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NZ Herald
a day ago
- Business
- NZ Herald
New York debates mayoral candidate Zohran Mamdani's plan for city-run grocery stores
Atlanta is set to open two grocery stores later this year through a public-private alliance backed by a US$8m ($13m) grant and operated in partnership with regional chain Savi Provisions. The stores are slated for so-called food deserts, where availability of fresh, affordable food is scarce. City officials chose a public-private model not just for long-term sustainability but because the existing development incentives didn't encourage the private sector to step up, according to Laurie Prickett, a senior vice-president at Invest Atlanta, the city's economic development arm. If successful, Atlanta plans to expand its model, aiming to place every resident within a kilometre of fresh food by 2030, she said. Government-supported grocery models aren't a new idea. They've taken the form of non-profits, co-ops, military-base commissaries, public-private partnerships, and municipally owned and operated stores - with varying results. Boston's Daily Table, a non-profit grocery chain launched by a former Trader Joe's president, announced its closing in May after a decade of trying to sustain its mission of providing affordable food. While its funding came from a variety of sources, federal cuts to food aid programmes was the catalyst for its demise. In Baldwin, Florida, a town-owned market folded for similar reasons. But in rural St Paul, Kansas, which had been without a grocery retailer for more than 20 years before a public-private partnership opened a supermarket in 2008, the local government doubled down on its investment and became the store's sole owner in 2013. A major difference between the models in other American cities and Mamdani's proposal is the scale. Baldwin has fewer than 1300 residents; Atlanta is home to around 520,000, not far behind Boston's 673,000. New York City has an estimated population of 8.48 million. Also, Mamdani isn't proposing to have private operators run the stores. The enterprise would be fully owned by the city, which would sell the groceries at cost and source products from neighbourhood suppliers where possible. Supporters of Mamdani's pilot programme call it a bold solution for New Yorkers struggling to afford the basics. Critics warn of government overreach and unintended consequences, including harm to neighbourhood bodega owners. Others question whether New York's bloated bureaucracy is even capable of running grocery stores. Supply chains are complex, operating costs are high, and profit margins are thin. Even if city-run stores aim to break even at best, the savings for shoppers might be modest, said Sara John, who leads the Centre for Science in the Public Interest's work on federal policy and the private sector. John doesn't view city-run grocery stores as a silver bullet but sees potential in a model accountable to consumers, not shareholders. 'Prioritising people over profits could make a difference,' she said, though she emphasised that execution would be challenging. Zohran Mamdani while ordering an iced coffee from a deli after a campaign event in Queens in June. Photo / Adam Gray, Bloomberg via the Washington Post Funding the pilot Mamdani's plan comes after grocery costs in the city jumped nearly 9% in 2022 - the highest in 40 years - and climbed again in 2023, while wage growth failed to keep pace, putting basic necessities out of reach for a growing number of residents. The financial strain is turning political; a recent poll found that nearly two-thirds of New Yorkers, including majorities across political lines, support the idea of city-run stores. Funding for Mamdani's proposed plan largely relies on raising taxes on New York's wealthiest 1% and additional corporation tax. The city already spends millions on Fresh, a programme launched in 2009 to tackle the lack of neighbourhood grocers in select communities. There are now more than 50 Fresh-supported stores that are open or in development and receive a mix of zoning benefits and tax breaks. But a report from the comptroller's office found the programme's impact on food access has been limited at best. Mamdani has jumped on those findings, criticising the programme for having little accountability for affordability, labour standards or acceptance among those eligible for food assistance. 'There's no guarantee those groceries are cheaper,' he said in an interview with Bloomberg's Odd Lots podcast in May. Benjamin Lorr, author of The Secret Life of Groceries, which examines the human labour that goes into the industry, said the idea of city-run stores may sound radical, but is a natural response to deep imbalances in the current grocery market. If the market is failing to provide basic goods affordably and equitably, it's not unreasonable for the public to step in, Lorr said. 'The question is: Can it be done well? Is the juice worth the squeeze?' Much of the criticism of Mamdani's plan comes because it risks threatening existing businesses, which have been pressured to increase prices due to rising costs. Bodega owners, for example, worry they could be undercut by city-run groceries, which under Mamdani's proposal wouldn't have to pay rent or city license fees. A spokesperson for Mamdani said the new stores would be placed in food deserts, where there isn't existing competition - but the genuine existence of true food deserts in the city is debated. Isabella Weber, an associate professor of economics at the University of Massachusetts Amherst, was one of 30 progressive economists (including Yanis Varoufakis) who signed a letter backing Mamdani's policies and sees municipally run grocery stores not as a cure-all, but as a necessary experiment amid what she calls an 'affordability crisis' engulfing food, housing and childcare. This crisis, she said, is further exacerbated by overburdened food banks amid the eroding safety net of the Supplemental Nutrition Assistance Programme (Snap), which will face deep cuts under President Donald Trump's One Big Beautiful Bill Act. 