Mayor Bloomberg (Photo: Getty)

"If you think about it, the last time we really had a big, managed economy was the U.S.S.R. and that didn't work out so well," Mr. Bloomberg said. "You cannot stop the tides from coming in. We need jobs in this city. It would be great if all jobs in the city paid a lot of money and had great benefits for the workers, not good for the employers, but if you force that, you will just drive businesses out of the city."

Mr. Bloomberg said he hasn't seen the bill yet. He described it dismissively almost as a product of Ms. Quinn's imagination rather than a realistic possibility for the city.

"The bill has never been sent to us by the City Council. This is Chris Quinn writes with her staff, consulting with her members, writes a bill, talks to whoever she talks to, who she depends on, gets advice and talks to different interested parties, so they've not sent any bill to us," Mr. Bloomberg said.

Ms. Quinn described the bill as "the most impactful living wage law in the United States" when she announced its completion Wednesday. Mr. Bloomberg says he has been "told" Ms. Quinn has enough support to pass the bill and override his veto. Nevertheless, Mr. Bloomberg says he plans to veto the bill and will go to court to fight it if he has to.

"I will veto any bill. And if the veto is overridden--and there's enough people that signed up on this bill I'm told so that they would be able to assuming everybody stayed in line, veto the bill--we certainly would go to court and sue," Mr. Bloomberg said. "Whether we win or not, you never know."

Ms. Quinn reportedly dramatically cut the number of workers that would be affected by the bill as she negotiated to come up with a draft that would draw enough support. According to the New York Times approximately 400 to 500 workers would benefit from the final product and several developments would be exempted including Hudson Yards. The deal for the controversial FreshDirect headquarters in the Bronx was approved prior to the bill and would not be affected. Mr. Bloomberg said it was his understanding FreshDirect, which received over $80 million in tax exemptions and other incentives from the City as part of their agreement to keep their headquarters in New York, would have taken offers from neighboring states without the assurance the bill would only affect developments that are approved going forward.

"We were lucky that FreshDirect decided to stay here," Mr. Bloomberg said. "If it was going to keep Fresh Direct out, it was going to keep other people out. You just cannot force employers to pay a rate that doesn't--isn't sustainable in their business and it's not the government's business to do this."

Direct conflict between Mr. Bloomberg and the Council speaker are relatively rare. Ms. Quinn, a likely candidate in the 2013 mayoral election, is generally a strong ally of the Bloomberg administration who calculates her opposition to the current mayor carefully.

A truck from the FreshDirect fleet. (Photo: FreshDirect.com)

The plan to open a new headquarters for online grocer FreshDirect in the the Bronx continues to draw a mixed reception from local politicians and community members. Today, Councilwoman Melissa Mark-Viverito sent a letter to the NYC Industrial Development Agency asking them to slow the approval process for the $74 million in tax exemptions being provided to the company as part of a $127.8 million package of grants, tax credits and other incentives from the City, the State, Bronx Borough President Ruben Diaz Jr.’s office and the Bronx Overall Economic Development Corporation. Meanwhile, Mr. Diaz and the BOEDC announced they reached an agreement with FreshDirect to address concerns of those opposed to the plan and the Bronx Chamber of Commerce issued a statement in support of the FreshDirect facility.

Proponents of the FreshDirect move argue it will bring jobs to the area and preserve 2,000 existing jobs that would have been lost if FreshDirect, which is currently located in Long Island City, left New York. Those opposed to the proposal have a number of concerns including; the facility's environmental impact, the use of public funds, the company's relationship to the community, the lack of input on the deal from local residents and the quality of jobs at FreshDirect. Mayor Michael Bloomberg, Governor Andrew Cuomo and the Bronx Overall Economic Development Corporation approved the package of incentives for FreshDirect after New Jersey Governor Chris Christie aggressively lobbied and offered a $100 million bid to bring FreshDirect to the other side of the Hudson. The deal was announced before a scheduled public hearing on the FreshDirect facility that was held last Thursday.

In her letter to the IDA, Ms. Mark-Viverito asked the agency to delay its vote on the proposal to allow for more feedback from area residents.

