Fred F. French Investing Co. v. City of New York

350 N.E.2d 381 (1976)

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Fred F. French Investing Co. v. City of New York

New York Court of Appeals
350 N.E.2d 381 (1976)

Facts

Tudor City was a residential complex in Manhattan, New York (the city) (defendant) that consisted of 10 apartment buildings, a hotel, four brownstone buildings, and two large private parks. In 1970, Tudor City was sold, and the new owner announced plans to build a 50-story tower adjoining Tudor City. The owner’s plan would have required the New York City Planning Commission (the commission) to approve a shift in development rights from the Tudor City parks to the proposed adjoining site, along with a corresponding zoning change. The commission ultimately approved an amendment to the zoning regulations that established Special Park District P, which included the two Tudor City parks. The zoning amendment required parks in the special park district to be open to the public daily between 6:00 a.m. and 10:00 p.m. The zoning amendment permitted transfers of development rights (TDR) from “granting lots” in the special park district to eligible commercially zoned “receiving lots” in other areas of midtown Manhattan, on the theory that the development rights could be severed from the underlying real property. The parks became open to the public under the zoning amendment in December 1972, but the development rights were never marketed or used. Fred F. French Investing Company, Inc. (plaintiff), the purchase-money mortgagee of Tudor City, brought an action against the city, asserting that the zoning amendment was unconstitutional because it rezoned the once-buildable private parks as public parks. The trial court declared the amendment unconstitutional, and the appellate division affirmed. The city sought review of the declaration of unconstitutionality in the New York Court of Appeals.

Rule of Law

Issue

Holding and Reasoning (Breitel, C.J.)

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