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Property Law Keyed to Kurtz
Penn Central Transportation Co. v. New York City
Citation:
438 U.S. 104 (1978)
ProfessorTodd Berman
CaseCast™ – "What you need to know"
Facts
Penn Central Transportation Company owned Grand Central Terminal, an iconic beaux-arts style railroad station in midtown Manhattan opened in 1913. In 1967, the New York City Landmarks Preservation Commission designated the Terminal a “landmark” under the city’s Landmarks Preservation Law, which imposed restrictions on the alteration or development of designated landmarks. In 1968, to increase revenue, Penn Central entered into a 50-year lease with UGP Properties to construct a multi-story office building above the Terminal. Two separate plans were submitted to the Commission: one preserving the Terminal’s facade with a 55-story tower above it (Breuer I), and another involving partial demolition of the Terminal to construct a 53-story building (Breuer II Revised). The Commission rejected both proposals, finding they would destroy the Terminal’s historic and aesthetic features. Penn Central did not seek judicial review of these denials but instead filed suit claiming the application of the Landmarks Law constituted a “taking” of their property without just compensation.
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