No Land Grab

From The Brooklyn Paper:

The centerpiece of a world-class arts district that’s going up around the Brooklyn Academy of Music will be built by a local developer, The Brooklyn Paper has learned.
...
As The Brooklyn Paper reported in August, Brown, who has lived in the neighborhood for a quarter-century, was initially eliminated from the competition. But Councilwoman Letitia James (D–Fort Greene) and local activists raised such a ruckus that Brown’s proposal was resurrected.

Does the City's about-face on hiring local talent get around the sticky problem of using eminent domain to bulldoze an arts venue to build an arts venue?