The New York Court of Appeals cleared the way this morning for developer Bruce Ratner to move forward with plans for his $4.9 billion Atlantic Yards project, dismissing opponents’ claims that the state had misused eminent domain laws in securing land for the development. The decision may come just in the nick of time for Ratner, who needs to make a Dec. 31 deadline if he is to receive tax-exempt status on $600 million in bonds for the new 18,000-seat New Jersey Nets arena he’s building at the intersection of Flatbush and Atlantic Avenue. In addition to the arena, Ratner has plans for 16 high-rise towers nearby on the 22-acre lot, with up to 6,430 apartments. While the eminent domain case was likely the last major obstacle Ratner would have to clear before beginning construction, he is facing a slew of other lawsuits, including one filed by some 20 community advocacy groups last month contending that the Empire State Development Corporation and Ratner’s Forest City Companies planned to circumvent the project’s governing document and were refusing to submit a Supplemental Environmental Impact Statement. [NYT]

Bruce Ratner’s controversial Atlantic Yards project may soon benefit from $55 million in federal tax credits. The funds, which have been awarded to Ratner’s company Forest City Enterprises, are part of a $5 billion tax credit package announced by the Treasury Department last week. Though the credit is not earmarked for the Prospect Heights project, Bill Luecht, a spokesperson for the Community Development Financial Institutions Fund, which allocates the money, said it could be used in any low-income area. The Atlantic Yards site qualifies, he said. Forest City Enterprises is currently facing a lawsuit that argues against its right to force out current residents for the development, and also needs to sell $650 million in bonds and break ground before a Dec. 31 deadline for tax-exempt financing. [NYDN]

Forest City Enterprises yesterday stepped back from its promise to
start building Atlantic Yards this year. The developer said in a press
release yesterday that it “does not anticipate commencing any new
vertical development in the near term.” But the company does expect to
work on $331 million worth of long-term projects over the next four
years. Forest City also announced that it will sell 40 million shares
of Class A stock.
[more]