The $2 billion Lighthouse project moved one giant step forward yesterday after the Hempstead Town board cleared the way for an environmental review.

Lingering questions about the massive development's effect on traffic, water, sewage, air quality and the local economy will soon be answered.

The Lighthouse Development Group, headed by Islanders owner and billionaire Charles Wang and RexCorp Realty chief executive Scott Rechler, said they hope to submit a draft of the environmental impact statement to the town by July.

Both said they spent a year and millions of dollars on consultants studying the impact of the project on the environment, parking and energy.

The town retained the consulting firm of Frederick P. Clark & Associates, of Rye, to review the studies. Local health and state environmental conservation departments will then review the findings. Public hearings will be held about a month after that.

The developers have proposed a mixed-use community with sports and entertainment facilities centered on a renovated Nassau Coliseum. It would feature about 2,300 residential units, 900 hotel rooms and thousands of square feet of retail and office space.

In November, the group applied to the town to create special zoning for the area.

Supervisor Kate Murray said at yesterday's town board meeting that the Lighthouse group could separate the Coliseum renovation from the rest of the development and move it more quickly through the process.

But Wang and Rechler balked at the suggestion, adding that to do so would be economically unfeasible.

"It's Nassau County's responsibility to provide the Islanders with a first-class arena," Wang said. "They didn't have the money. We're willing to put up the money. It doesn't pay to just do the arena. The rest of the development creates thousands of jobs that are needed."

Wang said their goal is to have public hearings this fall and begin construction in July 2009.

"There's a hockey season to consider," he said. "This has to be done on the offseason."

Project consultant Michael Picker said the group will spend about $7 million this year on the environmental review and site plan drawings for the new coliseum.

At yesterday's town board meeting, several residents voiced support for the project, saying it would provide benefits for generations to come.

Roger Farina, who grew up in East Meadow, said Long Island's property taxes forced him to move to North Carolina after retiring from the military. He came back yesterday to support the project.

"I hope this development will help relieve some of the tax burden so I can come back home," Farina said.

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