Cedar Development East,LLC v. Town Board of Hurley

CourtDistrict Court, N.D. New York
DecidedJuly 8, 2022
Docket1:21-cv-00289
StatusUnknown

This text of Cedar Development East,LLC v. Town Board of Hurley (Cedar Development East,LLC v. Town Board of Hurley) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cedar Development East,LLC v. Town Board of Hurley, (N.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF NEW YORK ____________________________________________

CEDAR DEVELOPMENT EAST, LLC,

Plaintiff, vs. 1:21-cv-289 (MAD/TWD) TOWN BOARD OF HURLEY, and individual members, JOHN PERRY, MICHAEL BOMS, MELINDA McKNIGHT, PETER HUMPHIRES, BARBARA ZELL, PLANNING BOARD OF HURLEY, and individual members, MITCHELL COHEN, KARL BRUECKNER, DIANA CLINE, WAYNE RICE, RAYMOND PALMER, and TONY BONAVIST,

Defendants. ____________________________________________

APPEARANCES: OF COUNSEL:

JAMES BRYAN BACON JAMES BACON, ESQ. PO Box 575 New Paltz, New York 12561 Attorneys for Plaintiff

SOKOLOFF STERN LLP BRIAN S. SOKOLOFF, ESQ. 179 Westbury Avenue CHELSEA WEISBORD, ESQ. Carle Place, New York 11514 Attorneys for Defendants

MELTZER LIPPE GOLDSTEIN MARK A. RADI, ESQ. & BREISTONE, LLP 190 Willis Avenue Mineola, New York 11501 Attorneys for Defendants

Mae A. D'Agostino, U.S. District Judge:

MEMORANDUM-DECISION AND ORDER

I. INTRODUCTION Plaintiff Cedar Development East initiated this action in the Supreme Court of the State of New York, County of Ulster on February 3, 2021. See Dkt. No. 2. On March 10, 2021, Defendants removed the state court action to this Court. See Dkt. No. 1. On March 15, 2021, Plaintiff filed a motion to remand, which the Court denied. See Dkt. Nos. 5, 23. Plaintiff alleges violations of the Equal Protection, Substantive Due Process, and Procedural Due Process Clauses of the Fourteenth Amendment, as well as violations of the Fair Housing Act and its state law equivalent. Defendants move to dismiss Plaintiff's complaint, arguing that Plaintiff's claims for equitable relief are moot and unripe, and that Plaintiff does not

state a constitutional or housing discrimination claim. For the reasons below, Defendants' motion is granted. II. BACKGROUND In February 2018, Plaintiff, Cedar Development East, sought site plan approval and a special permit to convert the old West Hurley School into a 46-unit residential building. Dkt. No. 2 at 2. Plaintiff alleges that Defendants Planning Board of Hurley, Mitchell Cohen, Karl Brueckner, Diana Cline, Wayne Rice, Raymond Palmer, and Tony Bonavist (collectively, "Planning Board Defendants") delayed the State Environmental Quality Review Act ("SEQRA")1 review of the project. Id. While the Planning Board Defendants delayed SEQRA review for over

a year, Plaintiff alleges that Defendants Town Board of Hurley, John Perry, Michael Boms, Melinda McKnight, Peter Humphries, and Barbra Zell (collectively, "Town Board Defendants") enacted Local Law 4 ("LL4") to effectively prohibit the project. Id. LL4 limits multi-family housing to no more than four units and prohibits any multi-family housing in existing buildings exceeding 120 feet in length. Id. at 37.

1 N.Y. Envtl. Conserv. Law § 8-0101 et al. Plaintiff alleges that Defendants had initially supported the plan to turn the former West Hurley School into a 46-unit apartment complex. Id. at 5. For example, on June 21, 2017, at a pre-planning meeting, Defendants expressed support for the project because it "conformed with zoning, would place the property back on the Town's tax roll and would increase affordable housing opportunities." Id. at 5. On May 7, 2018, Plaintiff appeared before the Planning Board and gave an overview of the project. Id. at 9. "The Planning Board was generally supportive of converting the [school] to residential use," Plaintiff alleges. Id. On June 1, 2018, a town planner issued a report of the project's environmental impacts and found no detrimental effects. Id. at 9,

192-98. Then, on July 6, 2018, Plaintiff convened a meeting at the Ulster County Planning Department, which Defendant Perry attended, where the County's need for affordable housing was discussed. Id. at 10-11. The participants agreed that converting the school into residential units would benefit the community. Id. at 11. Defendant Planning Board of Hurley was the lead agency for SEQRA review of the project. Id. at 9. Through the end of 2018, Plaintiff and the Planning Board worked collaboratively in the SEQRA review process. See id. at 9-13. On October 2, 2018, the Planning Board stated it was satisfied with the traffic analysis but that a second, backup water well was needed. Id. at 13. A hydrologist had previously found that an existing well on the site was more

than double the design flow needed to serve 46 residential units. Id. at 12. Nonetheless, Plaintiff coordinated with the Ulster County Department of Health and a private engineer to identify a location for the additional well site. Id. at 13. Plaintiff received approval from the Ulster County Department of Health for location and testing of the new well. Id. at 14. The well was drilled on December 19, 2018, but due to cold weather, testing would not occur until April 15, 2019. Id. In early 2019, however, Defendants abruptly shifted to opposing and obstructing the project. The principals of Plaintiff, Kerry Danenberg and Kenan Gunduz, also own and operate residential properties in Brooklyn, New York. Id. at 4. A tenant group for one of these properties contacted Defendants and town members about alleged building violations in Plaintiff's principals' other properties. Id. at 14. Residents of West Hurley subsequently formed the West Hurley Neighborhood Association and began to organize against the project. Id. at 15-16. Following a March 19, 2019 Town Board meeting, in which numerous residents expressed opposition to the project, Defendant Town Board began to obstruct the project. Id. at 17.

The following day, on March 20, Defendant Perry advised a resident that he had already drafted a letter "requesting the Onteora school district to hold off on the closing until all environmental impacts have been done, and an open meeting with the developers to address the citizens [sic] concerns." Id. In the letter, Defendant Perry re-raised concerns about water supply and traffic flow issues. Id. The Town Board held a second meeting on April 17, 2019, for residents to express their concerns over the project. Id. at 21. Plaintiff alleges that the "residents' fear, anger and underlying anti-Semitic and racial biases had been unleashed. They confronted Mr. Danenberg charging he was [a] slumlord[.]" Id. On May 7, 2019, Defendant Perry called for an emergency Town Board meeting to

circulate a proposed moratorium to prohibit the Planning Board from voting on the project's site plan approval. Id. at 22-23. The Town Board adopted the moratorium on May 15. Id. at 23. The School District and the Ulster County Planning Board both opposed the moratorium. Id. The Ulster County Board stated as follows: The County Planning Board has a long history of supporting the development of a variety of types of housing to serve various economic positions of all our residents. Studies, produced by the County Planning Department have indicated that there is a significant gap between demand for housing to support our workforce and housing stock at the municipal, county and regional levels. Based on a GIS analysis of the Town of Hurley, only seven multifamily structures exist within the Town, with five of them in the West Hurley vicinity. Clearly, the town is not being overrun by multifamily housing.

Id. Nonetheless, Plaintiff alleges that Defendants began requiring additional, unnecessary, and duplicative tests, such as a seventy-two hour water pumping test on the wells and additional traffic studies. Id. at 25-33. Defendant Town Board member Michael Boms stated the town's opposition to allowing the project to move forward was that, "we want to protect our culture." Id. at 30.

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