ESDC Officials Testify at Eminent Domain Reform Hearing in Harlem

(Long Island, N.Y.) New Yorkers can have their property and businesses taken away with little recourse available to them when it happens.  That was the message Senator Bill Perkins heard from representatives of New York City property owners and advocates.  

The Senate Committee on Corporations, Authorities and Commissions, chaired by Senator Bill Perkins, began a statewide series of public hearings on New York State’s eminent domain laws in Harlem Tuesday.

Following Sen. Perkins successful effort to bring greater transparency and accountability to the state’s public authorities, he is now gathering public input for legislation to reform the state’s eminent domain laws. 

“Today is the first step in shifting the pendulum of power away from the unrestricted and abusive use of eminent domain back to a proper balance that protects the rights of tenants, property owners, and businesses” said Senator Perkins.  “Going forward we will identify the reforms long overdue in the murky and troubled realm of eminent domain.”

Since the 2005 Kelo v. New London Supreme Court case, 43 states have reformed their eminent domain laws to better protect home and business owners, but New York has yet to take action.

Eminent domain, the state’s power to condemn private property, has been a source of controversy in development schemes from Columbia University’s expansion in West Harlem, to the Atlantic Yards/Nets arena in downtown Brooklyn, and the proposed redevelopment of Willets Point in Queens.

The Harlem hearing focused largely on Columbia University’s planned expansion.  An appellate court recently rejected the use of eminent domain to take private property for the expansion. The court found that the Empire State Development Corporation (ESDC) violated both state and federal due process clauses, questioned ESDC’s finding of blight as well as the ESDC’s determination that the project has a public use or civic purpose, and found a pattern of collusion between the state and the Columbia University to utilize the state’s power of eminent domain to take private property.

Witnesses included representatives of the plaintiffs in the lawsuit challenging ESDC’s role in Columbia’s expansion.  Property owners in the expansion zone said they are still being pressured, despite the court ruling against Columbia. 

Senator Perkins queried Peter Davidson and Anita Laremont  Executive Director and General Counsel, respectively, of ESDC about the ruling and the current status of the expansion project.   He questioned how the ESDC came to hire AKRF, the same consulting firm that Columbia had hired.  A report from AKRF found the Harlem neighborhood in the Columbia expansion zone was blighted.  A finding of blight is necessary for the state to use eminent domain to condemn private property. 

The ESDC officials were also asked about the $511 million bond sale to finance the Nets arena/Atlantic Yards.  Senator Perkins is challenging the sale because ESDC did not obtain prior approval before the Public Authorities Control Board.

Representatives of Willets Point business owners who face condemnation by eminent domain also testified at Tuesday’s hearing.