CATTERSON, J.
"`An ACT of the Legislature (for I cannot call it a law) contrary to the great first principles of the
The exercise of eminent domain power by the New York State Urban Development Corporation, doing business as Empire State Development Corporation (hereinafter referred to as ESDC) to benefit a private elite education institution is violative of the Takings Clause of the US Constitution, article I, § 7 of the New York Constitution, and the "first principles of the social compact." The process employed by ESDC predetermined the unconstitutional outcome, was bereft of facts which established that the neighborhood in question was blighted, and ultimately precluded the petitioners from presenting a full record before either ESDC or, ultimately, this Court. In short, it is a skein worth unraveling.
This case involves the acquisition, by condemnation or voluntary transfer, of approximately 17 acres in the Manhattanville area of West Harlem for the development of a new campus for Columbia University, a not-for-profit corporation (hereinafter referred to as the Project). The Project, referred to as the Columbia University Educational Mixed Use Development Land Use Improvement and Civic Project, would consist of a total of approximately 6.8 million gross square feet in up to 16 new buildings, a multi-level below-grade support space, and the adaptive reuse of an existing building. In addition, the Project would purportedly create approximately two acres of publicly accessible open space, a market along 12th Avenue, and widened, tree-lined sidewalks.
In 2001, Columbia, together with numerous other organizations, began working with the New York City Economic Development Corporation (hereinafter referred to as EDC) to redevelop the West Harlem area. In August 2002, the EDC issued a West Harlem Master Plan (hereinafter referred to as the Plan) describing the economic redevelopment plan. In the Plan, the EDC contended that the area was "once denser, livelier and a waterside gateway for Manhattan," and that "[a] renewed future seem[ed] possible." The EDC stated that it hoped to "revitaliz[e] . . . a long-forsaken waterfront," provide transportation, develop "a vibrant commercial and cultural district," and support academic research. The EDC noted that the current land use was "auto-related or vacant," with several "handsome, mid-rise buildings . . . interspersed with parking lots and partially empty industrial buildings." According to data prepared for the Plan by Ernst & Young, 54 of the 67 lots were in "good," "very good" or "fair" condition.
In 2000, Columbia owned only two properties in the Project area. In 2002, Columbia began purchasing property in the area in order to effectuate its own plan to expand its facilities. By early October 2003, Columbia controlled 51% of the property in the Project area—33% of which was still privately owned.
As early as March 2004, ESDC, EDC, and Columbia began meeting regarding the Project and the condemnation of land. In June 2004, Columbia hired Allee King Rosen & Fleming, Inc. (hereinafter referred to as AKRF), an environmental and planning consulting firm, to assist in its planning, to act as its agent in seeking approvals and determinations from various agencies necessary to realize its expansion plan, and to prepare an environmental impact statement (hereinafter referred to as the EIS). (See Matter of Tuck-It-Away Assoc., L.P. v Empire State Dev. Corp., 54 A.D.3d 154, 157 [1st Dept 2008], lv granted 12 N.Y.3d 708 [2009] [hereinafter referred as Tuck-It-Away I].) AKRF began attending meetings with Columbia, ESDC and EDC in connection with the Project.
In August 2004, EDC issued a "Blight Study" of the West Harlem/Manhattanville Area which was prepared by a consultant, Urbitran Associates, Inc. The study concluded that the area was "blighted."
In December 2004, ESDC, not content to rest on the Urbitran study, noted that it would have to make its own "blight findings" in connection with the Project. In an e-mail dated January 7, 2005, Columbia's project manager, Lorinda Karoff of Karen Buckus and Associates, indicated that Columbia's attorneys "and also possibly AKRF (who has already reviewed the document once at EDC's offices), wished to see the draft blight study." Karoff noted that the draft study "may change or even be completely replaced as ESDC uses different standards than the City."
In or about September 2006, ESDC retained Columbia's consultant AKRF to evaluate the conditions at the Project site. AKRF in turn retained Thornton Tomasetti, Inc., an engineering firm, to inspect and evaluate the physical condition of each existing structure at the Project site.
On November 1, 2007, AKRF issued its Manhattanville Neighborhood Conditions Study (hereinafter referred to as AKRF's study). The study noted that as of April 30, 2007, Columbia owned or had contracted to purchase 48 of the 67 tax lots (72%) in the study area. The study found that "48 of the 67 lots in the study area (or 72 percent of the total lots) have one or more substandard condition, including poor or critical physical lot conditions, a vacancy rate of 25 percent or more, or site utilization of 60 percent or less." In addition, the study found that "34 of the 67 lots in the study area (or 51 percent of the total lots) were assessed as being in poor or critical condition." According to the study, "[t]he presence of such a high proportion of properties with multiple substandard conditions suggests that the study area has been suffering from a long-term trend of poor maintenance and disinvestment." The study concluded that the Project area was "substantially unsafe, unsanitary, substandard, and deteriorated."
On November 16, 2007, the New York City Planning Commission (hereinafter referred to as the CPC), the lead agency for
After a public hearing held by the City Council on December 12, 2007, the Council approved the rezoning of approximately 35 acres of West Harlem including the 17-acre Project site. Meanwhile, West Harlem Business Group (hereinafter referred to as WHBG), a group of businesses within the Project area, as well as Tuck-It-Away Associates, L.P. (TIA), a member of WHBG, requested various documents from ESDC related to the Project pursuant to the Freedom of Information Law (hereinafter referred to as FOIL). When ESDC refused to provide certain documents, WHBG and TIA filed CPLR article 78 petitions. (See Tuck-It-Away I, 54 AD3d at 159.)
On July 3, 2007 and on or about August 23, 2007, the New York County Supreme Court (Shirley Werner Kornreich, J.) granted the applications to compel ESDC to release the documents, including documents involving ESDC's communications with AKRF. In particular, the court found that an agency exemption did not apply to the AKRF documents since AKRF lacked "sufficient neutrality" due to its role as a consultant for both ESDC and Columbia. ESDC appealed from those orders.
