penn central transp new york city argued april decided june new york city landmarks preservation law landmarks law enacted protect historic landmarks neighborhoods precipitate decisions destroy fundamentally alter character landmarks preservation commission commission may designate building landmark particular landmark site may designate area historic district board estimate may thereafter modify disapprove designation owner may seek judicial review final designation decision owner designated landmark must keep building exterior good repair exterior alterations made must secure commission approval two ordinances owners landmark sites may transfer development rights landmark parcel proximate lots landmarks law grand central terminal terminal owned penn central transportation affiliates penn central designated landmark block occupies landmark site appellant penn central though opposing designation commission seek judicial review final designation decision thereafter appellant penn central entered lease appellant ugp properties whereby ugp construct multistory office building terminal commission rejected appellants plans building destructive terminal historic aesthetic features judicial review thereafter sought appellants brought suit state claiming application landmarks law taken property without compensation violation fifth fourteenth amendments arbitrarily deprived property without due process law violation fourteenth amendment trial grant relief reversed appeal new york appeals ultimately concluding taking since landmarks law transferred control property city restricted appellants exploitation denial due process use terminal permitted appellants shown earn reasonable return investment terminal even terminal proper never operate reasonable profit income penn central extensive real estate holdings area must realistically imputed terminal development rights terminal made transferable numerous sites vicinity provided significant compensation loss rights terminal held application landmarks law terminal property constitute taking appellants property within meaning fifth amendment made applicable fourteenth amendment pp wide variety contexts government may execute laws programs adversely affect recognized economic values without action constituting taking instances zoning laws state tribunal reasonably concluded health safety morals general welfare promoted prohibiting particular contemplated uses land upheld regulations destroyed adversely affected real property interests many instances use restrictions served substantial public purpose upheld taking challenges goldblatt hempstead hadacheck sebastian though state statute substantially furthers important public policies may frustrate distinct expectations constitute taking pennsylvania coal mahon government acquisitions resources permit uniquely public functions constitute takings causby pp deciding whether particular governmental action effected taking character action nature extent interference property rights city tax block designated landmark site focused upon rather discrete segments thereof consequently appellants establish taking simply showing denied ability exploit superjacent airspace irrespective remainder appellants parcel pp though diminution property value alone may result zoning law establish taking appellants concede urge regulation individual landmarks different applies selected properties follow landmark laws embody comprehensive plan preserve structures historic aesthetic interest discriminatory like reverse spot zoning successfully contended designation landmark involves matter taste therefore inevitably lead arbitrary results judicial review available reason believe less effective case zoning context pp landmarks law affects landowners severely others result taking often case general welfare zoning legislation contrary appellants contention solely burdened unbenefited landmarks law extensively applied enacted basis legislative judgment preservation landmarks benefits citizenry economically improving overall quality city life pp landmarks law effects appropriation airspace terminal governmental uses zoning law appropriate property simply prohibits appellants others occupying certain features space allowing appellants gainfully use remainder parcel causby supra distinguished landmarks law interfere terminal present uses prevent penn central realizing reasonable return investment impose drastic limitation appellants ability use air rights terminal appellants claim record showing smaller harmonizing structure authorized moreover air rights made transferable parcels vicinity terminal thus mitigating whatever financial burdens appellants incurred pp brennan delivered opinion stewart white marshall blackmun powell joined rehnquist filed dissenting opinion burger stevens joined post daniel gribbon argued cause appellants briefs john bolton carl helmetag leonard koerner argued cause appellees brief allen schwartz kevin sheridan dorothy miner assistant attorney general wald argued cause amicus curiae urging affirmance brief solicitor general mccree assistant attorney general moorman peter steenland carl strass briefs amici curiae urging affirmance filed david bonderman frank gilbert national trust historic preservation et al paul byard ralph menapace terence benbow william chanler richard pershan francis plimpton whitney north seymour bethuel webster committee save grand central station et al louis lefkowitz attorney general samuel hirshowitz first assistant attorney general philip weinberg assistant attorney general state new york briefs amici curiae filed evelle younger attorney general clement shute robert connett assistant attorneys general richard jacobs deputy attorney general state california eugene morris real estate board new york justice brennan delivered opinion question presented whether city may part comprehensive program preserve historic landmarks historic districts place restrictions development individual historic landmarks addition imposed applicable zoning ordinances without effecting taking requiring payment compensation specifically must decide whether application new york city landmarks preservation law parcel land occupied grand central terminal taken owners property violation fifth fourteenth amendments past years municipalities enacted laws encourage require preservation buildings areas historic aesthetic importance nationwide legislative efforts precipitated two concerns first recognition recent years large numbers historic structures landmarks areas destroyed without adequate consideration either values represented therein possibility preserving destroyed properties use economically productive ways second widely shared belief structures special historic cultural architectural significance enhance quality life buildings workmanship represent lessons past embody precious features heritage serve examples quality today istoric conservation one aspect much larger problem basically environmental one enhancing perhaps developing first time quality life people new york city responding similar concerns acting pursuant new york state enabling act adopted landmarks preservation law see admin code ch et seq city acted conviction standing new york city tourist center world capital business culture government threatened legislation enacted protect historic landmarks neighborhoods precipitate decisions destroy fundamentally alter character city believed comprehensive measures safeguard desirable features existing urban fabric benefit citizens variety ways fostering civic pride beauty noble accomplishments past protecting enhancing city attractions tourists visitors support ing stimul ating business industry strengthen ing economy city promoting use historic districts landmarks interior landmarks scenic landmarks education pleasure welfare people city new york city law typical many urban landmark laws primary method achieving goals acquisitions historic properties rather involving public entities decisions affecting properties providing services standards controls incentives encourage preservation private owners users law