Battle Over One Vanderbilt Skyscraper Settled, Making Way for Its Construction

One of New York real estate's most tedious legal battles — literally over "air rights" — has been resolved. The long-winded battle over a 65-story tower to be built in Midtown was finally settled Wednesday, paving the way for the construction of One Vanderbilt to go ahead as planned, the building's developer SL Green announced.

The 1,500-foot tall building, which is expected to cost over $3 billion to build, will be erected at Vanderbilt Avenue and 42nd Street in Manhattan. It will be the third-tallest building in the city once completed behind 1 World Trade Center and the forthcoming Central Park Tower.

A $1.1 billion lawsuit brought by Midtown TDR Ventures, the owners of Grand Central Terminal, against SL Green and the City of New York over 1 Vanderbilt was settled, "eliminating uncertainty surrounding the building," a statement from SL Green said.

Andrew Penson, the owner of Grand Central Terminal, brought the suit in September 2015 against SL Green and Mayor Bill de Blasio for giving SL Green the right to build One Vanderbilt within the vicinity of the air rights he purchased over Grand Central.

Midtown TDR Ventures withdrew the lawsuit, and SL Green paid it so-called "de minimis" as a settlement. It was unclear how much money was meant by "de minimis" — a term meaning minor. According to the New York Post, it's a figure small enough to avoid reporting in SEC filings.

SL Green's CEO Marc Holliday said in a statement:

We're pleased that the new ownership of Midtown TDR Ventures shares our commitment to development in East Midtown and worked with us to quickly reach this agreement. With demolition nearly complete and work already underway on public improvements, One Vanderbilt is well on the way to becoming a reality.

Carl Weisbrod, the chairman of the city's Planning Commission, told The New York Times de Blasio believed the lawsuit had no merit, and they were happy with the settlement.

In September 2015, The New York Times described the initial lawsuit perfectly:

The lawsuit involves complex questions of zoning, constitutional law, politics and potential conflicts of interest, but it boils down to what always matters most in New York real estate: millions and millions of dollars.

One Vanderbilt's construction is expected to be finished in five years, complete with improvements to Grand Central Terminal, Curbed reported.

Image rendering by KPF