$2.5b Ratner project takes another step forward.

The city and state signed of a Memorandum of Understanding (MOU) with Forest City Ratner Companies to proceed with the historic development of the Atlantic Yards project at the intersection of Atlantic and Flatbush Avenues in Brooklyn.

"It has been a truly extraordinary year," said Bruce C. Ratner, President & CEO of Forest City Ratner Companies.

"Only a year ago, we unveiled Frank Gehry's master plan and won our bid for the Nets. Today, with the help of the State and the city--and countless others who are working hard to bring the team and jobs and housing to Brooklyn--we are one step closer to creating a remarkable development that will hopefully make a proud borough and city even prouder."

The $2.5 billion project will include a Frank Gehry designed world-class arena to house the Brooklyn Nets, which Forest City Ratner Companies and investors purchased earlier this year, and over 4,000 units of mixed-income housing, along with commercial, retail and public space.

The development will span 21 acres and is adjacent to Atlantic Terminal, the third-largest transportation hub in New York City with nine different subway lines and the Long Island Rail Road converging.

The primary existing use on the proposed site is a rail storage yard for the Long Island Railroad. The project is expected to create 15,000 construction jobs and over 10,000 permanent jobs.

Under the MOU, the Empire State Development Corporation (ESDC) will act as the lead agency for the purposes of compliance with the State Environmental Quality Review Act and also adopt a General Project Plan and conduct public hearings.

Under the MOU, the State and the City will each contribute $100 million in capital contributions to fund site preparation and public infrastructure improvements on and around the arena site, including streets, sidewalks, utility relocations, environmental remediation, open space and public parking.

"Today, we are one step closer to bringing professional sports back to Brooklyn," said Governor Pataki. "But even more importantly, we are also a step closer to creating thousands of new jobs, much needed housing, including affordable housing, and providing greater hope and promise for the future The new Arena will not only be home to the Nets, but will host local community events, as well as concerts and school athletics for neighboring high schools and colleges. I want to thank Bruce Ratner and Forest City Ratner Companies for contributing to Brooklyn's revival."

"This is an historic project that will continue to energize the borough of Brooklyn," said Mayor Bloomberg. "While a new home town team will give all of us something to cheer for, it's the jobs and housing that will have the greatest lasting impact on the borough and the people of Brooklyn.

Development is not just about constructing buildings. It's about building a stronger future for this great City and State."

Forest City Ratner Companies (FCRC) has agreed to relocate and reconfigure the Long Island Rail Road Yard. FCRC will also build and maintain the overbuild platform.

The rail yard will remain operable through all phases of construction. According to an economic analysis completed earlier this year for FCRC by the economist Andrew Zimbalist, the net fiscal benefit to the City and State from the Atlantic Yards project is estimated to be at least $2.819 billion over thirty years, or a present value of at least $812.6 million.