place special restrictions landmark properties necessary feature attainment larger objectives major theme law ensure owners properties reasonable return investments maximum latitude use parcels purposes inconsistent preservation goals operation law briefly summarized primary responsibility administering law vested landmarks preservation commission commission broad based agency assisted technical staff commission first performs function critical landmark preservation effort identifying properties areas special character special historical aesthetic interest value part development heritage cultural characteristics city state nation see commission determines giving interested parties opportunity heard building area satisfies ordinance criteria designate building landmark situated particular landmark site designate area historic district commission makes designation new york city board estimate considering relationship designated property master plan zoning resolution projected public improvements plans renewal area involved may modify disapprove designation owner may seek judicial review final designation decision thus far historic districts individual landmarks finally designated process continuing one final designation landmark results restrictions upon property owner options concerning use landmark site first law imposes duty upon owner keep exterior features building good repair assure law objectives defeated landmark falling state irremediable disrepair see second commission must approve advance proposal alter exterior architectural features landmark construct exterior improvement landmark site thus ensuring decisions concerning construction landmark site made due consideration public interest maintenance structure landowner interest use property see event owner wishes alter landmark site three separate procedures available administrative approval may obtained first owner may apply commission certificate effect protected architectural features order approving improvement alteration ground change affect architectural feature landmark harmony therewith see denial certificate subject judicial review second owner may apply commission certificate appropriateness see certificates granted commission concludes focusing upon aesthetic historical architectural values proposed construction landmark site unduly hinder protection enhancement perpetuation use landmark denial certificate subject judicial review moreover owner denied either certificate exterior effect certificate appropriateness may submit alternative modified plan approval final procedure seeking certificate appropriateness ground insufficient return see provides special mechanisms vary depending whether landmark enjoys tax exemption ensure designation cause economic hardship although designation landmark landmark site restricts owner control parcel designation also enhances economic position landmark owner one significant respect new york city zoning laws owners real property developed property full extent permitted applicable zoning laws allowed transfer development rights contiguous parcels city block see new york city zoning resolution art ch definition zoning lot ordinance gave owners landmark sites additional opportunities transfer development rights parcels subject restriction floor area transferee lot may increased authorized level ordinance permitted transfers landmark parcel property across street across street intersection law governing conditions transfers landmark parcels occur liberalized see new york city zoning resolutions apparently ensure landmarks law unduly restrict development options owners grand central terminal see marcus air rights transfers new york city law contemp prob class recipient lots expanded include lots across street opposite another lot lots except intervention streets street intersections series extending lot occupied landmark building provided lots ownership new york city zoning resolution emphasis deleted addition amendment permits highly commercialized areas like midtown manhattan transfer unused development rights single parcel ibid case involves application new york city landmarks preservation law grand central terminal terminal terminal owned penn central transportation affiliates penn central one new york city famous buildings opened regarded providing ingenious engineering solution problems presented urban railroad stations also magnificent example french style terminal located midtown manhattan south facade faces street street intersection park avenue street level terminal bounded west vanderbilt avenue east commodore hotel north building although office tower located terminal part original design planned tower never constructed terminal structure penn central uses railroad station rents space needed railroad purposes variety commercial interests terminal one number properties owned appellant penn central area midtown manhattan others include barclay biltmore commodore roosevelt hotels building office buildings along park avenue yale club least eight eligible recipients development rights afforded terminal virtue landmark designation august following public hearing commission designated terminal landmark designated city tax block occupies landmark site board estimate confirmed action september although appellant penn central opposed designation commission seek judicial review final designation decision january appellant penn central increase income entered renewable lease sublease agreement appellant ugp properties ugp wholly owned subsidiary union general properties kingdom corporation terms agreement ugp construct multistory office building terminal ugp promised pay penn central million annually construction least million annually thereafter rentals offset part loss million net rentals presently received concessionaires displaced new building appellants ugp penn central applied commission permission construct office building atop terminal two separate plans designed architect marcel breuer apparently satisfying terms applicable zoning ordinance submitted commission approval first breuer provided construction office building cantilevered existing facade rest roof terminal second breuer ii revised called tearing portion terminal included street facade stripping remaining features terminal facade constructing office building commission denied certificate exterior effect september appellants applied certificate appropriateness proposals four days hearings witnesses testified commission denied application proposals commission reasons rejecting certificates respecting breuer ii revised summarized following statement protect landmark one tear perpetuate architectural features one strip record breuer preserved existing vertical facades present structure received sympathetic consideration commission first focused effect proposed tower one desirable feature created present structure surroundings dramatic view terminal park avenue south although appellants contended building already destroyed silhouette south facade one additional tower damage might even provide better background facade commission disagreed stating found majestic approach south still unique city tower atop terminal far detrimental south facade building feet away moreover commission found closer vantage points building towers largely cut view case mass top terminal planned breuer conclusion commission stated fixed rule making additions designated buildings depends done balance office tower flamboyant facade seems nothing aesthetic joke quite simply tower overwhelm terminal sheer mass addition four times high existing structure reduce landmark status curiosity landmarks divorced settings particularly setting dramatic integral part original concept terminal setting great example urban design examples plentiful new york city afford lose must preserve meaningful way alterations additions character scale materials mass protect enhance perpetuate original design rather overwhelm appellees appealed new york appellate division reversed app div appellate division held restrictions development terminal site necessary promote legitimate public