S T A T E   O F   N E W   Y O R K
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                                  5502

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              May 26, 2011
                               ___________

Introduced by Sens. FLANAGAN, LAVALLE -- read twice and ordered printed,
  and when printed to be committed to the Committee on Higher Education

AN  ACT  to  authorize  the  lease of certain lands located at the state
  university of New York at Stony Brook; and to amend the public author-
  ities law, in relation  to  authorizing  the  dormitory  authority  to
  provide financing of certain projects conducted by Stony Brook Founda-
  tion Realty, Inc. at the state university of New York at Stony Brook

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative findings. The legislature finds that the  state
university  of  New York at Stony Brook (hereinafter referred to in this
act as the "university") is in need of additional facilities to  fulfill
its  legislatively mandated mission of research, education and provision
of health care services. Specifically, additional medical  office  space
and  parking  facilities are required to support the provision of health
services by the university faculty professional corporations  associated
with  Stony  Brook  University Hospital. Furthermore, such activity will
promote the provision of quality health care services to the surrounding
community.
  The legislature further finds that granting the board of  trustees  of
the  state  university  of New York the authority and power to lease and
otherwise contract to make  available  grounds  and  facilities  of  the
campus  of  the  state university of New York at Stony Brook will ensure
such activity will promote the provision of quality health care services
to the surrounding community.
  S 2. Notwithstanding any other provision of law to the  contrary,  the
state  university  board of trustees is hereby authorized and empowered,
without any public bidding, to lease  and  otherwise  contract  to  make
available  to  Stony Brook Foundation Realty, Inc. (hereinafter referred
to in this act as the "ground lessee") a portion of  the  lands  of  the
university  not  to  exceed 4 acres to be located southwest of the Stony

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11562-01-1
              

S. 5502                             2

Brook University Hospital for the  purpose  of  constructing  a  medical
office  building  and  a  portion  of the lands of the university not to
exceed 8 acres to be located southeast of  the  Stony  Brook  University
Hospital  for  the purpose of constructing parking facilities to support
the provision of quality health care to the surrounding communities  and
the missions of the state university of New York. Stony Brook Foundation
Realty,  Inc.  is  a not-for-profit corporation which is wholly owned by
Stony Brook Foundation, Inc., a  not-for-profit  corporation,  and  both
corporations  have as their exclusive purpose the benefit of the univer-
sity. Such lease or contract shall be for  a  period  not  exceeding  45
years  without  any  fee  simple conveyance and otherwise upon terms and
conditions determined by such board of trustees, subject to the approval
of the director of the division of the budget, the attorney general  and
the  state  comptroller. In the event that the real property that is the
subject of such lease or contract shall cease to be used for the purpose
described in this act, such lease or contract shall  immediately  termi-
nate  and the real property and any improvements thereon shall revert to
the state university of New York. Any lease  or  contract  entered  into
pursuant  to  this  act shall provide that the real property that is the
subject of such lease or contract and  any  improvements  thereon  shall
revert  to  the  state  university of New York on the expiration of such
contract or lease.
  S 3. Any contract or lease entered into pursuant to this act shall  be
deemed to be a state contract for purposes of article 15-A of the execu-
tive  law, and any contractor, subcontractor, lessee or sublessee enter-
ing into such contract or lease for the construction, demolition, recon-
struction, excavation, rehabilitation, repair, renovation, alteration or
improvement authorized pursuant to this act  shall  be  deemed  a  state
agency  for  the purposes of article 15-A of the executive law and shall
be subject to the provisions of such article.
  S 4. Notwithstanding any general, special or  local  law  or  judicial
decision  to the contrary, all work performed on a project authorized by
this act where all or any portion thereof involves a lease or  agreement
for  construction,  demolition,  reconstruction,  excavation,  rehabili-
tation, repair, renovation, alteration or improvement  shall  be  deemed
public  work and shall be subject to and be performed in accordance with
the provisions of article 8 of the labor law to the same extent  and  in
the  same manner as a contract of the state, and compliance with all the
provisions of article 8 of the  labor  law  shall  be  required  of  any
lessee, subleasee, contractor or subcontractor on the project.
  S  5. Notwithstanding any provision of law to the contrary, all rights
or  benefits,  including  terms  and  conditions  of   employment,   and
protection  of  civil  service  and  collective bargaining status of all
employees of the state university of New York affected by the provisions
of this act, shall be preserved and protected. Employees  in  any  newly
created  positions  within  the  state  university  of New York shall be
considered public employees for all purposes of article 14 of the  civil
service law.
  S  6.  Any  contract  or  lease  awarded or entered into by the ground
lessee, and parties contracting or entering  into    a  lease  with  the
ground  lessee  for  construction, reconstruction, renovation, rehabili-
tation, improvement or expansion authorized pursuant to  this  act,  for
any  single  construction  project  exceeding ten million dollars in the
aggregate, for which more than twenty-five  percent  of  such  aggregate
amount  is  to be paid from appropriations furnished by the state or the
state university of New York shall be undertaken pursuant to  a  project

