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| Rendering of Atlantic Yards mixed-use project in Brooklyn, NY |
In a major step forward for the Atlantic Yards project, the New York Court of Appeal on Tuesday ruled that the state can use eminent domain to force landowners to sell their properties for the $4.9 billion mixed-use development in Brooklyn by Forest City Ratner.
According to the 6-1 ruling by the state's highest court, a finding by the Empire State Development Corp., which oversees economic development in New York, that the 22-acre area met the legal definition of blighted was sufficient to take the land. Opponents, including residents and landowners, argued that the state can legally only take land for public use, and the Atlantic Yards seizure is unconstitutional because it benefits private interests.
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The proposed development includes apartments, office towers and Barclays Arena, a new venue for the NBA's New Jersey Nets. Much of the project is on hold because of weak market conditions and the state must sell bonds for construction of the arena by the end of next month to qualify for federal tax exemptions
"We're gratified that today's ruling has once again affirmed the significant public benefit of the Atlantic Yards project," said Forest City Enterprises Inc. President and Chief Executive Officer Charles A. Ratner in a statement. "Brooklyn and the entire City of New York will benefit from the substantial job creation, tax revenues and revitalization that this project will generate.
"This is an important day for Atlantic Yards," Ratner added. "While the economic outlook remains challenging and there are still hurdles to overcome, we are moving ahead with confidence and are fully committed to this great project."