[U] In Re Application Of The City Of New York

The City acquired title to the subject property, located at North Henry Street in Brooklyn (the "property"), from claimant Mobil Oil Company (Mobil) on September 19, 1997 for use as part of the Newtown Creek Water Pollution Control Plant. In its appraisal report dated February 18, 2000, Mobil valued the property at $10,330,000, assuming that the highest and best use of the property was for "big-box retail;" this conclusion valued the property at $11,098,544 and subtracted $765,000 as the cost of demolition. In its report dated December 24, 1999, the City valued the property at $1,000; after subtracting demolition costs of $2,848,615 from a value of $2,600,000, the City concluded that the property had only a nominal valuation. The City's appraiser was of the opinion that the property was in a poor location for a retail establishment.