On Tuesday, Dec. 31, just prior to Bill De Blasio being sworn in as the new mayor of New York City, the New York City Economic Development Corp., then still under the leadership of Mayor Michael Bloomberg, announced that the city had renewed the Hunts Point Produce Market lease for an additional seven years.

Some feel that the extension is a short-term solution for a long-term problem, while others say that it’s at least a sign that the city government does want the terminal market to remain at Hunts Point.

The entrance to Hunts Point Produce Market. (Photo courtesy of M&R Tomato Distributors Inc.)Matthew D’Arrigo, vice president of D’Arrigo Bros. Co. of New York Inc., a prominent occupant of Hunts Point Terminal Produce Market, has been involved in the lease negotiations for many years. He explained that the seven-year lease extension was already in place, as is an additional 10-year extension when the current extension ends.

“What we did not know was the amount of money we were going to have to pay for those seven years,” said D’Arrigo. “That’s what was agreed upon last December. Nor do we know the dollar amount for the 10 years that follow. That is yet to be negotiated.”

He added that it is good for everyone that the seven-year extension was confirmed, and that tenants on the market saved a little money in the deal.

“The city did a very good job, and it was a good gesture on the part of Bloomberg’s term to get this thing snipped before he left office,” D’Arrigo added. New York City is a big bureaucratic monster, and the mayor may think one thing while the commission thinks another. And they can do certain things that the mayor doesn’t necessarily always know about. Throughout the long arduous negotiating process there were certain behavioral tactics that I felt, for lack of a better term, were just rude.”

He added that Bloomberg’s administration played too hard a bargain and Hunts Point tenants said “no deal” for a long time.

“The City’s problem is that they think we’re in love with Hunts Point and that we’re never going to leave,” D’Arrigo noted. “This building is an ‘old 47 years’ because she’s been beaten up pretty good.”

Even with the extension, the market is again in a hold situation. D’Arrigo said that he believes that something will kick off in some way regarding rebuilding talks in the coming six months.

Other market tenants concur with D’Arrigo. Ciro Porricelli, vice president of Jerry Porricelli Produce, told The Produce News that the city really only succeeded at keeping Hunts Point going for the time being.

“We don’t know if this lease extension means they’ll make improvements,” said Porricelli. “Hunts Point is a major hub for the city. Although we are glad to have the deal, this market absolutely needs to be updated or rebuilt. It employs a lot of people, and it’s the biggest market in the world.”

He pointed out that renovations that would bring the market up to date are possible, and that the recent gutting and rebuilding that E. Armata did at its units on the market are proof.

“They did such a great job,” said Porricelli. “But we also need more than just updated buildings. The lot needs to be repaved, the railroad tracks need work and we need more power coming into the building. It can be done. Just think about how a major highway is repaved or enlarged; a section is blocked off for a period of time and then the crew moves on to the next section. There are detours along the way, but they get the job done.”

And if the city is looking for proof, most agree it would be to look at the major job that E. Armata did to its units last year. Paul Armata, vice president of the company, said he believes the city is in favor of keeping the market in its current location.

“We made the decision to gut and rebuild prior to knowing that there would be a lease extension,” said Armata. “We felt we owed it to our customers and our grower-shippers to have a facility that does their products justice. It is possible that other tenants will also take it upon themselves to do something similar, but I also believe that the city needs to do more and to do it faster for the market in the future.”

He also noted that now with a new city administration, new ideas and perspectives may be added to the mix of considerations.

Suppliers to the market are also in agreement that the lease extension is a good start, but they concur that a lot of work needs to be done.

Vision Import Group in River Edge, NJ, is a major supplier of limes, mangos and other tropical products to market tenants. Ronnie Cohen, vice president of sales for the company said that while the extension is a good thing, it’s really a short-term solution for a long, ongoing problem.

“I am hopeful the new city administration, combined with a sort of creeping out of the economic slump of the past few years will result in things being done at the market and in a more expedient manner,” said Cohen. “Because the market is so out of date, I think they really need to rebuild it to bring it up to modern standards. They need to look at other markets across the country that have made significant changes, take some of those ideas and mold them to the unique needs of the market and of the city. In the short term, this lease extension won’t affect my business, but I could see a significant increase in sales through the market merchants if it’s modernized.”

Anthony M. DeAngelis, director of the Northeast Division for Christopher Ranch, a leading garlic and specialty produce grower and shipper headquartered in Gilroy, CA, concured with Cohen.

“We’re happy about the lease extension, and it gives the businesses at Hunts Point a better timeline to explore the options for their long-term location or relocation,” said DeAngelis. “Our facility is in New Jersey, so we’ll be happy to see them anywhere between New Jersey and where they are, but an updated facility is definitely needed regardless of where they end up.”

“Of course we’re thrilled that Hunts Point Terminal Market will remain in New York for at least seven more years,” said Jim Allen, president of the New York Apple Association in Fishers, NY. It is notable that more New York State apples are filtered through companies on the market.

“But the issue is can the infrastructure of the market survive for another seven years and safely and efficiently serve the tri-state area?” Allen questioned.

“The lease agreement is at least a sign that the vendors on the market are still committed to it, and hopefully a sign that New York City and the government will step forward in an expedient manner to provide the resources needed to assure that the market will always remain in the state.”