Official Statement Posted 12-21-2009 (8.8 MB)

NEW ISSUE—BOOK-ENTRY ONLY RATINGS:

(See “RATINGS” within)

IntheopinionofMintz,Levin,Cohn,Ferris,GlovskyandPopeoP.C.,BondCounsel,underexistinglaw,andassumingcontinuingcompliancewiththeInternalRevenue Code of 1986, as amended (the “Code”), interest on the Series 2009 PILOT Bondswill not be includedin gross income of holders of the Series 2009 PILOT Bonds for federalincometax purposes.Interest ontheSeries2009PILOT Bondswillnotconstitutea tax preferenceitemfor purposesof computationof thealternativeminimum taximposedonindividualsandcorporationsandwillnotbeincludedinadjustedcurrentearningswhencalculatingcorporatealternativeminimumtaxableincome.Under existing law, interest on the Series 2009 PILOT Bonds is exempt from personalincome taxes imposedby the State of New York and its politicalsubdivisions,including The City of New York, to the extent that such interest is excluded from gross income for federal income tax purposes. See “TAX MATTERS” herein.

$510,999,996.50Brooklyn Arena Local Development CorporationPILOT Revenue Bonds, Series 2009(Barclays Center Project)Dated: Date of Delivery Due: As shown on the inside front cover

The Brooklyn Arena Local Development Corporation (the “

Issuer

”) is offering $510,999,996.50 of its PILOT Revenue Bonds, Series 2009 (Barclays Center Project) (the“

Series2009PILOTBonds

”),certainproceedsofwhichSeries2009PILOTBonds,togetherwithcertainothermoneys,willbeusedtopaythecostsoftheArenaProject.TheSeries 2009 PILOT Bonds are being issued for the purposes of: (i) providing a portion of the costs of acquisition and construction of the Arena Project; (ii) funding theSeries 2009 PILOT Bonds Debt Service Reserve Subaccount in the amount of the Senior PILOT Bonds Debt Service Reserve Account Requirement for the Series 2009PILOTBonds;(iii)fundingtheSeries2009PILOTBondsStrikeandLiquidityReserveSubaccountinaportionoftheamountoftheSeniorPILOTBondsStrikeandLiquidityReserveAccountRequirementfor theSeries2009PILOTBonds;(iv)payingcapitalizedinterestontheSeries2009PILOTBondsfromtheArenaProjectEffectiveDate(assuch term is defined in the Commencement Agreement) through May 15, 2012; and (v) reimbursing certain Costs of Issuance. See “PLAN OF FINANCE.”The“

ArenaProject

”iscomprisedofthedesign,development,acquisition,constructionandequippingofanarena(the“

Arena

”)andcertainother improvementsrelatedtotheArena(the“

ArenaInfrastructure

”)intheAtlanticTerminalareaofBrooklyn,NewYork,tobeusedasthehomevenueoftheprofessionalbasketballteamcurrentlyknown as the New Jersey Nets (the “

Nets

”) and as a venue for other entertainment, cultural, sporting and civic events. See “THE ARENA PROJECT.”Funds to pay a portion of the costs of acquisition and construction of the Arena Project have been and will be provided by ArenaCo and/or will be derived from one ormore other relatedsources.Fundsto paya portionof thecosts of theArenaProjecthave beenandwillbe providedbyThe Cityof New York (the “

City

”), actingthroughthe New York City Economic Development Corporation (“

NYCEDC

”). Funds to pay a portion of certain costs relating to items of Atlantic Yards Project infrastructure,includingaportionoftheRelatedInfrastructure(butnotcostsoftheArenaProject),havebeenandwillbeprovidedbyTheStateofNewYork(the“

State

”),actingthroughthe New York State Urban Development Corporation d/b/a Empire State Development Corporation (“

ESDC

”). See “PLAN OF FINANCE.”The Series 2009 PILOT Bonds are special limited obligations of the Issuer, the principal or Accreted Value, as applicable, of and premium, if any, and interest, asapplicable,onwhicharepayablesolelyoutofandsecuredby(i)revenuesoftheIssuerderivedandtobederivedfromcertainpaymentsinlieuof

advalorem

realestatetaxes(“

PILOTs

”)tobemadeunderaPayment-in-Lieu-of-TaxAgreement(Arena)(the“

PILOTAgreement

”),amongtheIssuer,BrooklynEventsCenter,LLC,aDelawarelimitedliabilitycompany(“

ArenaCo

”), theCityandESDC; (ii)all right, title andinterestof TheBankof NewYork Mellon(the “

