Gyrodyne wins round in fight for $98.7M

A state appeals court has agreed with a lower court decision granting Gyrodyne Corp. $98.7 million more than New York State paid the company after condemning 245 acres for a research park adjacent to Stony Brook University.

The Appellate Division decision last week also ordered the state to pay $1.5 million in court costs and 9 percent interest over the six years on the $125 million the court confirmed as the value of the property.

The decision means the research park will have a considerably higher price tag than the $26.3 million the state paid St. James-based Gyrodyne after condemning the land in 2005. Last year, Gyrodyne estimated the interest alone at more than $42 million.

After years of legal challenges by Gyrodyne, the state Court of Claims in June 2010 ruled in the company's favor, agreeing with company assessments that the property known as Flowerfield had a value of $125 million.

"We feel extremely gratified by the Appellate Division's affirmation," Gyrodyne chief executive Stephen Maroney said in a statement.

In an interview, Maroney pointed to the "very clear, unanimous decision" by four appellate division judges and said the lower court's decision was affirmed "in a very strong way."

It remains unclear whether the state will appeal the case to the state Court of Appeals.

Lauren Passalacqua, a spokeswoman for Attorney General Eric Schneiderman, whose office is arguing the case for the state, said attorneys were "still reviewing the decision" and declined further comment.

Lauren Sheprow, a spokeswoman for Stony Brook University, also declined to comment.

David Henahan, a spokesman for the State University of New York, said, "At the present time, SUNY is exploring and reviewing its legal options."

Marone in his statement said the company would continue to "diligently" pursue its rights in the case "until its final resolution and collection of the award to which Gyrodyne and its shareholders are entitled."

The Stony Brook Research Park was born of grand visions for not just the two current buildings -- a wireless technology center and an advanced energy center -- but also a nanoscience center, a computational and neuroscience center, a research and development "partners" center, a software incubator and a competitiveness institute.

The park's website no longer lists the other projects, saying there are "no current projects to list," other than the renovation of a 43,000-square-foot administrative building.

The state paid $50 million to build the Center of Excellence in Wireless and Internet Technology, and another $35 million to build the Advanced Energy Research and Technology Center, which was completed this year.