Eminent Domain

Town of Oyster Bay v. 55 Motor Ave. Co., LLC

Court: Appellate Division, Second Department
Citation: 187 A D 3d 750, 2020 NY Slip Op 05512
Plaintiff: Town of Oyster Bay (ATown@)
Defendant: 55 Motor Ave. Co., LLC (AMotor Ave.@)

Facts: Motor Ave. was the owner of three contiguous parcels amounting to approximately 30 acres in Farmingdale, New York. The land was in an area zoned as light industrial. In 2003, Parcel 1 was designated for remediation as part of a Asuperfund@ cleanup of contaminated soil and water. This remediation was ongoing when the Town condemned Parcel 1 in order to expand a public park. After a first trial, the Supreme Court accepted the determination by Motor Ave.=s appraiser that the highest and best use for this property was large scale retail development. Upon appeal, the Appellate Division, Second Department reversed this determination, and found that the highest and best use was light industrial and sent the matter back to Supreme Court for a retrial. Upon retrial, the Supreme Court ignored the Appellate Division, Second Department=s ruling on use and determined that retail was the highest and best use. Motor Ave. was awarded about $20,000,000 in damages. The Town appealed.

Holding: he Appellate Division, Second Department reversed the determination as to the proper use of the property and awarded damages of $4,295,000. The highest and best use for the property was light industrial. The Appellate Division used the per acre figures presented by the Town=s appraiser.

Submitted by: Philip Sanchez, Esq.(www.spnylaw.com)

Precis:Davida S. Scher