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Shelling out six figures for a piece of Manhattan real estate should get you a roof and four walls, but not if you're a hot dog vendor vying for prime selling space in and around Central Park, according to DNAinfo.
On Tuesday, vendors offered to pay the city hundreds of thousands of dollars to rent just a few feet of sidewalk space — the same amount some people pay for an entire apartment — for their pushcarts.
Minimum bids for the 10 new pushcart contracts up for grabs range from a low of $7,350 a year for the Central Park side of Fifth Avenue between East 97th and East 98th streets, to an eye-popping $176,925 for the right to hawk snacks and sodas at the northwest corner of East 60th Street and Fifth Avenue.
Bids for the patch of concrete on the southwest corner of Grand Army Plaza, across from the Plaza Hotel, start at a jaw-dropping $155,400.
The Parks Department rented out the pricey park property to about 40 pushcart vendors in and around Central Park last year, though the number of carts changes as contracts renew and expire, a Parks Department spokesman said.
A vendor's winning bid becomes the flat fee the vendor pays annually to the Parks Department for his permit. Vendors pay the fee in monthly installments like rent. They sign five-year contracts and they're expected to increase their annual flat fee by 5 percent each year.
Vendors are required to follow a set pricing list: $2 is the maximum charge for a hot dog, $1.25 for canned soda. They're allowed to charge less, but they can't charge more without written permission from the Parks Department.
The Parks Department also wants to make sure customers get those snacks with a smile. In the instructions for bidding, the Parks Department tells applicants to explain how they'll measure customer satisfaction, and suggests using survey forms to gauge how well customers enjoyed their service.
The Parks Department sets minimum bids based on foot traffic, but ambitious bidders sometimes make over-the-top offers for prime selling spots.
In 2008, a pushcart vendor bid $643,000 for two locations outside the entrance to the Metropolitan Museum of Art, but he ran into trouble when he couldn't sell enough merchandise to make his monthly payments.
Cliff Stanton, co-owner of United Snacks, says that's a common rookie error among people new to the pushcart business. Stanton's company used to bid on vending spots, and now supplies pushcarts to vendors.
"A lot of individuals jump into the game thinking there's a lot of money to be made," said Stanton, who's been in the pushcart business since 1988. "They see only one side of it, the money coming in."
Yes, there are profitable days when sales "make your head spin," Stanton said, but after vendors pay overhead costs like insurance, suppliers, taxes, and employees, "there’s nothing left."
"The days where it used to be a lucrative business are long gone," said Stanton. "These guys are generally left with pennies if they're lucky."
Yuri Shutovsky, co-owner of Sigmund Pretzelshop in the East Village, got into pushcart vending in December, after the city suggested he bid for a spot outside the Metropolitan Museum of Art.
Shutovsky said he pays roughly $94,400 per year in rent to the city, and making the monthly payments hasn't been easy so far.
The brutal winter forced him to miss entire days of selling, and even when weather is good, there are only a few hours when his product moves, because most people don't buy pretzels until about 1 p.m. and the museum closes at 5:30 p.m., Shutovsky said.
Shutovsky charges $3 for one of his gourmet pretzels, which are handcrafted with high-end ingredients, but he doesn't want to raise prices, even though that could help him make rent payments.
"We don’t want to sell pretzels for $100, it's a pretzel for crying out loud, we wanted to be democratic," Shutovsky said.
But he's hopeful business will pick up, and feels he pays a fair price for his location on East 81st Street and Fifth Avenue.
"It's one of the better locations in New York, because you have a captive audience," Shutovsky said. "There's nowhere to buy anything affordable. I keep my fingers crossed that we do better and better and at the end of the year, there will be a good profit margin."
Two shameless Citgo stations in the Bronx have drivers over a barrel - they're charging more than $4 for a gallon of gas, according to the NY Daily News.
The $4.09 price for regular is 10% higher than the city average and the highest in the nation outside of four stations in California.
The apparent gouging enraged motorists and could land the stations in hot water with the city, which leases them the land on the opposite sides of the Hutchinson River Parkway.
"It's highway robbery - literally," said Miz Donnelly, 42, of Norwalk, Conn., who stopped at one station just to use the bathroom.
"I'd rather run out ... than fill up here. Tell you the truth, I'd rather walk home."
Pete Wolski, 48, filling up a rental car while visiting from Chicago, called it "awful."
"But what can I do?" he asked. "I need the gas and have no choice."
With unrest in the Middle East pushing up oil prices, the city's average for a gallon of regular was up to $3.65 yesterday - compared with $2.90 a year ago.
The national average was $3.37, the Oil Price Information Service said.
A Chevron in Bakersfield, Calif., was charging the most yesterday - $4.29 per gallon of regular, the service said.
The Citgo attendants were unapologetic - and inaccurate - when asked about the cost.
"That's the price," an attendant told a Daily News reporter who paid $10 for just 2.44 gallons of regular. "It's $4 everywhere."
The Citgos lease the land from the city, paying an average of $177,777 per year in rent or 3% of their gross receipts - whichever is larger, said a Parks Department spokesman.
After a complaint about rising prices in August, the city fired off a warning letter to the stations' operator, the ironically named Supervalue.
It noted that its license with the city bars it from charging more than the area's going rate.
A spokesman for the Parks Department said yesterday that the agency is investigating the latest hike and "will determine appropriate next steps."
Councilman Jimmy Vacca (D-Bronx) has an opinion about what that should be.
"They're pigs. Their lease should be terminated," Vacca said. "They have a history of overcharging, and this is just the latest and most egregious example of their greed."