NY state to chip in $130M for Hunts Point Produce Market redevelopment

NEW YORK — The state Assembly approved providing $130 million toward the redevelopment of the Hunts Point Produce Market in the Bronx.

That’s about two-and-a-half times greater of a financial commitment than the next highest capital improvement ($50 million for the Restore New York Communities Initiative) that the state legislature approved in its Summary of the Recommended Changes to the Executive Budget, published in May for the fiscal year of April 1, 2023, to March 31, 2024.

“We are closer than we have ever been to funding a project that means so much to our nation’s food infrastructure,” said Phillip Grant, CEO of the Hunts Point Produce Market. He thanked Assembly member Amanda Septimo, Speaker Carl Heastie, Gov. Kathy Hochul, Mayor Eric Adams, City Council member Rafael Salamanca Jr., Teamsters Local 202, the Borough President Vanessa L. Gibson and the team from the New York City Economic Development Corp. for helping secure this latest round of funding for redevelopment.

Within the last year, the wholesale produce market terminal has received commitments for $140 million from New York City and $110 from a federal grant, as The Packer reported in November 2022, so this latest financial commitment demonstrates the participation of midlevel government.

The goal is to make Hunts Point a model of industrial resilience and sustainability, according to the June 2022 Hunts Point Forward report, a short- and long-term study on improving the Bronx peninsula.

“We’re working on a market revitalization that will expand access points for healthy food. The goal is to make the market greener, more sustainable and eco-friendly,” Grant said. “This will help increase food access and security, meet growing demands and drive economic development.”

Related: New York City's produce gets an edge

The existing facility was built in 1967, the produce terminal sits on 103 acres and is the largest of its kind in the U.S.

Still, the market’s redevelopment requires about $650 million, as more than 30 merchants have outgrown the existing storage, using about 1,000 diesel-powered refrigerated trailer units, according to The Bronx Times and some merchants. That means more pollution in the community, along with all the exhaust from the distribution trucks.

The market is also working to meet requirements of FDA’s Food Safety Modernization Act.

This $130 million is just one part of a massive public-private fundraising campaign and improvement plan for the distribution of produce, meat, fish and other foods — as well as the surrounding community as a whole.

The Hunts Point Food Distribution Center comprises the Hunts Point Produce Market, Hunts Point Cooperative Market (meat market) and the New Fulton Fish Market, distributing 4.5 billion pounds of food annually, serving about 22 million customers in the greater metropolitan region.

The Hunts Point Produce Market distributes 25% of New York City’s produce, or about 900 million pounds annually.

Video: Hunts Point gives back, 2020 style

Ensuring this food distribution center is resilient to climate change also is critical in protecting the food supply, the Hunts Point Forward report said.

“Extreme weather, including heat, could also cause energy outages that debilitate the food supply chain, as well as impact public health,” the study said. “While progress toward a resilient Hunts Point has already begun, the city will continue to invest in protecting Hunts Point’s most vulnerable facilities and identify the next phase of resilience investments in the neighborhood. Given [city Economic Development Corp.’s] role as the lease administrator of the Food Distribution Center, there is also a unique opportunity for Hunts Point to set the standard for industrial sustainability.”

Related: Hunts Point Produce Market to get $110M federal grant for ‘critical modernization’

Terminal market merchants and leaders have been trying to revitalize this facility for more than a decade, and as each year passes, the need grows more urgent.

“The future of local business is tied to the future of Hunts Point Produce Market,” Grant said. “The future of the region’s food infrastructure is tied to the future of Hunts Point Produce Market. The future of food security is tied to the future of Hunts Point Produce Market and regional hubs like ours that keep New York and the world fed.”

Related: Hunts Point Produce Market, community to get $140 million from NYC