N.Y. Stadium Bid Clears Legal Hurdle

A proposed $2-billion Manhattan stadium that is seen as vital to New York’s effort to land the 2012 Olympics survived a critical legal challenge Thursday, just days before the International Olympic Committee is to review the city’s bid.

State Justice Herman Cahn dismissed a lawsuit alleging illegalities in the purchase of the land for the stadium, which would be built over rail yards along the Hudson River on the city’s West Side.

The IOC evaluation commission is set to present a report on New York’s bid to the full committee Monday. The head of the commission said in February that a stadium would be crucial to the city’s chances.

New York is vying with Paris, London, Madrid and Moscow for the Olympics. The IOC will select a host city on July 6.

“The court has ruled in favor of the stadium, and totally rejected all of the bogus arguments intended to stop the project,” said Jay Kriegel, executive director of the NYC2012 organizing group.

When the stadium is completed, it will be the home of the New York Jets, who now play at the Meadowlands, across the river in New Jersey.

Cablevision Systems Corp., which owns Madison Square Garden near the proposed stadium site, had accused the city’s transit agency of conducting “a sham bidding process” for the property earlier this year. The transit agency, which owns the land, accepted a bid from the Jets that was worth less than two other offers.

The Jets’ offer was $250 million, Cablevision’s $760 million. But the judge said there were other factors involved, and the transit agency acted appropriately in accepting the Jets’ bid.

The judge also dismissed three other lawsuits brought by politicians and watchdog groups against the stadium plan, though he ordered the transit agency -- the Metropolitan Transportation Authority -- and the Jets to delay their closing on the deal so Cablevision and others can appeal.

Opponents of the stadium deal said they were confident the decision would be overturned on appeal.

“We do not believe the MTA board has the right to cut an inside deal,” Madison Square Garden said in a statement. “The overwhelming majority of New Yorkers stand together in opposition to this waste of taxpayer funds.”

Polls have shown about 40% of New York City residents support the stadium.