Y. David Scharf Quoted in Law360 on Amtrak's Bid to Upend Eminent Domain in Union Station Takeover

Morrison Cohen Chair & Co-Managing Partner Y. David Scharf was quoted in a Law360 Real Estate Authority article entitled “Lawmakers Rail Against Amtrak's Union Station Takeover Bid.” The article discussed a recent letter in which lawmakers raised concerns to Transportation Secretary Pete Buttigieg about Amtrak's pending bid to take control of Washington, D.C.'s Union Station, which, if successful, could upend eminent domain precedent.

Union Station is controlled by Morrison Cohen client Rexmark, a New York City real estate investment manager acting as agent of Seoul-based Kookmin Bank Co. Ltd., which took over the asset by foreclosing on its mezzanine loan in 2022. In April 2022, Amtrak initiated an eminent domain proceeding in D.C. federal court to take control of the station. The eminent domain case is pending a decision on whether to grant Amtrak immediate possession of the property.

The letter could boost the legal effort to defend Rexmark's ownership position against the railroad's takeover bid. The case is highly unusual in part because the federal government already owns the physical property, and Congress has in the past declined to give Amtrak more control over the stations in which it operates.

“It is unprecedented that a quasi-government entity is seeking to eminent domain its way into a contract with the federal government, when the federal government has on a prior occasion given them the stiff arm and said, ‘No, we're not going to do this with you, we're going to do this with a private entity for 99 years,’” said David.

The Morrison Cohen team representing Rexmark includes Y. David Scharf, Brett Dockwell, Kristin T. Roy, Latisha V. Thompson, Jarrod Bernstein, who advised on Government Relations matters, Amber R. Will and Mahnoor Misbah.   

Law360 subscribers may read the full article here.