Carnegie Et Al V City Et Al 161375-2017
Carnegie Et Al V City Et Al 161375-2017
Carnegie Et Al V City Et Al 161375-2017
161375/2017
NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 12/22/2017
LAGUARDIA,
Petitioners,
-against-
Respondents.
VERIFIED PETITION
Petitioners, by their undersigned attorneys, for their verified petition, allege as follows:
PRELIMARY STATEMENT
1. This is a special proceeding pursuant to Article 78 of the Civil Practice Law and
Rules ("C.P.L.R.") to review the determination by the Respondent New York City Planning
Commission, which was approved by the Respondent New York City Council on August 24, 2017,
approving the Uniform Land Use Review Procedure ("ULURP") and other land use applications
"Applications"
(the "Applications"), and the Final Environmental Impact Statement issued pursuant to the City
and State Environmental Quality Review Acts, relating to a proposed development (collectively,
"Determination")¹
the on the property owned by Respondent City ofNew York, which is bounded
I
True and correct copies of the Determination are annexed hereto as Exhibits A through E.
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by East 97th Street, First Avenue, East 96th Street and Second Avenue (Block 1668, Lot 1), in the
Tech," "Park"
"Coop on the east side, and the Marx Brothers Playground (the "Park") on the west side.
playground" "JOP"
3. The Park is owned by the City, and is in the "jointly operated or
program. However, unlike the typical case where a JOP is used by the students in the adjacent
schools during the school day, and the general public outside of school hours, and is maintained
by the New York City Department of Parks and Recreation ("DPR"), in this case, neither Coop
Tech nor Life Sciences Secondary School (MS 655) use the playing field in connection with their
Authority ("MTA"), which has used the land as a staging area for the Second Avenue Subway
damages and injuries-in-fact. Respondents New York City Educational Construction Fund
("ECF") and AvalonBay Communities, Inc. ("AvalonBay") were co-applicants for the
Applications. The ECF is a public benefit corporation that is a financing and development vehicle
of the New York City Department of Education ("DOE"). ECF finances the development of
schools on City-owned land by issuing tax exempt bonds. It partners with private developers (such
as AvalonBay), and those partners lease the land from ECF through long-term ground leases.
These rent payments are used to finance the construction of the development, and to service the
debt.
5. The original request for proposal ("RFP") issued by ECF for the project called for
the redevelopment of only one school, Coop Tech. AvalonBay won that RFP.
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6. Later, however, the Speaker of the City Council, who is the Council Member for
the district where the Site is located, sought (and ECF to include two additional schools-
agreed)
the Park East High School and The Heritage School-in — the redevelopment. This allowed her to
benefit a cultural center that currently shares the building in which The Heritage School is located,
and which would, after the redevelopment, have use of the entire building for its operations.
7. ECF and AvalonBay entered into an agreement to redevelop the Site. The plan for
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the East Street Project calls for the construction of an enormous 760 foot, 63-story "super
skyscraper,"
which will dwarf the much smaller buildings that comprise the neighborhood.
8. The proposed development will include a 1,140,000 square foot private mixed-use
building, including 990,000 square feet of residential floor area (approximately 1200 "dwelling
units"), approximately 20,000 square feet of commercial space, and, for Coop Tech, a separate
130,000 square foot building. In addition, the two other public high schools (the Park East High
School and The Heritage School) will share approximately 130,000 square feet. The total
61"
apartment building in New York City! It will also be the tallest building between Street and
Boston.
10. As part of the project, AvalonBay will be providing the minimum required of
"affordable"
legally-required units which, in this case, is 25% of the residential units. These
"affordable" "affordable"
units will hardly be as is understood in common parlance; rather, they
will be available to those whose income is 60% of the area median income ("AMI").
11. As will be described in detail below, both the process and the substance of the
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Determination were fatally flawed, and were in excess of jurisdiction, in violation of lawful
procedure, affected by error(s) of law, and were arbitrary and capricious and an abuse of discretion.
THE PARTIES
12. The Petitioners, jointly and severally, have and will suffer, among other damages,
• have not been able to use the playground portion of the Park since 2004-
They
nearly fourteen years-because of the MTA's using of that area for staging for the
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Second Avenue Subway, and, if the Street Project moves forward, will not be
able to use the Park in its entirety for the next five to seven years, resulting in the
Park being taken from the community for twenty to twenty-five years.
• The new park (if it ever will not be a sun-filled respite for families,
reopens) City
but it will rather be cast in shadows nearly the entire day.
