National Helicopter Corp. of America v. City of New York

952 F. Supp. 1011, 1997 WL 3261
CourtDistrict Court, S.D. New York
DecidedJanuary 7, 1997
Docket96 Civ. 3574(SS)
StatusPublished
Cited by4 cases

This text of 952 F. Supp. 1011 (National Helicopter Corp. of America v. City of New York) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Helicopter Corp. of America v. City of New York, 952 F. Supp. 1011, 1997 WL 3261 (S.D.N.Y. 1997).

Opinion

AMENDED OPINION AND ORDER

SOTOMAYOR, District Judge.

Plaintiff National Helicopter Corporation of America (“National”) brings this action, against the City of New York and various of its subdivisions (the “City”), seeking preliminary and permanent injunctive relief against enforcement of Resolution 1558, a City ordinance setting a variety of restrictions upon the use and operations of the 34th Street Heliport (the “Heliport”). For the reasons to follow, plaintiff’s request for a permanent injunction is granted in part, and denied in part.

BACKGROUND

The Heliport, located on the waterfront adjacent to the FDR drive, was constructed on City owned property in 1972. (Model Aff. ¶ 3). The Heliport has several parking spaces for helicopters; it has no permanent terminal building, no hangar, and no maintenance facilities. In 1972, the City obtained a special permit, effective for a period of five years, authorizing the commencement of operations at the Heliport. In 1973, National and the City entered into a lease, with a ten year term, pursuant to which National became the fixed-base operator of the Heliport. (McGann Aff. ¶ 10). Though its original lease term has expired, National continues to use and operate the Heliport, providing commercial sightseeing and commuter flights, as well as a range of other services. (McGann Aff. ¶ 38).

On March 6, 1996, New York City’s City Council enacted Resolution 1558 (the “Resolution”), approving the issuance of a special permit imposing several conditions upon future operations at the Heliport. (Model Aff. ¶ 29; McGann Aff. ¶ 81). The measure requires a 47% reduction in operations at the Heliport, restricts hours of operation throughout the week, phases in a ban on weekend operations, mandates flight paths of sightseeing helicopters, imposes marking requirements on helicopters, and prohibits certain types of aircraft from using the Heliport. (Model Aff. Ws 26, 29; McGann Aff. Ws 83, 84). The City’s Economic Development Corporation (“EDC”) has since incorporated these conditions into a Request For Proposals (“RFP”), issued on May 6,1996, seeking a new fixed base operator for the Heliport. 1 (McGann Aff. ¶ 92; Model Aff. ¶ 33).

According to plaintiffs current president, Peter McGann, National would suffer significant financial harm if the City were to enforce the Resolution, and if the EDC were to proceed with its RFP. Specifically, Mr. McGann anticipates that the required reductions in operations would precipitate “plummeting” revenues for National, and would result in depleted good will between National and its customers, most notably tour operators and travel agents. (McGann Aff. ¶¶'s 102, 104, 109). More particularly, plaintiff estimates that revenues would decline by roughly $6 million annually, and that — shortly after the start of enforcement — National would be forced to layoff over half of its approximately 200 employees. (Id. ¶¶'s 111, 112). Perhaps most strikingly, Mr. McGann predicts that, if Resolution 1558 is enforced, National “will likely file for bankruptcy.” (Id. ¶ 111).

Plaintiff opposes enforcement of Resolution 1558 on the grounds, inter alia, that it was passed in violation of the Supremacy Clause of the United States Constitution, U.S. Const. Art. VI, cl. 2, and in violation of the laws of the City of New York. The City responds that National does not have standing to object to the City’s enforcement of Resolution 1558, both because plaintiff is subject to eviction at the City’s discretion, and because plaintiff has waived any right to pursue whatever claims it might otherwise have. Furthermore, the City contends that the enactment and enforcement of Resolution 1558 amounts to a valid exercise of its proprietary rights in the Heliport.

Relationship Between The Parties

National’s tenancy at the Heliport has been marked by a variety of disputes and *1016 agreements between the parties, several of which have a bearing on the issues presently before the Court. In 1982, approximately nine years after National executed its original ten year lease with the City, the City commenced an action against National claiming that the company was in arrears in its rent. (Model Aff. ¶ 6). The parties settled the matter by a stipulation, dated October 14, 1985. The stipulation included the following provisions: (i) National retroactively exercised its option to renew the lease for a period of ten years, effective October 4,1983, and (ii) National agreed that it would apply for a special zoning permit for operation of the Heliport, to be issued by the New York City Planning Commission (the “CPC”) pursuant to Section 74r-66 of the New York City Zoning Resolution. 2 (Model Aff. ¶ 6). In the City’s view, the permit was necessary because the original five year permit, obtained by the City in 1972 in connection with the opening of the facility, had expired.

In 1989, in settlement of another rent dispute, National and the City entered into another agreement, this one providing for the cessation of all operations at the Heliport, except for emergency flights, between 11:00 p.m. and 7:00 a.m. (Model Aff. ¶ 7; MeGann Aff. ¶ 25). Also, National agreed to resume its diligent pursuit of the special permit application process. Conditioned upon National’s satisfaction of its monetary obligations under the lease, and its submission of a duly certified permit application, the City granted National an extension of the lease for a period of two years, with termination of the lease extended to October 3, 1995. (Model Aff. ¶ 7; MeGann Aff. ¶ 30).

By 1993, National had commenced work on an Environmental Impact Statement (“EIS”) required in connection with its application for the special permit. (Model Aff. ¶ 8). However, the City was not satisfied with National’s progress. Accordingly, in connection with yet another rent dispute between the parties, the City — through the EDC — assumed responsibility for completing the EIS, with National committing to reimburse the City for related costs. (Model Aff. ¶ 8). This April 1, 1993 agreement reiterated that National’s tenancy could continue through October 3,1995, conditioned upon the company’s satisfaction of its obligations under the lease. (Model Aff. ¶ 8; Second MeGann Aff. ¶ 9).

Shortly after the parties executed the April 1993 agreement, yet another dispute developed regarding the sufficiency of National’s rent payments. (Model Aff. ¶ 9; Second McGann Aff. ¶ 10). On July 2, 1993, the City sent National a Notice of Termination of Agreement and Lease Default. (Model Aff. ¶ 9). National responded by bringing a State Court action to prevent the City from accelerating the payments due, and terminating the lease. (McGann Aff. ¶ 11). A January 10, 1994 stipulation, which simply reaffirmed the terms of the April 1, 1993 agreement, proved inadequate to resolve the dispute. The parties subsequently entered into an August 1994 stipulation, which included a waiver by National of any claims which it could have raised in the 1993 State Court action, as well as any claims relating to the “EDC’s acts or omissions” in connection with the special permit application. (Second MeGann Aff. ¶ 19).

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Bluebook (online)
952 F. Supp. 1011, 1997 WL 3261, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-helicopter-corp-of-america-v-city-of-new-york-nysd-1997.