Home -> Law Blog Directory -> Real Estate & Property Law Blogs -> New York Zoning and Municipal Law Blog

Real Estate & Property Law

: New York Zoning and Municipal Law Blog

City's Extension of Credit to Purchase Ferry Service Was Not Illegal

By Steven Silverberg and Katherine Zalantis

The Appellate Division Fourth Department dismissed a challenge to the City of Rochester using its credit to purchase a ferry service. In Matter of Summers v. City of Rochester, the court dismissed the claim on the grounds of laches but then went on to analyze the City's actions under the N.Y Constitution and Local Finance Law and found its action valid. When a private ferry service between Rochester and Toronto was a discontinued the City formed a limited liability company, the Rochester Ferry Company LLC (RFC) owned solely by the City, for the purpose of acquiring and operating the ferry. In 2005, the City entered into a guarantee and indemnity agreement (guarantee) with a third party, Export Finance, in order to guarantee the issuance of a mortgage for RFC to purchase the ferry...continue to full post

Full post as published by New York Zoning and Municipal Law Blog on March 24, 2009 (boomark / email).