Senate Bill S4276

                                BILL NUMBER:S4276

TITLE OF BILL:
An act
to exempt certain properties on Roosevelt Island in New York City from
certain reporting requirements regarding the disposal of property by
a public authority

PURPOSE OR GENERAL IDEA OF BILL:
To exempt certain properties on
Roosevelt Island in New York City from the requirement to prepare an
explanatory statement of the circumstances of the disposal by
negotiation of public authority property.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Provides that the
provisions of paragraph d of subdivision 6 of section 2897 of the
public authorities law, requiring the preparation of an explanatory
statement of the circumstances of the disposal by negotiation of
certain properties, shall not apply to the properties listed in
section 2 of this act.
Section 2: Lists the applicable properties.

JUSTIFICATION:
The public authorities act provides that, in certain
circumstances, public authorities may dispose of their property by
              

negotiation or public auction, including in cases when the purpose of
the transfer is within the purpose, mission or governing statute of
the public authority. When public authority property is disposed of
by negotiation, the law requires that an explanatory statement be
prepared of the circumstances of such disposal; this statement must
be submitted at least ninety days in advance of the disposal.

While the explanatory statement requirement is a useful safeguard in
most cases, with respect to the unique situation of certain
residential properties on Roosevelt Island, it is both unnecessary
and potentially over-burdensome. These properties are held by the
Roosevelt Island Operating Corporation (RIOC), a public benefit
corporation created in 1984 to manage Roosevelt Island, oversee its
continued development through the Island's Master Plan and allocate
state capital funding and operational support. A central part of
RIOC's purpose is the preservation of affordable housing on the Island.

These properties are unlike other properties covered by the public
authorities act, as they consist of land on which there are existing
residential buildings. They cannot be used for any purpose other than
for housing; the only possible disposition of these properties is the
extension of their ground leases by RIOC. As such, the explanatory
statement requirement, which is designed to prevent improper disposal
of public property, simply represents in this case an unnecessary
obstacle to RIOC's ability to reasonably negotiate such ground lease

extensions in a way that will ensure the preservation of affordable
housing at these sites. Given the unique circumstances of these
properties, it is reasonable to exempt them from the explanatory
statement requirement;
such an exemption will also contribute to the State's public policy
goal of preserving affordable housing on Roosevelt Island.

PRIOR LEGISLATIVE HISTORY:
None.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Act to take effect immediately.