NEW YORK CITY—Online grocer FreshDirect broke ground Monday on its long-awaited new headquarters facility in the South Bronx. The relocation from Long Island City in Queens will keep the company's 3,000 jobs, and tax ratables, in the city, but a $128-million package of state and municipal incentives announced in 2012 to keep FreshDirect from moving to New Jersey drew criticism from politicians, including then-mayoral candidate Bill de Blasio. The mayor did not attend Monday's ceremony, although he has not spoken publicly about the incentives since taking office.

Published reports say that the groundbreaking ceremony, attended by State Sen. Ruben Diaz and his son, Bronx Borough President Ruben Diaz Jr., drew a handful of protesters. Demonstrators from South Bronx Unite turned out to express their concern that delivery trucks entering and leaving the new 500,000-square-foot facility at the Harlem River Yard would exacerbate the neighborhood's existing air-quality issues. The company has promised to begin converting to electric-powered trucks, and the new facility will include charging stations for the fleet.

However, the borough president expressed his support. “This project represents new jobs, and new development, and is a key component of our 'New Bronx' agenda,” Diaz said in a statement. “FreshDirect has cleared every hurdle placed in its way, and today's groundbreaking puts the company on the fast track to their future Bronx relocation. I'm proud to support FreshDirect, and I look forward to continuing to work hand-in-hand with the company and the Bronx Overall Economic Development Corp. to put even more Bronx residents to work.”

Noting that “New York is in our DNA,” FreshDirect CEO Jason Ackerman says the relocation is “an important milestone for our company, allowing us to process orders more efficiently, expand our fresh food options and make online grocery shopping more convenient for our customers.” The project will house the company's corporate headquarters, as well as its food manufacturing and distribution facility, and FreshDirect says it will add up to 1,000 jobs to the existing employee base. The facility is slated for completion in late 2016.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.