places and certainly, restaurants selling beer or liquor, but these establishments will play an important role in supporting a new mix of uses: theaters, first-class offices, a hotel, and wholesale mart.”1
An integral part of the Project is the reconstruction and improvement of the Times Square subway station, currently one of the busiest but also one of the most poorly-organized and crime-ridden in the transit system. The FEIS estimated that the Project would generate more than $650 million in additional real estate taxes to the City by the year 2005 and would add 21,000 net jobs to the Project area.
The UDC’s Board of Directors approved the FEIS on October 4, 1984. After holding public hearings on the plan, the City’s Board of Estimate approved it on November 8, 1984. The UDC published the findings required by the Eminent Domain Procedure Law on November 15 and 16. After all necessary requirements have been completed, the UDC intends to acquire the property needed to effectuate the Project.
In the meantime, on October 19, 1984, the four plaintiffs in this action, all of whom sell sexually-oriented books and magazines, films and video tapes, or exhibit and present sexually-oriented films, tapes, dances, or performances, filed their complaint. Count I concedes that “all [businesses] located in the Project area will be removed by the condemnation,” (Ml 8, 27) but asserts that the various Project documents indicate that only businesses of the sort plaintiffs operate will not be permitted to relocate in the Project’s retail locations (MI 8, 27, 95).
The complaint alleges that the governmental actions destroying plaintiffs’ property but denying them the right to relocate, which plaintiffs contend are merely a continuation of selective enforcement of various laws against them in recent years, constitute an unconstitutional prior restraint, a classification of speech on the basis of content in violation of the First and Fourteenth Amendments, and an impermissible retroactive destruction of First Amendment rights.
Count II of the complaint alleges that since the Project documents fail adequately to establish that plaintiffs’ businesses contribute to dangerous conditions in the area no justification exists for the UDC’s use of its eminent domain power against them, and that condemnation is improper because the “less drastic means” of “police sweeps” could be used to reduce crime in the Project area. The complaint seeks $12 million in damages, a declaration that the Project violates plaintiffs’ constitutional rights, a preliminary and permanent injunction, and reasonable attorney’s fees.
Appellees moved to dismiss the complaint pursuant to Rule 12(b)(1) & (6), Fed.R. Civ.P., on ripeness and abstention grounds; the private developers urged that they were not properly joined as defendants in the action. In affidavits accompanying the motions to dismiss, defendants Sturz (Director, New York City Department of City Planning, and Chairman, City Planning Commission) and Stern (Chairman, UDC) denied that any arbitrary use restrictions would be imposed to prevent plaintiffs from relocating in the retail establishments in the Project area after the condemnation and redevelopment process is completed.
Chief Judge Motley heard oral argument on the motions on December 12, 1984. Although the motions had been fully briefed and submitted by the date of the hearing, appellant was given an opportunity to submit additional sur-reply papers. By decision and order dated February 5, 1985, the district court converted defendants’ Rule 12(b)(6) motion to one for summary judgment, granted judgment in favor of defendants and denied plaintiffs’ motion for preliminary injunctive relief. The district court noted that “by and large, plaintiffs do not challenge the essential factual con
1
At the December 12, 1984 hearing on defendant’s motion to dismiss, defendants argued that any FEIS statements suggesting that businesses of the sort run by plaintiffs would be excluded from the Project’s retail establishments upon completion of the Project were merely "predictions" as to what mix of uses would be produced by independent market forces.