• Residences in the neighborhood will also be cloaked in darkness, as the giant new
• 96*
The East Street Project will result in 1,200 new families moving into the area,
fact, reopens), the three high schools that will be relocated to the site, the
neighborhood's elementary and middle schools, and the sewers, water lines, and
sanitation services, and other unmitigated impacts.
• 96*
Incredibly, the East Street Project will not provide for parking, resulting in
hundreds of new cars flooding the local streets looking for street parking.
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residents'
• Construction noise, dust, and pollution will impede
significantly quality
of life.
• As part of its use of the Park as staging for the Second Avenue Subway, the MTA
pledged to pay the DPR $8 million to compensate it for the loss of the playground.
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This amount has not been paid and will not be paid pursuant to the East Street
Project, with a significant loss to the community which uses the Park.
(" Neighbors"
13. Petitioner Carnegie Hill Neighbors Inc. ("Carnegie Hill Neighbors") is a domestic
not-for-profit corporation that, since 1970, has endeavored to preserve the residential character and
profit advocacy organization that has, for nearly 125 years, worked to educate and inspire New
Yorkers to engage in the betterment of New York City. As a non-profit advocacy organization,
MAS mobilizes diverse allies to focus on issues that affect our city from sidewalk to skyline.
Through three core campaign areas, MAS protects New York's legacy spaces, encourages
thoughtful planning and urban design, and fosters complete neighborhoods across the five
boroughs. Comprising a team of preservationists, urban planners, architects, attorneys and other
dedicated staff members, MAS and its Board Members participate in a host of activities which
vigilantly promote public policies favorable to New York City's built environment and the people
who enjoy it. MAS has a long history advocating for preservation of NYC's historical and
architectural resources and neighborhood character. MAS was a critical player in the passage of
the 1916 Zoning Resolution, the first comprehensive zoning program of its kind, and the
foundation for innumerable zoning laws throughout the nation. Since that time, MAS has been a
guardian, steward, and sometimes critic, of zoning and land use planning in New York City.
(" FRIENDS"
15. Petitioner Friends of the Upper East Side Historic Districts, Inc. ("FRIENDS") is a
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livability, and sense of place of the Upper East Side of Manhattan. FRIENDS is a source of
information and encouragement for property owners, an active participant in public decisions
affecting the many historic and cultural resources in the neighborhood, and a leading voice for
common sense development. FRIENDS regularly monitors development activity throughout the
Upper East Side and testifies before relevant city agencies in an effort to strike a balance between
neighborhood preservation and development. Throughout its 35-year history, FRIENDS has been
a leader in successful efforts to improve the zoning laws governing the area's avenues and its
residential side streets, and the organization has often participated in proceedings involving major
16. Petitioner Marc LaGuardia is an individual who resides with his family at The
Knickerbocker, at 1763 Second Avenue. He is a master carpenter. His wife, Kiernan, is a native
of the neighborhood in which the subject premises is located, and she is a schoolteacher. The
family are parishioners of De Sales Catholic church on 96th and Lexington Avenue. They have
two children, ages 6 and 10, who utilize the Marx Brothers Playground frequently. They regularly
volunteer in the parks in the area. Unfortunately, despite their long-standing and close ties to the
"affordable"
community, they are being priced out of the neighborhood by high rises.
(" City"
17. Respondent the City of New York ("City") is a domestic municipal corporation
Council"
18. Respondent New York City Council (the "City Council") is the lawmaking body
of the City of New York. The City Council acted arbitrarily, capriciously, and contrary to law in
19. Respondent New York City Planning Commission ("CPC") is a public agency of
the City of New York established pursuant to the New York City Charter. The CPC acted
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20. Respondent New York City Educational Construction Fund ("ECF") is a public
benefit corporation established in 1967 the New York State Legislature to provide funds (tax-
by
is a Maryland corporation that has elected to be treated as a real estate investment trust ("REIT")
for federal income tax purposes. AvalonBay develops, redevelops, acquires, owns, and operates
Atlantic, the Pacific Northwest and Northern and Southern California. The causes of action in this
matter all arise from the official actions of public bodies and officers in connection with the East
96th Street Project. As the developer ofthis project and a co-applicant along with ECF in obtaining
the necessary approvals and the effort and expense undertaken to obtain them, it is a necessary
22. This Court has subject matter jurisdiction pursuant to CPLR Article 78.
23. Venue is proper because Petitioners, Respondents New York City, the City
Council, the CPC, and the affected property are located in New York County, New York. See
C.P.L.R. §§ 7804(b) and 506(b). The central events of this proceeding took place within New
York County, including the arbitrary and capricious determinations at issue herein.
