Westchester Creek Corp. v. New York City School Constr. Auth., 795 N.E.2d 300 (N.Y. 2003): Eminent Domain & Prior Public Use Doctrine

Westchester Creek Corp. v. New York City School Constr. Auth., 1 N.Y.3d 1, 795 N.E.2d 300 (N.Y. 2003)

When the legislature has authorized condemnation of city-owned property for a public purpose (here, a school), the prior public use doctrine does not automatically bar condemnation even if the property is already dedicated to another public use (here, urban renewal), provided the condemning authority complies with statutory procedures for notifying the city.

Summary

Westchester Creek Corporation (WCC) challenged the School Construction Authority’s (SCA) condemnation of its leasehold interest in city-owned property for the construction of a new school. WCC argued that the SCA lacked statutory authority, that urban renewal (WCC’s existing use) was a superior public use, and that it had a constitutional right to develop the property. The New York Court of Appeals held that the SCA had complied with the statutory requirements for condemning city-owned land and that the prior public use doctrine did not bar the condemnation because the legislature expressly permitted condemnation of city-owned property for school construction, provided certain procedures were followed.

Facts

In 1976, the City of New York leased several parcels of land, including Lot 70, to WCC for 90 years under a master lease for urban renewal. In 1987, Lot 70 was severed from the master lease with a similar lease term. WCC developed some of the parcels but only performed minimal work on Lot 70. The SCA sought to condemn Lot 70 to build an elementary/intermediate school to alleviate overcrowding in nearby schools.

Procedural History

SCA provided written notice to the Mayor and City Council of its intent to use Lot 70, and the City Council approved the site plan. After a public hearing, the SCA president determined that condemnation was necessary. The Supreme Court entered an order condemning WCC’s leasehold. WCC appealed to the Appellate Division, which confirmed the SCA’s determination. WCC then appealed to the New York Court of Appeals.

Issue(s)

Whether the School Construction Authority (SCA) has the statutory authority to condemn city-owned property already dedicated to urban renewal.

Holding

Yes, because the Public Authorities Law expressly permits the condemnation of city-owned property, even if it is already dedicated to another public use such as urban renewal, provided the condemning authority follows the statutory procedures for obtaining the city’s consent.

Court’s Reasoning

The Court reasoned that while Public Authorities Law § 1728(6) grants the SCA broad condemnation powers, it also requires compliance with § 1729(2) when condemning city property or property in which the city has an interest. This section mandates a written request to the Mayor, who has 30 days to object. The Court found that SCA’s written notice to the Mayor satisfied this requirement. The Court addressed the prior public use doctrine, noting that the Public Authorities Law allows the condemnation of city-owned property if the city, through the Mayor, has the right to object. While the Legislature has called urban redevelopment “a superior public use,” it also stated that “'[t]here can be no higher priority than creating a physical environment in the schools that fosters rather than impedes, the education of our children’” (quoting the New York City School Construction Authority Act). The Court emphasized § 1728(6), which explicitly allows condemnation of city-owned property. As SCA followed the statutory procedures, it was authorized to condemn the property. The court explicitly found that Article XVIII, § 1 of the NY State Constitution gives the legislature the power to establish urban renewal projects, but it does not confer any protection on redevelopers against condemnation. The court emphasized that SCA has unquestioned authority to act to relieve severe school overcrowding.