Gerges' decision found "no merit" in any of the 14 motions brought by homeowner Daniel Goldstein and local businesses to halt the Empire State Development Corp.'s use of eminent domain on behalf of developer Bruce Ratner and Forest City Ratner Cos. Among other things, opponents argued that Atlantic Yards would enrich FCRC without providing a public benefit. However, Gerges in his ruling supported the ESDC's contention that "there is no support for the assertion that the project will unjustly enrich Ratner or FCRC."
Monday's ruling follows a decision this past November by the State Court of Appeals upholding the ESDC's authority to use eminent domain on the contentious project. But in the view of Atlantic Yards opponents, including Goldstein's group Develop Don't Destroy Brooklyn, neither the high court's ruling nor Gerges' decision represents the last word, and DDDB says it will keep fighting.
"Several overarching legal and financial issues still plague Ratner's Atlantic Yards project, meaning today's extreme measure by New York State to seize ownership of private property is premature," says DDDB's legal director, Candace Carponter, in a statement. She adds that there are two pending cases brought by DDDB and other opponents; "one just completed briefing and the other is awaiting a judicial ruling. Either would stop Atlantic Yards dead in its tracks and could impact today's ruling."
For its part, the ESDC issued a statement counting itself "pleased" with Monday's ruling. In its statement, the state agency says it's "looking forward to moving ahead with a project that will bring an arena, open space, affordable housing, transportation improvements and thousands of jobs to Brooklyn."
Although it's not clear when the ESDC will take possession of the downtown Brooklyn properties listed in its petition, street closures in connection with the start of construction on the project's centerpiece arena, the Barclays Center, will take effect next Monday morning. "ESDC is coordinating with FCRC and the Brooklyn Department of Transportation to update the relevant message boards and otherwise provide notice to the community," according to the statement.
Although the ESDC says no formal notice period for the street closures is required under law, "in hearing from the community and working with the Department of Transportation, ESDC believes this additional notice period will help the community prepare for anticipated traffic changes while not overly delaying the commencement of principal construction of this eagerly anticipated project. In terms of those residents occupying condemned property, ESDC has been and will continue to work with occupants to relocate them and anticipates an orderly relocation taking place over the course of the next few months."
Borough president Marty Markowitz, a longtime supporter of the long-delayed project, issued a statement of his own welcoming the ruling by Gerges. "Brooklyn's shovels are, and have been, ready," Markowitz says. "So let's pick them up and get to work."
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
