dispute between the city administration and small business owners concerned about the potential impact of publicly operated grocery stores. MBC filed a class-action complaint in New York Supreme Court on Monday, arguing that publicly funded supermarkets could create unfair competition for independently owned bodegas, grocery stores and specialty markets. Coalition Chairman Frank Garcia said some penalties have reached as much as $1,000 per violation and claimed that the financial burden is particularly difficult for merchants who do not speak English fluently. Several business owners have shared personal experiences to support the coalition’s claims. Diana Larrazabal, who operates Aroma D’ Angel flower and gift shop on East 116th Street, said she has received three summonses this year over sidewalk debris that she says did not come from her business. One of those violations resulted in a $350 fine in May. Larrazabal has spent years advocating for neighborhood merchants and said Spanish-speaking business owners frequently turn to her for help understanding city procedures and responding to administrative issues. The dispute is closely connected to the proposed supermarket location at La Marqueta on East 115th Street. MBC held a press conference Wednesday outside American Deli Mini Mart on East 117th Street and Park Avenue, just a short distance from the planned site. Another city-supported grocery location has previously been announced for Hunts Point in the Bronx, expanding the controversy beyond East Harlem. Local merchants say they are worried that government-backed grocery stores could draw customers away from small neighborhood businesses that have operated in the area for years. Some owners pointed to the economic disruption they say followed Costco’s opening near East 117th Street and FDR Drive in 2010 as an example of how large retail operations can affect smaller businesses. Elvis Arias, owner of American Deli Mini Mart, urged the mayor to consider moving the proposed supermarket farther north toward 125th Street. Arias said his store benefits from its ability to sell beer, which the proposed government supermarket would not offer. However, he said additional licensing, including potentially obtaining a tobacco license, may be necessary for his business to remain competitive if the city-owned grocery store opens nearby. Domingo Fernandez, owner of Midtown Fish & Meat Market, has also called for direct discussions between the mayor and neighborhood merchants. Fernandez has operated the market since 2012 and described the demanding schedule required to maintain a small grocery business. He warned that a publicly operated store could affect his customer base, although his business has not received sanitation fines, according to the report. City officials have rejected the accusation that sanitation enforcement is being used to punish businesses involved in the supermarket opposition campaign. A Department of Sanitation spokesperson said inspectors have issued 223 commercial summonses throughout Harlem since March 1 as part of routine citywide cleanliness enforcement. The city maintains that the citations are part of standard enforcement rather than a response to political activity by local merchants. Mayor Mamdani’s spokesperson, Cassio Mendoza, also rejected the retaliation allegations and pointed to the mayor’s recent comments expressing confidence that the government-owned grocery initiative is legally permissible and intended to expand access to public services. The coalition, however, plans to continue its legal challenge and is seeking additional business owners in Harlem and Hunts Point who may be willing to join the lawsuit. The dispute now places questions about small-business competition, sanitation enforcement and public grocery policy at the center of a broader political debate in New York City. As the legal case develops, the allegations of retaliatory enforcement and the city’s denial of wrongdoing are expected to receive further scrutiny.