On February 26, 2009, the Appellate Division, First Department, issued a major ruling on the Atlantic Yards project in favor of Kramer Levin client Forest City Ratner Companies, LLC ("FCR") as well the Empire State Development Corporation ("ESDC"), the N.Y.S. Public Authorities Control Board (the “PACB") and the Metropolitan Transportation Authority (the “MTA"). The project is to consist of a new sports arena, 16 other buildings, major transit improvements and public open space on a 22-acre site in Brooklyn, about one-third of which is now an open-air below-grade rail yard and bus storage depot. Opponents of the project had sued to set aside the approvals of the project by ESDC, the PACB and the MTA on various statutory grounds. In 2008, a State Supreme Court Justice had sustained those approvals and dismissed the lawsuit. The Appellate Division has now affirmed that ruling in a lengthy decision that discusses several issues of public importance, including whether PACB decisions are subject to the State Environmental Quality Review Act ("SEQRA"), whether the Environmental Impact Statement for the project should have addressed the risk of a terrorist attack and—in great detail—whether the record provided adequate support for ESDC’s determination that the project site is blighted.

The Kramer Levin team consisted of Land Use and Environmental partner Jeffrey L. Braun, Environmental special counsel Karen Leo Mintzer, and associates Kerri B. Folb and Toni Finger, as well as Litigation associate Jessica L. Glass.