§ 2897 — Disposal of public authority property

New York § 2897

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 5-A: Disposition of Property By Public Authorities
• Art. 9: General Provisions

Text

§ 2897. Disposal of public authority property. 1. Supervision and\ndirection. Except as otherwise provided in this section, the contracting\nofficer designated by each public authority shall have supervision and\ndirection over the disposition of property of such public authority.\n 2. Custody and control. The custody and control of the property of a\npublic authority, pending its disposition, and the disposal of such\nproperty, shall be performed by the public authority in possession\nthereof or by the commissioner of general services when so authorized\nunder this section.\n 3. Method of disposition. Subject to section twenty-eight hundred\nninety-six of this title, any public authority may dispose of property\nfor not less than the fair market value of such property by sale,\nexchange, or transfer, for cash, credit, or other property, with or\nwithout warranty, and upon such other terms and conditions as the\ncontracting officer deems proper, and it may execute such documents for\nthe transfer of title or other interest in property and take such other\naction as it deems necessary or proper to dispose of such property under\nthe provisions of this section. Provided, however, that no disposition\nof real property, or any interest in real property, shall be made unless\nan appraisal of the value of such property has been made by an\nindependent appraiser and included in the record of the transaction,\nand, provided further, that no disposition of any other property, which\nbecause of its unique nature or the unique circumstances of the proposed\ntransaction is not readily valued by reference to an active market for\nsimilar property, shall be made without a similar appraisal.\n 4. Sales by the commissioner of general services. When it shall be\ndeemed advantageous to the state, any public authority may enter into an\nagreement with the commissioner of general services where under such\ncommissioner may dispose of property of such public authority under\nterms and conditions agreed to by the public authority and the\ncommissioner of general services. In disposing of any such property of a\npublic authority, the commissioner of general services shall be bound by\nthe terms of this title and references to the contracting officer shall\nbe deemed to refer to such commissioner.\n 5. Validity of deed, bill of sale, lease, or other instrument. A deed,\nbill of sale, lease, or other instrument executed by or on behalf of any\npublic authority, purporting to transfer title or any other interest in\nproperty of a public authority under this title shall be conclusive\nevidence of compliance with the provisions of this title insofar as\nconcerns title or other interest of any bona fide grantee or transferee\nwho has given valuable consideration for such title or other interest\nand has not received actual or constructive notice of lack of such\ncompliance prior to the closing.\n 6. Bids for disposal; advertising; procedure; disposal by negotiation;\nexplanatory statement. a. All disposals or contracts for disposal of\nproperty of a public authority made or authorized by the contracting\nofficer shall be made after publicly advertising for bids except as\nprovided in paragraphs c and f of this subdivision.\n b. Whenever public advertising for bids is required under paragraph a\nof this subdivision:\n (i) the advertisement for bids shall be made at such time prior to the\ndisposal or contract, through such methods, and on such terms and\nconditions as shall permit full and free competition consistent with the\nvalue and nature of the property;\n (ii) all bids shall be publicly disclosed at the time and place stated\nin the advertisement; and\n (iii) the award shall be made with reasonable promptness by notice to\nthe responsible bidder whose bid, conforming to the invitation for bids,\nwill be most advantageous to the state, price and other factors\nconsidered; provided, that all bids may be rejected when it is in the\npublic interest to do so.\n c. Disposals and contracts for disposal of property may be negotiated\nor made by public auction without regard to paragraphs a and b of this\nsubdivision but subject to obtaining such competition as is feasible\nunder the circumstances, if:\n (i) the personal property involved has qualities separate from the\nutilitarian purpose of such property, such as artistic quality,\nantiquity, historical significance, rarity, or other quality of similar\neffect, that would tend to increase its value, or if the personal\nproperty is to be sold in such quantity that, if it were disposed of\nunder paragraphs a and b of this subdivision, would adversely affect the\nstate or local market for such property, and the estimated fair market\nvalue of such property and other satisfactory terms of disposal can be\nobtained by negotiation;\n (ii) the fair market value of the property does not exceed fifteen\nthousand dollars;\n (iii) bid prices after advertising therefor are not reasonable, either\nas to all or some part of the property, or have not been independently\narrived at in open competition;\n (iv) the disposal will be to the state or any political subdivision,\nand the estimated fair market value of the property and other\nsatisfactory terms of disposal are obtained by negotiation; or\n (v) under those circumstances permitted by subdivision seven of this\nsection; or\n (vi) such action is otherwise authorized by law.\n d. (i) An explanatory statement shall be prepared of the circumstances\nof each disposal by negotiation of:\n (A) any personal property which has an estimated fair market value in\nexcess of fifteen thousand dollars;\n (B) any real property that has an estimated fair market value in\nexcess of one hundred thousand dollars, except that any real property\ndisposed of by lease or exchange shall only be subject to clauses (C)\nand (D) of this subparagraph;\n (C) any real property disposed of by lease, if the estimated annual\nrent over the term of the lease is in excess of fifteen thousand\ndollars;\n (D) any real property or real and related personal property disposed\nof by exchange, regardless of value, or any property any part of the\nconsideration for which is real property.\n (ii) Each such statement shall be transmitted to the persons entitled\nto receive copies of the report required under section twenty-eight\nhundred ninety-six of this title not less than ninety days in advance of\nsuch disposal, and a copy thereof shall be preserved in the files of the\npublic authority making such disposal.