Real Estate & Property Law

Developer Scams

By Alan Ackerman

Boston.com

During the meeting, Elsbree said Menino reiterated his earlier threat that the city will consider taking the property by eminent domain or revoking its building permits if Vornado and its Boston Partner, Gale International, do not resume construction soon.

Menino initially made that threat after Roth told an audience of architecture students at Columbia University earlier this month that he once allowed redevelopment of Alexander's department store in New York to languish because he believed the delays would make public officials more willing to provide funding for the project.
   
Here is one of those rare situations in which the developer admits that it attempts to force the community into putting up more money and taking more of the risks.  The developer, Steven Roth of Vornado Realty Trust humbled himself with an apology to the City.  However, the underlying fact is the developer waits to maximize its profit at the community's expense.
   
This is but an example of why there is such a public outrage with private developments utilizing the condemnation power.  Yet, many cities need the eminent domain power to properly approach long term planning. 

Full post as published by National Eminent Domain Blog on April 02, 2010 (boomark / email).