Mott Haven Houses, Borough of Bronx, City of New York, In re
| Citation | 227 N.Y.S.2d 858,33 Misc.2d 808 |
| Decision Date | 15 November 1960 |
| Docket Number | No. NY,NY |
| Parties | In re MOTT HAVEN HOUSES, BOROUGH OF the BRONX, CITY OF NEW YORK. In the Matter of Acquiring Title by The CITY OF NEW YORK, acting For and on Behalf of the NEW YORK CITY HOUSING AUTHORITY to certain real property within the area bounded generally by East 144th Street, Willis Avenue, East 143rd Street and Third Avenue (Parcel A), East 143rd Street, Willis Avenue, East 141st Street and Alexander Avenue (Parcel B), and East 141st Street, Willis Avenue, East 140th Street and Alexander Avenue (Parcel C), in the Borough of the Bronx, City of New York, duly selected as a site for a federal-aided public housing project known as Mott Haven Houses (Project5-44) and duly approved according to law. |
| Court | United States State Supreme Court (New York) |
Charles H. Tenney, Corp. Counsel, Simon Meisler, New York City, and Moe Lando, for City of New York and New York City Housing Authority.
Lamb & Lamb, Charles Lamb and Loretta A. Conway, New York City, for Damage Parcels 28, 44, 83, 83A, 84, 84A, 102.
In this proceeding the City of New York, acting for and on behalf of the New York City Housing Authority, duly acquired title on October 16, 1959 to certain real property within the area bounded generally by East 144th Street, Willis Avenue, East 143rd Street and Third Avenue (Parcel A), East 143rd Street, Willis Avenue, East 141st Street and Alexander Avenue (Parcel B), East 141st Street, Willis Avenue, East 140th Street and Alexander Avenue (Parcel C), in the Borough of The Bronx, City of New York, duly selected as a site for a federally aided public housing project known as Mott Haven Houses (Project No. N.Y. 5-44) and duly approved according to law. A first, separate and partial final decree has heretofore been entered herein in connection with a number of adjusted fixture claims. The trial of the balance of the fixture claims in this proceeding has been adjourned since die. This decision involves all of the fee claims in the proceeding. The court, having made the prescribed statutory view, and after due consideration of all of the evidence and the exhibits and appraisals of the claimants and the City of New York, makes the following fee awards:
Damage Parcel Total Award
-------------------------- -----------
2 $ 25,000
3, 4, & 5 60,500
11 21,000
12 35,000
13 19,000
17 30,000
23 14,500
28 See opinion following
30 13,500
36 13,000
37 12,000
39 29,000
42 104,000
43 65,000
44 70,000
46 30,000
47 30,000
48 22,000
54 17,500
56 24,500
61 18,000
62 16,500
68 55,000
71 10,000
72 12,000
79 17,000
81 18,500
83 and 83A 16,500
84 and 84A 29,000
86 14,500
87 13,500
88 16,000
89 17,500
91 21,500
93 10,500
97 16,000
98 14,000
102 32,000
103 20,000
110 13,000
112 10,500
114 19,000
117 11,000
118 11,000
121 16,500
124 17,000
125 21,500
129 11,500
135 12,000
In addition to the foregoing fee awards, an award in the stipulated sum of $800 is made to John Doyle for his leasehold claim with respect to Damage Parcel 16. This parcel was purchased prior to title vesting by the New York City Housing Authority and in accordance with the stipulation of all parties, this award is to be paid to the claimant by the Housing Authority and not by the City of New York.
Damage Parcel 28 is improved with a two story brick commercial building. The issue to be determined with respect to this parcel is the correctness of the appraisal theories used by the respective experts for the fee claimant and the City of New York.
At title vesting the property was leased in its entirety for a term of 21 years, expiring in 1970, at an annual net rental of $4,000. The lessee was also granted two renewal options of 21 years each at a maximum net rental of $4,500 for the first renewal period and $5,000 for the second renewal period. The lessee had sublet the entire property to various store tenants. The claimant's expert has submitted an appraisal of $130,000 that is based on a capitalization of the estimated net income derived from the claimed actual gross rentals of $17,760 paid by these subtenants. However, it should be noted that with respect to the actual rents paid, he conceded on cross-examination that one of the store tenant's leases had been modified prior to vesting by a reduction of annual rental from $3,600 to $1,800. Adopting his own theory of appraisal, this would accordingly reduce his appraised valuation unless the sum of $17,760 be adopted as the fair rental value of the property. The City's expert based his valuation of $75,000 on a capitalization of the net rental of $4,000 received by the fee owner from the prime tenant over the possible remaining term of 53 years under the prime lease. On cross-examination, on the assumption that $17,760 was the fair rental value of the entire property, he testified his appraisal of the entire property on a free and clear basis would be $98,000.
Thus it appears the claimant's expert has appraised the property as an entity, free and clear of the encumbrance of the lease and the City's expert, on instruction from the Corporation Counsel, has appraised the property on the basis of the interest of the owner-lessor as encumbered by the lease and has included no allowance for the lessee's interest in the property.
The lessee in the instant case has filed no claim for the value of his leasehold interest. In this regard the lease in evidence contains a unique and unusual provision with respect to condemnation . After...
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