Penn Central Transportation Co. v. New York City
United States Supreme Court
438 U.S. 104 (1978)
New York City's Landmarks Preservation Law designated Grand Central Terminal, owned by Penn Central Transportation (plaintiff), as a historical landmark; after leasing the airspace above the terminal to a developer for fifty years, expecting significant additional annual revenue, Penn Central sought city approval to build an office tower above the terminal, but the city's Landmarks Commission denied the application after lengthy hearings, citing the terminal's landmark status. Penn Central sued, alleging the denial constituted an uncompensated taking under the Fifth and Fourteenth Amendments; New York's trial court granted an injunction (without damages), but the state's highest court reversed, finding the law served an important public purpose, and Penn Central appealed to the U.S. Supreme Court.
Whether a landmark-preservation regulation that prevents a property owner from constructing a profitable addition above an existing landmark building constitutes a regulatory taking requiring just compensation under the Fifth and Fourteenth Amendments.