Penn Central Transportation Co. v. City of New York case brief

Penn Central Transportation Co. v. City of New York (1978)

Facts: NYC Landmarks Preservation Commission refused to approve plans to construct a 50-story office building over Grand Central Terminal, which was designated as a “landmark”. Terminal owner filed a taking challenge to the law.

Issues: until Lucas, these were thought to be the issues in a regulatory takings case.

1. economic impact
2. character of the government’s action—physical invasion, regulatory to the extent of rendering the property useless

c. extent to which the regulation interfered w/ “investment-backed” expectations.

Analysis: Court said must look at economic impact of the regulation, the extent that the regulation interferes w/investment-backed expectations, and the character of the governmental action.

Holding: NYC law doesn’t interfere with present uses of the terminal, thus terminal’s expectation as to the use of the land is kept intact. The regulation did not prevent owners all profitable use of the building.