§ 9 — Special provisions relating to the municipal health facilities improvement program

§ 9. Special provisions relating to the municipal health facilities\nimprovement program. Notwithstanding any other provisions of law,\ngeneral, special or local, or any provision of any charter or ordinance:\n 1. A municipality is hereby authorized to execute and deliver to the\nagency for such consideration as may be determined by the municipality,\nthe agency and the health and mental hygiene facilities improvement\ncorporation, but not to exceed the cost of acquisition thereof to the\nmunicipality and the cost of improvements thereon, a lease for a term\nnot exceeding fifty years or a quit claim deed conveying to the agency\nall right, title and interest of such municipality in and to real\nproperty, for the purpose of constructing, reconstructing,\nrehabilitating, or improving one or more health facilities pursuant to\nthis act and the health and mental hygiene facilities improvement act\nfor subsequent lease or sublease to such municipality, in accordance\nwith the terms of any agreement entered into pursuant to this act and\nthe health and mental hygiene facilities improvement act.\n 2. A municipality is hereby authorized to lease or sublease from the\nagency the health facilities acquired, constructed, reconstructed,\nrehabilitated or improved pursuant to this act and the facilities\ndevelopment corporation act in accordance with the terms of any\nagreement entered into pursuant to this act and the facilities\ndevelopment corporation act. At such time as all rentals due or to\nbecome due to the agency pursuant to the terms of any such lease or\nsublease have been paid or such lease or sublease is terminated pursuant\nto the provisions thereof, the jurisdiction of the agency over the real\nproperty leased or conveyed pursuant to this section, together with the\nimprovements thereon shall cease and all interest real and personal in\nsuch real property and improvements vested in the agency shall vest in\nthe municipality with right of re-entry thereon.\n 3. No real property interest therein shall be acquired by the agency\npursuant to this section unless title thereto shall have been approved\nby the attorney general.\n 4. The attorney general shall pass upon the form and sufficiency and\nmanner of execution of any deed of conveyance and of any lease or\nsublease to which the agency and a municipality are parties, and the\nsame shall not be effecteive unless approved by him.\n 5. In the event that the agency shall fail within five years from the\ndate of a lease or conveyance authorized pursuant to this section to\nconstruct, reconstruct, rehabilitate or improve the health facilities\nthereon for which the lease or conveyance was made, as provided for in\nany agreement entered into pursuant to this act and the health and\nmental hygiene facilities improvement act, or in the event that such\nhealth facilities shall cease to be used for the purposes intended, then\nand in either event but subject to the terms of any lease, sublease or\nother agreement between the agency and the municipality, such real\nproperty and any health facilities thereon shall revert to the\nmunicipality with right of re-entry thereupon and such lease or deed\nshall be made subject to such conditions; provided, however, that as a\ncondition precedent to the exercise of such right of re-entry the\nmunicipality shall pay to the agency an amount equal to the purchase\nprice of such real property, the depreciated cost of any health\nfacilities constructed, reconstructed, rehabilitated or improved, and\nall other costs of the agency incident to the acquisition of such real\nproperty and the financing of construction, reconstruction,\nrehabilitation or improvement relating to such facilities, all as\nprovided in the aforesaid lease, sublease or other agreement entered\ninto with such municipality.\n 6. In the event that the agency shall determine that any portions of\nthe real property leased or conveyed pursuant to this section are in\nexcess of the real property needed to construct, reconstruct,\nrehabilitate or improve the facility or facilities thereon for which the\nconveyance was made, as provided in any agreement entered into pursuant\nto this act and the health and mental hygiene facilities improvement\nact, the agency may terminate its lease with respect to such excess\nportions of such real property or reconvey such excess portions to the\nmunicipality, provided, however, that the municipality shall pay to the\nagency an amount equal to the consideration, if any, paid by the agency\nto such municipality allocable to such excess real property and such\nother costs of the the agency as are incident to the acquisition of such\nexcess real property, all as may be approved by such municipality and\nthe agency. Any monies so paid to the agency shall be used and applied,\nsubject to the provisions of any contract with noteholders and\nbondholders, for the sole purpose of paying costs and expenses of the\nagency incident to the financing of the health facilities, to be\nconstructed, reconstructed, rehabilitated or improved on such other\nportions of the real property as shall have been leased or conveyed to\nthe agency pursuant to this section.\n 7. The cost of construction, acquisition, reconstruction,\nrehabilitation or improvement of health facilities undertaken by the\nagency pursuant to this act and the health and mental hygiene facilities\nimprovement act may include the cost of acquisition of any real property\nleased or conveyed to the agency in accordance with this section and the\ncost of the original furnishings, equipment, machinery and apparatus\nneeded to furnish and equip such facilities upon the completion of the\nwork. The agency shall have power to acquire or lease and to hold real\nproperty required for the construction, acquisition, reconstruction,\nrehabilitation or improvement of the health facilities undertaken by the\nagency pursuant to this act and the health and mental hygiene facilities\nimprovement act and to provide the original furnishings, equipment,\nmachinery and apparatus needed to furnish and equip such facilities upon\nthe completion of work and to issue its bonds and notes to provide\nsufficient funds to pay the cost thereof.\n 8. A municipality is hereby authorized and empowered, in connection\nwith any lease, sublease or other agreement with the agency to which\nsuch municipality is a party, and subject to such agreements with third\nparties as may then exist, to:\n (a) pledge or assign to the agency all or any portion of the revenues\nand monies received or to be received by the municipality, which may be\navailable for the purpose of paying rentals for the use of the health\nfacilities constructed, acquired, reconstructed, rehabilitated or\nimproved under such agreement, so that the payment of such rentals may\nbe fully secured and protected;\n (b) use and dispose of such revenues and monies, or any portions\nthereof, for the purpose of defraying, in whole or in part (1) the cost\nof acquiring any real property for the purpose of constructing,\nacquiring, reconstructing, rehabilitating or improving facilities\nthereon which may be constructed, acquired, reconstructed, rehabilitated\nor improved by the agency pursuant to this act and the health and mental\nhygiene facilities improvement act, (2) the cost of financing the\nconstruction, acquisition, reconstruction, rehabilitation or improvement\nof such facilities, and (3) the cost of acquiring the original\nfurnishings, equipment, machinery and apparatus needed to furnish and\nequip such facilities upon the completion of the work;\n (c) set aside rental reserves and to agree to the maintenance,\nregulation and disposition thereof;\n (d) agree to limitations on the purposes to which the proceeds of sale\nof health facilities notes or health facilities bonds may be applied and\nto the pledging of such proceeds to secure the payment of health\nfacilities notes or health facilities bonds or of any issue thereof;\n (e) agree to limitations on the making of additional leases, subleases\nor agreements with the agency or with others, and the terms upon which\nsuch additional leases, subleases or agreements may be made;\n (f) upon receipt of any notice of assignment by the agency of any such\nlease, sublease or other agreement with the agency, or of any of its\nrights under such lease, sublease or other agreement, recognize and give\neffect to such assignment and to pay the assignee thereof rentals or\nother payments then due or which may become due under any such lease,\nsublease or other agreement which has been so assigned by the agency;\nand\n (g) agree to any other matters, of like or different character, which\nin any way affect the security or protection of the rental payments\nrequired to be made under the terms of such lease, sublease or other\nagreement with the agency.\n 9. A municipality is hereby authorized and empowered, to enter into a\nlease, sublease, license or other operating agreement with any other\nperson, firm or corporation to operate or to sublease, license or\notherwise arrange for the operation of, the health facilities acquired,\nconstructed, reconstructed, rehabilitated or improved pursuant to this\nact.\n