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February 3, 2011

City to Seize Land in Queens

Eminent-Domain Proceedings Set for Property Holdouts at Willets Point Project

The Wall Street Journal
by Eliot Brown

New York City is moving to seize property from landowners in Willets Point.

Seeking to kick-start a massive Queens real-estate development project conceived in the boom years, the Bloomberg administration is moving to seize a portion of the site from private property owners.

Next week, the city plans to initiate the eminent-domain process on holdout owners who own property in the first 20-acre phase of the 62-acre project. The city also is planning to solicit bids from developers in the spring, according to city officials.

Known as Willets Point, the development site by Citi Field is slated to ultimately contain more than eight million square feet, with more than 5,000 apartments, a hotel and more than 1.7 million square feet of retail space.

The site currently is filled with junkyards and auto-repair shops, along with some larger industrial properties. The City Council in 2008 approved the use of eminent domain to acquire parcels from holdouts.

The property owners are expected to litigate to block the city action, although New York state laws give the government broad powers to use eminent domain. Similar recent development projects, like the new basketball arena being built at Atlantic Yards in Brooklyn, have survived court challenges.
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Richard Lipsky, a lobbyist who represents business owners at the site, says that the eminent domain action was "an absolute disgrace."

article

NoLandGrab: The mercenary Lipsky, like a broken clock, is occasionally right. But he sure sang a different tune when Daniel Goldstein refused to sell to Lipsky's client, Bruce Ratner.

Related coverage...

Curbed, City Ready to Drop an Iron Fist on the Iron Triangle

The Bernie Madoff fallout may have plunged the Mets into financial chaos, but the real fireworks in Queens are about to kick off across the street from the team's stadium. The city is getting ready to start the controversial process of separating property owners from their property at Willets Point, the self-contained village of junkyards and auto-repair shops known as the Iron Triangle.
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The Journal reports that next week Team Bloomberg will initiate eminent domain proceedings against nine holdouts, with more to come in the future. It's expected that the property owners will fight the government in court, but if you've been paying attention to how these things have gone as of late (Atlantic Yards, Columbia expansion, etc.), let's just say that the Mets stand a better chance of winning the World Series than some guy does of keeping his scrap heap behind the outfield.

Queens Crap, Here comes the Bloomberg steamroller

Crain's NY Business, City plans to seize Willets Point land

Posted by eric at February 3, 2011 11:01 AM