Village threatened with second lawsuit for downzoning from 12 to 3 stories
July 14, 2023 at 3:19 p.m.
As foreshadowed by Trustee Joe Carvin a few weeks ago in discussing the Notice of Claim filed against the Village of Port Chester and the Port Chester Board of Trustees by the owners of 28 and 34 Pearl St., another such Notice has been received by the Village, this one on June 29.
The claimant this time around is New Broad St., LLC, the owner of property located at 33 New Broad St. In this Notice of Claim, the precursor to a lawsuit, New Broad St., LLC is seeking damages of more than $45 million for property carrying costs, punitive damages for intentional and malicious acts, damages to business reputation, damages for lost opportunity costs and profits, lost equity opportunities, loss of favorable financing terms and conditions, loss of revenue from timely occupancy, loss of potential tenancies, loss of years of earnings, loss of credit and other financial loss including attorneys’ fees.
New Broad St., LLC, represented by authorized signatory Howard Ravikoff, has a similar beef with the village and Board of Trustees as the owners of 28 and 34 Pearl St. New Broad’s Notice of Claim states that the “Planning Commissioners, multiple CD-4 Committee members and others…met and conspired and tortiously interfered with Claimant’s property rights and prospective development of the Premises without any legitimate reason or justification.”
In so doing, they “have advanced a strategic effort against Claimant with the goal of substantially limiting Claimant’s future use, sale and/or development of the Premises without any sound justification” and “have imposed and continue to impose harm and generate cognizable damages upon Claimant.”
Their claim arose from the Board of Trustees adopting Local Laws I-18 and I-19 of 2022 at a meeting on Apr. 3, 2023. These laws amend the height restriction from a maximum height of 12 stories to a maximum height of three stories at 33 New Broad St.
There is currently a one-story structure called The Premier Building housing numerous commercial tenants at that location, and no plans have been submitted to the village for redevelopment of the site.
Prior to that meeting, the location was classified in the CD-6 Urban Core Character District which permits buildings with a maximum height of 12 stories.
In a minority vote, Trustee Carvin and Trustee Juliana Alzate voted against adopting the local laws. Carvin warned the Board of Trustees that they were risking lawsuits.
“I think this area should be removed from what was originally the scope of work and stay within that CD-4 area,” said Trustee Alzate. “This area does need to be addressed but should be addressed separately. Get the CD-4 area addressed and then move on to this area. We should take a step back.”
She referred to the Pearl Street and New Broad Street area which is to date the subject of two Notices of Claim against the village and Board of Trustees.
Originally a board-appointed CD-4 Committee, of which Ravikoff was a member, studied the CD-4 zone, the largest character district in the form-based zoning code, over many months and recommended changes. The village board subsequently did further review of adjoining zones.
On Jan. 5, the Board conducted a meeting, “the outcome of which was the establishment of a new zoning district called CD-4MU,” states the New Broad St., LLC Notice of Claim. “However, no notice, agenda item or agenda backup was provided giving any indication that a CD-4MU District was being considered.” Before this, draft zoning maps designated a CX district rather than a CD-4MU District.
According to minutes of the Jan. 5 meeting, the Board went into closed session where they reviewed proposed amendments to Local Laws I-18 and I-19 to establish the new CD-4MU District without notice to or input from the Claimant who, among others, owns property in the district.
The new zoning downzones 33 New Broad St. from the existing CD-6 District which permitted the development of a 12-story building to a district allowing development of a building with a maximum of three stories.
The Notice of Claim points out that other areas of New Broad Street would not be affected by this new CD-4MU District.
When the local laws were adopted on Apr. 3, 33 New Broad St. was rezoned from CD-6 to the new CD-4MU District. “In adopting the Local Laws, the Board acted…contrary to law when it included Claimant’s Premises as part of the CD-4MU District,” the Notice of Claim states. The Board, the Notice adds, adopted the Local Laws “without Claimant’s input, a basis in sound, empirical evidence, and in violation of the New York State Environmental Quality Review Act.” In addition, the rezoning of 33 New Broad “constitutes unconstitutional spot zoning.”
Ravikoff spoke on behalf of 33 New Broad St. at the public hearing on changing the zoning at the Apr. 6 meeting. “I don’t know why the proposed changes to CD4-MU are better than what is now CD-6,” he said. “None of those discussions were made in public. The CD4-MU at 33 New Broad St. is spot zoning. You didn’t propose to change the zoning at 29 New Broad St. and 5 New Broad St.”
Ravikoff also spoke as a member of the CD-4 Committee. “The CD-4MU is not a product of that process,” he said. “You know what it looks like making all those changes behind closed doors.”
“We have addressed this ad nauseum, we have heard from the public numerous times,” countered Trustee Bart Didden. “It’s clear to me the preservation of our neighborhoods is of the utmost importance. This is at the center of our responsibility.”
“I feel Mr. Ravikoff’s pain and concern,” responded Trustee Phil Dorazio, “but to say we did this behind closed doors is offensive. We talked about this at our agenda meetings.”
No one is commenting
No one chose to comment on this latest threat of a lawsuit.
A voicemail left at Ravikoff’s office requesting comment was not returned.
Mayor Luis Marino sent a text message Wednesday afternoon that he had no comment at this time on behalf of the Board of Trustees.
Village Attorney Anthony Cerreto said late Wednesday he could not comment and that Brian Sokoloff of Sokoloff Stern in Long Island was handling the cases.
Among other things, the Board of Trustees will be discussing pending litigation in closed session with Corporation Counsel Peter Sisca at their specially-called meeting on Monday, July 17, none of which will be held in public.
Just like with the previous Notice of Claim by the owners of 28 and 34 Pearl St., it’s possible that this one could be resolved among the parties and no lawsuit will be filed.
The Board of Trustees has been advertising for members of a CD-5 and CD-6 Committee to continue studying and making recommended changes to the village’s form-based zoning code adopted in May 2020.
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