purpose protecting landmarks therefore appellants sustain constitutional claims proof regulation deprived reasonable beneficial use property appellate division held evidence appellants introduced trial statements revenues costs purporting show net operating loss years prepared instant litigation satisfied burden first rejected claim statements showed terminal operating loss view appellants improperly attributed railroad operating expenses taxes real estate operations compounded error failing impute rental value vast space terminal devoted railroad purposes appellate division concluded appellants failed establish either unable increase terminal commercial income transforming vacant underutilized space use unused development rights terminal profitably transferred one nearby sites appellate division concluded appellants succeeded showing deprived property profitable use showing establish appellants unconstitutionally deprived property new york appeals affirmed summarily rejected claim landmarks law taken property without compensation indicating taking since law transferred control property city restricted appellants exploitation circumstance appeals held appellants attack law prevail law deprived appellants property violation due process clause fourteenth amendment whether denial substantive due process turned whether restrictions deprived penn central reasonable return privately created privately managed ingredient terminal appeals concluded landmarks law effected denial due process landmark regulation permitted use made terminal half century appellants failed show earn reasonable return investment terminal even terminal proper never operate reasonable profit income penn central extensive real estate holdings area include hotels office buildings must realistically imputed terminal development rights terminal made transferable numerous sites vicinity terminal one two suitable construction office buildings valuable appellants provided significant perhaps fair compensation loss rights terminal observing affirmance present record analysis fully developed counsel level new york judicial system appeals directed counsel entitled present additional submissions light opinion may usefully develop factors discussed appellants chose avail opportunity filed notice appeal noted probable jurisdiction affirm ii issues presented appellants whether restrictions imposed new york city law upon appellants exploitation terminal site effect taking appellants property public use within meaning fifth amendment course made applicable fourteenth amendment see chicago chicago whether transferable development rights afforded appellants constitute compensation within meaning fifth amendment need address question whether taking occurred considering appellants specific contentions useful review factors shaped jurisprudence fifth amendment injunction shall private property taken public use without compensation question constitutes taking purposes fifth amendment proved problem considerable difficulty recognized fifth amendment guarantee designed bar government forcing people alone bear public burdens fairness justice borne public whole armstrong quite simply unable develop set formula determining justice fairness require economic injuries caused public action compensated government rather remain disproportionately concentrated persons see goldblatt hempstead indeed frequently observed whether particular restriction rendered invalid government failure pay losses proximately caused depends largely upon particular circumstances case central eureka mining see caltex engaging essentially ad hoc factual inquiries decisions identified several factors particular significance economic impact regulation claimant particularly extent regulation interfered distinct expectations course relevant considerations see goldblatt hempstead supra character governmental action taking may readily found interference property characterized physical invasion government see causby interference arises public program adjusting benefits burdens economic life promote common good government hardly go extent values incident property diminished without paying every change general law pennsylvania coal mahon accordingly recognized wide variety contexts government may execute laws programs adversely affect recognized economic values exercises taxing power one obvious example second decisions dismissed taking challenges ground challenged government action caused economic harm interfere interests sufficiently bound reasonable expectations claimant constitute property fifth amendment purposes see willow river power interest level river runoff tailwaters maintain power head property water power property interest exist navigable waters see also demorest city bank muhlker harlem sax takings police power yale zoning laws generally affect existing uses real property taking challenges also held without merit wide variety situations challenged governmental actions prohibited beneficial use individual parcels previously devoted thus caused substantial individualized harm miller schoene illustrative case state entomologist acting pursuant state statute ordered claimants cut large number ornamental red cedar trees produced cedar rust fatal apple trees cultivated nearby although statute provided recovery expense incurred removing cedars permitted claimants use felled trees provide compensation value standing trees resulting decrease market value properties whole unanimous held latter omission render statute invalid held state might properly make choice preservation one class property since apple industry important state involved concluded state exceeded constitutional powers deciding upon destruction one class property without compensation order save another judgment legislature greater value public hadacheck sebastian upheld law prohibiting claimant continuing otherwise lawful business operating brickyard particular physical community ground legislature reasonably concluded presence brickyard inconsistent neighboring uses see also central eureka mining supra government order closing gold mines skilled miners available mining work held taking atchison public utilities railroad may required share cost constructing railroad grade improvement walls midland carbon law prohibiting manufacture carbon black upheld reinman little rock law prohibiting livery stable upheld mugler kansas law prohibiting liquor business upheld goldblatt hempstead supra recent example city safety ordinance banned excavations water table effectively prohibited claimant continuing sand gravel mining business operated particular parcel since upheld ordinance taking challenge although ordinance prohibited present presumably beneficial use property like regulations miller hadacheck severely affected particular owner assumed ordinance prevent owner reasonable use property since owner made showing adverse effect value land restriction served substantial public purpose thus held taking occurred course implicit goldblatt use restriction real property may constitute taking reasonably necessary effectuation substantial public purpose see nectow cambridge supra cf moore east cleveland stevens concurring perhaps unduly harsh impact upon owner use property pennsylvania coal mahon leading case proposition state statute substantially furthers important public policies may frustrate distinct expectations amount taking claimant sold surface rights particular parcels property expressly reserved right remove coal thereunder pennsylvania statute enacted transactions forbade mining coal caused subsidence house unless house property owner underlying coal feet improved property another statute made commercially impracticable mine coal thus nearly effect complete destruction rights claimant reserved owners surface land see held statute invalid effecting taking without compensation see also armstrong government complete destruction materialman lien certain property held taking hudson water mccarter height restriction makes property wholly useless rights property prevail public interest compensation required see generally michelman