October 6, 2009

Atlantic Yards: the Profits from Eminent Domain

The Empire State Development Corporation is gearing up to defend the Atlantic Yards' use of eminent domain later this month in court, a decision that will make or break the infamous development project. Gabby Warshawer (who also writes for Brownstoner) reported in The Real Deal that if the ESDC prevails, then several residences and businesses along Dean and Pacific will be condemned under eminent domain and occupants will be relocated. More importantly, Warshawer obtained a contract between the ESDC and the Cornerstone Group, a firm contracted for its relocation services that has a history of questionable results. Under the contract, the Cornerstone Group would receive no more than $40,000 in order to “contact, meet with and interview each occupant that needs to be relocated to determine individual needs and relocation preferences” and “provide a comprehensive database of available apartments either through its own resources or by working with a residential real estate brokerage firm.” The firm must do the same for businesses, but Warshawer notes that in 2006 Manhattan Borough President Scott Stringer and Congressman Jerrold Nadler claimed that “the Cornerstone Group, an MTA subcontractor charged with assisting in relocation, has continuously failed to provide helpful rental listings for those forced to relocate.”
Making Money Off Eminent Domain at AY [Brownstoner]
Image of 479 Dean via PropertyShark

Posted by jscheff at 9:29 AM | Comments (6)
Categories: Atlantic Yards, Eminent Domain

November 28, 2008

Eminent Domain in Bay Ridge

On 4th Avenue in the 80s, the School Construction Authority hopes to put a 480-seat school to help alleviate crowding at PS 104 and 185. Only problem: private citizens own the property. So the possibility of eminent domain is being invoked, the first time many folks can remember it being used for a school (though surely preferable to some than using it for private development). The property owners had other plans in mind. "The possibility of eminent domain - which is typically used for projects that would benefit the public - has put plans for a grocery store and medical center on hold for the swath of Fourth Ave. between 88th and 89th Sts," writes the NY Daily News. Since a grocery store or medical center can be classified as good for the public, too, that clouds the argument that a school is the property's most beneficial incaration. Matthew Brinckerhoff, a lawyer who has worked on eminent domain issues at Atlantic Yards, agrees a school is a "quintessential public use," but says "[the School Construction Authority] should target a spot that doesn't already have another public purpose in mind."
Eminent Domain Cloud Darkens Bay Ridge Neighborhood [NY Daily News]

Posted by lisa at 9:24 AM | Comments (0)
Categories: Bay Ridge, Eminent Domain

April 1, 2008

AY Owners, Renters File Eminent Domain Appeal

Eleven property owners and tenants within the Atlantic Yards footprint filed a petition yesterday asking the U.S. Supreme Court to hear their eminent domain case, nearing its 18th month in the judiciary system still without a trial. The case was dismissed twice by lower courts in developer Forest City Ratner's favor. Since news broke of the basketball arena and high-rise project's Dec. 19, 2009 kill-date (as long as Ratner stops pursuing litigation or construction matters), a lot of attention has been focused on the ticking clock rather than the people arguing beneath it. Now, about that legal case: In short, it seeks to clarify the Supreme Court's controversial Kelo v. New London decision in 2005, which allowed the Connecticut city to give a developer private property for the purpose of economic development. In that case, eminent domain was decided by a legislative body, whereas Atlantic Yards was voted on by three publicly accountable politicians, though it went through a lengthy review process. And lead attorney for the plaintiffs Matthew Brinckerhoff said Kelo's definition of public purpose was vague, leaving the average person vulnerable to having their property handed over to more influential citizens. They want the chance to vet that out more, and further investigate who Atlantic Yards was actually intended to benefit.

Forest City Ratner execs have long called lawsuits and appeals filed by project opponents "delay tactics" that deprive citizens benefits from the project's arena, affordable housing and jobs. And now Ratner has found himself in credit crunch territory, possibly delaying or killing key components of the project. Lead plaintiff Daniel Goldstein, who owns a condo in the arena footprint, said it's about their constitutional rights. But as far as the ticking clock, he said this is their last federal appeal, and he expects the court to decide whether to hear it this July. "If they don't take our case, or take our case and rule against us, then we will go to state court, the appellate division, and raise our state claims." When asked if they could drag out their case until 2010, after which time Forest City could automatically default if he decides not to continue pursuing litigation, Goldstein said, "We will take our case as far as we can to protect our constitutional rights."
Ratner Only Required To Show Arena Financing for Eminent Domain Approval[Brownstoner]
Read The Fine Print[Atlantic Yards Report]
Slow Economy Likely to Stall Atlantic Yards [NY Times]
What Will Be Left of Gehry’s Vision for Brooklyn? [NY Times]

Posted by sarah ryley at 10:00 AM | Comments (79)
Categories: Atlantic Yards, Eminent Domain, Prospect Heights

March 31, 2008

Vito's Plans for Pfizer: A Gross Misuse of Eminent Domain?

This morning the Sun takes a look at the drive to seize the old Pfizer plant in Williamsburg via eminent domain. Assemblyman Vito Lopez introduced a bill that would result in the state condemning the 15-acre property so it could acquire it and issue its own request for proposals to create around 1,700 affordable housing units. Pfizer intends to shut down the plant at the end of this year, and it released its own request for proposals for a mixed-use development on the site that would also include affordable housing. Lopez's chief of staff says Pfizer's RFP isn't good enough since it doesn't specify how much affordable housing would come out the site's redevelopment, but Pfizer begs to differ. "Not only is the concept of state-sponsored eminent domain extremely premature at this point and could have implications for development statewide but the legislation's justification fails to mention affordable housing is one of the key uses already being considered," said a spokesperson for the pharma giant in a statement. Critics of Lopez's plan think his bill would result in a completely unwarranted use of eminent domain. "The fact that this grossly mistreats business doesn't make it any better," says Daniel Goldstein of Develop Don't Destroy Brooklyn. "If Lopez wants the affordable housing on that site then he should work with Pfizer to get it included in the development and require that they build it on their property."
Eminent Domain Foes Fear Bid By Assemblyman [NY Sun]
Pfizer v. Vito for Rights to Old Pfizer Plant [Brownstoner]
Photo by hi-lo.

Posted by Gabby at 9:00 AM | Comments (13)
Categories: Affordable Housing, Development, Eminent Domain, Williamsburg

March 14, 2008

Paterson May be a Foe to Eminent Domain

According to an article in today's Sun, our new governor could end up opposing projects like Atlantic Yards that involve the use of eminent domain. As a state senator, David Paterson participated in a 2005 rally calling for a statewide moratorium on eminent domain. Councilmember Letitia James, who also took part in the rally, says she hopes Paterson's views on the subject haven't changed. "He stood with me and proposed some legislation and I am very hopeful that the lieutenant governor and soon-to-be governor will honor his commitment and will either issue a moratorium or review the abuse of eminent domain across New York City," says James. Steven Spinola, the president of the Real Estate Board of New York, says it's "premature" to make predictions about where Paterson will stand on eminent domain, but that "It would clearly be a mistake for the state to give up one of its powers to get public improvement projects off the ground." Time will certainly tell.
Paterson Could Derail Development [NY Sun]
Photo by d-4ce.

Posted by Gabby at 10:19 AM | Comments (19)
Categories: Atlantic Yards, Eminent Domain, Politicians