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Title: NEW YORK COURT RULES CITY MUST PAY COSTS OF RELOCATING UTILITY FACILITIES REQUIRED BY CLOSING OF STREET IN CONNECTION WITH URBAN RENEWAL PROJECT WHICH WAS A PROPRIETARY FUNCTION
Accession Number: 00238608
Record Type: Component
Abstract: THE CITY OF BINGHAMPTON ACQUIRED LAND AND CLOSED A STREET, NECESSITATING THE RELOCATION OF LINES BELONGING TO A TELEPHONE COMPANY. THE ACQUIRED PROPERTY WAS CONVEYED TO A LIMITED DIVIDEND CORPORATION FOR DEVELOPMENT OF A HOUSING PROJECT TO BE FINANCED PURSUANT TO THE NATIONAL HOUSING ACT. THE CLOSING OF THE STREET WAS ADMITTEDLY NOT FOR HIGHWAY PURPOSES. THE ISSUE AS TO WHO PAID THE RELOCATION COSTS DEPENDED ON WHETHER THE RENEWAL PROJECT CONSTITUTED A GOVERNMENTAL FUNCTION OR A PROPRIETARY ONE. THE COURT HELD THAT WHILE THE URBAN RENEWAL PROJECT WAS IN THE PUBLIC INTEREST, THE FACT THAT THE PROPERTY WAS TO BE USED FOR A PUBLIC HOUSING PROJECT, BUILT AND OPERATED BY A PRIVATE CORPORATION, DICTATED THAT THE CITY'S ACTION BE REGARDED AS PROPRIETARY IN NATURE. THE COURT COULD PERCEIVE NO BASIS UPON WHICH IT COULD SAY PUBLIC HOUSING SHOULD BE CONSIDERED A GOVERNMENTAL FUNCTION, PARTICULARLY WHERE, AS HERE, THE ULTIMATE BENEFACTOR WAS A PRIVATE CORPORATION. THERE WAS NO JUSTIFIABLE REASON WHY ONE PRIVATE CORPORATION SHOULD SUSTAIN DAMAGE THAT WOULD INCUR TO THE BENEFIT OF ANOTHER PRIVATE CORPORATION. THE CITY WAS, THEREFORE, ORDERED TO PAY THE TELEPHONE COMPANY THE RELOCATION COSTS. (NEW YORK TEL. CO. V. CITY OF BINGHAMPTON, 261 N.Y.S.2D 583 JULY 1965)
Supplemental Notes: No 21, pp 4-5. Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved.
Publication Date: 1966-5
Serial: Media Type: Digital/other
TRT Terms: Uncontrolled Terms: Old TRIS Terms: Subject Areas: Finance; Highways; Law
Files: TRIS, TRB
Created Date: Feb 10 1994 12:00AM
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