2023 New York Laws › PBA - Public Authorities › Article 9 - General Provisions › Title 5-A - Disposition of Property by Public Authorities › 2897 - Disposal of Public Authority Property.

§  2897.  Disposal  of  public  authority property. 1. Supervision and
direction. Except as otherwise provided in this section, the contracting
officer designated by each public authority shall have  supervision  and
direction over the disposition of property of such public authority.
2.  Custody  and control. The custody and control of the property of a
public authority, pending its disposition,  and  the  disposal  of  such
property,  shall  be  performed  by  the  public authority in possession
thereof or by the commissioner of general services  when  so  authorized
under this section.
3.  Method  of  disposition.  Subject  to section twenty-eight hundred
ninety-six of this title, any public authority may dispose  of  property
for  not  less  than  the  fair  market  value of such property by sale,
exchange, or transfer, for cash, credit,  or  other  property,  with  or
without  warranty,  and  upon  such  other  terms  and conditions as the
contracting officer deems proper, and it may execute such documents  for
the  transfer of title or other interest in property and take such other
action as it deems necessary or proper to dispose of such property under
the provisions of this section. Provided, however, that  no  disposition
of real property, or any interest in real property, shall be made unless
an  appraisal  of  the  value  of  such  property  has  been  made by an
independent appraiser and included in the  record  of  the  transaction,
and,  provided further, that no disposition of any other property, which
because of its unique nature or the unique circumstances of the proposed
transaction is not readily valued by reference to an active  market  for
similar property, shall be made without a similar appraisal.
4.  Sales  by  the  commissioner of general services. When it shall be
deemed advantageous to the state, any public authority may enter into an
agreement with the commissioner of general  services  where  under  such
commissioner  may  dispose  of  property  of such public authority under
terms  and  conditions  agreed  to  by  the  public  authority  and  the
commissioner of general services. In disposing of any such property of a
public authority, the commissioner of general services shall be bound by
the  terms of this title and references to the contracting officer shall
be deemed to refer to such commissioner.
5. Validity of deed, bill of sale, lease, or other instrument. A deed,
bill of sale, lease, or other instrument executed by or on behalf of any
public authority, purporting to transfer title or any other interest  in
property  of  a  public  authority  under this title shall be conclusive
evidence of compliance with the provisions  of  this  title  insofar  as
concerns  title or other interest of any bona fide grantee or transferee
who has given valuable consideration for such title  or  other  interest
and  has  not  received  actual  or  constructive notice of lack of such
compliance prior to the closing.
6. Bids for disposal; advertising; procedure; disposal by negotiation;
explanatory statement.  a. All disposals or contracts  for  disposal  of
property  of  a  public  authority made or authorized by the contracting
officer shall be made after publicly  advertising  for  bids  except  as
provided in paragraphs c and f of this subdivision.
b.  Whenever public advertising for bids is required under paragraph a
of this subdivision:
(i) the advertisement for bids shall be made at such time prior to the
disposal or contract, through  such  methods,  and  on  such  terms  and
conditions as shall permit full and free competition consistent with the
value and nature of the property;
(ii) all bids shall be publicly disclosed at the time and place stated
in the advertisement; and
(iii)  the award shall be made with reasonable promptness by notice to
the responsible bidder whose bid, conforming to the invitation for bids,