STATEMENT OF FACTS
9681
24. In order to get the approvals needed to proceed with the East Street Project,
ECF and AvalonBay filed (1) land use applications through the Uniform Land Use Review
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Procedure ("ULURP") to rezone the Site to an R10 district, as well as other zoning actions; (2) a
request for Home Rule legislation from the City Council to petition the State Legislature to approve
"parkland" "alienation"
the discontinuance of the use of the Park as (i.e. "alienation") and the transfer of its
Legislation"
ownership from the City of New York to ECF (the "Home Rule Legislation"); and (3) a petition
"parkland"
to the State Legislature to approve the discontinuance of the use of the Park as and the
transfer of its ownership from the City to ECF. The Home Rule was approved by the City Council
on June 15, 2017, and the ULURP application was approved by the City Council on August 24,
25. In response to the City Council's request for Home Rule Legislation, the State
Assembly and Senate approved A. 8419 (S. 6721) on June 20 and 21, 2017, respectively, which
is "[a]n Act in relation to authorizing discontinuance of the use as parkland of the land in the City
Playground" Legislation"
of New York commonly known as the Marx Brothers (the "Alienation Legislation").
26. Parkland alienation occurs when a municipality wishes to convey, sell, or lease
municipal parkland or discontinue its use of a park. In order to alienate parkland, a municipality,
such as the City Respondents herein, must receive prior authorization from the State in the form
of legislation enacted by the New York State Legislature and approved by the Governor.
27. On October 23, 2017, Governor Andrew Cuomo approved the Alienation
28. Here, however, the process by which the City Respondents obtained this alienation
legislation was so flawed, and the appearance of impropriety so blatant, that the Governor was
concerned that the Determination and the Alienation Legislation could be circumventing the
2
Prior to these decisions, the eastern half of the block was zoned R7-2 and R10A, and the Park did not have
development rights.
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29. In a Memorandum filed with the Governor's approval, the Governor expressed
concern that:
30. To clarify the issue and set a mechanism to resolve it, the Governor proposed a
Chapter Amendment, to be agreed to by the Legislature before NYC can take any steps to
discontinue the use of the Park as a parkland. The amendment requires the Commissioner of the
"Commissioner"
NYS Department of Parks, Recreation and Historic Preservation (the "Commissioner") to
investigate all of the property's historical records, uses, and any other factor relevant to the land's
"parkland."
qualification as If the Commissioner determines the Park is parkland or a park, and
31. Governor Cuomo directed the Commissioner of the State Department of Parks,
Recreation, and Historic Preservation to complete an "investigat[ion] [of] all of the property's
designation."
historical records, uses, and any other factors relevant the land's
the City, is under no legal obligation to maintain the area as a playground in perpetuity.
33. The actions taken by Respondents to alienate the playground to give the ECF
ownership and convey to AvalonBay extraordinarily lucrative land and development rights, not
disclosed during the ULURP process, are unlawful, a violation of lawful procedure, and arbitrary
and capricious.
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34. The Uniform Land Use Review Procedure ("ULURP") application and other land
"Applications"
use applications (the "Applications") that were submitted to the Department of City Planning by
ECF and AvalonBay, should not have been certified, and therefore, should not have been approved
and granted by the CPC and the City Council. There were inaccuracies and ambiguities in the
application that prevented a full and transparent public review, and prevented the Community
look."
understanding the project, and giving it the required "hard Had the process not been so
flawed, they would have acknowledged initially that the legal status of the Park was unknown
and/or in contention, that the application was certified prematurely, and they would have
9681
recognized the dangerous precedent that the East Street Project sets for the loss of open space
35. For example, the application failed to accurately describe the zoning issues related
to the Park. Initially, the ULURP and other land use applications claimed that the Park did not
have any development rights, specifically stating that approval of the Home Rule Legislation and
reconstruction"
Alienation Legislation was "necessary to allow for the relocation and of the Park.
36. This makes sense-under New York City Zoning Resolution Section 11-13,
parks."
"[d]istrict designations indicated on zoning maps do not apply to public
37. Acknowledging that the Park did not have any development rights, the City
Respondents sought and obtained the Home Rule Legislation and, ultimately, the Alienation
Legislation.
38. This position is consistent with the historical position taken by other New York
City agencies.
39. For example, the Department of Buildings considers the Park a "Public Park of a
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more"
half an acre or for enforcement of the Zoning Resolution's regulations (ZR 32-661 and ZR
42-55) that limit the size and illumination of signs proximate to a Public Park.
40. Similarly, the City Council (Respondent herein) applied its no smoking law to
41. In addition, prior Mayoral administrations have recognized that playgrounds are
Parkland.
