Senate Bill S3622

                                 BILL NUMBER:  S3622

 TITLE OF BILL :

An act relating to authorizing the canal corporation to abandon canal
terminal lands in the Syracuse inner harbor


 PURPOSE OF THE BILL :

This bill would authorize the Canal Corporation to sell, conveyor
otherwise dispose of property at the old canal terminal site in the
Syracuse Inner Harbor.

 SUMMARY OF PROVISIONS :

Section 1 of this bill would authorize the Canal Corporation to
abandon and dispose of barge canal terminal lands in the Syracuse
Inner Harbor upon the approval of the Director of the Budget.

Section 2 of this bill would take effect immediately.

 EXISTING LAW :

Canal Law § 50 prohibits the Canal Corporation from abandoning canal
barge terminal properties absent a prior special act of the
              

Legislature that the properties are no longer necessary or useful as a
part of the barge canal system, as an aid to navigation thereon, or
for barge canal terminal purposes.

Pursuant to Article XV § 2 of the State Constitution, barge canal
terminal properties which are no longer necessary or useful for canal
or terminal purposes can be sold.

 PRIOR LEGISLATIVE HISTORY :

A similar bill, S.7378, was introduced in the Senate in 2008, and
remained in the Transportation Committee.

 STATEMENT IN SUPPORT :

Chapter 766 of the Laws of 1992 transferred the Canal System to the
Thruway Authority and created its subsidiary, the Canal Corporation.
PAL § 384 authorized and directed the Thruway Authority to make
available $50 million to finance certain projects, including a project
for the Syracuse Inner Harbor. The project anticipates the development
of approximately 29 acres of land under the Canal Corporation's
jurisdiction. Approximately 3.85 acres of Syracuse Inner Harbor land
is barge canal terminal property located in the City of Syracuse. The
Canal Corporation has determined that the property is no longer
necessary or useful for Canal operations.

While the majority of the property that would be developed as part of
this project may be abandoned ,by the Canal Corporation without the
need for authorizing legislation, the canal terminal land in the
Syracuse Inner Harbor will be subject to a long term lease. Canal Law
§ 56 limits canal leases to a period not to exceed forty years and a
renewal period of such lease may not exceed an additional forty years.
It would be in the Canal Corporation's best interest, and would
facilitate development if the Canal Corporation would have the ability
to abandon the property that is no longer needed for Canal purposes,
rather than enter into leases for the use of the property.

Under this bill, any sale, conveyance or disposal of the barge canal
terminal or terminal lands would be made only upon the approval of the
Director of the Budget, and would be required to include as a
condition the maintenance of existing public access to existing local
waterfront revitalization facilities that were constructed with State
funds from the State Environmental Protection Fund, including the
existing pier and amphitheater facilities.

 BUDGET IMPLICATIONS :

None to the State. Pursuant to the Constitution and State Finance Law
§ 92-u, revenues from sales for abandoned canal lands is held in the
"New York State Canal System Development Fund" and can only be used
for the maintenance, construction, reconstruction, development or
promotion of the canal system.

 EFFECTIVE DATE :
This act shall take effect immediately.