Planning To Succeed

Is Eminent Domain Abuse Government Abuse

Spurred by deep concern over the use of eminent domain across New York state to advance real estate development, St. Senator Bill Perkins (30 S.D.), chair of Senate Committee on Corporations, Authorities and Commissions held a community meeting December 19, 2009 at Manhattan Pentecostal Church. He brought together attorneys and representatives of communities facing disruption, namely Develop Don’t Destroy Brooklyn (DDDB), Willett Point United and the Kaurs, owners of two gas stations in West Harlem.

Senator Perkins called for reforming New York State’s eminent domain laws, which give the terms under which private property may be taken for a public use. Perkins described the current process as “lacking transparency, accountability and meaningful public participation.” Attorney Michael Rikon, who specializes in this area asserted, “New York State is guilty of the most abusive use of eminent domain.” Property may be deemed in need of improvement because, “Your property is never more valuable than when a Costco is built upon it.” This meeting falls on the heels of the December 15 court ruling in Kaur v. New York State Urban Development Corporation (UDC) wherein it found unconstitutional the taking of property by UDC d/b/a/Empire State Development Corporation (ESDC) for the benefit of Columbia University (Columbia).

Columbia has had longstanding expansion plans within Harlem. In 1968, the community opposed the construction of a university gym and Columbia students took over campus buildings.

Amangit Kaur spoke about the eight-year struggle with Columbia by her family to keep their property and two gas stations on them. Kaur asked the audience to “never lose hope” and “be assured that when the Harlem community stands together, nothing can stop us from winning.”

Attorney Norman Siegel for the community in the Columbia case uncovered that ESDC used the same consultants hired by Columbia to find West Harlem suffering from blight and, therefore, had an independent study performed. Siegel submitted to the court the 500-page No Blight Study, which resulted in the Kaur’s victory.
Siegel asserts that when the courts get documents finding eminent domain abuse, they do rule to reject applying it. Should UDC appeal the decision, Siegel said he looks forward to taking the case to Albany and if necessary, going to Washington. He believes each graduation in appeal expands the precedent from state to national impact.

A community deemed blighted is Willetts Point in Queens. Richard Lipsky said Willets Point doesn’t have sewers or sidewalks. After snowstorms, the residents secure a bulldozer to clear the streets. Lipsky believes the lack of infrastructure and city services is designed to position the community as a blighted area.
Governor David Paterson was in Harlem the same day of the meeting. When asked about improper eminent domain use in Harlem and UDC’s intention to appeal the decision, the Governor said he thought ESDC/Columbia were in compliance with Land Use and thought the Court of Appeals review appropriate.

DDDB’s Dan Goldstein reported Atlantic Yards/FCR will file papers December 23 or 24 to the State to take Goldstein and other properties within the site. The state’s master closing document isn’t available for public view until one week after all entities have signed. Goldstein remarked there are many legal means for FCR to partially complete the arena/housing/commercial development project and own the 22 acres. DDDB lost its case in the appellate court and requested that Governor Paterson stop eminent domain and the land transfer closing.

Newly-formed Brooklyn Arena LDC (BALDC) sold $511 million worth of tax exempt bonds to finance Atlantic Yards/FCR, on December 15, 2009. Amy Lavine, staff attorney at Albany Law School Government Law Center, asserts BALDC was established to circumvent approval by the State Comptroller and Public Authorities Control Board that would be required has ESDC directly initiated the bond issue. “The LDC is not a public entity and is responsible for paying property taxes. BALDC can’t legally finance the project using the applied finance method; so the bond issue is illegal,” summed Lavine.

Labels: Atlantic Yards, Bill Perkins, Columbia University, eminent domain, Forest City Ratner

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Crowd Jeers As Elected Protect Their Interest in Atlantic Yards

Amidst much jeering and booing, NYS Senate Corporations, Authorities and Commissions Committee conducted a public hearing at Pratt Institute to ascertain the status of the Atlantic Yards/FCR project, March 29, 2009. Bill Perkins (30 SD, Manh.), committee chair and the sole committee member present, St. Senator Velmanette Montgomery (18 SD, Bk.), Martin Golden (22 SD, Bk.), Karl Kruger (27 SD, Bk.), and St. Assemblyman Hakeem Jeffries (57 AD, Bk.) were present to hear testimony of five panels.

While Senator Montgomery and Assemblyman Jeffries’ presence were due to the project being in their respective catchments areas and Senator Kruger is the Finance committee chair, Martin Golden’s presence was questionable. Senator Golden isn’t a committee member and represents Brooklyn neighborhoods Gravesend, Bensonhurst and Gerritsen Beach. Sen. Montgomery remarked that Golden “showed disrespect toward his colleagues,” after he asked for “the public hearings to stop.” Absent were Forest City Ratner representatives.

The hearing’s purpose was to watch out for the public’s interest in the progress of a massive project involving the Empire State Development Corp. and the Metropolitan Transit Authority State of New York. Jeffries stated, “The Atlantic Yards Project bypassed the ULURP procedure, received $400 million from New York State, $200 million from the City and eminent domain approved to expedite land assembly to make way for luxury housing, an arena and commercial space.”

When asked what kept construction from starting, ESDC executive director Marisa Lago explained it was financial constraints; however, neither ESDC nor MTA applied for stimulus money (ARRA 2009), whose application deadline is June 24 2009.

Hakeem Jeffries served his constituency handsomely by asking the MTA why it hadn’t collected all or most of the $100 million up front from FCR, given its recent proposal to raise fares, defer maintenance and cut bus routes. Rather, the MTA agreed to accept allotment payments and can’t commit to holding fares to the increases that go in effect June 28, 2009.

Jeffries other questions concerned activating construction trade training, raising the present 10% allocation for affordable condominiums (195 units) and getting affordable rental and condominium housing constructed (2,445 units) constructed during Phase I.

Other panels included Develop Don’t Destroy Brooklyn, Downtown Brooklyn Neighborhood Alliance, and the Independent Budget Office. BUILD COO Marie Louis asked “the elected to work with us to make the community benefits agreement enforceable.” The CBA is not a contract; rather a deal between FCR and the community. ESDC and MTA are not included or accountable for its execution.

Labels: Atlantic Yards Project, Brooklyn, Forest City Ratner, gentrification, NYS Senate

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