NEW YORK (AP) The Nets may be steps away from new ownership, but will they have a place to play?

Politically connected developer Bruce Ratner needs numerous government approvals before his glass-walled Frank Gehry arena can be built above a railyard minutes from downtown Brooklyn.

City and state agencies must approve infrastructure changes, tax breaks and condemnations of neighboring homes that could end up costing hundreds of millions of dollars.

Government officials dealing with Ratner said negotiations have yet to focus on the specifics of state and city aid to the developer. Mayor Michael Bloomberg is eager to have pro sports back in Brooklyn but remains wary of straining public coffers, according to one city official familiar with the negotiations.

The official, who spoke on condition of anonymity, said now that Ratner has agreed to buy the team, negotiations to move the Nets can begin in earnest.

Ratner still must sign an agreement with Community Youth Organization, which owns the Nets. Then the deal must be ratified by the board of YankeeNets, the holding company of the Nets and New York Yankees, which is to meet Friday, as well as NBA owners.

The arena is merely one part of an ambitious development plan crafted by Ratner, a well-known developer who built the MetroTech Center in Brooklyn that houses the city's fire department headquarters, along with banking and other offices.

The 19,000-seat arena would sit amid thousands of apartments, hundreds of thousands of square feet of shopping space and more than 2 million square feet of offices. Most of the $2.5 billion project would be atop a Long Island Railroad yard owned by the Metropolitan Transportation Authority, a state agency controlled by Gov. George Pataki.

From the state, Ratner needs both air rights and a condemnation power to take nearby homes and businesses. He estimates about 150 homes would be affected, although neighbors fear the number would be higher.

Residents of the upscale neighborhood of Prospect Heights, which adjoins the site, have promised to sue because of what they said would be an unconstitutional use of the government's eminent domain power for private rather than public benefit.

The state's role could help Ratner avoid much of the city's lengthy and stringent land-use approval process. Opponents said that's one of a number of advantages Ratner has because of his political connections.

Ratner has held high-level positions in two mayoral administrations, and was once appointed by Gov. George Pataki to study the possibility of luring pro sports back to Brooklyn.

``There's a notion that he's not going to have any problems getting MTA approval because of his relationship with the governor,'' said Letitia James, a city councilwoman who represents the neighborhood and opposes the arena.