NY State's appeal denied in Gyrodyne case

An appeals court this week dealt another blow to New York State's efforts to avoid paying an additional $98.6 million plus interest for 245.5 acres it seized in 2005 for a research park at Stony Brook University.

In a ruling this week, the Court of Appeals of the state of New York denied the state's request to appeal the case. Last year, the Appellate Division affirmed a 2010 judgment in Gyrodyne's favor. By Gyrodyne's count, the state owes it a total of $164 million for the property, including interest of 9 percent and other costs.

Michelle Duffy, a spokeswoman for New York Attorney General Eric Schneiderman, whose office is defending the state in the case, declined to comment.

Stephen Maroney, Gyrodyne's chief executive, said, "We feel extremely gratified with the Court of Appeals' denial of the state's motion, which, hopefully, signals an end to the state's challenges in this litigation. We now look forward to collecting the award to which Gyrodyne and its shareholders are entitled."

Gyrodyne brought the claim in April 2006, seeking "just compensation" for the 245.5 acres known as Flowerfield in St. James and Stony Brook. The state seized the property in November 2005 under eminent domain, paying the company $26.3 million. The company treated the payment as an advance while pursuing the balance it claimed was the real value of the property.