ordered the town to issue a special use permit on the $500-million Mall at Oyster Bay, the court's appellate division has reversed the decision. The court also upheld the town board's demand for a supplemental environmental impact statement (SEIS) for a 750,000-square-foot mall. The developer, Bloomfield Hills, MI-based Taubman Centers, says it plans to appeal immediately.

"We are disappointed that the mall will continue to be delayed, especially during theseeconomic times when jobs are scarce and tax revenue is so desperately needed," saysSteve Kieras, Taubman's SVP of development, in a release. "All of the prior court decisions have affirmed that our environmental impact statement does not provide the Town with a legitimate basis for denying our application. We firmly believe that after years of having our position affirmed in the lower courts, this is clearly a flawed legal decision and we plan to promptly appeal this ruling to the New York State Court of Appeals."

Attorney Joseph Giaimo, who represented the town board before the appellate court, tells GlobeSt.com, "We're very pleased with the decision. It has finally been determined by the court that the town has been right all along."

The dispute between Taubman and Oyster Bay, which began after the town board first denied a special permit for the project in 2001, has ended up in court several times before. In July 2002, the state Supreme Court vacated the town's denial of a permit, and the appellate division affirmed the '02 order in a March 2003 decision. Eight months later, the Supreme Court remitted the matter to the town board once again, only to have that decision reversed by the appellate court in a September 2005 ruling.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.