will be  most  advantageous  to  the  state,  price  and  other  factors
considered;  provided,  that  all bids may be rejected when it is in the
public interest to do so.
c.  Disposals and contracts for disposal of property may be negotiated
or made by public auction without regard to paragraphs a and b  of  this
subdivision  but  subject  to  obtaining such competition as is feasible
under the circumstances, if:
(i) the personal property involved has  qualities  separate  from  the
utilitarian   purpose  of  such  property,  such  as  artistic  quality,
antiquity, historical significance, rarity, or other quality of  similar
effect,  that  would  tend  to  increase  its  value, or if the personal
property is to be sold in such quantity that, if  it  were  disposed  of
under paragraphs a and b of this subdivision, would adversely affect the
state  or  local market for such property, and the estimated fair market
value of such property and other satisfactory terms of disposal  can  be
obtained by negotiation;
(ii)  the  fair  market  value of the property does not exceed fifteen
thousand dollars;
(iii) bid prices after advertising therefor are not reasonable, either
as to all or some part of the property, or have not  been  independently
arrived at in open competition;
(iv)  the  disposal will be to the state or any political subdivision,
and  the  estimated  fair  market  value  of  the  property  and   other
satisfactory terms of disposal are obtained by negotiation; or
(v)  under  those circumstances permitted by subdivision seven of this
section; or
(vi) such action is otherwise authorized by law.
d. (i) An explanatory statement shall be prepared of the circumstances
of each disposal by negotiation of:
(A) any personal property which has an estimated fair market value  in
excess of fifteen thousand dollars;
(B)  any  real  property  that  has  an estimated fair market value in
excess of one hundred thousand dollars, except that  any  real  property
disposed  of  by  lease or exchange shall only be subject to clauses (C)
and (D) of this subparagraph;
(C) any real property disposed of by lease, if  the  estimated  annual
rent  over  the  term  of  the  lease  is  in excess of fifteen thousand
dollars;
(D) any real property or real and related personal  property  disposed
of  by  exchange,  regardless  of value, or any property any part of the
consideration for which is real property.
(ii) Each such statement shall be transmitted to the persons  entitled
to  receive  copies  of  the  report required under section twenty-eight
hundred ninety-six of this title not less than ninety days in advance of
such disposal, and a copy thereof shall be preserved in the files of the
public authority making such disposal.
e. Disposals and contracts for disposal of real property by the  canal
corporation  may  be  made by negotiated sale rather than public auction
provided that all of the following conditions have been satisfied:
(i) The canal corporation has determined that: such real  property  is
no  longer necessary or useful to the purposes of the canal corporation;
disposal of such real property complies with all  applicable  provisions
of  the  canal  law;  and  disposal of such real property is in the best
interest of the canal corporation;
(ii) An appraisal of the fair market value of such property  has  been
made  by  an  independent  appraiser  and  included in the record of the
transaction;
(iii) The fair market value of such  real  property  is  greater  than
fifteen  thousand  dollars  but  not  greater than seventy-five thousand
dollars;
(iv)  Such  real  property was improved prior to April first, nineteen
hundred ninety-two under a municipal permit or a permit issued  pursuant
to   section   one  hundred  of  the  canal  law,  thereby  creating  an
encroachment on canal corporation real property;
(v) The purchaser of such real property is, or will be, the  owner  of
the  improvement  that  either  fully  or  partially encroaches on canal
corporation real property; and
(vi) The consideration paid for such real property will  be  not  less
than  the fair market value of the real property exclusive of the value,
fair market or otherwise, of the encroaching improvements.
f. Notwithstanding anything to the contrary in this section, disposals
for use of the thruway authority's  fiber  optic  system,  or  any  part
thereof, may be made through agreements based on set fees that shall not
require public auction, provided that:
i.  the thruway authority has determined the disposal of such property
complies with all applicable provisions of this chapter;
ii. the  thruway  authority  has  determined  that  disposal  of  such
property is in the best interest of the thruway authority;
iii.  the set fees established by the thruway authority for use of the
fiber optic system, or part thereof, shall be based  on  an  independent
appraisal of the fair market value of the property; and
iv.  any  public authority, state agency, municipality, not-for-profit
hospital  organized  under  section  forty-three  hundred  one  of   the
insurance  law,  public  library,  or  institution  of  higher education
located in New York state shall be required only to pay the actual  cost
of  providing  for  use of the fiber optic system, but not exceeding the
fair market value determined pursuant  to  subparagraph  (iii)  of  this
paragraph.  For  purposes  of  this  paragraph, "public authority" shall
refer to entities defined in section two of the public authorities  law.
For  purposes of this paragraph, "institution of higher education" shall
refer to entities as defined in subdivisions two and  three  of  section
six hundred one of the education law.
Disposals  of  the  fiber  optic  system, or any part thereof, through
agreements  based  on  set  fees  shall  not  require  the   explanatory
statements  required by this section. Any disposal of property, contract
for disposal of property or agreement made pursuant  to  this  paragraph
shall  not  be  deemed  valid and enforceable unless it shall first have
been approved by both the comptroller and the attorney general.
7. Disposal of property for less than fair market value. a.  No  asset
owned,  leased  or otherwise in the control of a public authority may be
sold, leased, or otherwise alienated for less than its fair market value
except if:
(i) the transferee is a government or other  public  entity,  and  the
terms  and conditions of the transfer require that the ownership and use
of the asset will remain with the government or any other public entity;
(ii) the purpose of the transfer is within  the  purpose,  mission  or
governing statute of the public authority; or
(iii)  in  the event a public authority seeks to transfer an asset for
less than its fair market value to other  than  a  governmental  entity,
which  disposal  would  not  be consistent with the authority's mission,
purpose or governing statutes,  such  authority  shall  provide  written
notification  thereof  to the governor, the speaker of the assembly, and
the temporary president of the senate, and such proposed transfer  shall
be  subject  to  denial  by  the  governor, the senate, or the assembly.
Denial by the governor shall take the form of a signed certification  by

the  governor.  Denial by either house of the legislature shall take the
form of a resolution by such house. The governor and each house  of  the
legislature  shall  take  any such action within sixty days of receiving
notification  of  such  proposed  transfer  during the months of January
through June, provided that if the legislature receives notification  of
a  proposed  transfer  during  the  months of July through December, the
legislature may take any such action within sixty days of January  first
of  the  following  year.  If  no  such  resolution  or certification is
performed within  sixty  days  of  such  notification  of  the  proposed
transfer to the governor, senate, and assembly, the public authority may
effectuate  such  transfer.  Provided,  however,  that with respect to a
below market transfer by a  local  authority  that  is  not  within  the
purpose,  mission  or  governing  statute of the local authority, if the
governing statute provides for the approval  of  such  transfer  by  the
executive and legislative branches of the political subdivision in which
such  local  authority resides, and the transfer is of property obtained
by the authority from that political  subdivision,  then  such  approval
shall be sufficient to permit the transfer.
b.  In the event a below fair market value asset transfer is proposed,
the following information must be provided to the  authority  board  and
the public:
(i) a full description of the asset;
(ii)  an appraisal of the fair market value of the asset and any other
information establishing the fair market value sought by the board;
(iii) a description of the purpose of the transfer, and  a  reasonable
statement  of the kind and amount of the benefit to the public resulting
from the transfer, including  but  not  limited  to  the  kind,  number,
location,  wages or salaries of jobs created or preserved as required by
the transfer, the benefits, if any, to  the  communities  in  which  the
asset is situated as are required by the transfer;
(iv)  a  statement  of  the  value to be received compared to the fair
market value;
(v) the names of any private parties participating  in  the  transfer,
and  if  different  than  the statement required by subparagraph (iv) of
this paragraph, a statement of the value to the private party; and
(vi) the names of other private parties who have  made  an  offer  for
such  asset,  the value offered, and the purpose for which the asset was
sought to be used.
c. Before approving the disposal of any property for  less  than  fair
market  value,  the board of an authority shall consider the information
described in  paragraph  b  of  this  subdivision  and  make  a  written
determination  that  there  is no reasonable alternative to the proposed
below-market transfer that  would  achieve  the  same  purpose  of  such
transfer.