Under the MOU, the Empire State Development Corp. will act as the lead agency for the purposes of compliance with the State Environmental Quality Review Act, will adopt a general project plan and conduct public hearings. The state and the city will each contribute $100 million in capital contributions to fund site preparation and public infrastructure improvements. FCRC will relocate and reconfigure the Long Island Rail Road Yard and build and maintain the overbuild platform. The rail yard will remain operable through all phases of construction.

The 7.7-million-sf plan, which will take approximately 10 years to come to fruition, also involves the construction of some 4,500 residential units in addition to 2.1 million sf of office space, 3.1 million sf allocated for retail use, open space and parking. The first phase of construction on the arena is expected to begin at the end of this year and be completed in the summer of 2006.

"We are a step closer to creating thousands of new jobs, much needed housing, including affordable housing, and providing greater hope and promise for the future," notes New York State Gov. George Pataki.