On Dec. 7, 2016, the Appellate Division, Second Department, handed down Monroe Equities v. State of New York, 2016 NY Slip Op 08206, granting the drastic remedy of summary judgment to the defendant. The decision addressed the contention that the application of watershed regulations constituted a per se taking under Lucas v. South Carolina Coastal Council, 505 U.S. 1003, requiring compensation under the Takings Clause of the U.S. Constitution because claimant was deprived of all economically beneficial use of its property. The Second Department affirmed dismissal of a claim for damages.
The facts are relatively simple. Monroe Equities, LLC acquired title to an undeveloped 16.8 acre parcel of real estate in Monroe, N.Y. The property owner filed for approval to develop the property by subdividing it into three lots and constructing a single-family dwelling on each lot. The proposal included installation of a septic system for each of the three dwellings. But the property was subject to watershed protection regulations which were adopted in 1920. These regulations prohibited the placement of a subsurface sewage disposal system within 300 feet of Lake Mombasha. The subdivision application was denied by the Town Planning Board.
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