On July 15, 2008, this Court affirmed Supreme Court's order for disclosure of documents related to ESDC's communications with AKRF, and otherwise reversed. (See Tuck-It-Away I, 54 AD3d at 162.) With respect to the AKRF documents, we agreed with Supreme Court that AKRF's representation of both ESDC and Columbia with respect to the Project "creates an inseparable conflict for purposes of FOIL." (54 AD3d at 164.) In particular, we found that "FOIL is not blind to the extensive record of the tangled relationships of Columbia, ESDC and their shared consultant, AKRF." (54 AD3d at 166.) Due to AKRF's consulting and advocacy work for Columbia, we questioned AKRF's ability to provide "objective advice" to ESDC, particularly with respect to its preparation of the blight study. (Id.)
In response to the concerns about AKRF's neutrality, on February 7, 2008, approximately two months after we heard oral argument on the FOIL litigation, Carter Ledyard & Milburn LLP, acting on behalf of ESDC, retained Earth Tech, Inc., an
In May 2008, almost six years after EDC issued the West Harlem Master Plan, and five years after Columbia gained control of more than one half of the realty contained in the Project area, Earth Tech issued a Manhattanville Neighborhood Conditions Study. According to that study, Earth Tech "independently reviewed" AKRF's study as well as Thornton Tomasetti's findings relating to the structural conditions of the buildings in the Project site. As part of its review, Earth Tech inspected and assessed the 67 lots on the Project site, "surveyed the study area," and "conducted various searches of public data bases on environmental contamination, Building Code violations, and ownership records." It bears repeating that, by this time, Columbia either owned or was in contract to purchase 48 of those 67 lots.
According to the Earth Tech study, Earth Tech's "independently arrived at findings substantially confirm[ed] those of AKRF and Thornton Tomasetti." However, Earth Tech found that certain buildings had "further deteriorated since the prior inspections." In particular, while the AKRF report had found that 34 lots (51%) were in critical or poor condition, Earth Tech found that 37 sites (55%) were in critical or poor condition. In addition, Earth Tech found a "long-standing lack of investor interest in the neighborhood," demonstrated by, among other things, the paucity of new buildings constructed since 1961, as well as "the extended neglect of building maintenance" and extensive Building Code violations. In particular, Earth Tech found that, as of July 2006, "there were 410 open violations" with respect to 75% of the lots in the Project site. Accordingly, Earth Tech concluded that a majority of the buildings and lots in the Manhattanville area exhibited "substandard and deteriorated conditions" creating "a blighted and discouraging impact on the surrounding community."
On July 17, 2008, ESDC adopted a General Project Plan (hereinafter referred to as the GPP) for the Project as both a land
By notice dated August 3, 2008, ESDC advised the public that it would conduct a hearing on September 2 and 4, 2008 in connection with the proposed Project and acquisition of property within the Project site. The petitioners and others spoke at the hearing. The record of the hearing remained open for any additional written comments until October 10, 2008.
On December 18, 2008, ESDC approved its SEQRA statement of findings, adopted a modified GPP, and authorized the issuance of the determination and findings. On December 22, 2008, ESDC issued its determination and findings authorizing the acquisition of certain real property for the Project. In particular, ESDC found that "[t]he Project qualifies as both a Land Use Improvement Project and separately and independently as a Civic Project pursuant to the New York State Urban Development Corporation Act."
On February 20, 2009, two petitions were filed in this Court challenging the determination and findings. The petitioners Tuck-It-Away, Inc., Tuck-It-Away Bridgeport, Inc., Tuck-It-Away at 133rd Street, Inc. and Tuck-It-Away Associates, L.P. are owners of storage facilities located at 3261 Broadway, 614 West 131st Street, 655 West 125th Street, and 3300 Broadway. Petitioners Parminder Kaur and Amanjit Kaur are the owners of a gasoline service station located at 619 West 125th Street, and petitioner P.G. Singh Enterprises, LLP is the owner of a gasoline service station located at 673 West 125th Street. It is uncontested that the petitioners' property is within the Project site and thus is subject to condemnation.
In reviewing the determination and findings in these Eminent Domain Procedure Law (EDPL) proceedings this Court's scope of review is limited to whether (1) the proceeding was in conformity with the Federal and State Constitutions; (2) the proposed acquisition was within the condemnor's statutory jurisdiction or authority; (3) the condemnor's determination and findings were made in accordance with procedures set forth in EDPL article 2 and article 8 of the Environmental Conservation Law (SEQRA); and (4) a public use, benefit or purpose will be served by the proposed acquisition. (See EDPL 207 [C].)
A negative finding in any one of these factors necessarily dooms ESDC's determinations. The petitioners assert that
ESDC's determination that the Project has a public use, benefit or purpose is wholly unsupported by the record and precedent. A public use or benefit must be present in order for an agency to exercise its power of eminent domain. (See US Const 5th Amend; NY Const, art I, § 7; EDPL 204[B][1].) "[T]he term `public use' broadly encompasses any use ... which contributes to the health, safety and general welfare of the public." (See Matter of C/S 12th Ave. LLC v City of New York, 32 A.D.3d 1, 10-11 [1st Dept 2006].) If an adequate basis for the agency's determination is shown, and the petitioner cannot show that the determination was corrupt or without foundation, the determination should be confirmed. (See Matter of Waldo's, Inc. v Village of Johnson City, 74 N.Y.2d 718, 720 [1989]; Matter of Jackson v New York State Urban Dev. Corp., 67 N.Y.2d 400, 425 [1986]; Kaskel v Impellitteri, 306 N.Y. 73, 78 [1953], cert denied 347 U.S. 934 [1954].)
The UDCA defines a "civic project" as: "[a] project or that portion of a multi-purpose project designed and intended for the purpose of providing facilities for educational, cultural, recreational, community, municipal, public service or other civic purposes." (Uncons Laws § 6253[6][d] [UDCA § 3(6)(d)].)
At the outset, it is important to note that as late as May 18, 2006, 2½ years into ESDC's participation project planning, the draft GPP still identified the project only as the "Manhattanville in West Harlem Land Use Improvement Project" even though there was no arguably independent blight study until
Any analysis of the constitutionality of ESDC's scheme for the development of Manhattanville must necessarily begin with a discussion of the most recent Takings Clause exposition by the U.S. Supreme Court in Kelo v New London (545 U.S. 469 [2005]).
