Hunts Point market, believed to be the world's largest, will remain in the Bronx and continue to supply produce to the region's restaurants and supermarkets for at least another three years.
City officials announced on Wednesday that they reached a preliminary agreement with the cooperative that operates the wholesale food market, the Hunts Point Terminal Produce Cooperative.
Over the next three years, the cooperative will pay the city $13.5 million to stay in its 800,000-square-foot space.
Both sides said the lease extender will give them more time to negotiate a long term deal. The cooperative has committed to negotiate with the city exclusively over the next nine months. Earlier this year, the market entertained overtures from New Jersey.
As an inducement to stay, the city is also dangling the possibility it could spend more than $100 million on capital improvements at Hunts Point.
About 3,600 people work at the market.