PILOT BondTrustee

”) incertainfunds andaccounts held by The Bank of New York Mellon (the “

PILOT Trustee

”) under the PILOTAssignment and EscrowAgreement (Arena) (the “

PILOTAssignment

”), amongESDC, the Issuer, thePILOT BondTrustee, the PILOT Trustee andtheCity; and(iii) allright, titleandinterestof the PILOT BondTrustee incertainfunds andaccountsheldby thePILOT BondTrusteeunder theMaster PILOT Indentureof Trust, datedasof December1, 2009(the“

Master PILOT Indenture

”), byandbetweentheIssuerand the PILOT Bond Trustee, and the First SupplementalPILOT Indenture of Trust, by and between the Issuer and the PILOT Bond Trustee, dated as of December 1,2009(the“

FirstSupplementalPILOTIndenture

”and,togetherwiththeMasterPILOTIndenture,the“

PILOTBondsIndenture

”).ArenaCoisanewly-formedandwholly-ownedsubsidiary of Brooklyn ArenaHoldingCompany, LLC, a Delaware limitedliabilitycompany(“

ArenaHoldCo

”), whichin turn is a newly-formed and wholly-ownedsubsidiary of Brooklyn Arena, LLC, a Delaware limited liability company (the “

Arena Developer

”). See “SECURITY AND SOURCES OF PAYMENT FOR THESERIES 2009 PILOT BONDS.”The Series 2009 PILOT Bonds will be issuable as current interest bonds (the “

Series 2009 Current Interest PILOT Bonds

”) and as capital appreciation bonds (the“

Series 2009 CapitalAppreciationPILOT Bonds

”). Interest on the Series 2009Current Interest PILOT Bonds is payable on eachJanuary 15 and July 15, commencingJuly 15, 2010. The inside cover page of this Official Statement contains information concerning the maturity dates, interest rates, prices or yields and CUSIPs for theSeries 2009 PILOT Bonds.The Series 2009PILOT Bondswillbesubjectto redemptionprior to maturity, including,undercertaincircumstances,extraordinary mandatory redemption,allas morefully described herein. See “INTRODUCTION—Commencement Agreement” and “THE SERIES 2009 PILOT BONDS—Redemption.”TheSeries2009PILOTBondswillbeissuedinauthorizeddenominationsof$5,000oranyintegralmultiplethereof.TheSeries2009PILOTBondswillbeheldinitiallyinbook-entryonlyform,registeredinthenameofCede&Co.,asregisteredownerandnomineeofTheDepositoryTrustCompany,NewYork,NewYork(“

DTC

”),whichwillact as securities depository for the Series 2009 PILOT Bonds. Individual purchases of beneficial interests in the Series 2009 PILOT Bondswill be made in book-entryform underDTC’s book-entryonlysystem. Purchasersof beneficialinterestsinthe Series2009PILOT Bondswillnotreceive certificates representingtheir interestsintheSeries2009PILOTBonds.SolongasCede&Co.istheregisteredowneroftheSeries2009PILOTBonds,paymentsofprincipalofandpremium,ifany,andintereston the Series 2009 PILOT Bonds will be paid through the facilities of DTC. Disbursement of such payments to DTC participants is the responsibility of DTC, anddisbursement of such payments to the purchasers of beneficial interests in the Series 2009 PILOT Bonds is the responsibility of DTC participants and indirectparticipants, as more fully described herein. See “THE SERIES 2009 PILOT BONDS—General” and “APPENDIX A—BOOK-ENTRY ONLY SYSTEM.”

THE SERIES 2009 PILOT BONDS ARE SPECIAL LIMITED OBLIGATIONS OF THE ISSUER PAYABLE SOLELY FROM AND SECURED BY PILOT REVENUESDERIVED FROM PILOTS MADE BYARENACO PURSUANT TO THE PILOT AGREEMENT, THE INTEREST OF THE PILOT BOND TRUSTEE IN THE DEBTSERVICEANDREIMBURSEMENTFUNDHELDBYTHEPILOTTRUSTEEUNDERTHEPILOTASSIGNMENTANDCERTAINFUNDSANDACCOUNTSHELDBYTHEPILOTBONDTRUSTEEUNDERTHEPILOTBONDSINDENTURE.NONEOFTHESTATE,THECITYANDESDCISORSHALLBEOBLIGATEDTOPAYTHEPRINCIPAL OF AND PREMIUM, IF ANY, OR INTEREST ON THE SERIES 2009 PILOT BONDS, AND NEITHER THE FAITH AND CREDIT NOR THE TAXINGPOWER OF THE STATE OR THE CITY IS PLEDGED TO SUCH PAYMENT. THE ISSUER HAS NO TAXING POWER.THESERIES2009PILOTBONDSDONOTCONSTITUTE ANOBLIGATIONOFARENACO,THEARENADEVELOPER,NEWJERSEYBASKETBALL, ORANYOFTHEIRRESPECTIVEAFFILIATES.THESERIES2009PILOTBONDSARENOTSECUREDBYANYINTERESTINANYPORTIONOFTHEATLANTICYARDSPROJECT (INCLUDING THE ARENA PROJECT) NOR ANY PROPERTY OF OR INTEREST IN ARENACO, THE ARENA DEVELOPER, NEW JERSEYBASKETBALL, OR ANY OF THEIR RESPECTIVE AFFILIATES.An investment in the Series 2009 PILOT Bonds involves certain risks as described herein. See the information provided under the headings “RISKFACTORS AND INVESTMENT CONSIDERATIONS” in this Official Statement.

