This case involved an appeal of condemnation awards to three property owners, A, B and C. On the vesting date, the condemnor, Metropolitan Transportation Authority (MTA) acquired five properties. The properties comprised an entire block front and were acquired in connection with a transit center project. Following the condemnation, the MTA made advance payments to A and C. The MTA had settled with B, except as to the issue of whether certain air rights had additional value.
The MTA argued that each of the remaining four properties should be valued separately. The MTA valued B’s properties at $37 million and $15.5 million and valued C’s property at $21,950,000. The MTA asserted that B’s air rights could not be transferred because as of the vesting date, there had been no zoning lot merger between the A property and the B and C properties. B and C had argued that the highest and best use for their properties was as a residential condominium building to be constructed on an assemblage of three properties, along with available air rights. B and C valued their interest in the assemblage at $112 million.
