Yonkers Community Development Agency v. Morris

335 N.E.2d 327, 37 N.Y.2d 478, 373 N.Y.S.2d 112, 1975 N.Y. LEXIS 2049
New York Court of Appeals·Decided July 10, 1975·Published·Cited by 65 cases

Opinion

Fuchsberg, J.

We are here confronted with the question of whether a taking of land by the City of Yonkers, through its Community Development Agency, is for a sufficiently public purpose to be permissible under the requirements of our Federal and State Constitutions* and under applicable State and Federal law.

This action arises out of the agency’s formal request for a condemnation order, pursuant to our section 4 of the Condemnation Law. Defendants are tenants and landowners, both business and residential, in the area selected for redevelopment.

Both parties are before us on their pleadings and supporting papers. According to the complaint, the proposed taking of the land proceeded under the umbrella of a plan developed in accordance with State and Federal urban renewal legislation for the removal of "substandard” conditions. The defendants’ answers deny that the land is substandard and charge that it is to be taken, cleared and provided for a private purpose, that is, the expansion of the current plant facilities of the Otis [481] Elevator Company, a leading industrial employer in the City of Yonkers.

The issue to be resolved is, therefore, whether defendants are entitled to a trial to determine whether the taking here serves a dominantly public purpose. There is, of course, no question but that defendants are entitled to receive payment for the full value of their properties; the question is whether they have to part with them.

The Supreme Court found that there were no issues of fact which required a trial, holding, on the basis of our decision in Kaskel v Impellitteri (306 NY 73), that defendants would be required to present evidence sufficient to sustain a charge of fraud in order to prevent the issuance of the condemnation order to the plaintiff agency. The Appellate Division upheld the judgment entered on that decision (45 AD2d 889). The order should be affirmed.

The purpose of the. Federal program, under which the plan here qualified for approved, is to aid cities in the clearance of blighted areas and in their redevelopment. Two thirds of the difference between the cost of acquiring the land through payment to its owners of fair market value and that ultimately paid by the sponsor, here Otis, is reimbursed to the city by the Federal Government. The city itself pays the remaining one third of the cost differential.

Historically, urban renewal began as an effort to remove "substandard and insanitary” conditions which threatened the health and welfare of the public, in other words "slums” (see NY Const, art XVIII, § 1), whose eradication was in itself found to constitute a public purpose for which the condemnation powers of government might constitutionally be employed. Gradually, as the complexities of urban conditions became better understood, it has become clear that the areas eligible for such renewal are not limited to "slums” as that term was formerly applied, and that, among other things, economic underdevelopment and stagnation are also threats to the public sufficient to make their removal cognizable as a public purpose. (See Cannata v City of New York, 11 NY2d 210; Matter of Murray v La Guardia, 291 NY 320; Kaskel v Impellitteri, 306 NY 73, supra; Levin v Township Committee of Twp. of Bridgewater, 57 NJ 506; Schenck v City of Pittsburgh, 364 Pa 31; Berman v Parker, 348 US 26, 32; and see, generally, Bosselman, Alternatives to Urban Sprawl: Legal Guidelines for Governmental Action, Research Report No. 15 [482] to the National Commission on Urban Problems, Wash, DC, 1968, for the historical development of these concepts of urban renewal.)

Where, then, land is found to be substandard, its taking for urban renewal is for a public purpose, just as it would be if it were taken for a public park, public school or public street. The fact that the vehicle for renewed use of the land, once it is taken, may be a private agency does not in and of itself change the permissable nature of the taking of the substandard property. Of course, if property has not been determined to be substandard in an urban renewal context, it may not be taken in eminent domain unless it is proved that its taking was for another public purpose and, if there was also a private benefit involved, that the public purpose was dominant.

Therefore, if we assume that the land here involved was substandard, as found by the Yonkers City Council and its Planning Board, it would be no defense to its condemnation that Otis openly expressed a desire to acquire it to assure its own continued economic viability in Yonkers. It would not then be necessary, as a precondition to the taking, to determine that the public benefit in assuring the retention of Otis as an increased source of employment opportunity in Yonkers was sufficient to outweigh the benefit that may be conferred on Otis.

Nor does it undercut the public purpose of the condemnation of the substandard land that Otis’ motives are to serve its own interests. There is nothing malevolent about that. Most sponsors, where urban renewal involves industrial revival, are, as may be expected in our private enterprise economy, nonpublic and, at least in large part, profit-motivated. Indeed, that may even be desirable, since, unless there is such a reliable projection of profitability, the soundness and stability of the sponsor’s project may come into question. For the same reasons, the fact that the council’s public hearings were held after the selection of Otis as sponsor rather than beforehand, or that the city openly and admittedly signed an agreement with Otis before the condemnation of the land, under the circumstances here, and especially in the light of Otis’ ongoing economic importance to the community, must, at most, be regarded as mere irregularities cured by the fact that the hearings were actually held. It is also worth noting that, though presented with the opportunity for disapproval, the bipartisan city council was unanimous in its vote for approval.

[483] For the same reasons and on the same assumption that the area involved was substandard, it would be no defense that Otis had indicated it would leave Yonkers if suitable land was not found for its needed modernization and expansion, or that the condemned land was adjacent to Otis’ existing facilities, or that the two sites it had earlier rejected, as either uneconomical or unsuitable, were not substandard. There is nothing inherently wrong in serving both the city’s need for renewal of its substandard land and its desire to keep Otis in Yonkers at one and the same time. Nor is it remarkable that Otis would get the condemned land for a price which is but a fraction of that paid to the defendants and the other owners in condemnation. The very purpose of urban renewal subsidies is to attract new or existing sponsors to undertake the land clearing, the construction and other commitments the community desires of them, where the cost of acquiring the land privately, on a piece by piece basis, would be sufficiently expensive or difficult to deter private entities. (See 64th St. Residences v City of New York, 4 NY2d 268.)

We turn now to the subordinated issue in this case: Was the land to be condemned shown to be substandard?

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Yonkers Community Development Agency v. Morris, 335 N.E.2d 327, 37 N.Y.2d 478, 373 N.Y.S.2d 112, 1975 N.Y. LEXIS 2049 (N.Y. 1975).

335 N.E.2d 327 (Yonkers Community Development Agency v. Morris) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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