The Farmer’s Market will be moved from the Motorgate area, probably to the plaza next to Blackwell House, in the near future.

Gristede’s management has invoked a provision of its lease giving it a 1900-foot no-compete zone, which covers all of Motorgate and much of Northtown.

Over the past two weeks, there have been discussions involving the PTA, which sponsors the Saturday market; the Roosevelt Island Operating Corporation (RIOC); and officials of Gristede’s. Three new locations have been considered, according to Erin Feely-Nahem, president of the PTA. In addition to the Blackwell House area, they include Good Shepherd Plaza and the area between Westview and Island House.

Most early commercial leases for Island space contained no-compete clauses or exclusion zones as a way of protecting the Island’s merchants, who signed on to the plan for a Roosevelt Island residential community at a time when the market for their offerings was limited. Many such provisions were removed from leases as they were renewed in the 1995-2000 period.

The Gristede’s lease, when it was renewed at the time the supermarket was renamed a “megastore,“ provided, “Tenant shall have the exclusive right to sell Fresh Foods from self-service display counters and no other store located within a radius of 1,900 feet... shall sell milk, beer, or soda... or fresh foods...” There is an exception for pre-existing stores, but the Farmer’s Market is not considered a store, nor does it have a lease, both conditions for an exception.

Feely-Nahem told The WIRE, “The PTA supports the service that Israel Wengerd’s greenmarket provides to the community and believes that he is an essential part of this community. It is obvious that the greenmarket is very popular with Island residents. Israel has always been a staunch supporter of any fundraising activity that we have organized, in addition to his monthly payments as a vendor in the PTA’s market space.”

She continued, “We are in negotiations with RIOC and a representative from Gristede’s in an effort to work out an amicable solution to Gristede’s request. The PTA’s goal is to ensure that the greenmarket will continue as it has for over a decade.”

John Catsimatidis, Chairman and CEO of Gristede’s, told The WIRE after some discussions earlier this week, “I understand the matter is settled to the satisfaction of RIOC, the PTA, Gristede’s, and the Flea Market owner.“ He added, “We will always do what is necessary for the best interest of the community and shareholders of Gristede’s. We have spent $3 million in the last two years to make Gristede’s Roosevelt Island one of the best stores in the City. I will always take suggestions on how to make it better.”

Israel Wengerd, the Amish resident of Watsontown, Pennsylvania, who operates the Farmer’s Market, said Tuesday in a telephone conversation, “I’m basically just peaceful. I don’t want to fight, but just do whatever’s in the best interests of the community. Their interest is my interest.“ Wengerd said he had surveyed spaces last Saturday. “Blackwell seemed like a nice location under the trees. I just want to work with the PTA and RIOC and whatever space they want to give me.”

RIOC President Robert H. Ryan told The WIRE on Wednesday, “We’re sort of caught in the middle here.“ Ryan said that Gristede’s clearly “has the law on its side.”

Ryan said that the bakery and the hardware/video store still have exclusion zones in their leases. Such exclusions generally carry language allowing other businesses to sell competing goods if they don’t specialize in those goods, or the goods are “incidental“ to another business operation. Because of Gristede’s size and variety of merchandise, virtually any one line of products is “incidental.”

The expansion in size and product lines at Gristede’s has put pressure on the Island’s smaller merchants, a story reported by The WIRE in April of 1998. Bigelow Pharmacy, which had survived on its sales of Health and Beauty Aids, known as “HBA“ in the trade, was eventually absorbed by the megastore. The Bigelow lease had protected the drug store only against competing “pharmaceutical services.”

The President of the Residents Association, Matthew Katz, deals with the Gristede’s matter in his column in this issue.