Hedge fund Citadel’s warning that it may halt its $6 billion Midtown Manhattan development over a new tax proposal threatens already-struggling local food vendors, 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 among the world’s top 35 richest people, slammed Mamdani’s video as a “personal attack” and claimed it showed a “profound lack of judgment.”
The dispute could end 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 plans to move forward with a skyscraper project at 350 Park Avenue may not go ahead.
“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 of spending,” he wrote. The conditional language could prove significant.
The 62-story skyscraper in Midtown Manhattan’s Turtle Bay neighborhood could boost not only the city’s construction and finance sectors but also local food vendors who have struggled since the COVID-19 pandemic devastated Midtown foot traffic.
“If the owner brings more people, it’s gonna be a lot of business. Like, about now, this time is supposed to be easier,” said Maria, who runs the Eggstravaganza food truck at Park Avenue and East 52nd Street.
“Before the pandemic it was like, I couldn’t even talk to you right now,” she said. “But now everything changed. A lot of companies are moving to different places — SoHo, Hudson Yards, a lot of people.”
Maria cited multiple factors for the decline, including the 2025 shooting at 345 Park Avenue that prompted Blackstone to temporarily close 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.”
If Citadel follows through on its threat, it could pull a much-needed capital infusion 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,” said Ash, who works at Rafiqi’s food truck next to Maria’s.
Ash has been running a business in Manhattan for 25 years and is experiencing a downturn. “Prices went up, it follows the new government here… it affects us a lot. 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,” said a vendor who ran a Greek halal cart on 51st Street. “Many friends had to go back home to their countries,” the vendor 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.