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A threat from hedge fund Citadel to put a halt to its $6 billion Midtown Manhattan offices over a tax proposal from Mayor Zohran Mamdani threatens area food vendors’ dwindling business, vendors told FOX Business.
The fund, founded by Ken Griffin in 1990, made the threat after Mamdani directly targeted Griffin while announcing a new tax on second homes in the city.
“This is an annual fee on luxury properties worth more than $5 million, whose owners do not live full-time in the city. Like for this penthouse, which hedge fund CEO Ken Griffin bought for $238 million,” Mamdani said in a video announcing the new tax.
Griffin, whose $51 billion net worth places him in the top 35 of the world’s richest people, slammed Mamdani’s video as a “personal attack” and claimed it showed a “profound lack of judgment.”
The feud could put an end to a project that would build New York’s second-tallest building and inject billions in construction dollars into the local economy.
Following Mamdani’s April 15 video, Citadel COO Gerald Beeson hinted that a plan to move forward with a skyline project for Citadel at 350 Park Avenue may not go forward.
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“We are about to commence the redevelopment of 350 Park Avenue, creating 6,000 highly paid construction jobs and supporting the creation of more than 15,000 permanent jobs in Midtown New York,” Beeson wrote in an April 23 memo to employees.
“The project – if we move forward – will entail more than $6 billion dollars of spending,” he also wrote. The “if” in Beeson’s memo could bear significant weight.
The 62-story skyscraper sitting near the center of Midtown Manhattan’s Turtle Bay neighborhood could be a boon, not only to the city’s construction and finance sectors, but also to local food vendors who have been struggling since the COVID-19 pandemic wiped out Midtown’s foot traffic.
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“If the owner brings more people, it’s gonna be a lot of business. Like, about now, this time is supposed to be easier,” Maria, who runs the Eggstravaganza food truck on the corner of Park and E. 52nd Street, told FOX Business.
“Before the pandemic it was like, I couldn’t even talk to you right now,” she said, speaking to FOX Business shortly after noon. “But now everything changed. A lot of companies are moving to different places. A lot of companies moved to SoHo, different places… Hudson Yards, a lot of people.”
Maria referenced a number of factors for the decline in her customer volume, including the 2025 shooting at 345 Park Avenue that prompted Blackstone to temporarily shutter its offices and have over 3,000 employees work from home.
“So if this building brings in a lot of customers, that would definitely help.”
But if Citadel follows through on its threat, it could pull a much-needed capital influx from the area.
“Canceling such a business, of course, will affect our business as well because we depend on the traffic from the people around here,” Ash, who worked in Rafiqi’s food truck right next to Maria’s, told FOX Business.
His business, which he’s been running in Manhattan for 25 years, is going through a downturn.
“Prices went up, it follows the new government here… it affects us a lot,” Ash said. “The international situation, the war in Iran, affects us as well. Everything goes up. It’s hard for us. We have to keep our prices as well, we can’t change a lot of our prices,” Ash added.
“When the businesses left, we all suffered,” a vendor who ran a Greek halal cart on 51st Street told FOX Business. “Many friends had to go back home to their countries,” the vendor, who asked to remain anonymous, said.
Mamdani appeared to slightly soften his attacks on Griffin, even thanking the Citadel head for funding a police memorial.
“I also want to thank Ken Griffin for funding a memorial wall that will open later this year,” Mamdani said.
Griffin recently met with New York Gov. Kathy Hochul at the end of April to discuss the “future direction of New York” amid Mamdani’s tax proposals.
FOX Business reached out to representatives for Mamdani, Hochul and Citadel for additional comment.
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