'These are things where you can't say, 'I'm not in the mood of eating today,'' Weber said. 'They're necessities of life.' A public store could reduce prices by eliminating mark-ups, using public land and applying subsidies, she said. If scaled, it might also force private grocers to lower prices. 'But that's a big 'if,'' she said. An alternative use of the funds could rely on a model seen in Mexico, where the government negotiated with major grocery chains to cap prices on essential goods. India has taken a different approach too through fair price shops, which offer high-calorie foods at subsidised rates. If Mamdani is elected in November and able to enact his plan, the pilot stores will become an important case study for democratic socialists. Photo / Adam Gray, Bloomberg, via the Washington Post The Venezuela comparisons The mayoral candidate's idea has prompted sharp warnings from local supermarket operators. John Catsimatidis, owner of the Gristedes and D'Agostino grocery chains (and a former Republican candidate for New York City mayor), threatened to leave the city if Mamdani is elected and warned of 'Soviet bread lines' if the plan goes forward. 'Everything Mr Mamdani is suggesting was already done by Hugo Chavez in Venezuela and Fidel Castro in Cuba,' Catsimatidis wrote in an opinion piece for the Wall Street Journal. Comparing the plan to Venezuela, whose food crisis is a cautionary tale of state-controlled food systems gone awry due to corruption and economic collapse, is not unique to the billionaire. Francisco Rodriguez, a former economic adviser to the United Nations and longtime researcher of the Venezuelan crisis, said there are lessons to learn from the country's approach to operating city-run stores. While the Chavez government's subsidised food stores initially helped reduce hunger and shore up political support, the model unravelled when oil prices collapsed and the country could no longer foot the bill, leading to extreme hunger. 'Those stores worked while the government was riding high on oil prices. Once that revenue fell - first from market forces, then sanctions - it couldn't keep subsidising food, and the whole system collapsed,' said Rodriguez, now a public affairs professor at the University of Denver. New York, he said, would also have to contend with other problems that Venezuela faced, including exploitation of the subsidies by people who didn't need cheaper groceries and black markets that flourished as people bought products to resell. 'Most economists, and I would concur, say that universal subsidies aren't the most efficient use of public funds,' Rodriguez said. 'You end up helping people who don't need it.' Instead, he recommends targeted support that delivers food directly to needy families, expansion of other programmes to those near poverty and social policies to support the middle class. For now, Mamdani's proposal is still just a proposal. If he's elected in November and able to enact his plan, the pilot stores will become an important case study for democratic socialists. But their success will depend less on ideology than on execution. 'It's about trying, piloting, and seeing what works,' said Weber, the UMass Amherst professor. 'If it works, it can be scaled. If not, at least we've learned something valuable.'
Mint
6 days ago
- Business
- Mint
City-Run Supermarkets Aren't New. But No One's Tried Them in a City Like New York
(Bloomberg) -- For decades, the American playbook for bringing groceries to underserved neighborhoods has been simple: offer tax breaks to supermarket chains and hope they sign up. But as food costs climb and public trust in private solutions falters, a supermarket model with government at the center is moving from fringe idea to policy experiment. Nowhere is the potential impact greater than in New York City, where Democratic mayoral candidate Zohran Mamdani wants to test a city-run grocery store in each of the five boroughs at a projected cost of $60 million. But New York isn't the only place where alternative models are emerging. Atlanta is set to open two grocery stores later this year through a public-private alliance backed by an $8 million grant and operated in partnership with regional chain Savi Provisions. The stores are slated for so-called food deserts, where availability of fresh, affordable food is scarce. City officials chose a public-private model not just for long-term sustainability but because the existing development incentives didn't encourage the private sector to step up, according to Laurie Prickett, a senior vice president at Invest Atlanta, the city's economic development arm. If successful, Atlanta plans to expand its model, aiming to place every resident within a half-mile of fresh food by 2030, she said. Government-supported grocery models aren't a new idea. They've taken the form of nonprofits, co-ops, military-base commissaries, public-private partnerships, and municipally owned and operated stores — with varying results. Boston's Daily Table, a nonprofit grocery chain launched by a former Trader Joe's president, announced its closing in May after a decade of trying to sustain its mission of providing affordable food. While its funding came from a variety of sources, federal cuts to food aid programs catalyzed its demise. In Baldwin, Florida, a town-owned market folded for similar reasons. But in rural St. Paul, Kansas, which