Wednesday, February 13, 2013

Taxpayers may be on the hook for EDC folly

From the Daily News:

Lawyers representing more than a dozen business owners of the gritty Iron Triangle are awaiting a judge’s decision on whether the city will be required to pay their legal expenses, which have surpassed more than $1 million.

Michael Rikon and Michael Gerrard both told the Daily News on Monday that once the city dropped its eminent domain bid last May in favor of a different development, it became obligated to reimburse their fees.

“The statute is very clear,” said Gerrard, who is seeking over $609,000 for work that his firm Arnold & Porter performed. “If the city abandons the condemnation, the parties whose lands were being condemned are entitled to their legal fees.”

The city decided to not proceed with its eminent domain bid. Instead, it announced in June a 23-acre development to be built by the Queens Development Group, a joint venture between Sterling Equities and the Related Cos.

Both sides submitted their arguments in Queens Supreme Court last year. Rikon, who is seeking more than $281,000, said he expects a ruling within the next few weeks.

The statute that Rikon and Gerrard are basing their case on is Section 702 of New York State’s eminent domain law, which states if the “procedure to acquire such property is abandoned by the condemnor ... the condemnor shall be obligated to reimburse the condemnee.”

3 comments:

Anonymous said...

Willets Point United Inc. and their lawyers are absolutely correct: The city abandoned the attempted condemnation, and thus is liable to pay the property owners' costs, whatever they may be. Whether progress is made with the proposed development is completely beside the point. The instance of condemnation which the city pursued during 2011-2012 has been withdrawn. Any subsequent condemnation attempt by the city will be an altogether different attempt that will not rely in any way on the prior attempt. There will have to be a new pubic hearing, a new determination and findings issued, and so on. The prior instance of attempted condemnation is over and done with, and has been abandoned. Now the taxpayers must pick up the tab for NYCEDC and Pinsky's inability to implement the development plan that they touted.

Anonymous said...

Im happy the city wont be able to steal land and jam more housing in an overcrowded area. Let bloomberg pay these guys out of his pocket. He supported this stupidity.

Anonymous said...

Well said, Anonymous 1.