Matter of City of New York (Eman Realty Corp.) – Whatever Happened to the Rule of Highest and Best Use?
The City of New York condemned a multifamily building in Brooklyn. The property was subject to rent stabilization and both experts found the highest and best use was for continued use as a multifamily dwelling complex. Both appraisers used the sales comparison (market) approach to valuation. Then the valuation process went screwy. The City made a massive deduction for alleged critical repairs on the subject property and applied an Akerson format capitalization formula which accounts for both the cost and availability of mortgage financing. An approach never used in valuing… read more
August 31, 2021
Millions of Americans around the Country face the prospect of losing their homes after the Supreme Court, on August 26, 2021, rejected the Biden Administration’s federal moratorium on evictions. The moratorium was imposed by the Centers for Disease Control and Prevention (CDC) on eviction of any tenants who live in a county that is experiencing substantial or high levels of Covid-19 transmission and who make certain declarations of financial need. Simply stated, the District Court correctly held that congress did not authorize the action that the CDC had taken. The… read more
August 19, 2021
A news story reports that the owner of White’s Ferry on the Potomac River wants the Loudoun County Board of Supervisors to exercise eminent domain over the private Virginia property where the ferry is docked. The owner of the Virginia land was not willing to renew the lease. An owner must be aware of the government’s power of eminent domain if their properties are used to provide public services. Fifth Avenue Coach Lines, Inc. v City of New York, 11 NY2d 342 (1962) is one example. In Fifth Avenue Coach,… read more
August 17, 2021
The Real Deal featured an article that Governor Andrew Cuomo’s resignation leaves an air of uncertainty hanging over several large scale projects significant to the real estate industry. Earlier in the year, the Governor outlined a $306 billion dollar infrastructure spending plan that involved an array of projects across New York. The article focused on three key projects. Empire State Complex The plan called for a $1.3 billion dollar redevelopment and expansion of Pennsylvania Station as well as development of some 20 million square feet of mostly office space around… read more
August 5, 2021
An old case which has sparked national “condemnation” was the 1924 taking of “Bruce’s Beach” in Manhattan Beach, California. The resort was established by Willa and Charles Bruce in 1912. It was a destination where black tourists could swim, dance, eat and rest. The City claimed that it needed the property for a public park, but left it undeveloped. Today it is used to train lifeguards. Manhattan Beach has been grappling with the history of Bruce’s Beach for years. The Los Angeles County Board of Supervisors voted unanimously to begin… read more
The purpose of the Goldstein, Rikon, Rikon & Houghton, P.C. Eminent Domain Blog is to provide the public with information about the practice of eminent domain law. We also hope to share relevant updates and legal developments affecting this area of the law.