Landlords Claim MTA Lowballed Them In Eminent Domain Seizure For Second Avenue Subway
Property owners in Harlem have filed claims against the Metropolitan Transportation Authority, seeking a court order to force the transit agency to pay more for sites it took over to build its extension of the Second Avenue subway line.
The MTA used eminent domain to take over a line of properties between East 119th and 120th streets earlier this year. But three owners say in a legal complaint that not only are the sums the agency agreed to pay too low, but the MTA also has yet to make the payments despite already condemning the buildings, Crain’s New York Business reports.
“It’s kind of irresponsible for the MTA to have delayed this so much, and it’s unusual,” Michael Rikon, the attorney for the plaintiffs, told Crain's. “I’m assuming the delays are because this is a federally funded infrastructure project, and there’s a lot of red tape involved.”
A spokesperson for MTA declined to comment on the specifics of the case to Crain's. An MTA spokesperson didn't immediately respond to Bisnow's request for comment.
The MTA offered to pay $20M for five lots that make up a development site previously owned by local developers the Pecora family, which had torn down longstanding buildings in anticipation of building a new residential tower, Crain's reported.
Rikon wrote in the Pecoras' claim that the eminent domain action "causes Claimant significant damage."
At 2325 Second Ave., a former laundromat previously owned by Lucky Machine Wash Corp., the MTA offered $2.36M, while at 2327 Second Ave., owner Frank Crispo, who paid $975K for the site 2014, doesn't want to accept the MTA offer of $2.37M, per Crain's. It is unclear how much the property owners are seeking.
The sites are condemned, and the MTA is already their official owner, but the owners' lawsuit could slow things down. And if a judge rules the agency has to pay interest to the sellers, that would be an additional cost borne by the taxpayer, Rikon said.
Gov. Kathy Hochul announced the second phase of the Second Avenue subway in July, which would extend the terminal line beyond 96th Street to allow the Q train to run up to 125th Street in Harlem.
The MTA needs the sites to build a “launch box” to allow for machines to create new tunnels between East 120th and 125th streets, The City reported in April.
