NYC congestion pricing leaves Manhattan business owners weighing pros and cons

By Lisa Rozner

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    NEW YORK (WCBS) — Depending on who you ask, small business owners say congestion pricing could be a blessing or a curse.

When Gov. Kathy Hochul initially canned the plan, she said did so in part because small business owners were afraid of losing customers who travel by car.

Some business owners recently offered their take.

CBS News New York spoke with four different businesses that acknowledged shipping costs could go up even with the decreased $9 congestion fee, but they differ on whether congestion pricing hurts or helps them.

“We’re going to probably lose at least 25% more business,” said Danny Reina, general manager of Wall Street Grill.

Reina said business is still struggling to come back from the pandemic, adding instead of business clientele, it has become more of a destination for family celebrations.

“The dinners, it’s moving along steadily, but it’s not what it’s supposed to be,” Reina said.

Even with the $9 toll, the general manager of Wall Street Grill says the restaurant may have to reduce its lunch service. The luxury upscale kosher restaurant on Pear Street had just two parties in for lunch on a recent weekday.

Reina said he also fears losing employees who live in transit deserts. He commutes from the Long Island town of Westbury by car.

“I don’t see [the congestion roll] decreasing traffic. We’re out here between 11:30 p.m.-12 a.m. When you’re getting out at the time, there’s no trains. It easily is going to cost me $1,200 to $1,400 a month just taking the train.”

The chair of the MTA has said less than 1% of people in the region drive to the Central Business District for work, and that those who do will now have a faster ride.

Some business owners against congestion pricing have sued the MTA to stop it. Those who are optimistic about the plan say it can’t come soon enough.

Over on Varick Street, traffic leading to the Holland Tunnel backs up past Zafferano America, a lamp and tabletop store. CEO Barrett Gross said he believes it deters customers who mostly come by foot.

“It’ll reduce the amount of traffic that’s right outside our front doors, and that’ll be more pleasant for people who are shopping here,” Gross said.

His is one of 150 businesses that are part of the Hudson Square Business Improvement District. The organization did a 2023 study that found 93% of people ride the train, bike or walk in the area.

“We actually pay for private crossing guards after 3:30 in the afternoon to help people cross Varick Street, said Samara Karasyk, the business improvement group’s president and CEO. “And so, the better our transit system, the more people will take the transit system to come here.”

In the West Village, Aviv Brawer-Cohen, the co-owner of Nati clothing boutique on Bleeker, is optimistic congestion pricing will help the store, and another on Prince Street in SoHo.

“Our stores are located right next to the Christopher Street station, West 4th Street, Bowery, Broadway, and these stations are often times filthy,” Brawer-Cohen said. “Now, this city will have dedicated revenues to clean up these stations and make trains run more reliably.”

One could say that opinion is a diamond in the rough in the Diamond District. Diamanti NYC co-owner Kerri Lavine said she would not feel comfortable with one of her employees carrying pricey stones on the subway.

“Not really, honestly. I’m uncomfortable getting on the subway,” Lavine said.

Lavine said customers drive in to West 47th Street from across the region.

“We make women happy and we make men cry,” Lavine said.

Crying may be the only option for the 2,600 small businesses that are part of the Diamond District Partnership.

“All the different companies, they do pickup, plus we have armored companies that are here,” executive director Avi Fertig said. “You can’t send it by messenger and bicycle. It needs to be done in a very careful, role-planned way.”

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