\n e. Disposals and contracts for disposal of real property by the canal\ncorporation may be made by negotiated sale rather than public auction\nprovided that all of the following conditions have been satisfied:\n (i) The canal corporation has determined that: such real property is\nno longer necessary or useful to the purposes of the canal corporation;\ndisposal of such real property complies with all applicable provisions\nof the canal law; and disposal of such real property is in the best\ninterest of the canal corporation;\n (ii) An appraisal of the fair market value of such property has been\nmade by an independent appraiser and included in the record of the\ntransaction;\n (iii) The fair market value of such real property is greater than\nfifteen thousand dollars but not greater than seventy-five thousand\ndollars;\n (iv) Such real property was improved prior to April first, nineteen\nhundred ninety-two under a municipal permit or a permit issued pursuant\nto section one hundred of the canal law, thereby creating an\nencroachment on canal corporation real property;\n (v) The purchaser of such real property is, or will be, the owner of\nthe improvement that either fully or partially encroaches on canal\ncorporation real property; and\n (vi) The consideration paid for such real property will be not less\nthan the fair market value of the real property exclusive of the value,\nfair market or otherwise, of the encroaching improvements.\n f. Notwithstanding anything to the contrary in this section, disposals\nfor use of the thruway authority's fiber optic system, or any part\nthereof, may be made through agreements based on set fees that shall not\nrequire public auction, provided that:\n i. the thruway authority has determined the disposal of such property\ncomplies with all applicable provisions of this chapter;\n ii. the thruway authority has determined that disposal of such\nproperty is in the best interest of the thruway authority;\n iii. the set fees established by the thruway authority for use of the\nfiber optic system, or part thereof, shall be based on an independent\nappraisal of the fair market value of the property; and\n iv. any public authority, state agency, municipality, not-for-profit\nhospital organized under section forty-three hundred one of the\ninsurance law, public library, or institution of higher education\nlocated in New York state shall be required only to pay the actual cost\nof providing for use of the fiber optic system, but not exceeding the\nfair market value determined pursuant to subparagraph (iii) of this\nparagraph. For purposes of this paragraph, "public authority" shall\nrefer to entities defined in section two of the public authorities law.\nFor purposes of this paragraph, "institution of higher education" shall\nrefer to entities as defined in subdivisions two and three of section\nsix hundred one of the education law.\n Disposals of the fiber optic system, or any part thereof, through\nagreements based on set fees shall not require the explanatory\nstatements required by this section. Any disposal of property, contract\nfor disposal of property or agreement made pursuant to this paragraph\nshall not be deemed valid and enforceable unless it shall first have\nbeen approved by both the comptroller and the attorney general.\n 7. Disposal of property for less than fair market value. a. No asset\nowned, leased or otherwise in the control of a public authority may be\nsold, leased, or otherwise alienated for less than its fair market value\nexcept if:\n (i) the transferee is a government or other public entity, and the\nterms and conditions of the transfer require that the ownership and use\nof the asset will remain with the government or any other public entity;\n (ii) the purpose of the transfer is within the purpose, mission or\ngoverning statute of the public authority; or\n (iii) in the event a public authority seeks to transfer an asset for\nless than its fair market value to other than a governmental entity,\nwhich disposal would not be consistent with the authority's mission,\npurpose or governing statutes, such authority shall provide written\nnotification thereof to the governor, the speaker of the assembly, and\nthe temporary president of the senate, and such proposed transfer shall\nbe subject to denial by the governor, the senate, or the assembly.\nDenial by the governor shall take the form of a signed certification by\nthe governor. Denial by either house of the legislature shall take the\nform of a resolution by such house. The governor and each house of the\nlegislature shall take any such action within sixty days of receiving\nnotification of such proposed transfer during the months of January\nthrough June, provided that if the legislature receives notification of\na proposed transfer during the months of July through December, the\nlegislature may take any such action within sixty days of January first\nof the following year. If no such resolution or certification is\nperformed within sixty days of such notification of the proposed\ntransfer to the governor, senate, and assembly, the public authority may\neffectuate such transfer. Provided, however, that with respect to a\nbelow market transfer by a local authority that is not within the\npurpose, mission or governing statute of the local authority, if the\ngoverning statute provides for the approval of such transfer by the\nexecutive and legislative branches of the political subdivision in which\nsuch local authority resides, and the transfer is of property obtained\nby the authority from that political subdivision, then such approval\nshall be sufficient to permit the transfer.\n b. In the event a below fair market value asset transfer is proposed,\nthe following information must be provided to the authority board and\nthe public:\n (i) a full description of the asset;\n (ii) an appraisal of the fair market value of the asset and any other\ninformation establishing the fair market value sought by the board;\n (iii) a description of the purpose of the transfer, and a reasonable\nstatement of the kind and amount of the benefit to the public resulting\nfrom the transfer, including but not limited to the kind, number,\nlocation, wages or salaries of jobs created or preserved as required by\nthe transfer, the benefits, if any, to the communities in which the\nasset is situated as are required by the transfer;\n (iv) a statement of the value to be received compared to the fair\nmarket value;\n (v) the names of any private parties participating in the transfer,\nand if different than the statement required by subparagraph (iv) of\nthis paragraph, a statement of the value to the private party; and\n (vi) the names of other private parties who have made an offer for\nsuch asset, the value offered, and the purpose for which the asset was\nsought to be used.\n c. Before approving the disposal of any property for less than fair\nmarket value, the board of an authority shall consider the information\ndescribed in paragraph b of this subdivision and make a written\ndetermination that there is no reasonable alternative to the proposed\nbelow-market transfer that would achieve the same purpose of such\ntransfer.\n