property utility fairness comments ethical foundations compensation law harv rev finally government actions may characterized acquisitions resources permit facilitate uniquely public functions often held constitute takings causby illustrative holding direct overflights claimant land destroyed present use land chicken farm constituted taking causby emphasized government merely destroyed property using part flight planes see also griggs allegheny county overflights held taking portsmouth military installations repeated firing guns claimant land taking cress repeated floodings land caused water project taking see ymca damage caused building federal officers seeking protect building attacked rioters held taking see generally michelman supra sax takings police power yale contending new york city law taken property violation fifth fourteenth amendments appellants make series arguments tailored facts case essentially urge substantial restriction imposed pursuant landmark law must accompanied compensation constitutional considering emphasize dispute recognized number settings cities may enact restrictions controls enhance quality life preserving character desirable aesthetic features city see new orleans dukes young american mini theatres village belle terre boraas berman parker welch swasey appellants contest new york city objective preserving structures areas special historic architectural cultural significance entirely permissible governmental goal also dispute restrictions imposed parcel appropriate means securing purposes new york city law finally appellants challenge specific factual premises decision accept present purposes parcel land occupied grand central terminal must present state regarded capable earning reasonable return transferable development rights afforded appellants virtue terminal designation landmark valuable even valuable rights construct terminal appellants view none factors derogate claim new york city law effected taking first observe airspace terminal valuable property interest citing causby supra urge landmarks law deprived gainful use air rights terminal irrespective value remainder parcel city taken right superjacent airspace thus entitling compensation measured fair market value air rights apart disagreement appellants characterization effect new york city law see infra submission appellants may establish taking simply showing denied ability exploit property interest heretofore believed available development quite simply untenable rule erred upholding laws restricting development air rights see welch swasey supra also approving prohibiting subjacent see goldblatt hempstead lateral see gorieb fox development particular parcels taking jurisprudence divide single parcel discrete segments attempt determine whether rights particular segment entirely abrogated deciding whether particular governmental action effected taking focuses rather character action nature extent interference rights parcel whole city tax block designated landmark site secondly appellants focusing character impact new york city law argue effects taking operation significantly diminished value terminal site appellants concede decisions sustaining regulations like new york city law reasonably related promotion general welfare uniformly reject proposition diminution property value standing alone establish taking see euclid ambler realty diminution value caused zoning law hadacheck sebastian diminution value cf eastlake forest city enterprises taking issue contexts resolved focusing uses regulations permit see also goldblatt hempstead supra appellants moreover also dispute showing diminution property value establish taking restriction imposed result legislation see generally maher new orleans appellants argue new york city regulation individual landmarks fundamentally different zoning legislation controls imposed new york city law apply individuals selected properties stated baldly appellants position appears means ensuring selected owners singled endure financial hardship reason hold restriction imposed individual landmarks pursuant new york city scheme taking requiring payment compensation agreement argument course invalidate new york city law comparable landmark legislation nation find merit true appellants emphasize legislation zoning laws regulate properties within given physical communities whereas landmark laws apply selected parcels contrary appellants suggestions landmark laws like discriminatory reverse spot zoning decision arbitrarily singles particular parcel different less favorable treatment neighboring ones see rathkopf law zoning planning ed contrast discriminatory zoning antithesis control part comprehensive plan new york city law embodies comprehensive plan preserve structures historic aesthetic interest wherever might found city noted landmarks historic districts designated pursuant plan equally without merit related argument decision designate structure landmark inevitably arbitrary least subjective basically matter taste reply brief appellants thus unavoidably singling individual landowners disparate unfair treatment argument particularly hollow ring case appellants seek judicial review either designation denials certificates appropriateness exterior effect even suggest commission decisions concerning terminal sense arbitrary unprincipled event landmark owner right judicial review commission decision quite simply basis whatsoever conclusion courts greater difficulty identifying arbitrary discriminatory action context landmark regulation context classic zoning indeed context next appellants observe new york city law differs zoning laws ordinances landmarks law impose identical similar restrictions structures located particular physical communities follows argue new york city law inherently incapable producing fair equitable distribution benefits burdens governmental action characteristic zoning laws legislation maintain constitutional requirement compensation afforded course true landmarks law severe impact landowners others mean law effects taking legislation designed promote general welfare commonly burdens others owners brickyard hadacheck cedar trees miller schoene gravel sand mine goldblatt hempstead uniquely burdened legislation sustained cases similarly zoning laws often affect property owners severely others held invalid account example property owner euclid wished use property industrial purposes affected far severely ordinance neighbors wished use land residences event appellants repeated suggestions solely burdened unbenefited factually inaccurate contention overlooks fact new york city law applies vast numbers structures city addition terminal structures contained historic districts individual landmarks many close terminal unless reject judgment new york city council preservation landmarks benefits new york citizens structures economically improving quality life city whole unwilling conclude owners terminal sense benefited landmarks law doubtless appellants believe burdened benefited law must true property owners miller hadacheck euclid goldblatt appellants final attack us treat law instance like causby government acting enterprise capacity appropriated part property strictly governmental purpose apart fact causby case invasion airspace destroyed use farm beneath new york city law nowise impaired present use terminal landmarks law neither exploits appellants parcel city purposes facilitates arises entrepreneurial operations city situation remotely like causby airspace property flight pattern military aircraft landmarks law effect simply prohibit appellants anyone else occupying portions airspace terminal permitting appellants use remainder parcel gainful fashion appropriation property government uses zoning law prohibiting aesthetic reasons two adult theaters within specified area see young american mini theatres safety regulation prohibiting excavations certain level see goldblatt hempstead rejection appellants broad arguments however end inquiry thus far established new york city law rendered invalid failure provide compensation whenever landmark owner restricted exploitation