BROOKLYN - The Atlantic Yards development project may still encounter some obstacles as state officials try to move forward with construction.

The development, which would replace railroad yards and a residential area with a basketball arena, apartment buildings and office space, has been challenged by various community groups since plans were announced in 2003. Even though the last major lawsuit by community groups against the development was dismissed by a state Supreme Court judge in January, other obstacles may remain.

While construction plans moved forward under former Gov. Eliot Spitzer, some involved in the project aren?t sure what newly sworn-in Gov. David Paterson feels about it. Some think he might make changes to the plans.

Despite the potential uncertainty, the state says it?s moving forward. Construction has already begun on new water and sewage systems.

Related information: - Federal appeals court green lights Atlantic Yards plans