N.Y. Environmental Conservation Law § 15-1741: Re-entry at expiration of the license period

§ 15-1741. Re-entry at expiration of the license period.

1. Upon the expiration of the original license period any and all

interest of the licensee in and to state property which is covered by

the license, together with any and all works and structures thereon,

shall vest in and become the property of the state free and clear of any

and all liens and encumbrances, provided, however, that the department

may at the time the license is granted, or at any later time during its

continuance, enter into an agreement with the licensee that an allowance

will be made to the licensee for and on account of improvements to

property of the state, or improvements the value of which is dependent

on the use of state property, for which in view of the rent paid the

licensee shall not have been compensated by the privilege of the

license, but such agreement must be made before the improvement for

which such allowance is to be made, is undertaken. If the amount of such

allowance exceeds the amount of indebtedness, which may be lawfully

incurred for such purposes without an appropriation, the time when such

property is vested in the state shall be postponed until an adequate

appropriation is made therefor. The allowance so made or to be made may

be by way of an extension of the license pursuant to an agreement

between the department and the licensee.

2. Any agreement with the licensee for an allowance on account of

improvements to property of the state or improvements the value of which

is dependent on the use of state property, shall not provide for an

allowance in excess of the reconstruction cost, less a deduction equal

to that portion, if any, of the aggregate income from the project, over

and above actual and reasonable expenses of operation, including

repairs, which shall exceed an amount equal to eight per centum per

annum, to the time that the state property is taken over by the state,

of the actual and reasonable cost to the licensee of the lands and

interests in lands, the actual and reasonable cost to the licensee of

the ways, means and works and the allowances made for organization and

development expenses.