Atlantic Yards Project Hit With Another Legal Challenge

A former Prospect Heights property owner says he still owns air rights over a small parcel where the Atlantic Yards arena is being built.

Peter Williams filed a lawsuit Tuesday. He says the state took his property by eminent domain but forgot about air rights he acquired above an adjacent building nine years ago. The lawsuit says the state needs to go through the process of condemning the air rights all over again--a process that could take months and potentially delay developer Forest City Ratner from moving forward on Atlantic Yards.

A spokeswoman for the state economic development agency calls the lawsuit "a poorly veiled attempt to obtain further compensation" and says it won't affect the project.

Forest City Ratner says Williams never owned the air rights but instead a light and view easement that he forfeited when he gave up his building.