Gyrodyne (GYRO) Receives $167.5M Payment Tied to Flowerfield Property Litigation in NY

July 5, 2012 8:35 AM EDT
Gyrodyne Company of America, Inc. (Nasdaq: GYRO) reports that on July 3, 2012 it received $167,501,656.95 from the State of New York (the "State") in payment of the judgments in Gyrodyne's favor in the condemnation litigation with the State. The amount received consists of $98,685,000 in additional damages, $1,474,940.67 in costs, disbursements and expenses, and $67,341,716.28 in interest.

The $167.5 million payment brings to a successful resolution Gyrodyne's case for just compensation, commenced in 2006 for the 245.5 acres of its Flowerfield property in St. James and Stony Brook, New York (the "Property") taken by the State. The State had paid Gyrodyne $26,315,000 for the Property at the time of the taking, which Gyrodyne elected, under New York's eminent domain law, to treat as an advance payment while it pursued its claim for just compensation. The Court of Claims ruled in Gyrodyne's favor in June 2010 when it awarded the Company $125,000,000, thereby requiring the State to pay an additional $98,685,000 plus statutory interest of nine percent from the date of taking on November 2, 2005 to the date of payment. That judgment, as well as a related judgment for costs, disbursements and expenses, was affirmed by the Appellate Division and the Court of Appeals.

Commenting on the payment received by Gyrodyne, Stephen V. Maroney, Gyrodyne's President and Chief Executive Officer, stated that "[s]even years ago, 245.5 acres of Gyrodyne's property was taken by Stony Brook University under eminent domain, and we brought our case seeking just compensation for our shareholders. We prevailed in the courts, and with the $167.5 million payment, we have now achieved our larger objective of positioning the Company so that we can seek one or more liquidity events for our shareholders. We can now move forward with the final steps of that strategy. We're thrilled for our shareholders, whose patience has been greatly rewarded, and feel enormously grateful for the skill and professionalism of our team of experts and advisors who worked tirelessly over these past years to protect our shareholders' interests."

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