Matter of City of New York (New Mun. Bldg.)

In Matter of City of New York (New Mun. Bldg.) (57 Misc 2d 156, affd sub nom. Matter of City of New York [Manhattan Civic Ctr. Area], 32 AD2d 530, affd 27 NY2d 518), the claimants presented the trial court with evidence to establish that interest rates in the metropolitan New York area had generally exceeded 6% from the date of the takings in 1965. The trial court also noted that the Federal Government paid 6% interest on a condemnation award as had the State since August 1, 1966, and, in fact, held that the disparity in State and municipal interest rates in condemnation proceedings denied claimants their constitutional right to equal protection of the laws. He therefore awarded claimants interest at 4% (the applicable statutory interest rate) from the vesting dates until August 1, 1966 (the effective date of the amendment to section 16 of the State Finance Law), and at 6% thereafter until the date of payment.