It is recognized that Kelo, as described below, did not concern an area characterized as "blighted." However, the blight designation in the instant case is mere sophistry. It was utilized by ESDC years after the scheme was hatched to justify the employment of eminent domain, but this Project has always primarily concerned a massive capital project for Columbia. Indeed, it is nothing more than economic redevelopment wearing a different face. "[E]ven where the law expressly defines the removal or prevention of `blight' as a public purpose and leaves to the agencies wide discretion in deciding what constitutes blight, facts supporting such determination should be spelled out." (Yonkers Community Dev. Agency v Morris, 37 N.Y.2d 478, 484 [1975], appeal dismissed 423 U.S. 1010 [1975].) Furthermore,
The determination of the Yonkers Court and the hoary authority of City of Brooklyn are still controlling precedent that require this Court not to abdicate its role to decide a "judicial question." Whether the respondent describes the use of eminent domain in Manhattanville as "urban renewal" or economic redevelopment, the question of public purpose or public use should be analyzed under the standards set out in Kelo.
Several plaintiffs in lot 3 challenged the taking of their property. They claimed that the condemnation of unblighted land for economic development purposes violated both the State and Federal Constitutions. More specifically, they argued that the taking of private property under Connecticut's statute and handing it over to a private party did not constitute a valid public use, or at a minimum, the public benefit was incidental to the private benefits generated. The Connecticut Supreme Court rejected their claims under both the State and Federal Constitutions. The U.S. Supreme Court granted certiorari on the federal question of whether the taking of private property for economic development purposes, when it involved transferring land from one private owner to another, constituted a valid public use under the Fifth and Fourteenth Amendments.
Justice Stevens, writing for the majority, characterized the New London program as "economic rejuvenation":
The majority broke little new ground on this issue. In Berman, Justice Douglas, writing for the unanimous Court, upheld the District of Columbia's use of eminent domain via act of Congress to acquire, inter alia, commercial property that was, itself, not blighted. The Court stated that "[t]he concept of the public welfare is broad and inclusive ... [and] the power of eminent domain is merely the means to the end." (348 US at 33.) The Berman Court elaborated on the deference due to government decisions of this type:
The Kelo majority also relied heavily on Hawaii Housing Authority v Midkiff (467 U.S. 229 [1984]), wherein the Court upheld a Hawaii statute that authorized the taking, under eminent domain, of fee title from large land-holding lessors and transferring it to a series of lessees. The Kelo majority stated that in "[r]eaffirming Berman's deferential approach to legislative judgments in this field, we concluded that the State's purpose of eliminating the `social and economic evils of a land oligopoly' qualified as a valid public use." (545 US at 482, quoting Midkiff, 467 US at 241-242.)
The Kelo majority reaffirmed the broad deference accorded to the legislature in determining what constitutes a valid public use as first enunciated in Berman. However, Justice Kennedy, in a concurring opinion, pointed out the obligations of any court faced with challenges such as presented by ESDC's scheme to redevelop Manhattanville. He wrote specifically and separately on the issue of improper motive in transfers to private parties with only discrete secondary benefits to the public.
This is precisely the issue presented by the instant case. Justice Kennedy placed particular emphasis on the importance of the underlying planning process that ultimately called for the
(1) The city's awareness of its depressed economic condition, by virtue of a recent closing of a major employer and the state's designation of the city as a distressed municipality. (545 US at 491; cf. 545 US at 473.)
(2) The formulation of a comprehensive development plan meant to address a serious citywide depression. (Id. at 493.)
(3) The substantial commitment of public funds to the project before most of the private beneficiaries were known. (Id. at 491-492.)
(4) The city's review of a variety of development plans. (Id.)
(5) The city's choice of a private developer from a group of applicants rather than picking out a particular transferee beforehand. (Id.)
(6) The identities of most of the private beneficiaries being unknown at the time the city formulated its plan. (Id. at 493.)
(7) The city's compliance with elaborate procedural requirements that facilitate the review of the record and inquiry into the city's purposes. (Id.)
Justice Kennedy specifically acknowledged that "[t]here may be private transfers in which the risk of undetected impermissible favoritism of private parties is so acute that a presumption (rebuttable or otherwise) of invalidity is warranted under the Public Use Clause." (Id.) Although he declined to conjecture as to what sort of case might justify a more demanding standard of scrutiny, beyond finding the estimated benefits there not "de minimis," it was the specific aspects of the New London planning process that convinced him to side with the majority in deference to the legislative determination. (See id.)
The contrast between ESDC's scheme for the redevelopment of Manhattanville and New London's plan for Fort Trumbull could not be more dramatic. Initially, it must be noted that unlike Fort Trumbull, Manhattanville or West Harlem as a matter of record was not in a depressed economic condition when EDC and ESDC embarked on their Columbia-prepared-and-financed quest. The 2002 West Harlem Master Plan stated that not only was Harlem experiencing a renaissance of economic development, but that the area had great development potential that could easily be realized through rezoning. Again, its bears repeating that the only purportedly unbiased or untainted study
Unlike the City of New London, EDC, in conjunction with ESDC, did not endeavor to produce a comprehensive development plan to address a Manhattanville-wide economic depression. Furthermore, no municipal entity in New York committed any public funds for the redevelopment of Manhattanville. Indeed, Columbia underwrote all of the costs of studying and planning for what would become a sovereign-sponsored campaign of Columbia's expansion. This expansion was not selected from a list of competing plans for Manhattanville's redevelopment. Indeed, the record demonstrates that EDC committed to rezoning Manhattanville, not for the goal of general economic development or to remediate an area that was "blighted" before Columbia acquired over 50% of the property, but rather solely for the expansion of Columbia itself.
The only alternative considered was West Harlem Community Board 9's alternative New York City Charter § 197-a plan. More than 10 years in the making, Community Board 9's self-initiated comprehensive plan explicitly sought integrated and diversified development of the Manhattanville industrial area so as to maximize economic benefits to local area residents rather than just Columbia. That plan contemplated that Columbia would play an important role in the eventual redevelopment of Manhattanville. However, it explicitly rejected the use of eminent domain and exclusive Columbia control in favor of diversified development and preservation of existing businesses and jobs.
Until May 3, 2007, drafts of the Columbia GPP make no mention of Community Board 9's 197-a plan. ESDC appears to have first considered the 197-a plan in the October 12, 2007 draft of the GPP, whereupon it rejected the Community Board's plan on the ground that it "does not meet Columbia's needs as Columbia had defined them." When the New York City Planning Commission adopted the 197-a plan, it carved out the area sought by Columbia because it did not provide Columbia "adequate opportunity to facilitate Columbia's long-term growth." The record shows no evidence that ESDC placed any constraints upon Columbia's plans, required any accommodation of existing or competing uses, or any limitations on the scale or configuration of Columbia's scheme for the annexation of Manhattanville.
