Bronx Residents Protest $130M Subsidies For Online Grocer

Law360, New York (September 7, 2012, 4:06 PM EDT) -- A group of South Bronx residents on Thursday challenged the legality of some of the nearly $130 million in subsidies made to online grocer FreshDirect LLC for its planned 500,000-square-foot shipping facility, as well as the constitutionality of its sublease at the site.

In an amended complaint filed in New York state court, two community groups known as Friends of Brook Park and South Bronx Unite and a group of individual residents allege that the city and Empire State Development Corp. overstepped their authority in approving about $18 million for Fresh Direct under the state's Excelsior Jobs Program.

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