Bloomberg Administration in 2007, discusses measures needed to be taken to support New York
City's growth. It states that "since 1938, JOPs have been considered designated parkland, which
used."
restricts how the land can be
43. Similarly, in 1999, the Giuliani administration, in conjunction with the DPR, issued
a joint press release, which included playgrounds when calculating the amount of parkland in New
York City.
44. And in 1988, the Koch administration included playgrounds in its "Neighborhood
Program."
Park Restoration
45. In addition, in order to use the playground area of the Park as a staging area for the
Second Avenue Subway, the MTA recognized the Park's status as parkland and sought the
46. Later in the ULURP process, however, the City Respondents took an entirely
inconsistent position!
47. Jennifer Maldonado, the Executive Director of the ECF, in a letter to the CPC that
was submitted on June 1, 2017 in response to comments that were made to the CPC during and
9681 Letter"
after the public hearing on the East Street Project (the "Maldonado Letter"), now claimed that
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when the MTA sought alienation of the Park for its temporary use during the staging of the Second
caution"
Avenue subway, it had done so only "out of an abundance of and "perhaps under the
parkland."
mistaken belief that the Playground was The Maldonado Letter does not contain any
basis as to why ECF would be able to make such a statement on behalf of the MTA, an entirely
separate entity.
48. The Maldonado Letter states that "the playground is not a public park as defined in
Resolution." parkland,"
the Zoning Stunningly, it claims that the Park "is not and has never been
in clear and blatant contravention of the City's historic and publicly-expressed consideration of
playgrounds as parks, including the Park, the previous conduct of the MTA, and its previous
statement in the ULURP Application that alienation of the Park was "necessary to allow for the
reconstruction"
relocation and of the Park.
49. The Maldonado Letter tries to explain away the fact that the effective Zoning Map
(as would be expected) shows that the Park does not have development rights. To do so, it asserts
an utterly absurd and implausible explanation; i.e., that Zoning Map does not show a zoning
"clean" update."
designation for the Park "due to a staff person's mistaken up on a 1983 map
50. The Determination was fatally flawed because the ULURP application and other
land use applications upon which it was based misstated and misled, either negligently or
intentionally, the public, the CPC, the Borough President, and the City Council as to the Park's
status. The City Respondents should have been estopped from contradicting their historic and
publicly-stated position that the Park was a parkland as to which no development rights attached,
51. The Determination also exceeded the authority of the CPC and the City Council,
and was an error of law and was arbitrary and capricious and an abuse of discretion because it did
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not take into account the context of the neighborhood nor was it part of an appropriate,
comprehensive plan. The Applications did not disclose that the existing R10A district designation
limits heights of buildings and, in fact, the proposed maximum heights in the nearby East Harlem
965
Rezoning are much lower than the proposed East Street Project. The behemoth 700-foot
residential tower, consisting of 1,200 units, and rising 63 stories, is nearly 30 stories higher than
Respondents'
52. The City inconsistent positions with regard to the status of the Park,
the City's erroneous position that the Park is not a parkland, and the resulting ambiguity
surrounding the status of the Park, also fundamentally tainted the analysis and conclusions set forth
53. In addition, the CPC and the City Council were not able to review the EIS with the
look"
required "hard because the EIS did not disclose that City Respondents were taking the
position that there was floor area appurtenant to the Park, and, in fact, stated that there was no
"necessary"
development potential without the Home Rule Legislation and Alienation Legislation.
54. The EIS was also fatally flawed because it did not consider an alternative to the
proposed development, that assumes the Park has development rights appurtenant to it, in which
55. The EIS was fatally flawed for other further and additional reasons.
96*
56. For example, once rezoned and the East Street Project built, unused
development rights would still be appurtenant to the Site; the EIS did not consider what could or
should be done with the approximately 300,000 square feet in development rights that would be
965
attributable to the Site after the rezoning, but which were not included in the East Street
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Project.
action"
57. The EIS also did not correctly analyze the "no alternative.
58. The EIS also did not consider the burden of the increased population on the Park in
the future.
96*
59. Moreover, the negative impacts caused by the East Street Project were not
properly considered or mitigated. The height of the residential tower-nearly 700 feet-is— wildly
out of context, and will cast shadows on the Park and into the other homes in the neighborhood.
And the vast impact that the project will have on traffic (subway, bus, driving, and foot) is also not
addressed. Nor is the impact of the project's lack of parking on the neighborhood.
60. The Determination exceeded the authority of the CPC and the City Council, and
was an error of law and was arbitrary and capricious and an abuse of discretion.
