Lazard Realty, Inc. v. New York State Urban Development Corp.

142 Misc. 2d 463, 537 N.Y.S.2d 950, 1989 N.Y. Misc. LEXIS 35
CourtNew York Supreme Court
DecidedJanuary 18, 1989
StatusPublished
Cited by4 cases

This text of 142 Misc. 2d 463 (Lazard Realty, Inc. v. New York State Urban Development Corp.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lazard Realty, Inc. v. New York State Urban Development Corp., 142 Misc. 2d 463, 537 N.Y.S.2d 950, 1989 N.Y. Misc. LEXIS 35 (N.Y. Super. Ct. 1989).

Opinion

OPINION OF THE COURT

Stanley Parness, J.

Petitioner in this CPLR article 78 proceeding challenges the approval by respondent, the New York State Urban Development Corporation (UDC), of an amendment (the Amendment) [464]*464to the Project Plan (the Plan) for the 42nd Street Development Project (the Project).

Petitioner, Lazard Realty, Inc., is the developer of the International Design Center of New York (IDCNY), an interior furnishings mart in Long Island City, Queens. Petitioner’s application challenges the Amendment insofar as it is a modification of the originally approved land use for Site No. 8 (Site 8) of the Project whereby the site would not be limited to use as a wholesale computer and apparel mart, but could include all wholesale merchandise or an interior furnishings mart or, if a mart use proved infeasible, other uses could be substituted. Alleging that the modification is an independent "action” within the meaning of the New York State Environmental Quality Review Act (ECL 8-0101 et seq. [SEQRA hereinafter]), petitioner asserts that respondent’s approval of the modifications on February 9, 1988 must be annulled on the ground that respondent failed to comply with the procedural and substantive requirements of SEQRA and its implementing regulations, 6 NYCRR part 617, 617.1 et seq. Specifically, petitioner asserts that pursuant to SEQRA the Site 8 modification warrants a de novo review by UDC, requiring a new environmental impact statement (EIS) rather than the procedure followed by respondent which contemplated a supplemental EIS (SEIS). Petitioner urges that possibly adverse effects on IDCNY of an interior furnishings mart at Site 8, and adverse ripple effects on Long Island City, as well as the pertinent traffic analysis, at the site were only superficially addressed therein and never subjected to the requisite "hard look” by UDC.

Respondent, UDC, created by the New York State Urban Development Corporation Act (McKinney’s Uncons Laws of NY § 6251 et seq. [UDC Act hereinafter]) to carry out the State’s policy "to promote * * * the correction of * * * substandard, insanitary, blighted, deteriorated or deteriorating conditions * * * by the clearance, replanning, reconstruction, redevelopment, rehabilitation, restoration or conservation of such areas” (UDC Act § 6252), is empowered to "do any and all things necessary or convenient to carry out its purposes and exercise the powers given and granted in this act.” (UDC Act § 6255 [28].)

A complete account of the history and background of the Project is given in Matter of Jackson v New York State Urban Dev. Corp. (67 NY2d 400). Briefly, the Project to revitalize the Times Square area of Manhattan had its formal inception [465]*465more than eight years ago with the execution by UDC and the city, on June 27, 1980, of a memorandum of understanding to collaborate in rehabilitating the area through the use of private developers. In February 1981, UDC and the city issued a document identifying, among the Project’s goals, elimination of blight, revitalization of the area as an entertainment center, and development of commercial potential. Six months later UDC adapted a proposed general project plan and made findings as required by the UDC Act, including that the area was, or was in danger of becoming, substandard and insanitary and tended to impair or arrest the sound growth and development of the city. UDC took the appropriate and necessary steps in furtherance of the plan, held the first public hearings on the plan pursuant to the UDC Act and the Eminent Domain Procedure Law (EDPL) and received written and oral comments from the public.

In undertaking the Project, UDC was required to comply not only with the UDC Act but also with SEQRA, EDPL and the State Historic Preservation Act. Under SEQRA, UDC as the designated lead agency for the Project was required to prepare an EIS concerning the Project’s anticipated environmental effects.

Planning continued and in February 1984, with the cooperation and participation of the city, UDC issued its draft EIS (the DEIS). The environmental review process pursuant to SEQRA, the UDC Act and EDPL continued with extensive public hearings, review and analysis, revisions, and the issuance of a final EIS (the FEIS) modifying the DEIS and responding to the comments the DEIS had elicited. Thereafter UDC received further comment on the Project and the FEIS and held another hearing pursuant to EDPL. In October 1984 UDC approved the Plan together with a series of findings. The New York City Board of Estimate held further public hearings and on November 9, 1984 unanimously approved the Project, expressly stating in its resolution that it concurred in and adopted the findings made by UDC. The Project terms approved were virtually identical to those approved by UDC, except that the Board of Estimate permitted a broader range of uses for the Site 8 mart.

Considerable litigation challenging the Project followed its approval. Of those challenges, four article 78 proceedings decided by the Court of Appeals in Jackson v New York State Urban Dev. Corp. (supra) alleged violations by UDC of SEQRA and EDPL challenging, inter alia, the adequacy of the FEIS [466]*466analysis of traffic and air quality impacts, archaeological impacts, effects on the city water supply, gentrification impacts on the poor and elderly in the Clinton neighborhood adjacent to the Project, and the adequacy of the mitigation measures identified and recommended by UDC to reduce or eliminate the Project’s environmental impacts. Of particular relevance herein was the challenge in those proceedings to UDC’s determination not to prepare a supplemental EIS in connection with certain post-FEIS changes to the Plan. As to those modifications which involved Site 7, UDC’s staff and consultants had concluded from the analyses made that the modifications would not have significant environmental impacts. UDC had then determined that the modifications would not be environmentally significant and had decided not to issue an SEIS. Jackson upheld UDC’s compliance with SEQRA in all respects, determining that it had taken the requisite "hard look” at the Project’s environmental consequences and also approved UDC’s procedure with respect to the post-FEIS modification.

Since the Amendment was adopted, this application and several additional proceedings and actions have been commenced, challenging UDC action on various grounds including, inter alia, noncompliance with SEQRA, the UDC Act and EDPL.

The modifications constituting the Amendment were proposed on August 20, 1987 by Vincent Tese, chairman of the Board and chief executive officer of UDC, by memorandum with attachments to the directors of UDC (see, Record of proceedings of the Feb. 9, 1988 action in connection with the Project, submitted with this application pursuant to CPLR 7804 [the Record hereinafter], at 1354-1430).

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Bluebook (online)
142 Misc. 2d 463, 537 N.Y.S.2d 950, 1989 N.Y. Misc. LEXIS 35, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lazard-realty-inc-v-new-york-state-urban-development-corp-nysupct-1989.