Order in the Court: Has the Tide Turned Against Developers in New York Courts?

March 23, 2020 – Media Mention
Commercial Observer

Partner in Herrick's Litigation Department, Scott Mollen, was quoted in the Commercial Observer, in an article which examines the rise of court decisions siding on behalf of local residents and community groups and against real estate developers. “There’s a clear perception that the business environment in New York State, with respect to the real estate industry, has become extremely negative,” said Scott “[t]his has very significant impacts with respect to investment and lending for real estate development....Almost every significant project in New York City, whether it be the creation of Lincoln Center, whether it be Hudson Yards, whether it be the Freedom Tower, the expansion of major hospitals or other cultural institutions, often generate some opposition[.]"

While discussing the City's appeal of the State Supreme Court Judge's decision regarding the 200 Amsterdam Avenue case, the article states Scott added, "if it stands it could send a chilling effect into the city’s real estate market as developers would be unable to tell if they’ll be able to complete an as-of-right project around the city....It would render it extremely difficult, and possibly impossible, to determine what is as-of-right zoning,...If an agency could just change its mind after a developer received a building permit and spent more than $300 million based on existing law and has done substantial work on the development then lenders, investors and developers would simply say we need to invest our dollars and create additional jobs and tax revenue and other cities where our investment is welcomed.”