MATTER OF NEW YORK STATE URBAN DEVELOPMENT CORPORATION


293 A.D.2d 354 (2002)

741 N.Y.S.2d 29

In the Matter of NEW YORK STATE URBAN DEVELOPMENT CORPORATION, as Condemnor, Appellant. ALPHONSE HOTEL CORP., Respondent.

Appellate Division of the Supreme Court of the State of New York, First Department.

Decided April 18, 2002.


We reject condemnor's argument that the virtually risk-free nature of a condemnation award warrants an interest rate in line with the rates paid by relatively risk-free short-term federal debt securities, which, according to condemnor, during the years between the instant 1994 vesting and 2001 judgment, paid an average rate of less than 6%. Rather, the statutory maximum 9% rate should be considered the appropriate and reasonable interest rate so as to bring the award into...

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