The former building at 194 Broadway (credit: PropertyShark) and a rendering of the Fulton Street Transit Center
Not only did the Metropolitan Transportation Authority undervalue a Lower Manhattan building it demolished to make room for the Fulton Street Transit Center, but a State Supreme Court ruled last Thursday that the agency owes the tenants of the building damages for fixtures it lost in the condemnation.
After the MTA took over and demolished 194 Broadway, the restaurant tenants filed claims for compensation for their destoryed materials. The tenants included KFC and TGI Friday’s franchises and a Pizza Hut-Dunkin’ Donuts food court that were affiliated with the Riese Organization, which was the parent of building fee-owner DLR Properties.
According to the court decision, the MTA argued that because the tenants and fee-owner shared ownership elements, the sum it paid to DLR for the demolition should cover the claims made by the tenants.
The MTA declined to comment because the litigation is ongoing.
Now, the tenants can recover damages from the MTA for the value of the fixtures it lost in the building condemnation, the court ruled. The tenants claim they are owed about $15 million, according to Rosenberg & Estis, which has represented the Riese Organization throughout the litigation process.
The MTA took over 194 Broadway from DLR Properties through eminent domain in 2006 to make room for the Fulton Street Transit Center. In 2009, a court ruled that the MTA undervalued the property and would have to pay the Riese Organization $35.2 million more than the $27.4 million value it placed on the property. Last summer an appeals court upheld that decision. – Adam Fusfeld
January 31, 2012 at 4:16 pm, KaKaw said:
MTA tries to get away with a fast one. Good Job! Now they need to overpay!