property interests air rights greater extent provided applicable zoning laws must consider whether interference appellants property magnitude must exercise eminent domain compensation sustain pennsylvania coal mahon inquiry may narrowed question severity impact law appellants parcel resolution turn requires careful assessment impact regulation terminal site unlike governmental acts goldblatt miller causby griggs hadacheck new york city law interfere way present uses terminal designation landmark permits contemplates appellants may continue use property precisely used past years railroad terminal containing office space concessions law interfere must regarded penn central primary expectation concerning use parcel importantly record must regard new york city law permitting penn central profit terminal also obtain reasonable return investment appellants moreover exaggerate effect law ability make use air rights terminal two respects first simply maintained record appellants prohibited occupying portion airspace terminal commission actions denying applications construct office building excess stories terminal may indicate refuse issue certificate appropriateness comparably sized structure nothing commission said done suggests intention prohibit construction terminal commission report emphasized whether construction allowed depended upon whether proposed addition harmonize scale material character terminal record since appellants sought approval construction smaller structure know appellants denied use portion airspace terminal second extent appellants denied right build terminal literally accurate say denied use even air rights ability use rights abrogated made transferable least eight parcels vicinity terminal one two found suitable construction new office buildings although appellants others argued new york city transferable program far ideal new york courts supportably found least case terminal rights afforded valuable rights may well constituted compensation taking occurred rights nevertheless undoubtedly mitigate whatever financial burdens law imposed appellants reason taken account considering impact regulation cf goldblatt hempstead record conclude application new york city landmarks law effected taking appellants property restrictions imposed substantially related promotion general welfare permit reasonable beneficial use landmark site also afford appellants opportunities enhance terminal site proper also properties affirmed footnotes buildings listed historic american buildings survey begun federal government destroyed see costonis chicago plan incentive zoning preservation urban landmarks harv rev citing huxtable bank building plan sets debate progress times section see admin code gilbert introduction precedents future law contemp prob quoting address robert stipe conference preservation law washington may unpublished text pp see mun law mckinney declares public policy state new york preserve structures areas special historical aesthetic interest value authorizes local governments impose reasonable restrictions perpetuate structures areas consensus widespread public ownership historic properties urban settings neither feasible wise public ownership reduces tax base burdens public budget costs acquisitions maintenance results preservation public buildings museums similar facilities rather economically productive features urban scene see wilson winkler response state legislation historic preservation law contemp prob see costonis supra wilson winkler supra rankin operation interpretation new york city landmark preservation law law contemp prob ordinance creating commission requires include least three architects one historian qualified field one city planner landscape architect one realtor least one resident city five boroughs charter addition ordinance requirements concerning composition commission according former chairman prudent tradition commission include one two lawyers preferably experience municipal government several laymen specialized qualifications concern good city goldstone aesthetics historic districts law contemp prob landmark improvement part thirty years old older special character special historical aesthetic interest value part development heritage cultural characteristics city state nation designated landmark pursuant provisions chapter landmark site improvement parcel part thereof situated landmark abutting improvement parcel part thereof used constituting part premises landmark situated designated landmark site pursuant provisions chapter historic district area contains improvements special character special historical aesthetic interest value represent one periods styles architecture typical one eras history city cause area reason factors constitute distinct section city designated historic district pursuant provisions chapter act also provides designation scenic landmark see interior landmark see see landmarks preservation commission city new york landmarks historic districts although appellants correct noting designated landmarks publicly owned vast majority like grand central terminal privately owned structures owner parcel denied certificates appropriateness proposed alteration shows earning reasonable return property present state commission city agencies must assume burden developing plan enable landmark owner earn reasonable return landmark site plan may include need limited partial complete tax exemption remission taxes authorizations alterations construction reconstruction appropriate inconsistent purposes law owner free accept reject plan devised commission approved city agencies accepts plan proceeds operate property pursuant plan rejects plan commission may recommend city proceed eminent domain acquire protective interest landmark city within specified time period commission must issue notice allowing property owner proceed alteration improvement originally proposed application certificate appropriateness structures treated somewhat differently become eligible special treatment four preconditions satisfied owner previously entered agreement sell parcel contingent upon issuance certificate approval property exists time request capable earning reasonable return structure longer suitable past present purposes prospective buyer intends alter landmark structure event owner demonstrates property present state earning reasonable return commission must either find another buyer allow sale construction proceed remedy available owners landmarks case bar illustrates see infra owner files suit establishes incapable earning reasonable return site present state afforded judicial relief similarly landmark owner enjoys tax exemption demonstrated landmark structure restricted totally inadequate owner legitimate needs law held invalid applied parcel see lutheran church city new york obtain approval proposed transfer landmark owner must follow following procedure first must obtain permission commission examine plans development transferee lot determine whether planned construction compatible landmark second must obtain approbation new york city planning commission focus effects transfer occupants buildings vicinity transferee lot whether landmark owner preserve landmark finally matter goes board estimate final authority grant deny application see also costonis supra terminal present foundation includes columns built express purpose supporting proposed tower commission report stated grand central station one great buildings america evokes spirit unique city combines distinguished architecture brilliant engineering solution wedded one fabulous railroad terminals time monumental scale great building functions well today built style represents best french beaux arts record appellants also submitted plan denominated breuer ii commission however appellants learned breuer ii violated existing easements substituted breuer ii revised breuer ii commission evaluated appropriateness breuer ii revised discussing breuer commission also referred number instances approved additions landmarks office reception wing added gracie mansion school church house added street side first presbyterian