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October 15, 2009
MTA Faces Atlantic Yards Suit
GlobeSt.com
by Cody Lyon
A group of politicians, activists and transit activists have filed suit in New York State Supreme Court in Manhattan, saying the Metropolitan Transportation Authority violated the Public Authorities Accountability Act of 2005 when it sold the air rights over the agency’s Vanderbilt Yard to Forest City Ratner Cos. for development at the Atlantic Yards Project. The latest suit was filed one day prior to Wednesday’s hearing before the Court of Appeals in Albany, which seeks to challenge the Empire State Development Corp.’s use of eminent domain for the same project.
According to the lawsuit, which names the MTA and FCRC as respondents, the MTA violated state law by failing to obtain an independent appraisal for the Vanderbilt Yard property and failing to seek out competitive bids. The group is now asking the court to annul the MTA’s June agreement with FCRC. It’s reportedly the first Atlantic Yards suit brought in part by politicians.
...The cheaper selling price came despite previous iterations by MTA CFO Gary Dellaverson, who had earlier valued the property at $240 million to $250 million.
A spokesman for [State Senator Velmanette] Montgomery tells GlobeSt.com that "all this would be funny if it weren’t the Atlantic Yards project." He adds, "The MTA’s actions are shocking. The fact is that the public is being hit with fare hikes and schedule cuts while giving developers a free ride."
A NYPIRG/Straphangers spokesperson tells GlobeSt.com that it’s "the riders who are getting it in the neck. They are going to lose out on improvements like new subway cars, buses and track improvements."
Posted by eric at October 15, 2009 12:58 PM