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Condemnation Law: Appellate Decision on Rezoning

 
Carter Ledyard, acting as Special Condemnation Counsel to The City of New York,  won an important appellate decision in connection with claims for additional compensation filed by the former owners of 10 properties acquired by the City through eminent domain in 2007 for the No. 7 Subway Line Extension – Hudson Yards Project in Manhattan. The acquisitions were in connection with the City’s plan to create a new Midtown Central Business District on the far west side of Manhattan. 
 
The Appellate Division, First Department, affirmed the trial court decision finding that the properties acquired for the project must be valued based on their zoning classification before the area was rezoned, in 2005..
 
The court rejected claims that the property should have been valued as if it had been rezoned along with adjacent properties, that the City’s rezoning constituted spot zoning, and that the area would have been rezoned even if there had been no Hudson Yards Project. It is the first case in New York to fully address the impact of an area-wide rezoning undertaken years before property acquisition in connection with a large government redevelopment project.
 
Partner John R. Casolaro, counsel Lee A. Ohliger and Assistant Corporation Counsel Rochelle Cohen represented the City.

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