On Nov. 19, 2014, the Appellate Division, Second Department, handed down Matter of City of New York (Paolella), a decision1 which involved the valuation of Staten Island Wetlands. The wetlands were condemned by the City of New York for its Bluebelt project focusing on preserving natural drainage areas. The decision is important to the consideration of all claims involving regulatory takings commonly referred to as inverse condemnation. This is the first appellate court determination on the subject of wetlands valuation in a condemnation setting in over 25 years. (The author’s firm represented the claimants.)
The City of New York has been acquiring vacant, designated wetlands property since 1998. The takings are to provide a natural solution to storm water management. According to the New York City Department of Environmental Protection webpage, the program preserves natural drainage corridors called bluebelts, including streams, ponds and other wetland areas. This allows the conveying, storing and filtering of storm water while preserving important community open spaces and wildlife habitats. It also has saved the city over $300 million in lieu of costs for constructing storm water sewers in Staten Island.
Paolella Case
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