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Gyrodyne Gets $167.5M in Lawsuit Against New York State

Payment stems from company's claim that the state undervalued the land it annexed in 2005.

New York State on Tuesday paid St. James-based Gyrodyne Co. of America a $167.5 million settlement as the completion of the company's lawsuit against the state for undervaluing the land it annexed via eminent domain, according to a report published Thursday in Long Island Business News.

In 2005, the state condemned about 245.5 acres of Gyrodyne's land at its Flowerfield site, paying the company $26.3 million. In 2006, Gyrodyne filed suit.

The property, where the company used to build helicopters until that operation closed in 1975, is now home to Stony Brook University's Center of Excellence in Wireless and Information Technology and .

State courts ruled in favor of Gyrodyne and later denied the state's request for an appeal. According to LIBN, the award includes $98.68 million in damages, $1.47 million for expenses, disbursements, and costs, and $67.34 million in interest.

Gyrodyne still owns 68 acres of land at the site, consisting of undeveloped property and industrial and office buildings, according to the report.

Click here to read the full story from Long Island Business News (subscription required).

Gravy Train Author July 06, 2012 at 12:56 AM
The plan by SUNY Stony Brook to seize the Flowerfield property was a monumental waste of our money. How come no one from SUNY Stony Brook was fired over this mess. Taxpayers and the business community struggle for survival on Long Island while those employed by NYS continue to squander our money away. The settlement funds should come directly from the salaries and pensions of the SUNY Stony Brook employees involved in this misguided venture.
Tony Vitale July 06, 2012 at 11:22 AM
Your anger should be directed at the court who is valuing the land much higher then it is worth. The money paid by the University was based on the industrial zoning at the time. Gyro dyne claims it should be paid on Residential estimate which it never was nor could be. Besides the income the university brings to the community far outweighs the sale price Have you seen what SB is doing on that property ?
Argile July 06, 2012 at 01:13 PM
The real question is, who get's stuck with the check?
Sticks60 July 06, 2012 at 11:06 PM
There are two problems here. First is the NY State deal to buy something without a mutually agreed upon price. Second is the fact that so far there has been no real development of the property because LI is too expensive to create startups when compared to any other part of the country. In addition it is almost impossible to get any thing accomplished with the state and local governments wanting to check things twenty times over so there is no errer when they recreate an atmosphere of no progress.
Property Rights Triumph! July 07, 2012 at 07:53 PM
LOL, blame the court FOR UPHOLDING PROPERTY RIGHTS? You Must be a liberal Tony!

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