Coney Island, NY – Bloomberg Might Seize Private Beachfront Land Through Eminent Domain

Coney Island, NY – The Bloomberg administration’s $2.5 billion plan for revitalizing Coney Island might require seizing beachfront land through eminent domain after all – especially now that negotiations to purchase property needed to build a new boardwalk amusement park have stalled.

City officials have said for more than a year that condemning land isn’t an option for steam rolling forward with the mayor’s ambitious 47-acre rezoning plan for the rundown seaside area.

But hidden deep within the draft of the plan’s nearly 1,000-page environmental impact statement – which the city submitted to kick off a public review — is language saying otherwise.

It states that boardwalk land needed to create a new 9.39-acre outdoor amusement park, a 1.4 acre neighborhood park and new streets to better connect Coney Island landmarks “could be acquired through condemnation, as necessary.”

Seth Pinsky, president of the city’s Economic Development Corp., said that despite what the document says the administration still doesn’t “think [eminent domain] will be necessary,” adding he believes deals will eventually be reached to buy the private land needed.

The city had hoped to have land-sale agreements in place before the zoning plan’s public review process is completed this summer.
But that could be difficult considering “there are no ongoing talks whatsoever” between the city and Joe Sitt, the amusement district’s primary landowner, said Sitt spokesman Stefan Friedman.

The city wants to buy Sitt’s 10.5 acres of beachfront land – including the former Astroland Park site – but both sides remain far apart.

Sitt wants $200 million to $250 million – about double what he paid accumulating it over the past few years, sources said. The city wants to pay roughly $110 million.

The developer and the city have been locked in a ongoing game of chicken over Coney Island’s future for three years with the city refusing to give the developer zoning changes necessary to build a $1.5 billion Vegas-style amusement and entertainment complex that included controversial high-rise condos.

The battle has left the amusement district a war casualty, with much of Sitt’s land there now vacant or hosting temporary attractions that haven’t been popular.

Because of this, many New Yorkers have actually called on the city in public meetings to take Sitt’s land through eminent domain – a rare example in the Big Apple of suport for the controversial tactic.

But the Municipal Art Society, which has been critical of both the city and Sitt’s vision for Coney Island, says eminent domain should be a last resort because it would delay the area’s revival even further – including the tens of thousands of jobs that could be created – by having the plan drag out in the courts.

Jasper Goldman, a MAS spokesman, said the organization believes the city should own the amusement land – not private developers – and is hopeful a deal can be reached with Sitt and the other landowners.
Pinsky said the city “remains open to discussions with all the landowners.”

One landowner, Kansas Fried Chicken king Horace Bullard, said that he’s “leaning toward” selling the three-acre former Thunderbolt roller coaster site to Sitt for $91 million, saying the city’s offer is “too low.” Some city sources, however, speculate that Sitt is willing to pay extra to help drive up the price on his own land.

The outdoor amusement park would be part of a 27-acre “entertainment and amusement district” that would also include indoor rides, games and other entertainment and high-rise hotels.

Many Coney Islanders, however, want to see a larger amusement area – saying up to 61 acres is now zoned for rides in the area, although city officials are quick to point out that just few precious acres now offer them.

The city plan also includes erecting 4,500 units of new housing north of Surf Avenue and west of Keyspan Park — roughly 900 of which would be affordable units – and 500,000 square feet of neighborhood retail.