S. 5502                             3

labor agreement, as defined in subdivision 1 of section 222 of the labor
law,  provided that a study done by or for the contracting entity deter-
mines that a project labor agreement  will  benefit  such  construction,
reconstruction,  renovation,  rehabilitation,  improvement  or expansion
through reduced risk of  delay,  potential  cost  savings  or  potential
reduction  in  the  risk of labor unrest in light of any pertinent local
history thereof. For purposes of  applying  the  dollar  thresholds  set
forth in this section, the term "single construction project" shall mean
any  construction,  reconstruction, renovation, rehabilitation, improve-
ment or expansion activity associated with one or more buildings, struc-
tures or improvements, including all directly related infrastructure and
site work in contemplation thereof, that are  functionally  interdepend-
ent.
  S 7. Without limiting the determination of the terms and conditions of
such  contracts  or  leases,  such  terms and conditions may provide for
leasing,  subleasing,  construction,   reconstruction,   rehabilitation,
improvement,  operation  and management of and provision of services and
assistance and the granting of licenses, easements  and  other  arrange-
ments  with  regard to such grounds and facilities by the ground lessee,
and parties contracting with the ground lessee, and, in connection  with
such  activities,  the obtaining of funding or financing, whether public
or private, unsecured or secure (including, but not limited to,  secured
by  leasehold  mortgages  and  assignments  of rents and leases), by the
ground lessee and parties contracting with the  ground  lessee  for  the
purposes of completing the project described in this act.
  S  8.  Such  lease  shall  include  an indemnity provision whereby the
lessee or sublessee promises to indemnify, hold harmless and defend  the
lessor  against  all claims, suits, actions and liability to all persons
on the leased premises, including tenant, tenant's agents,  contractors,
subcontractors,  employees,  customers,  guests, licensees, invitees and
members of the public, for damage to any such person's property, whether
real or personal, or for personal injuries arising out of  tenant's  use
or occupation of the demised premises.
  S  9.  Any  contracts  entered  into  pursuant to this act between the
ground lessee and parties contracting with the ground  lessee  shall  be
awarded by a competitive process.
  S  10.  The  state  university  of  New York shall not lease the lands
described in this act unless any such lease  shall  be  executed  within
three years of the effective date of this act.
  S  11. Insofar as the provisions of this act are inconsistent with the
provisions of any law, general, special or local, the provisions of this
act shall be controlling.
  S 12. Paragraph (b) of subdivision 2 of section  1676  of  the  public
authorities  law  is  amended  by adding a new undesignated paragraph to
read as follows:
  STONY BROOK FOUNDATION REALTY, INC., FOR THE FINANCING, REFINANCING OR
REIMBURSEMENT OF THE COSTS OF ACQUISITION, DESIGN, CONSTRUCTION,  RECON-
STRUCTION,  REHABILITATION, IMPROVEMENT, FURNISHING AND EQUIPPING OF, OR
OTHERWISE PROVIDING FOR THE CONSTRUCTION OF A  MEDICAL  OFFICE  BUILDING
AND PARKING FACILITIES ON THE CAMPUS OF THE STATE UNIVERSITY OF NEW YORK
AT STONY BROOK.
  S  13.  Subdivision 1 of section 1680 of the public authorities law is
amended by adding a new undesignated paragraph to read as follows:
  STONY BROOK FOUNDATION REALTY, INC., FOR THE FINANCING, REFINANCING OR
REIMBURSEMENT OF THE COSTS OF ACQUISITION, DESIGN, CONSTRUCTION,  RECON-
STRUCTION,  REHABILITATION, IMPROVEMENT, FURNISHING AND EQUIPPING OF, OR

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OTHERWISE PROVIDING FOR THE CONSTRUCTION OF A  MEDICAL  OFFICE  BUILDING
AND PARKING FACILITIES ON THE CAMPUS OF THE STATE UNIVERSITY OF NEW YORK
AT STONY BROOK.
  S 14. This act shall take effect immediately.