Thus, the record makes plain that rather than the identity of the ultimate private beneficiary being unknown at the time that
In Kelo, the majority assumed that the redevelopment in question was itself a public purpose. No such assumption should be made in the instant case despite the Columbia-sponsored finding of blight.
Under the UDCA, ESDC is empowered to acquire property for a land use improvement project if it finds, in pertinent part, that "the area in which the project is to be located is a substandard or insanitary area, or is in danger of becoming a substandard or insanitary area and tends to impair or arrest the sound growth and development of the municipality." (Uncons Laws § 6260[c][1] [UDCA § 10(c)(1)].) The statute states, in relevant part, that "[t]he term `substandard or insanitary area' shall mean and be interchangeable with a slum, blighted, deteriorated or deteriorating area, or an area which has a blighting influence on the surrounding area." (Uncons Laws § 6253 [12] [UDCA § 3 (12)].) The statute's statement of legislative findings and purposes lists various "substandard, insanitary, deteriorated or deteriorating conditions" including, among other things:
Thus, the affidavits of Dr. R. Andrew Parker, Earth Tech's principal urban planner, and Philip Pitruzzello, which were sworn to after the record was closed, cannot inform this Court's review of ESDC's determinations.
It is critical to recognize that EDC's 2002 West Harlem Master Plan which was created prior to the scheme to balkanize Manhattanville for Columbia's benefit found no blight, nor did it describe any blighted condition or area in Manhattanville. Instead, as described above, the Plan noted that West Harlem had great potential for development that could be jump-started with rezoning. It was only after the Plan was published in August 2002 that the rezoning of the "upland" area was essentially given over to the unbridled discretion of Columbia. In little more than a year from publication of the Plan, EDC joined with Columbia in proposing the use of eminent domain to allow Columbia to develop Manhattanville for Columbia's sole benefit.
This ultimately became the defining moment for the end game of blight. Having committed to allow Columbia to annex Manhattanville, the EDC and ESDC were compelled to engineer a public purpose for a quintessentially private development: eradication of blight.
From this point forward, Columbia proceeded to acquire by lease or purchase a vast amount of property in Manhattanville.
Thus, ESDC delayed making any inquiry into the conditions in Manhattanville until long after Columbia gained control over the very properties that would form the basis for a subsequent blight study. This conduct continued when ESDC authorized AKRF to use a methodology biased in Columbia's favor. Specifically, AKRF was to "highlight" such blight conditions as it found, and it was to prepare individual building reports "focusing on characteristics that demonstrate blight conditions."
This search for distinct "blight conditions" led to the preposterous summary of building and sidewalk defects compiled by AKRF, which was then accepted as a valid methodology and amplified by Earth Tech. Even a cursory examination of the study reveals the idiocy of considering things like unpainted block walls or loose awning supports as evidence of a blighted neighborhood. Virtually every neighborhood in the five boroughs will yield similar instances of disrepair that can be captured in close-up technicolor.
ESDC originally specified that AKRF should study trends in real estate values and rental demand, and though its counsel requested that AKRF evaluate building conditions at the time Columbia acquired them, AKRF's final report included none of
The "no blight" study proffered by the petitioners sets forth all of the factors that AKRF, Earth Tech and ESDC should have considered, but did not, to arrive at any conclusion that Manhattanville was, or was not, blighted. The study contains an analysis of real estate values, rental demand, rezoning applications and multiple prior proposals for the development of Manhattanville's waterfront and new commercial ventures, all omitted from ESDC's studies. ESDC failed to demonstrate any significant health or safety issues other than minor code violations that exist throughout the city, but more particularly in the buildings controlled by Columbia.
The most egregious conclusion offered in support of the finding of blight is that of underutilization. AKRF and Earth Tech allege the existence of blight from, inter alia, the degree of utilization, or percentage of maximum permitted floor area ratio (FAR) to which lots are built. The theoretical justification for using the degree of utilization of development rights as an indicator of blight is the inference that it reflects owners' inability to make profitable use of full development rights due to lack of demand. Lack of demand can only be determined in relation to FAR when combined with the zoning for the area in question. Manhattanville, for the relevant period, was zoned to allow maximum FAR of two, leaving owners essentially with a choice between a one- or two-story structure. No rationale was presented by the respondent for the wholly arbitrary standard of counting any lot built to 60% or less of maximum FAR as constituting a blighted condition. To the contrary, the New York City Department of City Planning uses a 50% standard to identify "underbuilt" lots. The petitioners accurately contend that while in a mid-rise residential area, or a high-rise business district, a 60% figure might have some meaning as an indicator of demand, in an area zoned for a maximum of two stories, it effectively requires owners to build to the maximum allowable FAR. The M-1, M-2, and M-3 zoning of the Manhattanville industrial area was specifically intended, however, for uses in which a single story structure may be preferable. In our view, a 50% use of a permissible FAR of two does not, a fortiori, reflect
The time has come to categorically reject eminent domain takings solely based on underutilization. This concept put forward by the respondent transforms the purpose of blight removal from the elimination of harmful social and economic conditions in a specific area to a policy affirmatively requiring the ultimate commercial development of all property regardless of the character of the community subject to such urban renewal. (See Gallenthin Realty Dev., Inc. v Borough of Paulsboro, 191 N.J. 344, 365, 924 A.2d 447, 460 [2007] ["Under that approach, any property that is operated in a less than optimal manner is arguably `blighted.' If such an all-encompassing definition of "blight" were adopted, most property in the State would be eligible for redevelopment"]; In re Condemnation by Redevelopment Auth. of Lawrence County, Absolute Tit. of Land of Hamilton, 962 A.2d 1257, 1265 [Pa 2008], appeal denied 973 A.2d 1008 [Pa 2009] [holding use to less than full potential does not constitute "economically undesirable" land use]; Sweetwater Val. Civic Assn. v City of Natl. City, 18 Cal.3d 270, 555 P.2d 1099 [1976]; Southwestern Ill. Dev. Auth. v National City Envtl., L.L.C., 304 Ill.App.3d 542, 556, 710 N.E.2d 896, 906 [1999, concurring op], affd 199 Ill.2d 225, 768 N.E.2d 1 [2002], cert denied 537 U.S. 880 [2002] ["If a government agency can decide property ownership solely upon its view of who would put that property to more productive or attractive use, the inalienable right to own and enjoy property to the exclusion of others will pass to a privileged few who constitute society's elite"].)
