Fulton fishmongers start move in anticipation of deal

The Fulton Fish Market was being packed and carted to the Bronx on Monday in anticipation of a deal settling a court fight over allegations of Mafia infiltration, lawyers for both sides said.

The deal would allow a contractor installed by former Mayor Rudolph Giuliani to keep unloading fish for three years at the new home of one of the nation's largest and oldest fish markets. After three years the wholesalers who run the market could ask the city for permission to take over unloading.

"The parties have resolved their differences," said William Kuntz, a lawyer for the wholesalers. "It basically puts the war behind us."

Unloading fish from arriving trucks was a chokepoint for Mafia control of the lower Manhattan market, where mob associates would extort payoffs from sellers seeking faster delivery.

Giuliani put contractor Laro Service Systems Inc. in place in 1995 to help break the mob's grip. But the city decided to let the fish sellers take over unloading in the new refrigerated Bronx market. Laro sued the wholesalers and the city in September to block the change. Laro alleged that the wholesalers still had organized crime ties and the move would let the mob retake the market. The sellers said they simply wanted to unload fish more cheaply and quickly than Laro.

A judge agreed with Laro and blocked the wholesalers from taking over unloading. The wholesalers have agreed to drop their appeal of the September decision under the impending deal. Former Giuliani chief of staff Randy Mastro, who represents Laro, said the deal was not complete but would likely be signed within the next two days.

"There are still substantive issues that are being discussed," he said. "I think there's substantial progress toward settlement."

The market has hundreds of employees and more than $1 billion a year in sales. Its move is considered key to the city's plans to revitalize both the Hunts Point section of the Bronx and the lackluster area around the South Street Seaport.

Thanks to Michael Weissenstein - Newday