New York City’s Valuation Method in Hudson Yards Property Condemnations Is Upheld

Carter Ledyard, acting as Special Condemnation Counsel to The City of New York, received an important decision after trial in connection with claims for additional compensation filed by the former owners of 10 properties acquired by the City through eminent domain for the No. 7 Subway Line Extension – Hudson Yards Project in Manhattan. The court ruled that the properties acquired for the project, in 2007, must be valued based on their zoning classification before the area was rezoned, in 2005, in connection with the City’s plan to create a new central business district on the far west side of Manhattan. The ruling will likely result in the denial of most of the claims which have been filed. The property owners have already received an aggregate of over $120 million from the City for their properties.
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.
Litigation partner John R. Casolaro, litigation associate Pamela Shelinsky and Assistant Corporation Counsel Rochelle Cohen represented the City.

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