The Metropolitan Transportation Authority agreed to let Atlantic Yards developer Forest City off the hook for some of its financial obligations in a bid to jumpstart the long-stalled Brooklyn project.

On Wednesday, The MTA’s board is slated to vote on the proposal that would allow Forest City to stretch out its $100 million payment for development rights over two decades instead of shelling it out all at one in one lump sum. The MTA also agreed to allow Forest City build a less expensive replacement rail yard for the LIRR.

MTA chief financial officer Gary Dellaverson conceded that the new deal “was not quite as good” but that that in the midst of the credit crisis he didn’t believe the agency could find a better alternative. “This is not a good market for transacting large real estate deals. He added that it was unclear when the financial and real estate markets would rebound so mothballing development plans didn’t make sense either.

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