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Penn Central Transportation Company v. New York
Citation:
438 U.S. 104 (1978)ProfessorTodd Berman
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Facts
The plaintiff, Penn Central, owns Grand Central Terminal, and a number of other properties in that area of Manhattan. On August 2, 1967, Grand Central Terminal was designated a landmark, pursuant to the New York City Landmark Preservation Law, following a public hearing. Although opposed to this designation, Penn central did not seek judicial review. On January 22, 1968, Penn Central, in an effort to increase its income, entered into a renewable fifty-year lease with a third party to construct a multistory office building above the terminal. Penn Central was to be paid one million annually during construction and, at least, three million annually thereafter. Penn Central and the third party applied for permission to construct the office building atop Grand Central Terminal, submitting two separate plans. The first plan, provided for the construction of a fifty-five story office building weaved into the existing facade of Grand Central Terminal. The second plan, provided for construction of a fifty-three story office building, but called tearing down a portion of Grand Central Terminal and stripping the facade off another area of it. Both plans were rejected, the first plan received sympathetic treatment, but was denied on the grounds that the massive structure would overpower Grand Central Terminal reducing the landmark to the status of a curiosity. The second plan was summarily rejected as totally inconsistent with preserving a landmark. Penn Central did not seek judicial review of the denial of either plan, and, instead filed suit against the defendant, New York City, on the grounds that the New York City Landmark Preservation Law affected a “taking” of their property.
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