61. Petitioners re-state and re-allege each of the allegations set forth above as if set
Respondents'
62. Based upon the facts set forth above, the City position that the Park
is not a parkland, was an error of law, and was arbitrary and capricious and an abuse of discretion.
63. Petitioners re-state and re-allege each of the allegations set forth above as if set
64. The ULURP and other land use applications misled the public, the CPC, the
Borough President, and the City Council by failing and refusing to disclose that the ownership of
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the Park would be transferred to ECF in perpetuity-not just for the construction of the East
Street Project.
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65. Unlike the City, ECF is under no legal obligation to maintain the area as a
playground in perpetuity.
66. The ULURP application failed to disclose that ownership of the Park would be
67. The Maldonado Letter stated that the Alienation Legislation would include
provisions that would provide for the transfer of the Park from the City to ECF, that, after the
96*
completion of the East Street Project, the ECF would transfer ownership of the relocated Park
back the City, under the joint control of the DOE and DPR, and that the deed back to the City
would contain restrictions requiring that the Park be permanently run as a JOP, and that it not
68. In fact, however, the Alienation Legislation did not contain any language calling
"control"
for ECF to convey the Park back to the City. Rather, it called only for of the Park to be
"control"
transferred to the City. As the Court well knows, however, is not the same as
"ownership."
69. Early submissions by ECF and AvalonBay stated that the Playground would be
relocated, but they never stated that the ownership of the Playground would change from the City
to ECF.
70. Later submissions stated, however, that the Playground would change ownership
71. Petitioners re-state and re-allege each of the allegations set forth above as if set
72. The Determination was made on August 24, 2017. As part of the Determination,
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the City Council approved ECF and Avalon Bay's request for approval of all the Applications.
73. As set forth in greater detail above, prior to the Determination, the eastern half of
the block was zoned R7-2 and R10A, and the Playground did not have development rights.
74. Following the Determination, the land upon which the East 96th Street Project is to
be built-including the Park-is— now purportedly located in the R10 and C2-8 Zoning Districts.
75. Governor Cuomo signed the Alienation Legislation two months later, on October
23, 2017 (although its effectiveness and implementation was delayed by the Chapter Amendment).
76. In other words, the City Respondents changed the zoning of the Park before the
Park was alienated, and before development rights could properly be attached.
parks."
indicated on zoning maps do not apply to public
78. It further provides that "[i]n the event that a public park or portion thereof is sold,
transferred, exchanged, or in any other manner relinquished from the control of the Commissioner
of Parks and Recreation, no building permit shall be issued, nor shall any use be permitted on such
former public park or portion thereof, until a zoning amendment designating a zoning district
therefore has been adopted by the C[PC] and has become effective after submission to the City
Council...." ."
Council...
79. The Zoning Resolution clearly contemplates that changes in zoning cannot occur
Respondents'
80. The City failure and refusal to comply with the Zoning Resolution,
which was at best a mistake in process, and at worst an intentional attempt to circumvent the
zoning, exceeded the authority of the CPC and the City Council, was an error of law, and was
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(203) 887-4665
Christina.BostSeaton@fisherbroyles.com
Richard.Cohen@fisherbroyles.com
Suite 2803
New York, NY 10016
t: (212) 935-1622
f: (212) 935-2651
charris@goldmanharns.com
Counsel to Petitioners
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VERIFICATION
ss:
W; / le m L.
I am the President of Petitioner Camegie Hill Neighbors. I have read the foregoing Verified
Petition, and believe it is true and accurate based upon my personal knowledge, and public books
and records, and my investigation of the facts of this matter, except as to matters stated to have
been made based upon information and belief, and as to those matters I believe them to be true.
New York, NY
WI#Em L • Jaf van der Valk
22nd
Sworn to before me this 22 gay
of December, 2017
Notary Public
ROBERT E. YOUNG
NotaryPublic, State of New Yo&
No. 01YO6338160
Qualified in New York County
Commission Expires March 07,2020
)x zz f+
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VERIFICATION
ss:
I am the President of the Municipal Arts Society of New York, a Petitioner in this
proceeding. I have read the foregoing Verified Petition, and believe it is true and accurate based
upon my personal knowledge, and public books and records, and my investigation of the facts of
this matter, except as to matters stated to have been made based upon information and belief, and
22nd
Sworn to before me this day
of December, 2017
Notary Public
i'i'
ER!N E. Birri
Notary Public. staie o
No. 010U80 an
Qualified infidùry ø nAC
Cornirif'aston F"[7i"' ' " t "pt: ' ~
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