had been without a grocery retailer for more than 20 years before a public-private partnership opened a supermarket in 2008, the local government doubled down on its investment and became the store's sole owner in 2013. A major difference between the models in other American cities and Mamdani's proposal is the scale: Baldwin has fewer than 1,300 residents; Atlanta is home to around 520,000, not far behind Boston's 673,000. New York City, meanwhile, has an estimated population of 8.48 million. Also, Mamdani isn't proposing to have private operators run the stores. The enterprise would be fully owned by the city, which would sell the groceries at cost and source products from neighborhood suppliers where possible. Supporters of Mamdani's pilot program call it a bold solution for New Yorkers struggling to afford the basics. Critics warn of government overreach and unintended consequences, including harm to neighborhood bodega owners. Others question whether New York's bloated bureaucracy is even capable of running grocery stores. Supply chains are complex, operating costs are high and profit margins are thin. Even if city-run stores aim to break even at best, the savings for shoppers might be modest, said Sara John, who leads the Center for Science in the Public Interest's work on federal policy and the private sector. John doesn't view city-run grocery stores as a silver bullet but sees potential in a model accountable to consumers, not shareholders. 'Prioritizing people over profits could make a difference,' she said, though she emphasized that execution would be challenging. Mamdani's plan comes after grocery costs in the city jumped nearly 9% in 2022 — the highest in 40 years — and climbed again in 2023, while wage growth failed to keep pace, putting basic necessities out of reach for a growing number of residents. The financial strain is turning political; a recent poll found that nearly two-thirds of New Yorkers, including majorities across political lines, support the idea of city-run stores. Funding for Mamdani's proposed plan largely relies on raising taxes on New York's wealthiest one percent and additional corporation tax. The city already spends millions on FRESH, a program launched in 2009 to tackle the lack of neighborhood grocers in select communities. There are now more than 50 FRESH-supported stores that are open or in development and receive a mix of zoning benefits and tax breaks. But a report from the comptroller's office found the program's impact on food access has been limited at best. Mamdani has jumped on those findings, criticizing the program for having little accountability for affordability, labor standards or acceptance among those eligible for food assistance. 'There's no guarantee those groceries are cheaper,' he said in an interview with Bloomberg's Odd Lots podcast in May. Benjamin Lorr, author of The Secret Life of Groceries, which examines the human labor that goes into the industry, said the idea of city-run stores may sound radical but is a natural response to deep imbalances in the current grocery market. If the market is failing to provide basic goods affordably and equitably, it's not unreasonable for the public to step in, Lorr said. 'The question is: Can it be done well? Is the juice worth the squeeze?' Much of the criticism of Mamdani's plan comes because it risks threatening existing businesses, which have been pressured to increase prices due to rising costs. Bodega owners, for example, worry they could be undercut by city-run groceries, which under Mamdani's proposal wouldn't have to pay rent or city license fees. A spokesperson for Mamdani said the new stores would be placed in food deserts, where there isn't existing competition — but the genuine existence of true food deserts in the city is debated. Isabella Weber, an associate professor of economics at the University of Massachusetts Amherst, was one of 30 progressive economists (including Yanis Varoufakis) who signed a letter backing Mamdani's policies, and sees municipally-run grocery stores not as a cure-all, but as a necessary experiment amid what she calls an 'affordability crisis' engulfing food, housing and childcare. This crisis, she said, is further exacerbated by overburdened food banks amid the eroding safety net of the Supplemental Nutrition Assistance Program (SNAP), which will face deep cuts under Trump's One Big Beautiful Bill Act. 'These are things where you can't say, 'I'm not in the mood of eating today,'' Weber said. 'They're necessities of life.' A public store could reduce prices by eliminating markups, using public land and applying subsidies, she said. If scaled, it might also force private grocers to lower prices. 'But that's a big 'if,'' she said. An alternative use of the funds could rely on a model seen in Mexico, where the government negotiated with major grocery chains to cap prices on essential goods. India has taken a different approach too through fair price shops, which offer high-calorie foods at subsidized rates. The Venezuela Comparisons The mayoral candidate's idea has prompted sharp warnings from local supermarket operators. John Catsimatidis, owner of the Gristedes and D'Agostino grocery chains (and a former Republican candidate for New York City mayor), threatened to leave the city if Mamdani is elected and warned of 'Soviet bread lines' if the plan goes forward. 