The Series 2009 PILOT Bonds are offered by the underwriters set forth below (collectively, the “

Underwriters

”), subject to prior sale, when, as and if delivered to andaccepted by the Underwriters, subject to the approval of the proceedingsauthorizing the Series 2009 PILOT Bonds, and certain other matters, by Mintz, Levin, Cohn,Ferris,GlovskyandPopeoP.C.,BondCounsel.CertainlegalmatterswillbepasseduponforArenaCo,theArenaDeveloperandNewJerseyBasketballbyFried,Frank,Harris, Shriver & Jacobson LLP, Edwards Angell Palmer & Dodge LLP, Richards, Layton & Finger, P.A., and Kelley Drye & Warren LLP; for the Issuer and ESDC byESDC’s General Counsel; and for the Underwriters by Nixon Peabody LLP. It is expected that the Series 2009 PILOT Bonds will be available for delivery through theservices of DTC on or about December 23, 2009.

Goldman, Sachs & Co. Barclays Capital

Citi

Dated: December 16, 2009

$510,999,996.50Brooklyn Arena Local Development CorporationPILOT Revenue Bonds, Series 2009(Barclays Center Project)$482,085,000.00 CURRENT INTEREST BONDS

Maturity Date(July 15) Principal Amount Interest Rate Price or Yield CUSIPs

(†)

2014 $700,000.00 5.750% 4.210% 113807AA92015 1,575,000.00 5.750 4.600 113807AB72016 2,445,000.00 5.750 4.920 113807AC52017 3,325,000.00 5.750 5.170 113807AD32018 4,200,000.00 5.750 5.390 113807AE12019 5,070,000.00 5.750 5.560 113807AF82020 6,055,000.00 5.750 5.680

(

††

)

113807AG6$110,090,000.00 6.000% per annum Term Bonds Due July 15, 2030 — Yield 6.100%; CUSIP:

113807AH4

$25,250,000.00 6.500% per annum Term Bonds Due July 15, 2030 — Yield 5.875%

(

††

)

; CUSIP: 113807AT8

$187,585,000.00 6.250% per annum Term Bonds Due July 15, 2040 — Yield 6.350%; CUSIP: 113807AJ0

$135,790,000.00 6.375% per annum Term Bonds Due July 15, 2043 — priced at 98.625 to yield approximately6.476%; CUSIP:

113807AS0

$28,914,996.50 CAPITAL APPRECIATION BONDS

MaturityDate(July 15)InitialPrincipalAmountAccretedValue atMaturityDateInitialAmountper $5,000AccretedValue atMaturityYield toMaturityDate CUSIPs

2031 $5,063,720.10 $23,515,000.00 $1,076.70 7.250% 113807AK72032 4,850,146.50 24,450,000.00 991.85 7.300 113807AL52033 4,630,380.75 25,365,000.00 912.75 7.350 113807AM32034 4,421,744.80 26,345,000.00 839.20 7.400 113807AU52035 1,922,499.90 12,470,000.00 770.85 7.450 113807AV3**** **** **** **** **** ****2044 2,379,600.30 35,805,000.00 332.30 8.000 113807AN12045 2,118,181.50 34,470,000.00 307.25 8.000 113807AP62046 1,875,866.20 33,020,000.00 284.05 8.000 113807AQ42047 1,652,856.45 31,465,000.00 262.65 8.000 113807AR2

________________________________ (†)

CUSIP® is a registered trademark of the American Bankers Association. CUSIP data herein are provided by Standard &Poor’s CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc. CUSIP numbers have been assigned by anindependent company not affiliated with the Issuer and are included solely for the convenience of the holders of the Series 2009PILOT Bonds. The Issuer is not responsible for the selection or uses of these CUSIP numbers, nor is any representation made asto their correctness on the Series 2009 PILOT Bonds or as indicated above.

(

††

)

Priced to call on January 15, 2020.