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Volume XX • Number 52 • December 26- January 1, 2013 •
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Serrano ploy could cost Bronx 1,000s of jobs Congressman Jose Serrano has moved against FreshDirect’s proposed relocation to Mott Haven, potentially costing the Bronx thousands of jobs. Last week, Congressman Serrano, who sits on the board of the New York Empowerment Zone, voted against a $3 million loan and $550,000 to FreshDirect that had been negotiated by the Bronx Overall Economic Development Corporation, declaring that he thought they did not need the money since they have already received enough subsidies for this project. “I want the record to show that if it (FreshDirect) shows back up I will vote no again and again and again,” said Congressman Serrano during the meeting. Congressman Serrano also expressed reservations at the meeting that FreshDirect was asking for more money through the empowerment zone, even though the loan was part of the original deal announced to move FreshDirect to the Bronx in Febraury 2012. Despite the setback, FreshDirect has vowed to move forward with their relocation to the Bronx, which is slated to save more than 2,000 existing jobs while creating 1,000 new jobs in the borough. “FreshDirect has not yet had a chance to meet
with all of the board members but we look forward to briefing them on this project,” said a company statement. “We are continuing to move forward with plans to create 1,000 new jobs in the nation’s poorest congressional district and generate even more tax revenue for New York.” The company currently employs around 600 Bronx residents at their Long Island City facility, according to sources, and negotiated to move to the Bronx rather than move to New Jersey, which had offered the company considerable subsidies. After agreeing to move to the Bronx, New Jersey officials lured Peapod, a subsidiary of Stop & Shop, to their state instead. “Opponents of this project are convinced that FreshDirect could never leave the city, and that they don’t need any subsidies because of that. They never bother to notice that Stop & Shop was more than happy to move its delivery services to another state,” said one observer familiar with the deal. FreshDirect entered into an agreement with Borough President Ruben Diaz Jr. last year to offer various amenities to the borough as part of its move, in addition to the creation of jobs and local hiring. Those include pursing EBT payments and developing a green truck fleet, among other.
“Since FreshDirect announced its move to the Bronx they have expanded their service to the entire borough, developed a pilot program to accept EBT benefits and hired dozens of Bronxites to work at their existing facility in Queens, all while working to convert their delivery fleet to environmentally-friendly vehicles. This project is a victory for our borough,” said Borough President Diaz in a statement. Last week, FreshDirect partnered with Borough President Diaz, Food Bank of New York and Give Them To Eat, and the advocacy group Health People to host a holiday dinner for 100 Bronx residents in Mott Haven. The comapny donated, prepared and served a full holiday meal including turkey, stuffing, potatoes and vegetables, for 100 clients of the food pantry run by Give Them To Eat at the Bronx Spanish Evangelical Church. “Among the hustle and bustle of the holiday season, it’s important to remember those who don’t always know where their next meal will come from,” said FreshDirect Co-Founder and CEO Jason Ackerman. “We’re proud to work with these local organizations and look forward to continuing to do so as a member of the community.”
Klein files class action suit to protect victimized homeowners Standing on the steps of the Bronx County Supreme Court, Senator Klein, joined by dozens of Bronx homeowners and Assemblyman Marcos Crespo (D-Bronx), announced that a lawsuit charging fraud, conspiracy, breach of contract and negligence had been filed against members of an elaborate scheme targeting first time, minority homeowners. Homeowners allege that the defendants, working in concert, (referenced to as the “Tota-Kash Group” in the complaint), bilked them for millions of dollars by inducing them to purchase homes in the Bronx without valid certificates of occupancy and with shoddy workmanship. When the homeowners first contacted Senator Klein’s office earlier in the fall, each homeowner reported a nearly identical timeline of events, all punctuated with a series of interactions where members of the Tota-Kash Group intentionally misrepresented the true condition of their homes, conspired against the homeowners ability to rectify defects and deficiencies and exploited each victim’s inexperience in financial matters. Senator Klein said: “These
hard-working New Yorkers were robbed of the American Dream. These families were caught in a perfect storm of lies and deception that cost them not only their paychecks, but of a safe and happy home this holiday season. When scheming contractors prey on aspiring homeowners, they need to know that we will hold them accountable. “This group’s deception may not be limited to the Bronx. That’s why I’m opening my office doors on January 16th to victims beyond the Bronx who may have fallen victim to this same scheme. Together, we can put an end to the unlawful and greedy actions of this group, and prevent them from taking advantage of innocent homeowners everywhere.” Working with Senator Klein’s office and the homeowners’ attorney, the homeowners are requesting action on behalf of themselves and any other victims of the Tota-Kash Group who come forward. At the press conference, Senator Klein urged any additional victims of this scheme to contact his office. In January, Senator Klein will be hosting a meeting for additional victims who are seeking legal action and are interesting in joining the
lawsuit as plaintiffs. It is largely believed that members of the Tota-Kash Group continue to perpetrate this scheme in other areas of the Bronx and Queens.
The scheme outlined in the lawsuit filed Friday morning depicts an elaborate plan to target homeowners who, as first time homebuyers, were easier to push
into transactions not favorable to them. At each closing, the Tota-Kash Group advised the plaintiff that the house had a Continued on Page 2
Assemblyman Jeffrey Dinowitz was joined by New York Governor Andrew Cuomo and State Senator Gustavo Rivera at the Kingsbridge Heights Community Center for the donation of toys, coats and other items to the center for the holiday season.