N.Y. Education Law § 484: Lease and other agreements

§ 484. Lease and other agreements. 1. Any agreement entered into

between the fund and the owner or developer of a proposed combined

occupancy structure pursuant to section four hundred seventy-eight of

this chapter shall provide for (i) the construction, acquisition,

reconstruction, rehabilitation or improvement of one or more combined

occupancy structures, and the purchase or acquisition of the original

furnishings, equipment, machinery and apparatus to be used in the school

portion of a combined occupancy structure upon completion of the work,

(ii) the reconveyance, retransfer or leasing of all or any portion

thereof and of the real property or interest therein related thereto,

including real property originally acquired by the board of education in

the name of the city of Yonkers, upon the completion of construction,

acquisition, reconstruction, rehabilitation or improvement upon such

terms and conditions as may be agreed upon, (iii) the leasing or

subleasing of such combined occupancy structures and property, or

separately of the school and non-school portions thereof, by the fund

upon completion for a term not exceeding ninety-nine years and upon such

terms and conditions including annual rental as may be agreed upon, and

(iv) the conveyance to the board of education in the name of the city of

Yonkers of title to the school portion of any such combined occupancy

structure at the expiration of the term of the lease, or any renewal or

extension thereof, or upon earlier payment in full of the total amount

specified therein, without additional charge therefor. The board of

education shall approve any such agreement and shall be a party thereto.

2. a. Any lease, sublease or other agreement entered into between the

fund and the owner or developer of a proposed combined occupancy

structure shall provide for payment to the fund of the fair market value

of such easements, space rights, air rights or other fee or leasehold

interests as are to be held or retained by such owner or developer or

his successor in interest under the terms of such agreement.

b. Whenever the easements, space rights, air rights or other fee or

leasehold interests held or retained by such owner or developer, if

other than the Yonkers city housing authority, and/or the non-school

improvements constructed or erected therein or thereon, shall be exempt

from real property taxes pursuant to the provisions of section four

hundred ninety-two of this article, such lease, sublease or other

agreement shall also provide for the payment to the fund of annual or

other periodic amounts equal to the amount of real property taxes that

would otherwise have been paid or payable with respect to such

easements, space rights, air rights or other fee or leasehold interests,

and with respect to the non-school improvements constructed or erected

therein or thereon, over the term of such lease, sublease or other

agreement.

c. (1) Notwithstanding the provisions of section fifty-two of the

public housing law, whenever the Yonkers city housing authority is such

owner or developer, such lease, sublease or other agreement shall also

provide for the payment by such authority to the fund or the city of

such amount, for any year or years, as payment in lieu of real property

taxes on the non-school portion constituting a project, as defined by

the public housing law, as may be agreed upon among the fund, the city

and the authority, and as may be approved by the commissioner of the

state division of housing and community renewal if such project is a

state project as defined in the public housing law, and by the federal

government if such project is a federal project as defined in the public

housing law.

(2) For any of the purposes of the public housing law, including,

specifically, section seventy-three thereof, and notwithstanding any

other provision in the public housing law for establishing the amount of

taxes paid or payable with respect to a project for such year and the

resulting amount of tax exemption, in computing the amount of tax

exemption granted to such non-school portion constituting a project, as

defined by the public housing law, the amount of such payment in lieu of

taxes paid or payable with respect thereto for any year shall be deemed

to be the amount of taxes paid or payable for such year.

3. Any lease, sublease or other agreement entered into between the

fund and city of Yonkers or the board of education pursuant to section

four hundred fifty-four of this chapter shall provide for (i) the

construction, acquisition, reconstruction, rehabilitation or improvement

of one or more combined occupancy structures and (ii) the leasing or

subleasing of the school portion of such structures to the city or the

board at an annual cost or rental not in excess of the average annual

cost or rental of comparable new public school facilities in the city of

Yonkers and for a term not exceeding ninety-nine years, and upon such

other terms and conditions as may be agreed upon.

4. Every lease, sublease or other agreement executed pursuant to this

article shall be subject to the approval of the commissioner of finance

with respect to all rentals or other payments to be made thereunder by

the city of Yonkers, the board of education or by the owner or developer

of a combined occupancy structure and shall contain a clause that any

agreement of the city of Yonkers thereunder shall be deemed executory to

the extent of the moneys available to the city therefor and no liability

on account thereof shall be incurred by the city beyond the moneys

available for the purpose thereof.