This article says that New York City claims that it does. Meanwhile the operators of the predcessors of the now-bankrupt restauarnt are the title owner of incontestable registration no. 1154270 (good job of reporting there guys). I see why the City would want the name – they own the land and a future leasee would certainly want the option of naming the new restaurant Tavern on the Green. There must be forty years worth of leases covering the parties’ rights.
I did a search of EMINENT DOMAIN TRADEMARK and came up with this and this.
Some sort of sovereign immunity to Section 15, perhaps?
Generic term for taverns on greens?
UPDATE: I note that hte registration is in the name of Tavern on the Green LP. Articles indentify the bankrupt operator as Tavern on the Green LLC. These articles identify the LeRoy family as having control over the restaurant through a series of entities.