Orbach v. New York State Urban Development Corp.
Petitioners, including Mets Parking Incorporated and individual property owners doing business as Three-0 Realty Company, initiated a CPLR 7803 proceeding against the New York State Urban Development Corporation (UDC). They sought to compel UDC to comply with the Urban Development Corporation Act (UDCA) regarding a multi-million dollar 42nd Street Development Land Use Project in Manhattan. Petitioners alleged that a public hearing held by UDC on August 3, 1981, was insufficient because no UDC directors or authorized agents were present to listen or respond to public comments, thereby denying their procedural rights. The court found that UDC improperly delegated its power by appointing a hearing officer whose functions were limited to recording and transmitting comments without authority to hear and respond on behalf of UDC, thus denying petitioners a full and fair public hearing. Consequently, the court granted petitioners' motion to the extent of directing UDC to promptly hold another public hearing in full compliance with section 16 of the UDCA.