Paterson Could Derail Development

If David Paterson as governor displays the opposition to eminent domain that he showed as a state senator, several high-profile development projects in New York City could be derailed or delayed, including a Columbia University expansion, the Atlantic Yards project in Brooklyn, and the transformation of Willets Point in Queens.

As a state Senate leader, Mr. Paterson in 2005 held a rally with Council Member Letitia James and state Senator William Perkins on the steps of City Hall during which he called for a statewide moratorium on the use of eminent domain.

Mr. Paterson said a decision handed down by the Supreme Court in the Kelo v. City of New London case could lead to a "gold rush" of eminent domain use across the state, The New York Sun reported at the time. He said he would gather legislators and introduce legislation to impose a moratorium on its use.

"He stood with me and proposed some legislation and I am very hopeful that the lieutenant governor and soon-to-be governor will honor his commitment and will either issue a moratorium or review the abuse of eminent domain across New York City," Ms. James said yesterday in an interview.

Ms. James's district is in Brooklyn, and she opposes developer Bruce Ratner's $4 billion Atlantic Yards project near downtown Brooklyn, which would require use of eminent domain.

Mr. Paterson's opposition to eminent domain could also pit him against Mayor Bloomberg, who has defended its use. "You would never build any big thing any place in any big city in this country if you didn't have the power of eminent domain," Mr. Bloomberg once said.

A moratorium on eminent domain "would be shocking," a developer, who declined to speak for attribution before any official action was taken by Mr. Paterson, said. "It would be really out of left field and send a very scary message."

At the time of the rally, Mr. Paterson was a state senator whose Harlem constituents were concerned about the expansion of Columbia University.

The Supreme Court had just ruled that the use of eminent domain for economic development did not violate state and federal constitutions.

Mr. Perkins, who assumed Mr. Paterson's seat when the latter became lieutenant governor and considers Mr. Paterson a friend, said he hadn't had a chance to discuss the issue with Mr. Paterson but was "very confident that we are going to work well together."

A spokesman for Mr. Paterson was unavailable for comment yesterday.

The president of the Real Estate Board of New York, Steven Spinola, said he was not very concerned about the issue, and that other pressing needs such as resolving the state budget would dominate the agenda for now.

"It would clearly be a mistake for the state to give up one of its powers to get public improvement projects off the ground," said Mr. Spinola.

Instability in Albany is a concern to developers, as Governor Spitzer, the scion of a large New York real estate family, had been viewed as a friend to the industry. The assumption of power by Mr. Paterson comes at a precarious time for the development and construction industries, and developers say it is difficult to gauge how development-friendly Mr. Paterson will be.

"I don't believe he has a built in prejudice against economic development or development. It is still premature to try to figure out what he is going to do but he is somebody we have been able to work with for 20 years when he was in the state Senate," Mr. Spinola said.

At a press conference yesterday Mr. Paterson was asked how his policies differed from Mr. Spitzer's. His response suggested that positions he previously held had not changed very much.

"There are some points of view I guess that I've changed over the years, but I'm pretty much the same person," he said.

Mr. Ratner is planning to build a basketball arena and 16 mostly residential towers on 22 acres in Prospect Heights. The plans would remake the low-rise neighborhood with 8 million square feet of development, including more than 6,000 apartments, "affordable" housing, and office and retail space in a complex designed by architect Frank Gehry.

A spokesman for Forest City Ratner declined comment.

Other projects that would be affected include the $7 billion proposed expansion of Columbia University over the next 25 years, which would extend the campus with glass-walled buildings, tree-lined streets, and student dormitories in Upper Manhattan. There is also the Bloomberg administration's $3 billion plan to turn 75-acre site near Shea Stadium in Queens — known as Willets Point — into a destination retail and entertainment facility.

Both plans would likely call for the use of eminent domain.

A spokeswoman for Columbia University said the University is hoping to reach agreements with all of the commercial property owners that could be affected.