In New York, wherever underutilization has been a significant factor in a blight finding, courts have upheld the finding only in connection with other factors such as zoning defects rendering the property unusable or insufficiently sized or configured lots. (Matter of Haberman v City of Long Beach, 307 A.D.2d 313 [2d Dept 2003], appeal dismissed 1 N.Y.3d 535 [2003], cert dismissed 543 U.S. 1086 [2005]; see Matter of Horoshko, 90 A.D.2d 850 [2d Dept 1982].)
The use of eminent domain should also be rejected on the grounds that Columbia's expansion is not a "civic project." (See Uncons Laws § 6253 [6] [d] [UDCA § 3 (6) (d)].) ESDC states that the Project will be used by Columbia for "education related uses," and thus the Project serves a civic purpose. The petitioners correctly contend that within the definition of Unconsolidated Laws § 6253 (6) (d) (UDCA § 3 [6] [d]), a private university does not constitute facilities for a "civic project." The statutory definition does refer to educational uses, but the final clause "or other civic purposes" clearly restricts the educational purposes qualifying for a civic project to only such educational purposes as constitute a "civic purpose."
There is little precedent on precisely this question, and what there is to guide us augurs powerfully against the respondent. In Matter of Fisher (New York State Urban Dev. Corp.) (287 A.D.2d 262, 263 [1st Dept 2001]), this Court affirmed the condemning agency's findings that the condemnation of a building for the construction of new New York Stock Exchange facilities would "result in substantial public benefits, among them increased tax revenues, economic development and job opportunities as well as preservation and enhancement of New York's prestigious position as a worldwide financial center." Here, Columbia is virtually the sole beneficiary of the Project. This alone is reason to invalidate the condemnation especially where, as here, the public benefit is incrementally incidental to the private benefits of the Project.
Although, as the petitioners note, there does not appear to be any New York case involving the condemnation of property for the purpose of expanding a private university, a California court held that a private university could acquire private land under its power of eminent domain for the purpose of landscaping and "beautify[ing]" the grounds surrounding a newly constructed university library. (See University of S. Cal. v Robbins, 1 Cal.App.2d 523,
At least one court in New York has acknowledged, in dicta, that private institutions of higher learning serve important public purposes (see Matter of Board of Educ., Union Free School Dist. No. 2 v Pace Coll., 27 A.D.2d 87, 91 [2d Dept 1966]), but this case reaches a conclusion directly contrary to the respondent's argument. In Pace, a local school board sought to acquire, by condemnation, land that Pace College purchased for the purpose of expanding its facilities (see 27 AD2d at 88). The Second Department held that Pace, a private college, could not resist appropriation of the land by invoking the defense that such land was being used for public purposes, since such a defense "is available only to a property owner who has been granted a power to condemn equivalent to that of the petitioning condemnor" and "Pace has been granted no such power" (27 AD2d at 89). While noting that Pace College "performs an admittedly useful service to the community and one in which the public has such vital interest that the State undertakes to regulate and control closely those institutions which engage therein" (27 AD2d at 91), the Second Department refused to consider whether Pace's character as an education institution would immunize it from the use of eminent domain by a local school board under the defense of prior public use. The Court explicitly rejected Pace's contention that its tax-exempt status conferred such immunity:
Were we to grant civic purpose status to a private university for purposes of eminent domain, we are doing that which the Legislature has explicitly failed to do: as in California and Connecticut, that decision is solely the province of the state legislature.
The petitioners assert, inter alia, that the UDCA is unconstitutional as applied by ESDC because the agency has failed to adopt, retain or promulgate any regulation or written standard for the finding of blight. The petitioners argue that the statute fails to give owners notice of what constitutes a blighted area and thus penalizes them for investing in land that may be taken away. In addition, the petitioners assert that the statute permits and encourages ESDC to apply the law in an arbitrary and discriminatory fashion to favor developers like Columbia. In support, the petitioners note that AKRF, the consultant for this Project, as well as the Atlantic Yards project, used different standards for determining blight. For example, the petitioners noted that in the Atlantic Yards study, AKRF considered buildings that are at least 50% vacant to exhibit blight, whereas in this Project AKRF considered a vacancy rate of 25% or more to be substandard. We agree with the petitioners' contentions and find that the statute is unconstitutional as applied.
"[C]ivil as well as penal statutes can be tested for vagueness under the due process clause." (Montgomery v Daniels, 38 N.Y.2d 41, 58 [1975]; see US Const 14th Amend; NY Const, art I, § 6.) Due process requires that a statute be sufficiently definite "so that individuals of ordinary intelligence are not forced to guess at the meaning of statutory terms." (Foss v City of Rochester, 65 N.Y.2d 247, 253 [1985]; see People v Stuart, 100 N.Y.2d 412, 420 [2003].)
While the words "substandard or insanitary area" are not unconstitutionally vague, this does not necessarily end the inquiry. While these are abstract words, they have been interpreted and applied in the past without constitutional difficulty. (See e.g. Matter of Develop Don't Destroy [Brooklyn] v Urban Dev. Corp., 59 A.D.3d 312 [1st Dept 2009].) Indeed, in Berman v Parker (348 U.S. 26 [1954]), the Supreme Court held that a
Long after the U.S. Supreme Court decided Berman, the Ohio Supreme Court was faced with a statute virtually identical to that employed in the instant case, in Norwood v Horney (110 Ohio St.3d 353, 853 N.E.2d 1115 [2006)]). The Norwood court noted that "[i]nherent in many decisions affirming pronouncements that economic development alone is sufficient to satisfy the public-use clause is an artificial judicial deference to the state's determination that there was sufficient public use." (110 Ohio St 3d at 371, 853 NE2d at 1136.) Nevertheless, the court invalidated the Norwood City Code:
The UDCA suffers the same vagueness as the Norwood Code. The application of the UDCA by the various agencies in this case has resulted in "ad hoc and selective enforcement" as evidenced by the greatly divergent criteria used to define blight. The differences between the blight studies in Develop Don't Destroy (Brooklyn) for Atlantic Yards and in the instant case, both performed by the same consultant, highlight the unconstitutional application of the UDCA. One is compelled to guess what subjective factors will be employed in each claim of blight.