church examples harmonize scale material character structures adjoin new watch tower bible tract society building brooklyn heights though completely modern idiom respects qualities surroundings enhance brooklyn heights historic district butterfield house enhances west street breuer whitney museum madison avenue locale record see real prop tax law et seq mckinney supp although suggested regulation private property protect landmark values unconstitutional compensation afforded also appeared rely upon findings first cost penn central operating terminal building exclusive purely railroad operations exceeded revenues received concessionaires tenants terminal second special transferable development rights afforded penn central owner landmark site provide compensation plaintiffs minimize harm suffered plaintiffs due designation terminal landmark statements appear reflected costs maintaining exterior architectural features terminal good repair required law apparent case therefore existence duty keep property presumably always factored inquiry concerning constitutionality landmark restrictions appellate division also rejected claim agreement penn central metropolitan transit authority connecticut transit authority provided basis invalidating application landmarks law record reflected penn central given serious consideration transferring rights either biltmore hotel roosevelt hotel appeals suggested calculating value property upon appellants entitled earn reasonable return publicly created components value property elements value attributable efforts organized society social complex terminal located excluded however since record upon appeals decided case recognized contain basis segregating privately created publicly created elements value terminal site since judgment appeals event rests upon bases support affirmance see infra page occasion address question whether permissible feasible separate social increments value property see costonis disparity issue context grand central terminal decision harv rev statement issues distillation four questions presented jurisdictional statement social cultural desirability preserving historical landmarks government regulation derogate constitutional requirement compensation paid private property taken public use penn central entitled compensation large unmeasurable portion value rights construct office building grand central terminal said created efforts society organized entity finding penn central failed establish possibility without exercising development rights earning reasonable return remaining properties benefit way operations grand central terminal warrant conclusion compensation need paid taking rights possibility accorded penn central regulation realizing value time transferring terminal development rights buildings procedure conceded defective severely limited procedurally complex speculative requires ultimate discretionary approval governmental authorities meet constitutional requirements compensation applied landmarks jurisdictional statement implicit opinion embrace proposition taking never occur unless government transferred physical control portion parcel jurisdictional statement brief appellants state appellants seeking review new york courts determination penn central earn reasonable return investment terminal although appellants suggest reply brief factual conclusions new york courts sustained unless accept rationale new york appeals see reply brief appellants apparent findings concerning penn central ability profit terminal depend way appeals rationale cases dispose contention might based pennsylvania coal mahon full use air rights bound expectations appellants governmental deprivation rights invariably irrespective impact restriction value parcel whole constitutes taking similarly welch goldblatt gorieb illustrate fallacy appellants related contention taking must found occurred whenever restriction may characterized imposing servitude claimant parcel although new york appeals contrasted new york city landmarks law zoning legislation stated one point landmark laws general community plan also emphasized implementation objectives landmarks law constitutes acceptable reason singling one particular parcel different less favorable treatment therefore understand new york appeals disagree characterization law property owner challenges application zoning ordinance property judicial inquiry focuses upon whether challenged restriction reasonably deemed promote objectives community plan include consideration treatment similar parcels see generally nectow cambridge property owner challenges landmark designation restriction arbitrary discriminatory similar inquiry presumably occur appellants attempt distinguish cases ground government prohibiting noxious use land present case contrast appellants proposed construction terminal beneficial observe uses issue hadacheck miller goldblatt perfectly lawful involved blameworthiness moral wrongdoing conscious act dangerous induce society shift cost pa rt icular individual sax takings police power yale cases better understood resting supposed noxious quality prohibited uses rather ground restrictions reasonably related implementation policy unlike historic preservation expected produce widespread public benefit applicable similarly situated property correlatively asserted destruction fundamental alteration historic landmark harmful suggestion beneficial quality appellants proposed construction established fact construction consistent applicable zoning laws ignores development sensibilities ideals reflected landmark legislation like new york city cf west bros brick alexandria appeal dismissed want substantial federal question designated landmarks historic districts scenic landmarks manhattan streets see landmarks preservation commission landmarks historic districts course true fact duties imposed zoning legislation apply throughout particular physical communities provides assurances arbitrariness applicability landmarks law large number parcels city view provides comparable identical assurances appellants course argue length transferable development rights valuable constitute compensation brief appellants counsel appellants admitted oral argument commission suggested example approve office tower along lines part original plan terminal see tr oral arg see costonis supra emphasize holding today present record turn based penn central present ability use terminal intended purposes gainful fashion city conceded oral argument appellants demonstrate point future circumstances changed terminal ceases economically viable appellants may obtain relief see tr oral arg justice rehnquist chief justice justice stevens join dissenting one million buildings structures city new york appellees singled designation official landmarks owner building might initially pleased property chosen distinguished committee architects historians city planners singular distinction may well discover appellant penn central transportation landmark designation imposes upon substantial cost little offsetting benefit except honor designation question case whether cost associated city new york desire preserve limited number landmarks within borders must borne taxpayers whether instead imposed entirely owners individual properties superficial sense word case said involve zoning typical zoning restrictions may true limit prospective uses piece property diminish value property abstract may used forbidden purposes abstract decrease value likely least partially offset increase value flows similar restrictions use neighboring properties property owners designated area placed restrictions benefit municipality whole also common benefit one another words justice holmes speaking pennsylvania coal mahon average reciprocity advantage relatively individual buildings separated one another singled treated differently surrounding buildings reciprocity exists cost property owner results imposition restrictions applicable property neighbors may substantial case several million dollars comparable reciprocal benefits cost associated landmark legislation likely completely