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Overcast $50 million Haberman lawsuit takes a twist
Council president claims officials were unaware of settlement agreement
A Zoning Board of Appeals trustee claims that the city’s corporation counsel, Corey Klein, was not authorized to approve what the zoning official called a “terrible” stipulation agreement with a developer who is suing the city and the zoning board for $50 million, saying that members of the City Council, zoning board and administration were unaware of the agreement until after it was signed.
According to court documents, under the terms of the agreement, the developer, Sinclair Haberman, can seek the zoning board’s approval for a revised project on Shore Road, between Monroe and Lincoln boulevards, that would include two 19-story apartment buildings instead of a previously proposed trio of 10-story structures, a project that dates back to the 1980s but has become mired in litigation against the city.
In 2012, a ruling by the Appellate Division of the State Supreme Court in Nassau County paved the way for Haberman to move forward with a suit against the city, alleging that the zoning board bowed to political pressure from unit owners at the adjacent Sea Pointe Towers, at 360 Shore Road, when it revoked Haberman’s building permits in 2003, after tenants claimed that their views would be obstructed by the buildings, among other issues.
The city attempted to resolve Haberman’s suit last year. Based on a mediator’s recommendations, both parties agreed to enter into a “stipulation of settlement” in Nassau County State Supreme Court last December. The stipulation, signed by Klein and an attorney for Haberman in March, called for a public hearing before the zoning board. If the board denied the application, Haberman could continue with the lawsuit. If the board granted the application, Haberman would agree to drop it.
However, the city recently said that it was no longer pursuing the agreement. In July, the council hired two law firms — each at a rate of $250 per hour — to defend the city, the zoning board and city officials, and to assess the status of the suit. The city is now working to have the settlement vacated in State Supreme Court.