"To hold a public hearing after an agreement was already announced in the press, and then schedule a final vote just a few days later, makes the City’s agreement with Fresh Direct seem like nothing short of a done deal," Ms. Mark-Viverito wrote. "I understand that the City and State entities involved have engaged in a real effort to gain a number of concessions and reassurances from Fresh Direct to assuage community concerns, but since the vote is coming so soon after yesterday’s public hearing, members of the surrounding community feel that their concerns are not genuinely being taken into account."

At the same time, Mr. Diaz and the BOEDC announced they created a "memorandum of understanding" with FreshDirect for the company to agree hire locals, work with nearby vendors, expand service in the area, accept EBT benefits and commit to using environmentally-friendly alternative fuel vehicles.

“I am very excited that FreshDirect will make the Bronx its new home, and that we have come to an agreement with the company that will ensure their commitment to the Bronx for decades to come. FreshDirect’s decision to stay in New York City, right here in the Bronx, is a win-win for everyone," Mr. Diaz said in a statement announcing the agreement.

Jason Ackerman was also quoted in the statement announcing the memorandum.

"We're thrilled by the opportunity to be a part of the Bronx community. We have historically created a large amount of new jobs and look forward to creating many more hand-in-hand with our new neighbors," Mr. Ackerman said. "Also, we take seriously our shared responsibility to the environment.”

Bronx Chamber of Commerce President Lenny Caro also weighed in with a statement of his own encouraging the city to "move forward with their support and welcome FreshDirect to the Bronx.

“FreshDirect’s move will also provide additional opportunities for the members of my Chamber to interface with another growing Bronx entity that is in need of their products and services,” Mr. Caro said.

The IDA is due to vote on whether or not to O.K. the $74 million subsidy package tomorrow.

A truck from the FreshDirect fleet. (Photo: FreshDirect.com)

Local activists in The Bronx have criticized the deal to keep the headquarters of online grocer FreshDirect in the five boroughs as insufficiently transparent and an improper use of city funds, but Mayor Michael Bloomberg defended the project at a press conference this morning.

"We don't go negotiate deals open, nobody would ever deal with the city, you couldn't negotiate a deal," Mayor Bloomberg said in response to a question from The Politicker.

Mayor Bloomberg, Governor Andrew Cuomo and Bronx Borough President Ruben Diaz Jr. teamed up to offer FreshDirect $127.8 million in grants, tax credits and other incentives from the City, the State, Borough President Diaz’s office and the Bronx Overall Economic Development Corporation. Of that money, New York City put down $89.4 million including; $74 million in tax exemptions, $9.5 million to “acquire assets to be used at the new facility at Harlem River Rail Yards” pending approval of the Industrial Development Agency, $4.9 million in energy benefits and a $1 million loan. FreshDirect is currently located in Long Island City, but the company was poised to leave the city after New Jersey Governor Chris Christie aggressively lobbied and offered a $100 million bid to woo FreshDirect to the other side of the Hudson.

Bettina Damiani of Good Jobs New York told the Daily News the deal was a "mockery of the public process" because it was completed two days before a public hearing debating the plan that' scheduled for tomorrow. Harry Bubbins, the director of local "community-based environmental organization" Friends of Brook Park sent a letter to City Comptroller John Liu blasting the FreshDirect deal as an "egregious violation of the public trust." Mr. Bubbins also criticized the potential environmental impact of the facility and the quality of jobs offered by FreshDirect.

"Fresh Direct is well known for its hostility to paying appropriate wages and not providing health benefits. According to Good Jobs NY 38% of its workers earn less than $25,000 a year," Mr. Bubbins wrote.

At the press conference, Mayor Bloomberg defended the use of public funds to compete with Governor Christie's offer.

"What's happening here is there's competition, some states try to buy jobs and then we don't have much choice but to get somewhat involved in the game," Mayor Bloomberg said. "I've always argued we don't have to bribe people or pay people to have jobs here, but there are some industries where you do and some industries like film, theater and television where the state's credits really do make a big difference and create enormous economic impact on us."

