NY Gen Mun L § 507 (2021)
2021 New York Laws GMU - General Municipal Article 15 - Urban Renewal 507 - Disposition of Property.

§  507. Disposition of property. 1. In addition to employing any other lawful method of utilizing  or  disposing  of  any  real  property,  and appurtenances thereto or any interest therein owned by a municipality or acquired  by  it pursuant to section five hundred six of this article, a municipality may sell, lease for a term not exceeding ninety-nine years, or otherwise  dispose  of  any  such  real  property  and  appurtenances thereto,  to  any  person, firm or corporation at the highest marketable price or rental at public auction or by  sealed  bids  pursuant  to  the provisions  of any general, special or local laws applicable to the sale or disposition of real property by said municipality.   2. Notwithstanding anything to the contrary contained in this  article and  notwithstanding the provisions of any general, special or local law applicable to the sale of real property by  a  municipality,  such  real property  and  appurtenances  thereto may be sold, leased for a term not exceeding  ninety-nine  years  or  otherwise   disposed   of   for   the effectuation  of  any  of  the  purposes of the urban renewal program in accordance with the urban renewal plan:  (a) to any limited profit housing company organized  pursuant  to  the provisions  of  article  two  of the private housing finance law without public auction or sealed bids;  (b) to any limited dividend  housing  company  organized  pursuant  to article  four of the private housing finance law or redevolpment company organized pursuant to article five of the private housing  finance  law, without public auction or sealed bids provided that notice of such sale, lease  or  other  disposition  is published and a public hearing is held before the governing body not less than ten days after such publication;  (c) to any person, firm or corporation designated by  the  agency  and approved  by  the  governing body as a qualified and eligible sponsor in accordance with established  rules  and  procedures  prescribed  by  the agency,  provided  that  (1)  the  agency has published, in at least one newspaper of general circulation in the municipality at least  ten  days prior  to  such  sale,  lease or other disposition, a notice which shall include a statement of the identity of the proposed sponsor and  of  his proposed  use  or  reuse  of the urban renewal area or of the applicable portion thereof; such notice shall be in such form and manner as may  be prescribed  by  the agency and, in the case of projects aided by a state loan, periodic subsidy or capital grant or in which application has been made for such loan, subsidy or grant, as approved by  the  commissioner; (2)  such  proposed  sponsor  agrees  to pay the minimum price or rental fixed by the agency for such real property; (3)  such  proposed  sponsor matches  any  bid  higher than the said minimum price or rental, and (4) such sale, lease or other disposition shall require effectuation of  the purpose  thereof within a definite and reasonable period of time. In the event that such qualified and eligible sponsor does not agree to pay the minimum price or rental fixed by the agency or fails to match any higher bid than such minimum price or rental, a municipality may, in  its  sole discretion  and  only if consistent with the urban renewal plan, sell or lease for a term not exceeding ninety-nine years any such real  property and  appurtenances  thereto,  to  any  person,  firm or corporation, the property acquired from such person, firm or corporation or substantially equivalent property within the urban renewal area,  provided  that  such former  owner (1) agrees to pay the said minimum price or rental and (2) matches any higher bid than said minimum price or rental, and  (d) to any person, firm or corporation designated by the agency  as  a qualified  and eligible sponsor pursuant to the provisions of clause (1) of subsection (c) of this subdivision without public auction  or  sealed bids,  provided  that (1) the price or rental to be paid by such sponsor for such property and all other essential terms and conditions  of  such  sale,  lease  or  other  disposition  shall  be  included  in the notice published by the agency pursuant to the said clause  (1)  of  subsection (c)  of this subdivision, (2) that such sale, lease or other disposition be  approved  by the governing body after a public hearing held not less than ten days after the publication of such notice, and (3)  such  sale, lease  or  other  disposition  shall, in the case of projects aided by a state loan, periodic subsidy or capital grant or  in  which  application has  been  made  for  such  loan,  subsidy  or grant, be approved by the commissioner.  (e) for the effectuation of any of the purposes of the  urban  renewal program  and  in  accordance with the urban renewal plan, a municipality may grant, sell, convey or  lease,  without  public  hearing  or  public letting,  to  a public utility subject to the jurisdiction of the public service commission, for construction and maintenance of  public  utility systems,  and the conduct and operation thereof, for such length of time as it may deem advisable, franchises, easements or rights of  ways,  in, over,  below,  along  or  across  any lands acquired by the municipality pursuant to this article, upon  such  terms  and  conditions,  for  such consideration and subject to such restrictions as in the judgment of its governing  body  shall  seem  proper, provided, the governing body shall first determine that the use and enjoyment for  such  purposes  of  such lands  is not inconsistent with the purposes and provisions of the urban renewal plan.   3.  Any  deed,  lease  or  instrument  by  which  real  property   and appurtenances  thereto, or air rights and concomitant easements or other rights of user necessary for the use and development of such air  rights over streets, alleys, highways or other public rights of way, railway or subway  tracks,  bridge  or  tunnel  approaches  or  entrances, or other similar facilities, or air rights  sites  and  necessary  sitework,  the foundations and platforms constructed or to be constructed in connection therewith,  or  any interest therein is conveyed or disposed of pursuant to this section shall contain provisions requiring the purchaser, lessee or grantee to replan, clear,  rehabilitate,  restore,  renew,  conserve, improve,  reconstruct  or redevelop such property in accordance with the urban renewal plan as approved  by  the  governing  body  and  within  a definite  and  reasonable  period  of  time  subject to the terms of the contract relating thereto between the municipality and the sponsor,  and provisions   insuring  the  use  of  such  real  property  for  purposes consistent with such urban renewal plan.   4. (a) Leases  authorized  by  this  section  may  contain  provisions subordinating  the  fee  interest  of  a  municipality  to a sponsor for purposes of pledging or assigning  such  fee  interest  to  the  primary leasehold mortgagee of said lease, provided that the amount to which the fee is subordinated shall not exceed the lessee's cost of completing its obligation  to  replan,  clear,  rehabilitate, restore, renew, conserve, improve, reconstruct or redevelop such property in accordance  with  the lease provisions.  (b)  A municipality may execute such instruments as may be required to implement the provisions of this subdivision.  (c) Leases and such other instruments as may be required shall contain provisions stating that (1) the municipality shall assume  no  liability for  any  debt  underlying the pledge or assignment of the fee interest; (2) the municipality, at its option,  may  satisfy  any  obligation  for which  the  fee  interest is assigned or pledged; and (3) no foreclosure action shall be maintained against such subordinated fee interest  until the  obligation  of the sponsor to replan, clear, rehabilitate, restore, renew, conserve, improve, reconstruct or  redevelop  such  property  has been completed in accordance with the lease provisions.  (d)  A  municipality  shall  not  subordinate  its  fee  interest,  as authorized by this  subdivision,  to  any  leasehold  mortgagee  if  the municipal  fee  interest  is  to  be  assigned  or  pledged  to  another governmental agency, public  authority  or  public  benefit  corporation created  and organized for the purpose of providing primary or secondary financial assistance for commercial, industrial or business development.   5. In a city having a population of one million or more, the governing body may, as part of its review of the land use impact and  implications of  a  disposition  of  property for residential use proposed to be made pursuant to this section, incorporate into its approval any  or  all  of the  following:  (i)  the number of residential units; (ii) whether such units  are  home  ownership  units,  rental  units  or  condominium   or cooperative  units;  (iii) the estimated initial rents or selling prices for such  units;  (iv)  income  restrictions,  if  any,  on  renters  or purchasers  of  such units; and (v) the basis on which the consideration for the sale or lease of the property is  to  be  determined;  provided, however, that this subdivision shall not apply to the extent an approved urban renewal plan incorporates such items.