different order magnitude results imposition normal zoning restrictions unlike regime affected latter landowner simply prohibited using property certain purposes allowed use purposes preservation scheme adopted new york property owner affirmative duty preserve property landmark expense suggest traditional zoning results limitation use property zoned new york city landmark preservation scheme likewise upheld represents ultimate treating alike things different rubric zoning yet sufficed avoid proposition fifth amendment bars government forcing people alone bear public burdens fairness justice borne public whole armstrong see discussion infra august grand central terminal designated landmark objections owner penn central immediately upon designation penn central like owners landmark site placed affirmative duty backed criminal fines penalties keep exterior portions landmark good repair even burdensome however strict limitations thereupon imposed penn central use property time grand central designated landmark penn central precarious financial condition effort increase sources revenue penn central entered lease agreement appellant ugp properties ugp construct operate multistory office building cantilevered terminal building period construction ugp pay penn central million per year upon completion ugp rent building years option another years guaranteed minimum rental million per year record clear proposed office building full compliance new york zoning laws height limitations landmarks preservation law however appellants construct proposed office building unless appellee landmarks preservation commission issued either certificate exterior effect certificate appropriateness although appellants architectural plan preserved facade terminal landmarks preservation commission refused approve construction fifth amendment provides part shall private property taken public use without compensation literal sense actions appellees violated constitutional prohibition city new york declared grand central terminal landmark penn central used air rights terminal build multistory office building apparent value several million dollars per year today terminal modified form including erection additional stories without permission landmark preservation commission permission appellants despite attempts far unable obtain taking clause fifth amendment always read literally however constitutionality appellees actions requires closer scrutiny interpretation three key words taking clause property taken compensation appellees dispute valuable property rights destroyed frequently emphasized term property used taking clause includes entire group rights inhering citizen ownership general motors term used vulgar untechnical sense physical thing respect citizen exercises rights recognized law instead denote group rights inhering citizen relation physical thing right possess use dispose constitutional provision addressed every sort interest citizen may possess emphasis added appellees thus destroyed literal sense taken substantial property rights penn central term taken might narrowly interpreted include physical seizures property rights construction phrase narrow courts held deprivation former owner rather accretion right interest sovereign constitutes taking see also lynah dugan rank every destruction injury property governmental action held taking constitutional sense armstrong however end inquiry examination two exceptions destruction property constitute taking demonstrates compensable taking occurred early recognized government prevent property owner using property injure others without compensate owner value forbidden use prohibition simply upon use property purposes declared valid legislation injurious health morals safety community sense deemed taking appropriation property public benefit legislation disturb owner control use property lawful purposes restrict right dispose declaration state use one certain forbidden purposes prejudicial public interest power prohibiting use individuals property prejudicial health morals safety public consistently existence safety organized society burdened condition state must compensate individual owners pecuniary losses may sustain reason permitted noxious use property inflict injury upon community mugler kansas nuisance exception taking guarantee coterminous police power question whether forbidden use dangerous safety health welfare others thus curtin benson held government prohibiting owner property within boundaries yosemite national park grazing cattle property taken owner property assumed government constitutionally require owner fence land take action prevent cattle straying onto others land without compensating laws might considered strictly regulations use property using injury result others effect making owner land herd cattle land making responsible neglect appellees prohibiting nuisance record clear proposed addition grand central terminal full compliance zoning height limitations health safety requirements instead appellees seeking preserve believe outstanding example beaux arts architecture penn central prevented developing property basically good job done designing building city new york unadorned admiration design decided owners building must preserve unchanged benefit sightseeing new yorkers tourists unlike regulations appellees actions merely prohibit penn central using property narrow set noxious ways instead appellees placed affirmative duty penn central maintain terminal present state good repair appellants free use property see fit within broad outer boundaries must strictly adhere past use except appellees conclude alternative uses detract landmark penn central may continue use terminal presently designed appellees otherwise exercise complete dominion control surface land causby must compensate owner loss ibid property taken constitutional sense inroads made upon owner use extent private parties servitude acquired dickinson see also dugan rank supra even government prohibits noninjurious use ruled taking take place prohibition applies broad cross section land thereby secure average reciprocity advantage pennsylvania coal mahon reason zoning constitute taking zoning times reduces individual property values burden shared relatively evenly reasonable conclude whole individual harmed one aspect zoning benefited another however multimillion dollar loss imposed appellants uniquely felt offset benefits flowing preservation landmarks new york city appellees imposed substantial cost less one one percent buildings new york city general benefit people exactly imposition general costs individuals taking protection directed fifth amendment prevents public loading upon one individual share burdens government says surrenders public something different exacted members public full equivalent shall returned monongahela navigation fifth amendment guarantee private property shall taken public use without compensation designed bar government forcing people alone bear public burdens fairness justice borne public whole armstrong justice holmes pointed pennsylvania coal mahon question bottom eminent domain case upon loss changes desired fall benefits appellees believe flow preservation grand central terminal accrue citizens new york city reason believe appellants enjoy substantially greater share benefits cost preserving grand central terminal spread evenly across entire population city new york burden per person cents per year minor cost appellees surely concede benefit accrued instead however appellees impose entire cost several million dollars per year penn central precisely sort discrimination fifth amendment prohibits appellees response argue taking occurs property owner denied reasonable value property frequently held even destruction property rights otherwise constitute taking inability owner make reasonable return property requires compensation fifth amendment see lynah converse true taking become noncompensable exercise police power simply government grace allows owner make reasonable use property character invasion amount damage resulting long damage substantial determines question