The Michigan-based Taubman company recently announced that it is seeking a final decision in the Supreme Court of the State of New York (Suffolk County) on its land use plan for the former Cerro Wire factory site in Syosset. The move was made to try and force the Town of Oyster Bay to allow the company to build an 860,000 square foot mall, anchored by Neiman Marcus, Nordstrom and now, Barneys New York.

Steve Kieras, Taubman's senior vice president of development said, "Oyster Bay Town Supervisor John Venditto has often said the courts should not be the final arbiter of town zoning decisions and we would traditionally concur. However, given our unsuccessful attempts to date to reach a settlement with the town, we are left with no choice but to re-enter the court house for the purpose of enforcing our right to build based on previous judicial decisions and our strategic commitment to serve the Long Island market."

Town of Oyster Bay Supervisor John Venditto said he is disappointed by Taubman's recent actions. "Over the past few months, to the applicant's credit, the applicant has come forward with some settlement proposals, which for the first time began to address many of the concerns that the town had about the mall," he said. "It struck me as odd that while it seemed as though we were engaged in some settlement negotiations, the applicant turns on its heels and brings on this motion. This spoils the mood of the past couple of months."

Venditto said that the settlement proposal submitted by Taubman was less than the 750,000 square foot proposal that the town had previously denied. Although Venditto said the town will "vigorously oppose" the recent court action by Taubman, he said that the town still needs to consider the settlement proposal. "We are now in court again, but we have to rise above that and continue to examine the settlement proposal," he said. "We don't have the luxury of sacrificing accuracy for speed here."

Kieras said that Taubman would be willing to resume discussions with the town regarding the possibility of modifying the size of the mall while the case in court proceeds; however, in light of prior court rulings, he believes the court will allow the company to build the larger size mall as originally proposed.

"During our recent discussions with the Town of Oyster Bay, we believed that our offer to settle for a reduced size mall was acceptable to the town. Without a resolution, though, we have no choice but to continue the legal process for the purpose of moving forward," said Kieras.

The civic associations, who have strongly opposed the mall, are still included on the court case. "We will work closely with the Town of Oyster Bay to oppose this latest legal maneuver by Taubman," said Howard Avrutine, council for the Birchwood Civic Association.

According to Taubman, their proposal will create an economic transformation of the former wire manufacturing complex, building a retail center on the site that will include Barneys New York, Neiman Marcus and Nordstrom fashion department stores and over 100 inline stores.

Another option that has been discussed is alternate development for the Cerro Wire property, something that would have to be agreed on with a potential buyer and the Taubman Company, who owns the property and has said the property is not for sale.

"The Cerro Wire coalition is committed to our ultimate development concept that we have been discussing which is the best alternate development for the community," said Todd Fabricant, president of the Cerro Wire Coalition. "We have presented preliminary ideas to the town and Taubman. We want alternative development and will protect the community's interest in the process."

Jack Kennedy of the Nassau Suffolk Building Trades, an umbrella organization that represents some 30,000 working families across Long Island, stated, "We are terribly disappointed that the town is still refusing to recognize Taubman's legal right to build a mall. There are very few on either side of this issue who don't expect the site to be ultimately developed. In fact, there have been multiple court decisions in favor of the developer. Now, with Taubman compelled to go back to the courts, a judge will be asked to order the Town to comply with its legal obligations. As far as I'm concerned, Oyster Bay Town Hall has failed to do its job. The organized labor community will not let this latest breakdown in protecting our local economy go unnoticed or unanswered."

"We are firmly committed to building a mall on this property," said Lisa A. Payne, vice chairman and chief financial officer of Taubman Centers. "Sixty-five percent of the tenant space in the mall is committed, over 50 percent has fully-executed leases, and the mall will be anchored by three of the world's greatest retailers: Neiman Marcus, Nordstrom and Barneys New York. Depending on the timing of the construction and opening of the mall, we anticipate spending as much as $500 million on this project. Assuming $500 million of cost we expect a minimum return of seven percent, resulting in an asset that will create significant value for our shareholders."