Nov

18

Nets’ Brooklyn Venue Decision Drawing Near

Posted by Stephen Rhodes under NBA News, NBA Off The Court Issues 

A ruling by the New York Court of Appeals that will make or break the $5 billion Atlantic Yards project – the tentative home of the New Jersey Nets – may be handed down as early as Thursday, according to John Brennan of the Bergen Record.

The court had their session on Tuesday, and court spokesman Gary Spencer said that rulings are issued on Tuesdays and Thursdays; however, if the court doesn’t rule this week on the project’s proposed usage of eminent domain at the Brooklyn locale, the court’s release dates could very well be Monday and Tuesday of next week due to the upcoming Thanksgiving holiday. At the same time, the court has the option of ruling on this matter as late as mid-December, but most of the 25 cases in the court’s docket are expected to be ruled upon this month.

The issue in this case is whether the state  can use its eminent domain powers to remove the remaining nine residents and businesses from the proposed site location (Atlantic and Flatbush avenues in downtown Brooklyn); project opponents lost in both the federal and state appellate courts. However, the Court of Appeals agreed to hear the case back in June, with the oral arguments beginning in mid-October.

Should the court allow the project to proceed, that will accelerate a mad dash by the developer, Forest Ctiy Ratner, to beat three December 31 deadlines:

  • The expiration date of an Internal Revenue Service ruling that would grant tax-exempt status for $600 million or more in bonds issued for construction of the Nets’ arena in Brooklyn.
  • The end of a one-year extension granted by arena title sponsor Barclays Bank to remain committed to its reported 20-year, $400 million naming rights deal.
  • The deadline for the Nets to inform the New Jersey Sports and Exposition Authority whether it intends to leave the Izod Center for Newark’s Prudential Center for the 2010-11 season.

The decision is probably going to be influenced by whether ground will be “symbolically broken” in Brooklyn for an arena to be completed as soon as mid-2012; ratings for the construction bonds could be issued by December 1 and the NBA may approve Russian billionaire Mikhail Prokhorov’s aim to gain 80% ownership of the Nets before the end of the year, as well.

Suffice it to say, the next couple weeks, if not sooner, will be key as to whether the Nets can indeed call Brooklyn home for the 2013 NBA season. Stay tuned to Slam Dunk Central as more developments become available.


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