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October 5, 2009
Making money off eminent domain at AY
Renters, owners and businesses may face condemnation proceedings
The Real Deal
by Gabby Warshawer
The last remaining legal hurdle Atlantic Yards faces is a Court of Appeals hearing later this month on the project's proposed use of eminent domain. If the court finds in favor of the defendant, the Empire State Development Corporation, the properties of several renters and owners are likely to be seized to make way for the development.
Renters, owners and businesses in buildings such as 479 Dean Street, 485 Dean Street, and 636 Pacific Street in the Prospect Heights area of Brooklyn will face condemnation proceedings under eminent domain. A second phase of condemnation would include buildings like 491 Dean Street.
If that happens, a firm called the Cornerstone Group will spearhead relocation efforts on behalf of a legal team the ESDC has contracted with. As The Real Deal examined in a story a few months ago, the city and state often use the Cornerstone Group in projects involving eminent domain, but the efficacy of the firm in helping residents and businesses find new places to live or work has often been questioned.
A contract obtained by The Real Deal via a Freedom of Information Law request from the Empire State Development Corporation lays bear how much money Cornerstone is poised to make as the relocation point team on Atlantic Yards, as well as exactly how the firm is contractually obligated to help residents and businesses that need to be relocated.
Click thru for the payoff.
Posted by eric at October 5, 2009 8:11 PM