The Infrastructure Fund: Will Critical Projects Ever Be Built?

The infrastructure bill that could move critical projects has stalled over funding.  For years there has been a backlog of needed repairs and upgrades to highways, bridges and roads.  An infusion of $600 billion in new federal aid could change the status in President Biden’s unprecedented overhaul of the Country’s aging public works system.  There is a sprawling $1 trillion infrastructure package whose future is uncertain. Will the funding be available?  According to the New York Times, the measure’s fate is in limbo as various factions of the Democratic Party… read more

Posted in Condemnation, Infrastructure Projects
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The Three Forms of Takings for Eminent Domain

The National Law Review had a brilliant article on the forms of takings in eminent domain.  (September 23, 2021, Vol. XI, Number 266) The simplest to describe and the most common is a physical taking.   Physical takings are the straight forward process of a government or other entity with the power of eminent domain. The second type is a regulatory taking.  This means the economic input factor comparing value that has been taken and the value which remains post-regulatory taking.  Regulatory takings are commonly called inverse condemnation. The third is… read more

Posted in Physical Taking, Pro Tanto Taking, Regulatory Taking
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Matter of City of New York (Eman Realty Corp.) – Whatever Happened to the Rule of Highest and Best Use?

The City of New York condemned a multifamily building in Brooklyn.  The property was subject to rent stabilization and both experts found the highest and best use was for continued use as a multifamily dwelling complex.  Both appraisers used the sales comparison (market) approach to valuation.  Then the valuation process went screwy.  The City made a massive deduction for alleged critical repairs on the subject property and applied an Akerson format capitalization formula which accounts for both the cost and availability of mortgage financing.  An approach never used in valuing… read more

Posted in Highest and Best Use, Measure of Damages, Reasonable Probability of Use
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Supreme Court Nixes Moratorium on Evictions

Millions of Americans around the Country face the prospect of losing their homes after the Supreme Court, on August 26, 2021, rejected the Biden Administration’s federal moratorium on evictions. The moratorium was imposed by the Centers for Disease Control and Prevention (CDC) on eviction of any tenants who live in a county that is experiencing substantial or high levels of Covid-19 transmission and who make certain declarations of financial need. Simply stated, the District Court correctly held that congress did not authorize the action that the CDC had taken. The… read more

Posted in Eviction Moratorium, Landlord-Tenant, State Law
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Eminent Domain Significant Tool for Municipal Services “Going Concern” Valuation

A news story reports that the owner of White’s Ferry on the Potomac River wants the Loudoun County Board of Supervisors to exercise eminent domain over the private Virginia property where the ferry is docked.  The owner of the Virginia land was not willing to renew the lease. An owner must be aware of the government’s power of eminent domain if their properties are used to provide public services.   Fifth Avenue Coach Lines, Inc. v City of New York, 11 NY2d 342 (1962) is one example.  In Fifth Avenue Coach,… read more

Posted in Condemnation, Going Concern Valuation, Municipal Services
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Now that Andy is Gone, What Happens to his Projects

The Real Deal featured an article that Governor Andrew Cuomo’s resignation leaves an air of uncertainty hanging over several large scale projects significant to the real estate industry. Earlier in the year, the Governor outlined a $306 billion dollar infrastructure spending plan that involved an array of projects across New York. The article focused on three key projects. Empire State Complex The plan called for a $1.3 billion dollar redevelopment and expansion of Pennsylvania Station as well as development of some 20 million square feet of mostly office space around… read more

Posted in AirTrain, Andrew Cuomo, Empire Station Complex, Infrastructure Plan, Port Authority Bus Terminal
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Racism and Eminent Domain

An old case which has sparked national “condemnation” was the 1924 taking of “Bruce’s Beach” in Manhattan Beach, California.  The resort was established by Willa and Charles Bruce in 1912.  It was a destination where black tourists could swim, dance, eat and rest. The City claimed that it needed the property for a public park, but left it undeveloped.  Today it is used to train lifeguards. Manhattan Beach has been grappling with the history of Bruce’s Beach for years. The Los Angeles County Board of Supervisors voted unanimously to begin… read more

Posted in Eminent Domain, Racism
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Holy Mango! Statute That Allows Creditor to Seize Property from Third Party Is a Taking.

Who else but inversecondemnation.com would discuss a case dealing with dried fruit, from Guam no less?  The case is Western Sales Trading Co. v Genpro Int’l, Inc. (Guam), No. CVA 19-023 (July 28, 2021).  The Court held that a Guam statute permitting a judgment creditor to take property from a third party was a taking. Under the statute, a Guam judgment creditor is specifically authorized to file a motion for an order to show cause to compel any person who holds the assets of the judgment debtor to turn over… read more

Posted in Creditor Turnover, Fifth Amendment, Public Use
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South Grand View Development – A Regulatory Taking Case

Eric Bregman, Esq. (www.ericbregman.com), a prominent land use attorney in Long Island’s East End, sent me the decision handed down by the Eleventh Circuit on June 21, 2021, South Grand View Development Company, Inc. v City of Alabaster, Alabama 1F. 4th 1299. The facts are relatively simple.  The plaintiff purchased 547 acres of land in the City of Alabaster for $1.65 million.  The masterplan for development was submitted to and approved by the City.  Most of the development was completed by 2008 but the 142-acre portion of land at issue,… read more

Posted in Due Process, Just Compensation, Re-zonings
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What Happens to My Mortgage When the Property is Condemned?

A mortgagee upon condemnation of the property is not without resources.  The mortgagee wants to be paid the principal balance on the secured debt. With respect to the mortgage payoff, “It is well established that, upon the vesting of title in a condemnation proceeding, all lien interests in the subject property by virtue of mortgages, unpaid taxes, or unsatisfied judgments, are extinguished (see, In re County of Nassau [Gelb – Siegel], 24 NY2d 621, 626; Copp v Sands Point Marina, 17 NY2d 291, 293; Muldoon v Mid-Bronx Holding Corp., 287… read more

Posted in Condemnation, Equitable Lien, Mortgage
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