'Everything Mr. Mamdani is suggesting was already done by Hugo Chavez in Venezuela and Fidel Castro in Cuba,' Catsimatidis wrote in an opinion piece for the Wall Street Journal. Comparing the plan to Venezuela, whose food crisis is a cautionary tale of state-controlled food systems gone awry due to corruption and economic collapse, is not unique to the billionaire. Francisco Rodríguez, a former economic advisor to the United Nations and longtime researcher of the Venezuelan crisis, said there are lessons to learn from the country's approach to operating city-run stores. While the Chávez government's subsidized food stores initially helped reduce hunger and shore up political support, the model unraveled when oil prices collapsed and the country could no longer foot the bill, leading to extreme hunger. 'Those stores worked while the government was riding high on oil prices. Once that revenue fell — first from market forces, then sanctions — it couldn't keep subsidizing food, and the whole system collapsed,' said Rodríguez, now a public affairs professor at the University of Denver. New York, he said, would also have to contend with other problems that Venezuela faced, including exploitation of the subsidies by people who didn't need cheaper groceries and black markets that flourished as people bought products to resell. 'Most economists, and I would concur, say that universal subsidies aren't the most efficient use of public funds,' Rodriguez said. 'You end up helping people who don't need it.' Instead, he recommends targeted support that delivers food directly to needy families, expansion of other programs to those near poverty and social policies to support the middle class. For now, Mamdani's proposal is still just a proposal. If he's elected in November and able to enact his plan, the pilot stores will become an important case study for democratic socialists. But their success will depend less on ideology than on execution. 'It's about trying, piloting, and seeing what works,' said Weber, the UMass Amherst professor. 'If it works, it can be scaled. If not, at least we've learned something valuable.' Read Next: Can Mamdani Bring Free Buses to New York City? More stories like this are available on
Yahoo
19-05-2025
- Business
- Yahoo
Freeze on property taxes: Atlanta's $10M initiative to prevent senior displacement
The Brief Atlanta's Anti-Displacement Tax Relief Fund offers long-term property tax relief to eligible senior homeowners to prevent displacement due to rising property values. The program is privately financed, freezing property tax rates for seniors at current levels and covering future increases for up to 20 years. Seniors must act quickly to apply by the deadline of May 31, 2025, with eligibility criteria including age, residency, income limits, and homeownership status. ATLANTA - With just two weeks left before a crucial deadline, advocates and city leaders in Atlanta are calling on senior homeowners to act quickly to avoid being priced out of their homes. What we know Wayne Martin, former vice president at Morehouse School of Medicine and a candidate for Atlanta City Council District 11, held an emergency news conference Sunday at the intersection of Beecher Street and Cascade Avenue in Southwest Atlanta to promote the city's Anti-Displacement Tax Relief Fund. He was joined by senior residents and community supporters who have benefited from the program. "We are here today because the stakes could not be higher," Martin said. "With just two weeks left before the deadline, I want every senior homeowner in Atlanta to hear this message clearly: Help is available, but you must act now." The citywide program, administered by Invest Atlanta and backed by a $10 million commitment from the Centennial Yards Housing Trust Fund, provides long-term relief by covering property tax increases above a set base level for eligible senior homeowners. The initiative aims to prevent displacement caused by gentrification and rising property values. Dig deeper To qualify, residents must be 60 or older, have lived in Atlanta since 2015, maintain an active homestead exemption, meet income limits, and own their home free of liens or other encumbrances. The program freezes property tax rates at current levels and covers future increases for up to 20 years. "This program ensures that those increases don't affect [seniors]," Martin said. "It'll effectively freeze their current rate in time, and any overages will be paid by this private fund." Martin emphasized that the relief fund is privately financed and not dependent on city tax revenues. He credited the developers of Centennial Yards for making the contribution as part of a community benefits agreement tied to the major downtown redevelopment project. What they're saying Local seniors who have already enrolled in the program spoke at the event, sharing how the tax relief helps them stay in their homes amid rising costs. "I applied because the taxes were going up, up, and away," said Diane Trimble, a resident of Oakland City for 40 years. "I'm on a fixed income, and I wanted to make sure I could stay in my house." Linda Brantley, a Beecher Hills resident who also applied for the program, said the relief provides peace of mind. "It makes me feel awesome knowing that I wouldn't have to pay [increased] taxes," she said. "I get a chance to save and do other things." What's next Martin stressed the urgency of the situation, urging eligible residents to apply immediately and encouraging the broader community to help spread the word. "Our seniors have paid their dues. They built our communities, raised families, and kept the culture of Atlanta alive," Martin said. "They deserve to age in place with dignity." The deadline to apply for the Anti-Displacement Tax Relief Fund is Friday, May 30, 2025. What they're saying For more information or to apply, visit Seniors may also seek help through community partners, including Meals on Wheels Atlanta, Rebuilding Together Atlanta, and The Nehemiah Project. The Source The details in this article come from a press conference held by Wayne Martin attended by FOX 5.
