AY air rights the latest hurdle for Ratner

A former Prospect Heights property owner is claiming to own the air rights to a part of the site where Bruce Ratner plans to build his new Nets arena and is suing the state for trying to “steal” it. Peter Williams, who already handed over his property to Ratner in exchange for cash, said the state never condemned his air rights above and around 24 Sixth Avenue when it took the building through eminent domain and that the embattled Atlantic Yards project cannot move forward until the issue is settled. If the court rules in Williams’ favor, a state condemnation of his air rights could take up to two years — time that could devastate the project. The state responded that air rights are not a separate property lot and are “merely a mechanism for tax-billing purposes.” [Post]