The co-op board of Hunts Point has rejected the city's offer.

NEW YORK CITY-The city’s proposal to extend the lease of the Hunts Point Terminal Produce Market in the Bronx by 10 years has been rejected by the market’s co-op board.

The market, operated by 46 merchants as a cooperative, has been in negotiations for more than a year on a lease extension and significant redevelopment plan, according to a report in Crain’s New York Business.

“The recent rejection by the co-op’s board of a long-term lease extension is unfortunate,” said a spokesman for the city’s Economic Development Corp., the landlord for the Hunts Point market. “And the lease extension we offered was on very favorable terms.”

A spokesman for the Hunts Point merchants told the newspaper that over the next two weeks the board would meet with its members to discuss the issue. The current lease expires in 2014. The State of New Jersey is attempting to persuade the market to relocate to the Garden State, which could result in the loss of more than 4,000 jobs in New York. See story in Crain’s New York Business.