Axios
06-05-2025
- Business
- Axios
Atlanta expands help for residents paying rising property taxes
After a successful pilot program, Atlanta officials are now expanding the initiative that helps longtime residents keep their homes amid rising property taxes citywide. Why it matters: Atlanta is rapidly redeveloping, and the rise in property values and taxes that comes with that change makes it harder for residents hang on to their investments. Driving the news: Applications are open through May 31 for the Anti-Displacement Tax Relief Fund program, which pays for any property tax increases above a qualifying homeowner's base for the next 20 years. The city is using $10 million from the Centennial Yards Housing Trust Fund in partnership with its economic development agency, Invest Atlanta, to finance the program. What they're saying: Mayor Andre Dickens said during a press conference last week that the city has "become, sometimes, a victim of our own success" and as more people move to Atlanta, housing prices — and thereby property values and taxes — increase. "It is important to me [that] we do everything that we can to protect the residents who help to build some of our most historically iconic communities," he said. How it works: To be considered, participants must be at least 60 years old, have lived in the city of Atlanta since 2015, earn less than $48,000 a year and have an active homestead exemption. Zoom in: Invest Atlanta received more than 200 applications for last year's pilot, but ended up only accepting 100, said CEO Dr. Eloisa Klementich, adding that 40% of those applicants were outside the test area. This year, Invest Atlanta projects to approve funding for around 245 applicants, Klementich said. By the numbers: Last year's payout to pilot participants amounted to about $40,000. The increases Invest Atlanta covered ranged from $500 to $3,000, though the average was around $1,500, Klementich said. 79% of the participants were women. 97% were Black, Indigenous or people of color. 80% lived alone. "This program is hitting exactly those individuals that we want to support our seniors, our women, our BIPOC communities that are currently living by themselves," Klementich said. When Mary Johnson received a postcard in the mail last year about the program, she said at the press conference, she "thought it was a scam." Her curiosity got the best of her, and she filled out the paperwork. After being told she was accepted, Johnson said she was grateful because the program helped offset the increase in property taxes she experienced. Quincy Alexander, another pilot program participant, said she calls the program "a blessing for me because of my income."
Yahoo
31-03-2025
- Business
- Yahoo
City of Atlanta to launch ‘legacy business' support program
The City of Atlanta announced, in partnership with Invest Atlanta, that it was launching a new program to support businesses in the city that have worked for 30 years or more. The program, described by officials as Atlanta's 'first legacy business program,' is meant to 'recognize, promote and sustain vital businesses within the community' by providing grants for improvement and encouraging residents and visitors to shop at and go to these businesses. 'In a world that is rapidly changing, one thing remains constant—the culture and character of our local legacy businesses,' Atlanta Mayor Andre Dickens said in a statement. 'These beloved establishments have shaped our community, providing not just goods and services but also a sense of identity and connection. Local legacy businesses are the backbone of our neighborhoods, the storytellers of our city and the innovators of our economy.' [DOWNLOAD: Free WSB-TV News app for alerts as news breaks] TRENDING STORIES: Justice Department instructed to dismiss legal challenge to Georgia election law Severe storms with damaging wind gusts likely; hail, brief spin-up tornado possible Recall alert: 33K Ford Escapes, Broncos recalled over cracked fuel injector The program will be called the Atlanta Local Legacy program and will have three components, according to city officials. An Atlanta Local Legacy business registry: Eligible businesses will have a profile on an online registry, available as a website and mobile app, allowing interested customers to find and patronize their business. Legacy business owners can submit their profiles here. A Legacy Empowerment Grant: Eligible businesses can apply for a reimbursable grant up to $5,000 that can be used for business processes modernization. A Small Business Improvement Grant: Qualified legacy businesses in designated Tax Allocation Districts can apply for up to $50,000 in grant funding for construction and improvement projects. 'There are more than 400 legacy businesses throughout the city of Atlanta,' Dr. Eloisa Klementich, President and CEO of Invest Atlanta, said. 'Supporting these businesses means investing in not only the heritage of our city but also the local economy and job creation. Legacy businesses employ more than 11,000 people and bring more than $3 billion in revenue to the city.' To be eligible for the program, businesses must be in the physical limits of Atlanta, have a current Atlanta business license and be in operation for at least 30 years. For more information on the grant program, click here. [SIGN UP: WSB-TV Daily Headlines Newsletter]
