New York bodegas are in crisis, with thousands of stores on the verge of bankruptcy or in danger of losing their premises due to the exorbitant rise in rents. Acknowledging that we are in the midst of one of the worst economic crises faced by the country in the past 25 years, we should understand that, in great part, the problems confronted by the bodegas can be attributed directly to government actions. Like all small retailers in the city, bodega owners are dealing with a very high cost to maintain and do business. Many of these costs are due to high taxes and overburdening regulations imposed on small retailers. For example, just a few years ago city officials struck our stores in two ways: a 20 percent increase on commercial properties; and a tax on cigarettes from eight cents to $1.50 resulting in more than $250 million to migrate from the stores’ vending cases to the streets and the black market.

The truth is that the crisis on Wall Street is also a crisis for the whole city: stores are closing and jobs are being lost. If the government does not act to reverse this reality, the commercial districts in our neighborhoods will turn to empty streets, a city of ghosts, and public safety and community wealth will be lost.

Now then, what can be done to help the bodegas to survive? The first step would be to designate part of the federal stimulus package to create an Emergency Fund for Mortgage Foreclosure Prevention to prevent the closing of many bodegas that are in trouble. Next, the city should declare a moratorium on fines and penalties for the businesses that are defaulting for the first time and issue forewarnings and warnings.

As well, there should be a halt to any new regulation that limits the capacity for small businesses to make money. For example, it is not a good idea to expand the law that regulates bottles to include other types of containers, like for water and juices. The current law, as it stands, is already very costly.

Finally, the city should lower the tax on commercial properties to levels prior to 2002, and to approve the Preservation Act on Small Businesses, which protects the bodegas from losing their sites arbitrarily.

The bodegas are closing and we need government officials at all levels to recognize their importance and join forces to help them survive. This is not a subjective petition. The reality is that the growth and prosperity of the city is tied closely to the success of its bodegas. It is time to take action.