New York Court enforces eminent domain ruling
Today, New York State’s Court of Appeals ruled in favor of the state in the eminent domain as they seized land for the 22-acre, $4 billion Atlantic Yards project in Brooklyn which includes plans for a new basketball arena for the New Jersey Nets, as well as offices, apartment buildings and retail.
Lawsuits and financing have choked this project up repeatedly and landowners and locals question the legitimacy of using eminent domain for commercial use when traditionally, it is used for parks, hospitals or urban renewal. On the other hand, developers expect the project will create 17,000 construction jobs and upon opening create over 8,000 permanent jobs while tax revenue is projected to reach $70 million a year upon completion, according to Reuters sources.
“Following these two hurdles, Forest City should be able to close the property and receive an initial $40 million from Barclays PLC for the arena naming rights,” Mark Biffert, Oppenheimer & Co analyst, said.
Opponents are anticipated to appeal the court’s decision.