News Release - City and Midtown Rochester Properties, LLC Settle Condemnation Case

City of Rochester

News Release

(Friday, Oct. 7, 2011) – Mayor Thomas S. Richards today announced that the City and Midtown Rochester Properties, LLC (Midtown) have resolved the litigation relating to the condemnation of the Midtown Plaza properties. The parties have agreed not to appeal the ruling of Acting Supreme Court Justice Renée Forgensi Minarik, which established $9.752 million as the value of the properties.

Rochester City Council approved the condemnation of the Midtown properties in December 2007 and in February 2008, they approved payment of $5.9 million for the properties. Under the Eminent Domain Procedure Law, the City was mandated to pay the higher of two independent appraisals and an independent review appraisal conducted on behalf of the City. The two appraisals were conducted by Midland Appraisal Associates, Inc. and Bruckner, Tillett, Rossi, Cahill & Associates. The review appraisal was conducted by Pogel, Schubmehl & Ferrara, LLP. Midtown challenged the appraised value of the properties, seeking in excess of $18 million.

The City will pay Midtown approximately $4.82 million, which includes the additional value of the properties, interest, attorney and appraisal fees, and costs. The money will be appropriated from the City’s Insurance Reserve Fund and is subject to City Council’s approval.

“Both parties have agreed to accept the Court’s valuation of the properties,” said Mayor Richards. “The City needs to resolve this proceeding to prevent any further interest and fees. We should now look towards the future. Midtown in its former state was unmarketable. When the current demolition of the properties is completed, we will have more than eight acres of prime Center City real estate that will be ripe for development.”

Richards continued, “We will continue to focus on completing this major project, which creates six new development parcels, a like-new 1,800-space underground parking garage, new streets, a downtown park and more. I am proud of the people who are working hard to revitalize the heart of downtown. It is due to their dedication and diligence that the Midtown Rochester Rising project will be successful.”

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