The petitioners correctly contend that when the respondent intentionally limited the administrative record by arbitrarily closing it, while simultaneously withholding documents that the petitioners are legally entitled to receive, it deprived the petitioners of a reasonable opportunity to be heard. Furthermore, we agree the petitioners were prevented from creating a full record for review by this Court, in violation of EDPL 203 and the petitioners' due process rights under the Fourteenth Amendment of the United States Constitution and article I, § 6 of the New York Constitution.
The EDPL requires that at the administrative hearing, prior to the close of the record, the condemnee shall be given a "reasonable opportunity" to be heard and an opportunity to "submit other documents concerning the proposed public project" into the record. (EDPL 203.) A full administrative record is critical for the obvious reason that judicial review of a condemnation decision under the EDPL is limited to issues, facts, and objections entered into the record at the condemnation hearing. (EDPL 202 [C] [2]; 207 [A], [B].) The Second Circuit, in Brody v Village of Port Chester (434 F.3d 121, 134 [2005]), emphasized that point: "[T]he procedures that are available are indeed limited in scope. The Appellate Division, which has exclusive jurisdiction over the review, will only consider the issues resolved by the legislative determination. Furthermore, the review is
Additionally, any challenge to ESDC's determination is limited to that contained in the record on which the agency based its determination. The petitioners clearly had no ability under the EDPL to call witnesses to supplement the record, introduce further evidence, cross-examine the respondent's witnesses who submitted expert affidavits after the record was closed or submit argument in opposition to those untimely expert affidavits. More importantly, the petitioners filed numerous FOIL requests seeking information about the Columbia plan and the process utilized by ESDC. The respondent vigorously opposed some of those FOIL requests which ultimately led to several Supreme Court orders requiring disclosure and our decision in Tuck-It-Away I.
It is beyond dispute that, as the cutoff date to enter documents into the record approached, the respondent and other agencies engaged in a last-ditch effort to thwart the petitioners' attempt to obtain documents, including those which were ordered by the courts of this State to be released and turned over to the petitioners. The respondent moved for reargument, or in the alternative, for leave to appeal from this Court's ruling in Tuck-It-Away and Matter of West Harlem Bus. Group v Empire State Dev. Corp., which motion this Court denied in its entirety on January 27, 2009. (2009 NY Slip Op 61948[U] [1st Dept 2009], lv granted 12 N.Y.3d 708 [2009].) Nonetheless, in making the motion, the respondent invoked an automatic stay of the decision, under CPLR 5519. Similarly, the New York City Department of City Planning moved to reargue Supreme Court's decision ordering disclosure of Columbia-related documents based on the holding of Tuck-It-Away I. The respondent and other cooperating agencies, therefore, by virtue of section 5519, were provided the opportunity to withhold documents that this Court and Supreme Court ordered released, while at the same time closing the record to prevent these documents from being submitted into the record. The appeals and reargument motions became the sine qua non of the various agencies' noncompliance with FOIL. Similarly, the petitioners' efforts to extend the deadline for closing the record were vigorously rebuffed by ESDC. ESDC's actions deprived the petitioners of a reasonable opportunity to be heard under EDPL 203 and violated their due process rights under the Fourteenth Amendment of the United State Constitution and article I, § 6 of the New York Constitution.
Justice O'Connor's admonition is equally true in this case in that
It is not necessary to reach the position that Kelo was wrongly decided to invalidate the proposed takings in this case. The sharp differences between this case and the careful plan drafted by New London and described by the Kelo majority could not be more compelling.
Accordingly, the petitions brought in this Court pursuant to Eminent Domain Procedure Law § 207 challenging the determination of respondent New York State Urban Development Corporation, doing business as Empire State Development Corporation, dated December 18, 2008, which approved the acquisition of certain real property for the project commonly referred to as the Columbia University Educational Mixed Use Development Land Use Improvement and Civic Project, should be granted, and the determination annulled.
RICHTER, J. (concurring).
Under the circumstances presented here, Empire State Development Corporation's (ESDC) premature closing of the agency record, while it continued to withhold relevant documents this Court had ordered disclosed under the Freedom of Information Law (FOIL), violated both the EDPL and procedural due process under the State and Federal Constitutions. I write separately to explain my reasoning.
"Procedural due process imposes constraints on governmental decisions which deprive individuals of `liberty' or `property' interests within the meaning of the Due Process Clause of the Fifth or Fourteenth Amendment" (Mathews v Eldridge, 424 U.S. 319, 332 [1976]). The essence of procedural due process is notice and an opportunity to be heard (id. at 333; Matter of Quinton A., 49 N.Y.2d 328, 334 n [1980]). In the context of eminent domain, "[t]he constitutional requirement with respect to notice. . . concerns the opportunity to be heard on the issues of compensation and public use" (Fifth Ave. Coach Lines v City of New York, 11 N.Y.2d 342, 348 [1962]; accord County of Monroe v Morgan, 83 A.D.2d 777, 778 [1981]). The opportunity to be heard in condemnation proceedings is also mandated by the EDPL which requires a public hearing (EDPL 201), where the attendees must be given a "reasonable opportunity" to present oral or written statements and to "submit other documents concerning the proposed public project" (EDPL 203).
In determining whether a procedural due process violation has occurred, courts must balance the property owner's
The balancing of these factors leads me to conclude that, under the unique circumstances presented, Tuck-It-Away's procedural due process and statutory rights were violated by ESDC's refusal to keep the record open until the conclusion of the FOIL litigation initiated by Tuck-It-Away.