Mayor Bloomberg also touted the overall economic benefits of the FreshDirect facility.

"A company like FreshDirect that employs a lot of people at entry level kinds of jobs, which we do need, there's a real reason to be in New York," he said. "New Jersey was offering a lot of money to them and I'm happy to say that they decided to stay here. Does it cost us something? Yeah it cost us something. Am I happy about the fact that we have to pay? No."

According to the mayor, the FreshDirect deal will create 1,650 new jobs in addition to allowing the city to retain 2,000 jobs.

"The bottom line is, this project will allow New York City to retain something like 2,000 existing jobs and create 1,000 new permanent jobs; something like 650 construction jobs, because they're going to build a big plant in the South Bronx."

Mayor Bloomberg also argued FreshDirect was already going to be entitled to many of the tax exemptions offered by the city.

"Keep in mind, the property tax exemptions are only on the improvements that FreshDirect will make, not for everything. The majority of the city incentives are in the form of tax exemptions and approximately half of that would have been granted as a right anyway."

Though the mayor acknowledged, "we can't do it with every company and every job" he said there was no question this deal was the right move.

"If they weren't here, we wouldn't get anything. So, the fact that we're giving them somewhat of a break on how much they have to pay, it's not as good as giving them nothing, but it's a lot better than getting nothing," he said.

A truck from the FreshDirect fleet. (Photo: FreshDirect.com)

Mayor Bloomberg, Governor Cuomo and Bronx Borough President Ruben Diaz Jr. announced the online grocer FreshDirect will be setting up shop in the Bronx with an expanded headquarters and operations center at Harlem River Yards. The trio of New York politicians beat out New Jersey and that state's governor, Chris Christie, who aggressively lobbied and offered a $100 million bid to woo the FreshDirect facility across the state line.

FreshDirect will spend $112.6 million on the headquarters, which will be augmented by $127.8 million in grants, tax credits and other incentives from the City, the State, Borough President Diaz's office and the Bronx Overall Economic Development Corporation.

“Making sure that companies like FreshDirect can grow and invest in New York City is a key part of our strategy to rebuild and diversify our economy. A thousand new jobs at the Harlem River Yards is great news for the Bronx and a welcome boost to our City’s economy," Mayor Bloomberg said.

FreshDirect's Bronx headquarters is expected to bring 1,000 new jobs to the borough while allowing the city to retain the 2,000 jobs based out of the company's current headquarters in Long Island City. Governor Cuomo, who has repeatedly touted public/private partnerships as a crucial element of improving the State's financial prospects, praised the FreshDirect project.

"FreshDirect is a home-grown success that will now continue to grow and create jobs in New York,” Governor Cuomo said. “Creating almost a thousand new jobs is a real victory for the Bronx and a clear sign that leading New York companies see this state as the place to start, stay and strengthen their businesses.”

Mr. Diaz welcomed the company to the Bronx "with open arms."

"This iconic company will not only stay in New York where it belongs thanks to this deal, they will bring 1,000 new jobs with them to our borough. More and more companies are discovering that the Bronx is a great place to do business, and FreshDirect’s move to our borough is a major positive step forward for our economy," he said.

New York State is providing FreshDirect with $33.9 million in tax credits, grants, energy vouchers and loans for the project. The City is kicking in $89.4 million including; $74 million in tax exemptions, $9.5 million to "acquire assets to be used at the new facility at Harlem River Rail Yards" pending approval of the Industrial Development Agency, $4.9 million in energy benefits and a $1 million loan. Mr. Diaz's office is providing FreshDirect with a $1 million capital grant. The Bronx Overall Economic Development Corporation is giving the company a $500,000 capital grant and a $3 million loan. FreshDirect will use some of the money to purchase 10 electric refrigerated electric trucks from Smith Electric Vehicles.

FreshDirect service is currently limited to the New York metropolitan area. However, from its new base in the Bronx, the company plans to expand to New Jersey, Connecticut, and Philadelphia. FreshDirect, which was founded in 1999, was one of the early online grocers, but the digital grocery delivery market has exploded in recent years and the company now faces a slew of competitors.