N.Y. Education Law § 372-a: University-related economic development facilities

§ 372-a. University-related economic development facilities. 1.

Notwithstanding subdivisions one through six and eight through ten of

section three hundred seventy-six of this article, the provisions of

this section shall apply to the fund when it acts pursuant to the

authorization under this section. Pursuant to the authorization in this

section and approval by the trustees of the university, the fund may

acquire, design, construct, reconstruct, rehabilitate, improve, lease,

manage and/or operate university-related economic development

facilities. University-related economic development facilities, as used

in this chapter, shall mean facilities for research, development and

commercial enterprises dealing in products and/or services related to

the mission or academic specialties of the campus associated with such

facilities, or dealing in support products or services for such

enterprises which will have a significant economic benefit. Consistent

with such authorization, the state university trustees are authorized to

enter into contracts or leases for lands and facilities authorized in

subdivision two of this section. Such leases or contracts shall be for

the development, construction, and operation of such facilities by the

fund. Construction, acquisition, rehabilitation, improvement, facilities

operation management, mortgaging with any private lender (including

other security or financing arrangements incidental or related thereto

or customary in connection therewith, leasehold mortgaging or assignment

of rents) leasing, subleasing of, providing services for or otherwise

assisting or granting of easements, licenses or other arrangements in

regard to such facilities and underlying land may be provided from time

to time without public bidding or sale by such contracts or leases (and

replacements, modifications, substitutions and renewals thereof) and

upon such terms as the trustees may approve provided, however, that:

a. No contract or lease for real property shall provide for a fee

simple conveyance, or be for a period of greater than thirty years; each

such contract or lease shall be approved by the attorney general, as to

form, the director of the budget and the comptroller of the state of New

York;

b. In the event the real property which is the subject of such lease

or contract shall cease to be used for the purposes authorized by this

section and at the expiration of such contract or lease in any event,

such property and the improvements thereon shall revert to the state

university of New York, and any such lease or contract shall be made

subject to such conditions, and provide for such reverter;

c. The authorization of any facilities or projects in this section

shall expire and be of no further force and effect, unless the approval

of the trustees of the university occurs within three years of the

effective date thereof;

d. Any contracts or leases entered into by the trustees of the state

university of New York pursuant to this section shall require the lessee

or contracting not-for-profit corporation to comply with the

requirements of article fifteen-A of the executive law. Any contract or

lease for construction, rehabilitation, or other improvement authorized

by this section entered into by the trustees shall require the lessee or

contractor and/or subcontractor to comply with the requirements of

section two hundred twenty, two hundred thirty, two hundred thirty-one,

two hundred forty and two hundred forty-one of the labor law, where

applicable, as well as sections one hundred one and one hundred three of

the general municipal law, where applicable;

e. The benefits to the region, state, and university community by the

establishment of a high technology facility at the state university of

New York shall be realized with no negative impact upon the employment

status of state university of New York employees or collective

bargaining units that represent such employees as a result of any

contract or lease authorized by this section;

f. Any agreement, contract or lease authorized by this section shall

include an indemnity provision whereby the lessee or sublessee promises

to indemnify, hold harmless, and defend lessor against all claims,

suits, actions, and liability, to all persons on the leased premises,

including tenants, tenants' 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 tenants' use or

occupation of the demises premises;

g. Any such lease, contract or agreement authorized by this section

must clearly define the purpose for which the land will be used

consistent with the mission of the state university of New York and the

mission of the campus involved in such lease, contract or agreement; and

h. The fund shall report annually to the state university of New York,

the governor, the speaker of the assembly and the temporary president of

the senate, on each of the facilities and projects authorized by this

section.

2. Subsequent to the approval of the trustees of the state university,

the following facilities are specifically and expressly authorized by

law and to the terms and conditions set forth herein:

a. Pharmaceutical technology/manufacturing building and an affiliated

academic incubator at state university of New York college at

Farmingdale. The state university of New York is authorized to establish

an account to receive payments from leases of the pharmaceutical

technology/manufacturing building. Any payments deposited into this

account may be transferred to the fund for payments related to design,

construction, reconstruction, rehabilitation or improvement of the

affiliated academic incubator authorized in this paragraph.