A battle is brewing in Downtown Jersey City, one that pits the owners of restaurants on and around Newark Avenue against the vendors who set up shop twice weekly at the popular Grove Street farmers market.

The restaurant owners say the farmers market, located outside the PATH station for eight months out of the year, has become less of a market for fresh produce and more of a "food court" where shoppers can get empanadas, pierogies and chicken parmesan, all without having to visit any brick-and-mortar restaurants.

"If the merchants don't make money, is that good for Jersey City?" asked Jeff Fabia, who owns the bar, restaurant and pizza place known as Grove Square at Grove Street and Newark Avenue.

Favia said he sees receipts for his pizza joint dip as much as 60 percent when the farmers market, run by the Historic Downtown Special Improvement District, sets up on Monday and Thursday afternoons.

Aaron Morrill, who owns Two Boots Pizza just up the block on Newark Avenue, said he sees a "pretty stark" drop in business those afternoons, too. Morrill said he "embraces competition," but thinks there should be a limit to the amount of prepared food for sale at the market.

"Farmers markets are for farmers, or items made with local ingredients," he said, adding that many of the farmers market vendors aren't even based in Jersey City.

Rachel Sieg, the HSID executive director, referred questions to the HSID's board of trustees, who could not be reached. Sieg said that she doubts Morrill has many business owners on his side. Morrill's petition seeking changes to the Grove Street farmers market, with signatures from 17 business owners, doesn't indicate anything, Sieg said.

"It's very easy for me to go around and tell business owners the sky is purple and they will sign for me," she said. "Be careful with this story."

The city's SIDs have been struggling in recent years to make up for funds lost when Gov. Chris Christie essentially halted the Urban Enterprise Zone program that supplied funding to the local business groups.

The HSID, funded with roughly $220,000 in a special tax it collects from businesses in its zone, budgeted $65,000 in farmers market fees for the 2013-2014 year. Last year, the fees amounted to $55,000.

A man who manages one Newark Avenue business said he sees a boost in business during farmers market hours, but he remains sympathetic with local restaurant owners. He asked not to be identified because he doesn't want to anger either side.

"The whole point of the HSID is to help restore the Downtown area," he said. "By bringing in outside businesses, who does that help?"

A measure up for consideration by the City Council would allow more farmers markets to serve prepared food. The item was set for adoption at tonight's council meeting, but may be tabled so city officials can fine tune it, according to a city spokeswoman.

On Monday, more than half of the roughly 20 vendors at the farmers market were selling prepared foods like meatballs and pierogies, and at least four represented businesses outside of Jersey City.

Lenny Ojeda, of New Providence caterer Paolo's Kitchen, said he feels bad for restaurant owners in the area who take a hit on Monday and Thursday afternoons, but he thinks the food he sells outside the Grove Street PATH – pre-packaged pasta dishes and other Italian fare – fits the mold of a farmers market just fine.

"We make our own food," Ojeda said. "We use local products."

An earlier version of this story should have said the City Council meets tonight.

Terrence T. McDonald may be reached at tmcdonald@jjournal.com. Follow him on Twitter @terrencemcd. Find The Jersey Journal on Facebook.