ELR Citation: ELR 20781
No(s). 73-2329 (2d Cir. Sep 19, 1973)

The court affirms denial of a preliminary injunction against eviction and demolition by New York City on a site where plant expansion is planned by a private company with a loan commitment from the Economic Development Administration of the Commerce Department. EDA failed to file an impact statement, but the city will receive no federal funds, and the court finds that the nexus between the city and EDA regarding the expansion project is insufficiently proximate to warrant restraint of the former for lack of NEPA compliance by the latter. The question of whether, under other circumstances, a non-recipient of a loan may be found in partnership with the federal government for the purposes of NEPA is left undecided. Approval of the loan application was a major federal action, and it is probable that an impact statement will be required prior to any construction by the company using EDA funds. A preliminary injunction is unnecessary, however, since no irreparable harm from construction can occur prior to disbursal, which will most probably take place after trial of the EIS issue has been held.

Counsel for Plaintiffs
Peter Smith III
Shea, Callop, Climenko & Gould
330 Madison Avenue
New York, NY 10017

Thomas A. Burns
400 Forest Avenue
Staten Island, NY 10301

Counsel for Defendants
Sanford I. Freedman Corporation Counsel
Municipal Building
New York, NY 10017

George Weller U.S. Attorney
225 Cadman Plaza East
Brooklyn, NY 11201

Joseph F. Seminara
Goldstone, Wolff & Friedland
515 Madison Avenue
New York, NY 10022