NMHC joined three other real estate groups in filing an amicus brief in support of a property owner’s petition asking the U.S. Supreme Court to review a New York State eminent domain case (River Center, LLC v. Dormitory Authority of the State of New York, No. 11922). The case involves the condemnation of a large development parcel in Manhattan. . Through its dormitory authority, the State of New York took over the property from River Center for the John Jay College of Criminal Justice.
River Center’s petition argued that state valuation rules must take into account potential development value of the site, which would have included residential, office and retail spaces, based on market evidence . However, in this case, the New York courts failed to consider evidence from real estate and finance experts showing the property’s market value to be more than twice the amount assessed by the government, ruling that a project must be close to fruition before a government must compensate the owner for the full development potential of a condemned property.
By submitting the brief, NMHC and its partners provided valuable information and expertise in support of establishing property valuation rules that reflect market rates for private properties taken over by eminent domain.
The International Council of Shopping Centers, Real Estate Board of New York, and Real Estate Roundtable also signed on to the brief.