The second factor—the risk of erroneous deprivation of Tuck-It-Away's properties by the closing of the agency record and the probable value of holding the record open until all of the withheld FOIL documents were produced—requires review of Tuck-It-Away's claims. A condemnation can be set aside if it was made in bad faith (Matter of 49 WB, LLC v Village of Haverstraw, 44 A.D.3d 226, 238-239 [2007]; Greenwich Assoc. v Metropolitan Transp. Auth., 152 A.D.2d 216, 221 [1989], appeal dismissed sub nom. Matter of Regency-Lexington Partners v Metropolitan Transp. Auth., 75 N.Y.2d 865 [1990]) or under the pretext of a public purpose when the actual purpose was to bestow a private benefit (Kelo v New London, 545 U.S. 469, 478 [2005]; Matter of Goldstein v New York State Urban Dev. Corp., 64 A.D.3d 168, 183 [2009]). Here, Tuck-It-Away points to evidence suggesting that ESDC's findings of blight and civic purpose were made in bad faith and were pretextual, and that the real reason for the condemnation was not to further any public purpose but rather to benefit Columbia, a private developer.
Although ESDC subsequently hired another consultant— Earth Tech—to prepare a neighborhood conditions study, the record raises questions as to whether, in doing so, ESDC sought and obtained a truly independent analysis. The contract retaining Earth Tech does not require it to do a de novo study, but rather it was retained to examine the information in the AKRF study. If AKRF, due to its preexisting relationship with Columbia, used a flawed or biased methodology to evaluate neighborhood conditions in order to reach the result Columbia wanted, any such flaws or biases would necessarily have been carried over to the Earth Tech study. Furthermore, ESDC's determination and findings explicitly acknowledge that it "relied upon the facts and analyses set forth in the [AKRF study]" in exercising its condemnation power.
There are serious legal questions about whether the proposed development constitutes a "civic project" under the Urban Development Corporation Act (UDCA) (McKinney's Uncons Laws of NY § 6251 et seq. [L 1968, ch 174, § 1, as amended]). In the absence of a civic purpose, the only possible basis for ESDC's exercise of eminent domain would rest on a finding of blight. Thus, in light of the significant questions raised concerning ESDC's alleged bad faith and improper motives, I find that ESDC should not have closed the agency record prior to the conclusion of the FOIL litigation.
The final factor—the State's interest and the burdens of keeping the record open—weighs in favor of Tuck-It-Away. The wrongfulness of ESDC's actions becomes apparent by examining the history of Tuck-It-Away's efforts to obtain documents
The public hearing on the condemnation was held on September 2 and 4, 2008, just six weeks after our decision, and the record was scheduled to be closed on October 10. Clearly, had ESDC complied with this Court's order and turned over all the documents, Tuck-It-Away could have submitted that information for inclusion in the record.
In addition, ESDC denied Tuck-It-Away's request to keep the record open until the resolution of the FOIL litigation and vigorously opposed Tuck-It-Away's attempt in Supreme Court to enjoin the agency from closing the record. Although a temporary restraining order was obtained, on October 30, 2008, Supreme Court vacated that order and dismissed Tuck-It-Away's challenge. That same day, ESDC closed the agency record, thus thwarting Tuck-It-Away's opportunity to submit the withheld documents.
ESDC has failed to convincingly explain why it did not adjourn the condemnation hearing until after the FOIL litigation was resolved. Indeed, EDPL 203 explicitly provides that "[f]urther adjourned hearings may be scheduled." Tellingly, ESDC does not argue that the relatively short delay in the hearing pending resolution of the FOIL litigation would have negatively impacted the project, which had been in planning as early as 2002 and whose construction is scheduled to take place in two phases over the course of 25 years. In Matter of East Thirteenth
ESDC maintains that the premature closing of the record is of no legal significance because Tuck-It-Away was provided with ample opportunity to be heard through testimony at the public hearing and submission of documents into the record. However, "[a] due process right to be heard requires an opportunity to be heard `at a meaningful time and in a meaningful manner'" (Rao v Gunn, 73 N.Y.2d 759, 763 [1988], quoting Armstrong v Manzo, 380 U.S. 545, 552 [1965]). In light of the withholding of critical documents which were ordered disclosed by this Court, the opportunity provided to Tuck-It-Away here was not meaningful within the spirit of due process.
ESDC unpersuasively argues that a ruling in Tuck-It-Away's favor on this particular issue would require future condemning authorities to litigate every disputed issue through to the Court of Appeals before exercising their power of eminent domain. Due process, however, is a flexible concept whose procedural protections must be tailored to the particular facts at hand (Curiale v Ardra Ins. Co., 88 N.Y.2d 268, 274 [1996]; Matter of Weeks Mar. v City of New York, 291 A.D.2d 277, 278 [2002]). Thus, "not all situations calling for procedural safeguards call for the same kind of procedure" (Morrissey v Brewer, 408 U.S. 471, 481 [1972]). Merely because I find a due process violation here does not mean that in every case, all FOIL requests must be resolved before an agency can condemn property. Nor do I find, as Tuck-It-Away urges, that due process requires a full trial court review, including discovery, cross-examination and a jury trial. However, the confluence of factors here, including the evidence raising questions of bad faith and pretext, Tuck-It-Away's protracted effort to obtain the withheld documents and ESDC's denial of the request to keep the record open while exercising its right to stay this Court's order requiring disclosure leads me to conclude that a due process violation has occurred in this case.
The finding of a due process violation here is not in conflict with Brody v Village of Port Chester (434 F.3d 121 [2005]). In Brody, the Second Circuit held that the EDPL's procedures for reviewing condemnation findings do not violate the Federal Constitution (434 F3d at 123). The Second Circuit, however,
ESDC'S reliance on Matter of Waldo's, Inc. v Village of Johnson City (141 A.D.2d 194, 199 [1988], affd 74 N.Y.2d 718 [1989]) is misplaced. In Waldo's, the petitioner maintained that the public hearing was invalid in part because the respondent refused to provide full and complete information about the project's funding and denied it the opportunity to cross-examine witnesses at the hearing. The Court denied the due process claim and found that the petitioner did in fact receive an answer to its question on funding and that there was no right to an adversarial hearing. Here, in contrast, there is no dispute that at the time the record was closed, Tuck-It-Away had not received all the documents this Court ordered turned over.
Lawrence v Baxter (2004 WL 1941347, *3, 2004 US Dist LEXIS 18022, *8-10 [WD NY 2004], affd 139 Fed Appx 365 [2d Cir 2005]), cited by ESDC as support for denying Tuck-It-Away's due process claim, has no applicability to this dispute. Lawrence, a 42 USC § 1983 case having nothing to do with eminent domain, merely held that for due process purposes, a plaintiff has no property interest in obtaining documents under FOIL. The court dismissed the plaintiff's due process claim because he failed to allege that he was deprived of a property interest protected by the United States Constitution. Here, however, the property interest asserted is not the documents themselves, but rather Tuck-It-Away's four buildings. Thus, Lawrence is irrelevant to the due process analysis here.
