Four buildings that may face condemnation, clockwise from top left: 479 Dean Street, 485 Dean Street, 636 Pacific Street, 491 Dean Street

The last remaining legal hurdle Atlantic Yards faces is a Court of Appeals hearing later this month on the project’s proposed use of eminent domain. If the court finds in favor of the defendant, the Empire State Development Corporation, the properties of several renters and owners are likely to be seized to make way for the development. Renters, owners and businesses in buildings such as 479 Dean Street, 485 Dean Street, and 636 Pacific Street in the Prospect Heights area of Brooklyn will face condemnation proceedings under eminent domain. A second phase of condemnation would include buildings like 491 Dean Street. If that happens, a firm called the Cornerstone Group will spearhead relocation efforts on behalf of a legal team the ESDC has contracted with. As The Real Deal examined in a story a few months ago, the city and state often use the Cornerstone Group in projects involving eminent domain, but the efficacy of the firm in helping residents and businesses find new places to live or work has often been questioned. A contract obtained by The Real Deal via a Freedom of Information Law request from the Empire State Development Corporation lays bear how much money Cornerstone is poised to make as the relocation point team on Atlantic Yards, as well as exactly how the firm is contractually obligated to help residents and businesses that need to be relocated. [more]

The Bush Terminal in Sunset Park is set to receive a $10 million “Restore New York” grant from state officials. The funds will go toward the demolition and reconstruction of facilities on the property, while the city’s Economic Development Corporation will be responsible for preparing the site for new construction. The “Restore New York” grants are given by the Empire State Development Corporation, chaired by Dennis Mullen. So far, 79 state projects have been designated for grants.

The current version of the state’s plan for developer Bruce Ratner’s
Atlantic Yards project does not contain promises of affordable housing
funds that appeared in earlier drafts, according to state documents.
The plan, which originally guaranteed city and state funding for 2,250
units of affordable housing, now says the funding is “expected” to come
from tax-exempt city and state bonds. Spokespeople for Forest City
Ratner and the Empire State Development Corporation did not say why the
language was changed, but both said the developer and the agency are
committed to the affordable housing portion of the project. [more]

From the August issue: In late June, tenants and property owners in the Atlantic Yards
footprint received a letter stating that reps from a company called
Cornerstone Group Real Estate Services would soon be paying them a
visit. The letter, which was sent by the Empire State Development
Corporation’s eminent domain counsel, said Cornerstone would “explain
the relocation advisory services and relocation assistance that they
will provide.” While Cornerstone has been in the business for decades, it does not
maintain a Web site. Sources who have worked with the firm say its
principals, Gary Curry and Stuart Polinsky, are publicity shy. Nevertheless, Cornerstone is a familiar name to property owners and residents across the city who have faced eminent domain. [more]

The New York Post looks at renderings of the Atlantic Yards project commissioned by the Municipal Art Society. Since project developer Bruce Ratner has not yet released new renderings reflecting many of the changes made to the project, including the replacement of starchitect Frank Gehry with Ellerbe Becket and the cancellation of Gehry’s design for the project’s arena, MAS commissioned renderings based on a few Becket designs that have been released. In the renderings, only the arena and two residential towers are shown, with temporary parking surrounding them. The MAS said it only portrayed two of 16 planned towers in the renderings because the project’s financing is uncertain. The Empire State Development Corporation is holding public hearings tomorrow and Thursday on Ratner’s scaled-back proposal for the project. [more]

Columbia University’s plan to expand its campus through eminent domain was slated to be heard in the Appellate Division of the state Supreme Court today. The Singh family, which owns two gas stations in the 17-acre area where Columbia hopes to expand, and Nicholas Sprayregen, who owns four buildings, sued the Empire State Development Corporation for allowing eminent domain to force them out. Columbia’s planned $6 billion expansion received the last government approval it needed yesterday, and the university already owns most of the property it needs for the project. [more]