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]

A New York Court of Appeals ruling on the use of eminent domain in securing land for the controversial Atlantic Yards development is expected as early as tomorrow. The ruling could prove pivotal for developer Bruce Ratner’s project, which has drawn fervent supporters and detractors through its long process of deliberation. The timing of the ruling is significant for Ratner, who is racing to beat a Dec. 31 deadline in order to receive tax-exempt status on $600 million in bonds and to commit Barclays and the New Jersey Nets for the project.

The latest chapter in the Atlantic Yards saga is set to open this week in Albany. The New York Court of Appeals is prepared to hear oral arguments this Wednesday over whether the state bears the right to condemn property and sell it for development. Many business owners and residents in the Atlantic Yards’ neighborhood have been vocal in their opposition of the project, saying that the Empire State Development Corp. has overstepped its bounds and that it doesn’t have the right to force them out.