Strong's Marine Centers, Inc. v. White
Court: Appellate Division of the Supreme Court of the State of New York; August 21, 1995; New York; State Appellate Court
A proceeding under CPLR article 78 was initiated to contest a determination by the New York State Department of Transportation (DOT) issued on May 6, 1987, which required the petitioner to vacate certain premises within 30 days. The Supreme Court, Suffolk County, issued a judgment on November 25, 1991, that granted the petition, annulled the DOT's determination, and mandated the DOT to sell the properties in question to the petitioner. The judgment was modified by removing several decretal paragraphs and revising another to specify conditions regarding parcel #252. The appellate decision affirmed the modified judgment without costs, directing the matter back to the Supreme Court for a new hearing to establish the fair market rental values of parcels #252 and #253 starting from March 1, 1986. The background reveals that in approximately 1970, the DOT condemned a portion of the petitioner’s land (parcel #252) for a now-abandoned highway project, after which the petitioner rented the condemned land and adjacent parcels to operate a boat-selling and storage business. The petitioner had entered into a contract to purchase adjoining land, but litigation delayed the transaction. The DOT significantly increased the rental price in March 1986, prompting the petitioner to seek a reevaluation or purchase of the parcels. Following a 30-day eviction notice from the DOT, the petitioner commenced the CPLR proceeding. The court acknowledged the DOT's authority to retain condemned property indefinitely and emphasized that it cannot be compelled to convey such property. However, if the DOT decides to sell parcel #252, it must do so at fair market value to the adjacent landowner. The matter was remitted to determine reasonable separate monthly rental rates for the parcels based on fair market comparisons, as the current rent was deemed too low, and the DOT's appraisal used for the increased rent was no longer available for review.