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MTA Faces Atlantic Yards Suit

NEW YORK CITY-The suit says the agency violated state law in selling air rights over its Vanderbilt Yard; an MTA spokesman declined to comment.

By Cody Lyon | Updated on October 13, 2009

NEW YORK CITY-A group of politicians, activists and transit activists have filed suit in New York State Supreme Court in Manhattan, saying the Metropolitan Transportation Authority violated the Public Authorities Accountability Act of 2005 when it sold the air rights over the agency’s Vanderbilt Yard to Forest City Ratner Cos. for development at the Atlantic Yards Project. The latest suit was filed one day prior to Wednesday’s hearing before the Court of Appeals in Albany, which seeks to challenge the Empire State Development Corp.’s use of eminent domain for the same project.

According to the lawsuit, which names the MTA and FCRC as respondents, the MTA violated state law by failing to obtain an independent appraisal for the Vanderbilt Yard property and failing to seek out competitive bids. The group is now asking the court to annul the MTA’s June agreement with FCRC. It’s reportedly the first Atlantic Yards suit brought in part by politicians.

The plaintiffs include Assemblyman Jim Brennan, Assemblyman Joan Millman, New York City Councilwoman Letitia James, NYPIRG/Straphangers Campaign and State Sen. Velmanette Montgomery. Also among the petitioners is Develop Don’t Destroy Brooklyn, the group appealing the ESDC eminent domain action. Daniel Goldstein, one of the landowners appealing the ESDC action and a spokesman for DDDB, tells GlobeSt.com that since the MTA didn’t undertake the two required actions, “the deal needs to be annulled.”

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