Opponents of the $4 billion Atlantic Yards project in Brooklyn will argue before a federal appeals court tomorrow in one of their few remaining attempts to challenge the use of eminent domain for the project.

In June, a U.S. District Court judge in Brooklyn dismissed a lawsuit against New York State brought by a coalition of Prospect Heights residents and business owners affected by the project. An appeal of that ruling is being heard in the U.S. Court of Appeals for the 2nd Circuit, which sits in Manhattan.

The suit aims to block the Atlantic Yards project, claiming the state’s intention to commence taking property and then handing the land over to private developer Forest City Ratner does not present a clear public benefit and is unconstitutional. The project was approved by the state in December, allowing for construction of a Frank Gehry-designed basketball arena and more than 6,000 units of housing in the neighborhood, which is near the Long Island Rail Road terminal on Atlantic Avenue.

“We believe it was a completely private benefit, and the public benefit was added after Kelo was decided,” a spokeswoman for the opponent group Develop Don’t Destroy Brooklyn, Candace Carponter, said, referring to a landmark 2005 eminent domain case Kelo v. City of New London.

Should the opponents be successful at the appellate level, their case would still have hurdles to overcome, as a victory would only guarantee a trial at the district court level, according to Ms. Carponter.

Legal experts say precedent suggests a strong uphill battle for the opponents, especially given their loss in the lower court.