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June 7, 2007
Judge dismisses federal eminent domain lawsuit; appeal planned
Atlantic Yards Report
In an emphatic yet potentially questionable decision, U.S. District Judge Nicholas G. Garaufis yesterday dismissed Goldstein v. Pataki, the federal lawsuit challenging eminent domain that Atlantic Yards opponents have considered their best hope for stopping the project.
In his decision, Garaufis ruled that even if public benefits—including new tax revenues, housing, jobs, and the elimination of blight—are less than promised, they’re sufficient to overcome allegations that the project is a sweetheart deal benefiting developer Forest City Ratner.
“Because Plaintiffs concede that the Project will create large quantities of housing and office space, as well as a sports arena, in an area that is mostly blighted, Plaintiffs’ allegations, if proven, would not permit a reasonable juror to conclude that the 'sole purpose' of the Project is to confer a private benefit,” Garaufis wrote. “Neither would those allegations permit a reasonable juror to conclude that the purposes offered in support of the Project are 'mere pretexts' for an actual purpose to confer a private benefit on FCRC.”
Despite the setback, the plaintiffs, 13 owners and renters whose properties lie in the southern segment of the 22-acre footprint, outside the longstanding Atlantic Terminal Renewal Area (ATURA) that encompasses the Vanderbilt Yard, vowed to appeal.
The plaintiffs' attorney explains the importance of this case and why, if Garaufis's ruling is allowed to stand, it has implications for all property owners:
“We have a nice issue for an appellate court to decide,” said plaintiffs’ attorney Matthew Brinckerhoff. “Undisputed facts lead to an inference that this was driven for Ratner’s benefit. It’s undisputed that no other developer was considered to do this project, that the genesis was Forest City Ratner, that they identified my clients’ properties [for eminent domain], and that the government, broadly speaking, agreed to do exactly what [the developer] asked for. If those facts don’t give rise to a claim under the public use clause, it’s definitely a dead letter, for anybody.”
If you want to learn more about Garaufis's decision, we recommend reading the rest of Norman Oder's report, which has the issues broken down: appeals, defendants' statements, the Kelo effect, "blight" and the legal arguments.
Posted by lumi at June 7, 2007 8:36 AM