Taste of Union Avenue, a summer celebration of Hispanic culture and community, has been canceled in New Rochelle.

As first reported by the Talk of the Sound news site, Taste of Union has disappeared from the New Rochelle city calendar.  

CBS News New York has learned the decision was made in June as United States Immigration, Customs and Enforcement operations in parts of the country made headlines and raised anxiety.

In a statement, New Rochelle City Manager Wilfredo Melendez said:

"After careful consideration, Union Avenue will not be part of New Rochelle's 'Taste of' series this year – a decision made to ensure our public events remain safe, welcoming, and successful for all. We're developing an alternate way to celebrate and support the area's vibrant restaurants and small businesses, and will share more soon. In the meantime, we invite everyone to explore our community calendar for free summer programming showcasing the best of New Rochelle, including NRCA Summer Sounds and the Downtown Summer Sizzle Concert Series."

There is some discussion at City Hall about trying to hold Taste of Union in September.

An ICE spokesperson sent CBS News New York the following statement:

"U.S. Immigration and Customs Enforcement does not indiscriminately conduct enforcement actions on random people at public events, nor do we target U.S. citizens for the purpose of civil immigration enforcement. ICE conducts targeted enforcement actions that are based on intelligence driven leads focused on aliens identified for arrest and removal from the United States."

"People are very scared to come out"

A four-block stretch of Union Avenue in New Rochelle is home to a thriving Hispanic American community that's now dealing with the cancellation of the annual event.

"Taste of Union brings this community back up to our feet. It really helps the store vendors around here, it helps a lot," business owner David Zamora said.

Zamora had a booth last year and was planning another for this year's event, originally scheduled for July 26.

"We were planning big things for this year, but hey, things went the other way," he said.

Even though New Rochelle has not seen high-profile ICE activity, Zamora says people are nervous.

"People are very scared to come out. You can see it in the numbers. I mean, any storeowner here will tell you the same thing," he said. "Traffic is down."

Unease over the current immigration environment is not impacting planning for an even larger event, however. Westchester County's Hispanic Heritage Festival is still set for Sunday, July 13, at Kensico Dam Plaza in Valhalla.

ICE fears across Tri-State Area

There have been similar reports of worries in communities across the Tri-State Area.

On Long Island, a Latino organization canceled their annual fundraiser to support cancer patients due to fears of ICE raids at public gatherings.

Business owners in the area say they have seen the impact, and agencies that offer help to immigrants say families are afraid to seek their services.

• New Rochelle