Atlantic Yards developer gets OK to take land

Posted in Uncategorized on November 24, 2009 at 5:45 pm

Court backs Forest City Ratner’s use of eminent domain to redevelop 22 acres in downtown Brooklyn, clearing biggest of hurdles to financing the mixed-use project.

Developer Forest City Ratner Cos. won a critical victory on Tuesday when New York’s highest court ruled that the state could use eminent domain to clear the site of the company’s planned $4.9 billion, 22-acre project to develop the Atlantic Yards in Brooklyn.

Forest City announced the plans to redevelop Atlantic Yards six years ago but it has been stymied by lawsuits, the credit crunch and recession. The ruling by the New York State Court of Appeals removes one of the last two remaining roadblocks. Now, Forest City must turn its attention to selling about $700 million worth of bonds to finance the center piece of the development: an 18,000-seat arena that will be home to the Nets basketball team.

The bonds must be sold before the end of the year to qualify for tax-free financing. They still have not been rated as of Tuesday morning, but a source said at least one agency might issue a rating later in the day.

A hearing is also being held Tuesday by the state development corporation over issuing the bonds.

“Once again the courts have made it clear that this project represents a significant public benefit for the people of Brooklyn and the entire city,” said Bruce Ratner, chairman of Forest City Ratner, in a statement.

But the politicians and community groups that have been fighting the development have vowed to continue their quest to kill the project. The court decision cannot be appealed, but there are at least four other suits pending against the project, which is slated to include sixteen towers of mostly residential units although a hotel and office building are also possible. However, legal experts said the eminent domain suit posed the greatest threat to the project.

“The fight against the project is far from over,” said Daniel Goldstein, spokesman for Develop Don’t Destroy Brooklyn, a community group that filed the suit over eminent domain along with three other suits. “This is a sad day for anyone who owns property in New York City or New York state.

Mr. Goldstein and his family are the sole residents of a condo building that sits on what would be the center court line of the arena. He says the state has offered him $395 a square foot for his apartment—an amount he deems too low. He vows to sue the state for a fair price.

A spokesman for Mr. Ratner said the developer controls about 85% of the site. It was unclear when the state would begin proceeding to condemn and buy the remainder of the buildings. Forest City has said the arena would be ready for the 2011/2012 basketball season.

Work to construct the project has already started. To pave the way for the complex, Forest City had to build a temporary train yard, which has been completed.

http://www.crainsnewyork.com/article/20091124/FREE/911249996