The fight has been going on for years but anger in the community has reached a boiling point with construction set for later this week.
A spokesperson said the first-term Democratic councilwoman was arrested after trying to protect an 80-year-old woman who was being pushed against barriers.
The family says they were targeted for being Jewish and were punched, smashed in the head and dragged on the ground by their hair.
The 25-year-old victim entered the location and was stabbed once in the chest by two men, according to police.
Police have released video of vandal seen using a hammer to deface statues at a Catholic church in Brooklyn, and while the suspect is now in custody, churchgoers say the damage is already done.
At least seven firefighters suffered injuries while battling the quick-moving fire.