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May 17, 2009
It Came From the Blogosphere...
After a state appellate court rejected a lawsuit stopping his Atlantic Yards project, developer Bruce Ratner says that ground will be broken sometime this year (maybe this summer, maybe this fall). He told the NY Times, "I’m honestly overjoyed. This is a weight off my back." A group of property owners in the footprint of the massive project had claimed eminent domain was improperly used to obtain land; the appellate court unanimously rejected the challenge, finding, "It cannot be said that the public benefits which the Atlantic Yards project is expected to yield are incidental or pretextual in comparison to the benefit that will be bestowed upon the project’s private developer." Still, the opponents, who believe Ratner will profit much more than the public will benefit (and who have helped stall the plans for two years), vow to take their case to the Court of Appeals. The Daily News notes, "The decision allows Ratner to qualify for tax-free bonds to build the arena and the go-ahead to purchase the MTA-owned rail yard on which it will be built."
The long Atlantic Yards saga continued this week, and while it may seem that the Appellate Court ruling is just another step in the process, it isn’t. It is by far the most significant court victory Bruce Ratner and the Empire State Development Corp. have achieved.
It opens the way for the ESDC to close the deal with Ratner and begin the eminent domain proceedings, condemning the property that Ratner doesn’t control in the arena “footprint”. How quickly is the issue. The corporation could very well move soon and let the critics try to stop them.
There is still one other legal challenge out there, but it’s even less likely to win favor at the appellate Courts. Moreover, Ratner’s people told the Post that they believe property condemnation–and construction–can proceed while that case continues. The critics disagree. Of course, critics can file more lawsuits, but that doesn’t necessarily mean a court would put a hold on eminent domain while those cases wind it way through the legal process. There’s also another issue. Develop Don’t Destroy Brooklyn, the project’s most aggressive opponent, is not exactly flush with cash and each loss hurts its fund-raising efforts. It put out a call for donations immediately after the Appellate Court ruling.
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Of course, the next big step in the arena process is raising the $500 million needed to built it, part of which will have to come from the pockets of the Nets’ ownership group, and part from lenders, perhaps even other investors. Goldman Sachs and Barclays Bank are the lead investment bankers and Net officials say they are confident they can raise the money needed, even in this economic environment.
We shall see.
Big Apple Sports, Playing Catchup
Nets
The Nets, really? In May? Yup…because THE NETS ARE ACTUALLY GOING TO BROOKLN!
No seriously, just check this out from the AP:
Developer Bruce Ratner says he is ready to break ground on a Brooklyn arena for the New Jersey Nets this year after an appeals court struck down a challenge to his Atlantic Yards project.
Ratner says he plans to begin building the $800 million arena this year after issuing bonds to finance the project this fall.
The state Supreme Court’s appellate division on Friday struck down an opponents’ lawsuit that sought to stop the state from using eminent domain to seize property where the 22-acre Atlantic Yards project is slated to be built.
I guess this means the Nets will be the hot new attraction in the NBA and a new player in the LeBron James sweepstakes.
The opponents say they will appeal.
Nevermind…
Posted by steve at May 17, 2009 7:21 AM