New York City’s first city-owned grocery store will be in the Hunts Point section of the Bronx, Mayor Zohran Mamdani said Monday. The 20,000-square-foot store will be located inside the Peninsula, an affordable housing and mixed-use development that was previously home to a juvenile detention center.

The store is slated to open next year and builds on a cornerstone of Mamdani’s campaign for mayor. But bodega and supermarket owners say such stores amount to unfair competition that will hurt their businesses.

The store will cost an estimated $10 million to build, city officials said.

In a speech to announce the venture, Mamdani referenced a famous quote from former President Ronald Reagan. “The nine most terrifying words in the English language are ‘I’m from the government and I’m here to help,’” Reagan said in 1986.

“I think nine more terrifying words are actually, ‘I worked all day and can't feed my family,’” the mayor said. “We are going to use the power of government to lower prices and make it easier for New Yorkers to put food on the table,” he added.

Mamdani wants to open five city-owned grocery stores — one in each borough – before the end of his first term. In April, he announced one yet-to-be built site in East Harlem, north of the existing city-run marketplace La Marqueta, that will open in 2029.

The total estimated cost for building all five stores is $70 million. The plan is being carried out by the Economic Development Corporation, a powerful agency for which Mamdani has yet to appoint a leader.

As part of budget negotiations, the City Council will vet the plan beginning with a May 29 budget hearing.

In a statement, Rep. Alexandria Ocasio-Cortez said the store could strengthen food access across the South Bronx.

“Access to affordable, fresh food should not be a luxury determined by zip code; it should be a right,” she said.

Bodega owners, many of whom backed Mamdani in the election, say the mayor’s plan will bring competition to a business that operates on thin margins.

“It’s unfair,” said Francisco Marte, a Bronx bodega owner who heads the Bodega and Small Business Group in New York. “They are using our tax money to compete with us. They forget we are always the first line to serve the community. What he’s doing is going to hurt the business community.”

Marte asked why the city wouldn’t instead consider offering rebates to bodegas and supermarkets to lower the cost of essential items like milk and eggs.

Other experts have urged city officials to crack down on price discrimination, where big retailers have the power to command cheaper prices at the expense of smaller independent grocers.

“A more immediate and impactful strategy to lowering food prices lies in enforcing existing antitrust laws to spur healthy competition among independent grocers and big-box chains,” said David Cutler, a spokesperson with the National Grocers Association, a national trade association based in Washington, D.C.

The Multicultural Business Coalition, a recently formed nonprofit representing small business owners, is planning to speak against Mamdani’s plan at a Council budget hearing later this month.

City Council Speaker Julie Menin previously said she is seeking input from local businesses.

“As our city confronts ongoing fiscal and affordability crises, the City Council is working to identify responsible solutions to lower costs and address food insecurity,” said Jack Lobel, a spokesperson for Menin, said Monday in a statement. “The Council looks forward to receiving further details on the Administration’s proposal at the upcoming hearing.”

Asked about the criticism, Mamdani said administration officials have reached out to bodega and supermarket owners to discuss their concerns. He also argued that city-owned grocery stores would not be offering the same items that bodegas sell.

“We're not going to be selling lottery tickets,” the mayor said. “We're not going to be selling a lot of the things that make the margin, whether it's tobacco products or things of that nature.”

CORRECTION: This story has been updated to correct the attribution on a quote from City Council Speaker Julie Menin. The comment was from Jack Lobel, Menin's spokesperson.