Penn Central Transportation Company V. City of New York

Penn Central Transportation Company v. City of New York

CASE SUMMARY

The New York City had adopted its Landmarks Preservation Law in 1965. It empowered the city to designate certain structures and neighborhoods as "landmarks" or "landmark sites." Penn Central, which owned the Grand Central Terminal, was not allowed to construct a multistory office building above it. The Trial Court supported the Penn Central. The Appellate court reversed. The New York Supreme Court and the US Supreme court affirmed the Appellate court.

FACTS

In 1965 New York City had adopted a landmark preservation law, which was mainly aimed at protecting landmarks and historic sites. Under this law certain areas or buildings of historic importance was classified as a ‘landmark’ or a ‘landmark site’. The law imposed restrictions to those who owned historical buildings. The law stated that these owners had to maintain the exterior of the building. They could not modify the exterior of the building without the approval of a Commission Board. The Commission would have to grant a certificate saying that the construction would not A) alter the exterior of the building, or that B) the alterations would be "appropriate”. The law allowed for judicial review when the Commission didn't approve an alteration.

Penn Central owned Grand Central Station in NYC, which had been designated as a landmark under the preservation law. In mid-1968, Penn Central partnered with UGP to allow UGP to construct a multistory office building above the terminal. UGP promised to pay $1M for each year of construction and $3M for each year thereafter. Penn central unveiled two designs by Marcel Breuer, one of which would potentially be built atop Grand Central Terminal. The first design (Breuer I) was a 55-story tall office building to be constructed on top of Grand Central. That building was to be cantilevered above the existing structure allowing Grand Central to maintain its facade. The second design (Breuer...