Last week, Forest City Ratner agreed to pay the MTA "full market value" for development rights above the Atlantic Yards site in Brooklyn, though does not identify what that value is. The company wants the site in order to construct a 19,000 seat arena for the NBA’s Nets team, along with a $2.5 billion commercial and residential development. The MTA also maintained its right to select the highest bidder for any proposal, a significant victory for transportation, civic, and planning groups worried that, with the Jets stadium imbroglio on in Manhattan, the MTA could be forced give the rights away for less than they are worth.

News of the deal said came as the city, state and Forest City Ratner signed a memorandum of understanding (MOU) agreeing to the terms. The MOU simply implies city and state support for the project, and does not preclude the other necessary steps, including an environmental review and approval by the Public Authorities Control Board. Also, there will likely be eminent domain lawsuits and fierce community opposition. Terms of the agreement state that the city and state would each contribute $100 million to the project. Over the weekend, elected officials and civic groups gathered to protest city financial support for the project, attacking Mayor Bloomberg for a "stadium first, children last" policy.

Along with the Nets arena, Ratner’s development includes 4,500 residential units, and numerous large office buildings extending east along Atlantic Ave. from Flatbush Ave to Vanderbilt Ave in Prospect Heights. The MOU apparently does not discuss costs the MTA would incur as a result of the project, including relocating its storage facilities and providing more frequent rail and bus service to the area when the development is built out.

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