It's been a while since there's been any movement on developer Michael Lappin's plans to turn the decaying old Domino factory in Williamsburg into a 2,200-unit residential and retail complex. Could it be the $1.3 billion project is being scaled back or abandoned, seeing as how the economy went down and hung itself in America's dank basement? The developer insists all systems are go, despite the fact that some of the banks underwriting the project have gone bust, and the real estate market is hobbled. Now some community groups and officials opposed to the plans are calling this an opportunity to reconsider the project, which some say will overwhelm the already stained public transportation system and parking situation. Assemblyman Joe Lentol tells the Observer, "We have now an opportunity to negotiate. They may be able to see the light and redesign the project so that it's more amenable to the community." Lappin says he expects to file the land use application with the city soon, and then the project will undergo the crucial public review phase.