Third Church of Christ v. City of New York

617 F. Supp. 2d 201, 2008 U.S. Dist. LEXIS 99822, 2008 WL 5102466
CourtDistrict Court, S.D. New York
DecidedDecember 2, 2008
Docket07 Civ. 10962 (DAB)
StatusPublished
Cited by9 cases

This text of 617 F. Supp. 2d 201 (Third Church of Christ 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
Third Church of Christ v. City of New York, 617 F. Supp. 2d 201, 2008 U.S. Dist. LEXIS 99822, 2008 WL 5102466 (S.D.N.Y. 2008).

Opinion

MEMORANDUM & ORDER

DEBORAH A. BATTS, District Judge.

This case arose as a Motion for a Temporary Restraining Order (TRO) and Preliminary Injunction filed on December 3, 2007. The Court held a hearing on the same day and granted a TRO to Plaintiff, the Third Church of Christ, Scientist (“the Church”), preventing the City of New York from enforcing the Department of Buildings’ (“DOB”) decision to revoke preconsideration for the Rose Group to hold catered social events in the Church building pursuant to a lease with the Church. The Court signed a more detailed TRO on December 7, 2007.

On March 3, 2008, the Court permitted the Plaintiff to conduct discovery of non-parties similar to Plaintiff that conduct catered social events. A hearing was held on July 10, 2008 to attempt to resolve discovery issues arising from the subpoena of documents from non-parties. Finally, the Court held a Preliminary Injunction hearing on November 6, 2008. Prior to the hearing, the Court gave notice that, pursuant to Federal Rule of Civil Procedure Rule 65, the hearing would be a consolidated hearing on Plaintiffs Motion for a Preliminary Injunction and a trial on the merits.

For the reasons stated herein. Plaintiffs Motion for a Preliminary Injunction, deemed to be a Motion for a Permanent Injunction, is GRANTED, enjoining the City from enforcing its revocation of preconsideration that catered social events at 583 Park Avenue are an accessory use to the community facility, the Third Church of Christ, Scientist.

I. FACTUAL BACKGROUND

The Church purchased property at 583 Park Avenue in 1920, and completed construction of the church building at issue in this litigation (“the Building”) in or around 1924. (Draper Supp. Decl. at ¶¶ 2,3.) The Church has used the Building as its primary place of worship since then, with membership peaking at around one thou *203 sand people in or about the 1940s and 1950s. (Id. at ¶ 5.) Over the years, the Church’s membership has declined and it currently has fewer than one hundred members. (Id. at ¶ 6.) According to Thomas Draper, the Vice Chairman of the Board of Trustees for the Church, “[a] contributing factor to the decline in membership was the growing state of disrepair of the Building and the prohibitive costs of the necessary major capital repairs and renovations to the Building’s aging infrastructure, many of which were necessary to bring the Building into compliance with the New York City Building Code.” (Draper Decl. at ¶ 1; Draper Supp. Decl. at ¶ 7.) According to Draper, the costs of maintaining the building were significant and starting in at least the late 1990’s the Church considered many different options to raise capital. (See Draper Supp. Decl. at ¶¶ 10-24.) Faced with having to sell the Building, the Church “resolved instead to find a long-term lease arrangement with a third party.” (Id. at ¶ 29.)

In January 2006, the Church entered into a Lease Agreement (“the Lease”) with the Rose Group Park Avenue LLC (the “Rose Group”). (Draper Decl. at ¶ 16, Ex. B.) The Lease permits the Rose Group to hold catered events at the Church for the next twenty years (with two five-year renewal options) in exchange for the Rose Group investing millions of dollars in capital repairs to the Church building and paying rent and ongoing maintenance costs. (Id.) The Lease prohibits the Rose Group from hosting events at any time that conflicts with the Church’s religious services or activities. (Id.) According to the Church, it “permits us to continue owning the Building and using it at least the same extent we did in the past, while accomplishing much needed building repairs and ongoing relief from many operating expenses.” (Draper Supp. Decl. at ¶ 37.) Indeed, the Church engaged a third-party appraiser, The Staubach Company, to evaluate the, Lease; Staubach found that the lease was fair, and noted that a Lease providing for use of the premises for all of the Church’s current needs “is atypical in the market and is viewed as extremely favorable for the Church.” (Id. at ¶ 41.)

However, the City points out, the Lease permits the Rose Group to exercise a high degree of control over the premises. (Brennan Decl. at ¶¶ 13-31.) For example, the Rose Group may cover the existing signs on the building facade indicating that the building is a Church 1 and give and withhold approval to the Church’s hiring of custodial and maintenance employees. (Brennan Decl. at ¶ 23.) The Lease covers the entire “land and building known as 583 Park Avenue” rather than any portion or time period specific to the catered events. (Id. at ¶ 13.) In addition, the Lease requires the Rose Group to pay real estate taxes that become due if the current religious exemption is lost because of the catering business. (Id. at ¶ 14) The Lease permits the Rose Group to “contract directly with the local utility companies for all electric, gas, and water”. (Id. at ¶ 15.) The Lease also provides for the “removal and storage off site of the pews from the main floor of the auditorium and the first (lowest) row of the balconies”. (Id. at ¶ 16.) The Lease even restricts Plaintiffs use of the front door to “Sunday services, Wednesday evening services, Christmas Eve and Thanksgiving services, and *204 church corporate and organizational meetings.” (Id. at ¶ 26.)

After the Lease was initially entered into, prior to commencing any of the agreed-upon activities, the Church and the Rose Group sought permission from the City. According to Draper, “[fjrom the inception of this project in 2005, we made clear that a precondition of the Lease was obtaining the necessary municipal permission for this tremendous undertaking.” (Draper Supp. Decl. at ¶ 105.) On April 19, 2006, the City issued a pre-consideration determination, permitting catered events with certain restrictions, including “that the Accessory Social Hall is to be use and operated exclusively and only by the Church and for its members.” (Brennan Deck Ex. F.) The Church then wrote a letter, requesting modifications and stating that:

For limited periods when the church is not being utilized for our congregation, we have provided for various catered events which will also contribute to the church’s ability to sustain itself. These functions will be operated by a highly qualified, fully insured professional caterer who will be under contract with the Church ... The functions will be restricted by the contract with the Church ...

(Brennan Deck Ex. G; Draper Supp. Deck Ex FFF.) The letter was endorsed by Christopher Santulli, the Manhattan Borough Commissioner of the DOB, with a notation reading “OK to accept catered events under contract with the Church as complying with ‘Accessory Social Hall’ requirement of April 10, 2006 determination by L. Osorio.” (Id.)

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Bluebook (online)
617 F. Supp. 2d 201, 2008 U.S. Dist. LEXIS 99822, 2008 WL 5102466, Counsel Stack Legal Research, https://law.counselstack.com/opinion/third-church-of-christ-v-city-of-new-york-nysd-2008.