Because the condemnation proceeding was neither "in conformity with the federal and state constitutions" (EDPL 207 [C] [1]) nor "in accordance with procedures set forth in [the EDPL]" (EDPL 207 [C] [3]), ESDC's determinations and findings should be rejected. Since the determination must be annulled based on ESDC's premature closing of the record, it is not necessary for me to address the other statutory and constitutional issues presented by this case.
TOM, J. (dissenting).
At issue on this appeal is the acquisition of approximately 17 acres in the Manhattanville area of West Harlem by Columbia University for the development of its campus. In addition to up to 16 new buildings, a multi-level below-grade facility and the adaptive reuse of an existing building,
Petitioners own property subject to condemnation located within the project site, which extends from West 125th Street to West 133rd Street and from Broadway and Old Broadway to 12th Avenue. They brought this proceeding to challenge ESDC's determination that the project qualifies not only as a land use improvement project but also, discretely, as a civic project pursuant to the New York State Urban Development Corporation Act ([UDCA] L 1968, ch 174, § 1, as amended) (McKinney's Uncons Laws of NY § 6253 [6] [c], [d] [UDCA § 3 (6) (c), (d)]).
I do not accept petitioners' contention that the project neither qualifies as a civic project nor serves a public purpose and, thus, that ESDC exceeded its statutory authority in designating the project a civic project pursuant to Unconsolidated Laws § 6260 (d) (UDCA § 10 [d]). Under the UDCA, such designation is conditioned upon findings that "there exists in the area in which the project is to be located, a need for the educational, cultural, recreational, community, municipal, public service or other civic facility to be included in the project" (Uncons Laws § 6260 [d] [1]) and that "the project shall consist of a building or buildings or other facilities which are suitable for educational, cultural, recreational, community, municipal, public service or other civic purposes" (Uncons Laws § 6260 [d] [2]). A private institution of higher learning serves a public purpose (see University of S. Cal. v Robbins, 1 Cal.App.2d 523, 37 P.2d 163 [1934], cert denied 295 U.S. 738 [1935]). In any event, ESDC's finding that the project will serve a public purpose by providing, among other things, needed educational facilities in the area in which it is to be located is neither irrational nor baseless.
Property is subject to acquisition in connection with a land use improvement project upon ESDC's finding, inter alia, that "the area in which the project is to be located is a substandard or insanitary area, or is in danger of becoming a substandard or insanitary area" (Uncons Laws § 6260 [c] [1]). "Substandard or insanitary area," by definition, is "interchangeable with a slum,
I further reject petitioners' argument that ESDC's finding of blight was insufficient as a matter of law and fact and that it was arrived at corruptly and in bad faith (see Matter of Jackson v New York State Urban Dev. Corp., 67 N.Y.2d 400, 425 [1986]; Kaskel v Impellitteri, 306 N.Y. 73, 79 [1953], cert denied 347 U.S. 934 [1954]). Two blight studies documented substandard and insanitary conditions by photographic evidence and other indicia. Petitioners present merely "a difference of opinion" with the conclusions to be drawn from this evidence, in which event the courts are bound to defer to the agency (Matter of Develop Don't Destroy [Brooklyn] v Urban Dev. Corp., 59 A.D.3d 312, 324 [2009]). As the Court of Appeals recently stated:
Likewise, petitioners have not made a "clear showing" of bad faith (Matter of Faith Temple Church v Town of Brighton, 17 A.D.3d 1072, 1073 [2005]). While ESDC retained AKRF, Inc. to perform a blight study knowing that AKRF was performing consulting work for Columbia in relation to the project, any conflict of interest or bias was eliminated by ESDC's retention
Because petitioners were given notice of the public hearing and the opportunity to be heard and to submit documents, I reject petitioners' contention that they were denied due process or a reasonable opportunity to be heard under EDPL 203 (see Matter of Waldo's, Inc., 141 AD2d at 199; First Broadcasting Corp. v City of Syracuse, 78 A.D.2d 490, 495 [1981], appeal dismissed 53 N.Y.2d 939 [1981]). Nor were petitioners' due process rights violated when ESDC denied some of their FOIL requests and closed the record prior to the resolution of the FOIL litigation (see generally Lawrence v Baxter, 2004 WL 1941347, *3, 2004 US Dist LEXIS 18022, *8-10 [WD NY 2004], affd 139 Fed Appx 365 [2d Cir 2005]). Contrary to petitioners' assertion, the EDPL procedures for challenging the agency's determinations satisfy the requirements of due process (see Brody v Village of Port Chester, 434 F.3d 121, 132-133 [2d Cir 2005]). As to the FOIL requests, I note that petitioners received over 8,000 pages of documents from ESDC.
With respect to the closing of the record, petitioners fail to explain why they failed to bring a motion to vacate the automatic stay (CPLR 5519 [a]) imposed upon respondent's appeal from our order directing that additional documents be turned over by it (54 A.D.3d 154 [2008], lv granted sub nom. Matter of West Harlem Bus. Group v Empire State Dev. Corp., 12 N.Y.3d 708 [2009]). A CPLR 5519 (c) application would have afforded the Court with the opportunity to assess whether petitioners could demonstrate the likelihood of success on the merits of their position that the withheld documents fall outside the deliberative materials exemption applicable to disclosure under the Freedom of Information Law (see Matter of Xerox Corp. v Town of Webster, 65 N.Y.2d 131 [1985]) and that such documents were material to ESDC's determination and, thus, essential to affording petitioners procedural due process. A year
The record establishes that ESDC took the requisite hard look at the relevant areas of environmental concern, including the impact of the project's below-grade facility, particularly with respect to flooding issues (see Matter of Jackson, 67 NY2d at 417).
Accordingly, the determination of respondent New York State Urban Development Corporation should be confirmed.
Petitions brought in this Court pursuant to Eminent Domain Procedure Law § 207, challenging the determination of respondent New York State Urban Development Corporation, doing business as Empire State Development Corporation, dated December 18, 2008, granted, and the determination annulled.