Forest City Ratner Statement on Victory in Federal Eminent Domain Case

U.S. Court of Appeals Affirms Judge of District Court

Atlantic Yards won a major court victory today as the U.S. Court of Appeals, Second Circuit, unanimously rejected an appeal by opponents of the project. Today’s decision affirmed the previous June 2007 decision in U.S. District Court to dismiss the complaint.

Bruce Ratner, the CEO and Chairman of Forest City Ratner Companies, today applauded the United States Court of Appeals, Second Circuit, affirmation of the District Court's decision in a case brought by opponents of the Atlantic Yards project in Brooklyn on the grounds that the use of eminent domain violates the Public Use Clause of the Fifth Amendment. The District Court had decided against the plaintiffs in the case.

“Today's decision is more than another victory for Atlantic Yards," Mr. Ratner said.  "It is a victory for public good and the importance of investing in diverse communities throughout the City.  Atlantic Yards will bring thousands of affordable homes and needed jobs to Brooklyn. We believe, and the courts have repeatedly agreed, that these are real benefits that will have a significantly positive impact on the borough and the City.”

Two weeks ago, opponents suffered another defeat when the NY State Supreme Court ruled against them in a case involving environmental review procedures.  Opponents have lost over a dozen court decisions in the past two years.

Background on Atlantic Yards:

Construction on the Site

• Construction work on Atlantic Yards began in February of 2007. We expect to open the Barclays Center in the 2010 calendar year. 
• To date, roughly 50% of the structures on the site have been demolished or are in the process of being demolished.  Twenty-five structures have been demolished and an additional 8 buildings, including the former Ward Bread Building , are being demolished or are slated to be demolished in the short term.  There are 11 vacant lots and 28 other remaining buildings.
• Over $40 million worth of contracts have already been awarded to contractors for work on the site thus far.  
• Minority- and women-owned businesses have received a large percentage of the work.  Construction contracts awarded at Atlantic Yards total approx. $40 million.  The total MBE awards are $15 million or approximately 38% of total purchases.  The total WBE awards are $3.6 million or approx. 9% which brings the total M/WBE participation thus far to $19 million or approx. 47%.
• Construction of the Temporary Rail Yard is under way. The Carlton Avenue bridge over the rail tracks closed last week and construction work has begun.  Critical upgrades to the sewer and water infrastructure have begun. 

Legal Update

• February 1, 2008.  US Court of Appeals, the Second Circuit, unanimously rejects the opponents’ appeal in the federal eminent domain lawsuit that was dismissed in June, 2007. 
• January 15, 2008. The Appellate Division of the New York State Supreme Court unanimously dismissed a challenge to the project approvals under Section 207 of the Eminent Domain Procedure Law in November 2007.  Opponents’ request for an appeal was denied in January, 2008. 
• January 11, 2008. NY State Supreme Court rules against opponents in a case on environmental review procedures.  Opponents are appealing the case.
• October 2007. A second suit brought in the NY Supreme Court challenging the State's use of eminent domain was dismissed in May 2007, and the dismissal was affirmed by the Appellate Division in October 2007.