whether taking cress causby see also goldblatt hempstead appellees apparently recognizing constraints imposed landmark site constitute taking fifth amendment purposes leave property owner notes ante property owner may theoretically transfer previous right develop landmark property adjacent properties control appellees coined system transfer development rights tdr terms used taking clause compensation strictest meaning fifth amendment allow simply approximate compensation requires full perfect equivalent property taken monongahela navigation adjective omitted provision simply property taken without compensation natural import language compensation equivalent property made emphatic adjective view combination two words doubt compensation must full perfect equivalent property taken ibid legislature may determine private property needed public purposes question political legislative character taking ordered question compensation judicial rest public taking property congress legislature representative say compensation shall paid even shall rule compensation constitution declared compensation shall paid ascertainment judicial inquiry monongahela navigation supra many defects new york city program development rights transfers detailed elsewhere area transfer permitted severely limited complex procedures required obtain transfer permit ii years ago justice holmes speaking warned courts danger forgetting strong public desire improve public condition enough warrant achieving desire shorter cut constitutional way paying change pennsylvania coal mahon opinion case demonstrates danger thus foreseen abated city new york precarious financial state may believe costs landmark preservation easily borne corporations penn central overburdened individual taxpayers new york concerns allow us ignore past precedents construing eminent domain clause end desire improve public condition indeed achieved shorter cut constitutional way paying change large percentage designated landmarks public structures brooklyn bridge city hall statue liberty municipal asphalt plant thus raise fifth amendment taking questions see landmarks preservation commission city new york landmarks historic districts supplement although refers new york ordinance comprehensive program preserve historic landmarks ante ordinance limited historic buildings gives little guidance landmarks preservation commission selection landmark sites section landmarks preservation law set forth admin code ch requires selected landmark least years old possess special character special historical aesthetic interest value part development heritage cultural characteristics city state nation even new york appeals conceded zoning case zoning restrictions operate advance comprehensive community plan common good property owner zone benefited restricted exploitation presumably without discrimination except permitted continuing nonconforming uses restrictions may designed maintain general character area assure orderly development objectives inuring benefit property owners acting individually find difficult impossible achieve case involve landmark regulation historic district historic districting traditional zoning owners although burdened restrictions also benefit extent furtherance general community plan restrictions alteration individual landmarks designed general community plan landmark restrictions designed prevent alteration demolition single piece property extent restrictions resemble discriminatory zoning restrictions properly condemned guarantee private property shall taken public use without compensation applicable fourteenth amendment although state legislature may prescribe form procedure observed taking private property public use due process law provision made compensation chicago chicago opinion touches base least attempts touch base major eminent domain cases decided use however anything meticulous citing caltex example ante language remotely applicable eminent domain stated terms destruction respondents terminals trained team engineers face impending seizure enemy particular penn central increase height terminal previously held air rights area land property purposes fifth amendment see causby air rights taken airplanes griggs allegheny county portsmouth harbor land hotel firing projectiles summer resort constitute taking see also butler frontier telephone stringing telephone wire across property constitutes taking course irrelevant appellees interfered destroyed property rights penn central yet physically used fifth amendment must applied reference uses property suitable regard existing business wants community may reasonably expected immediate future boom patterson emphasis added construction pervert constitutional provision restriction upon rights citizen rights stood common law instead government make authority invasion private right pretext public good warrant laws practices ancestors cases cited proposition legislation severely affects landowners others effect taking involved noxious uses property see hadacheck miller schoene goldblatt see ante monongahela navigation monangahela company expended large sums money improving monongahela river means locks dams condemned property use held full compensation awarded suppose improvement navigable stream deemed essential construct canal locks order pass around rapids falls power congress condemn whatever land may necessary canal question equal necessity paying full compensation private property taken little doubt rationale however government wishes preserve canal system public use need condemn property need merely order preserved present form kept good repair appellants concede preservation buildings historical aesthetic importance permissible objective state action brief appellants cf berman parker gettysburg electric reasons noted text historic zoning undertaken cities new orleans may well require compensation fifth amendment true police power embraces regulations designed promote public convenience general welfare merely interest public health safety morals particular individuals singled bear cost advancing public convenience imposition must bear reasonable relation evils eradicated advantages secured moneys raised general taxation may constitutionally applied purposes individual taxed may receive benefit indeed suffer serious detriment assessments public improvements laid upon particular property owners ordinarily constitutional based benefits received fact landmarks preservation commission may allowed additions relatively landmarks comfort appellants ante comfort commission refuses allow appellants construct additional stories belief construction aesthetic ante difficult conceptual legal problems posed rule taking occurs property owner denied reasonable return property must define reasonable return variety types property farmlands residential properties commercial industrial areas must define particular property unit examined example case appellees viewed restricted penn central use air rights return denied see pennsylvania coal mahon little resolve questions opinion thus one point implies question whether restrictions unduly harsh impact upon owner use property ante another point question phrased whether penn central obtain reasonable return investment ante yet another point question becomes whether landmark economically viable ante suggests ante appellees held taken property rights landmark owners new york city landmarks preservation law comparable landmark legislation nation must fall assumes course tdr compensation property rights destroyed also ignores fact many cities nation chosen preserve landmarks purchasing condemning restrictive easements facades landmarks apparently quite satisfied results see rev stat md ann code art code richmond city code et seq british national trust effectively used restrictive easements preserve landmarks since see national trust act edw geo ch lvii cities found tax incentives also effective means encouraging private preservation landmark sites see stat rev ch code new york city landmarks preservation law departs drastically traditional constitutional means preserving landmarks