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Moderately priced restaurant near Union Square in NYC?

We'll be meeting up with visiting relatives staying in the Union Square area next weekend. We'd like to take them to dinner somewhere nearby. American, Italian or Seafood would be best as several in our party have food allergies. I looked at the Union Square columns under SENY but all the restaurants seem to be either fast food/ethnic stands or very expensive (eg Bue Water Grill).

Any suggestions? Would another neighborhood nearby have more options? Thanks!

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