N.Y. General Municipal Law § 970-n: Joint undertakings

§ 970-n. Joint undertakings. Two or more municipalities may in

combination jointly exercise the powers granted under this article

pursuant to either subdivision (a) or (b) of this section.

(a) (i) The legislative bodies of two or more municipalities acting

separately may each by resolution designate the legislative body of one

of the municipalities to act as agent for all of the interested

municipalities.

(ii) If one agent is designated pursuant to this subdivision, it shall

obtain the report and recommendation of the planning agency of each

municipality on the redevelopment plan and its conformity to the master

plan of each municipality before presenting the redevelopment plan to

the legislative body of each municipality. In order for a preliminary

plan to be adopted or for a redevelopment plan to be adopted or amended

approval must be obtained by resolution of the legislative body of each

municipality acting separately. The legislative body which has been

designated as agent, the municipality which such legislative body

represents and the planning agency of such municipality shall, unless

otherwise provided by this section, exercise all other powers, duties

and responsibilities for the purpose of redevelopment pursuant to this

article in the same manner as if such municipality were acting alone.

(iii) If two or more municipalities jointly exercise the powers

granted under this subdivision and a redevelopment plan as adopted

provides for the allocation of real property tax revenues pursuant to

section nine hundred seventy-o of this article the real property taxes

of each municipality shall be allocated pursuant to such section.

(iv) If two or more municipalities jointly exercise the powers granted

under this subdivision and the redevelopment plan as adopted provides

for the issuance of indebtedness pursuant to section nine hundred

seventy-o of this article, such indebtedness shall either be issued

jointly by the municipalities and the resolution authorizing the

issuance of such indebtedness must be approved by the legislative body

of each municipality acting separately or shall be issued by resolution

of the designated agent on behalf of the municipality it represents and,

by resolution of its legislative body, each municipality shall

irrevocably pledge the revenues allocated pursuant to section nine

hundred seventy-p of this article to the repayment of such indebtedness

and any interest thereon.

(v) The joint exercise of powers authorized by this subdivision shall

be permitted only for the purpose of redevelopment of an area located

wholly within each municipality and within one or more school districts.

(b) (i) The legislature may by special act establish on behalf of and

for the benefit of more than one municipality, a municipal redevelopment

authority or empower an existing public corporation to carry out the

purposes and provisions of this article. Upon the establishment of a

municipal redevelopment authority the legislative body of each

municipality shall file within one year after the effective date of such

special act, in the office of the secretary of state, a certificate

setting forth (1) the date of passage of such special act; (2) the name

of the authority; and (3) the name or names of the member or members

appointed by such governing body and their terms of office. Each such

certificate shall be accompanied by a copy of the intermunicipal

agreement under which membership on the authority is apportioned among

the sponsoring municipalities and a copy of the local law approving the

same. Such authority shall be deemed to be and shall be in existence

upon the satisfactory filing and receipt of the certificate or

certificates required by this paragraph and shall thereafter be

perpetual in duration.

(ii) A municipal redevelopment authority shall be a corporate

governmental agency constituting a public benefit corporation. Except as

otherwise provided by special act of the legislature, an authority shall

consist of not less than five nor more than nine members. Membership

shall be apportioned among the municipalities and participating school

districts, and the manner of selection of a chairman determined by an

agreement approved by local law by each such municipality, and by

resolution of the board of education of each school district. Members

shall serve at the pleasure of the appointing authority, and each member

shall continue to hold office until his successor is appointed and has

qualified. The governing body of each municipality and school district

shall file with the secretary of state a certificate of appointment or

reappointment of any member appointed or reappointed by it. Members

shall receive no compensation for their services but shall be entitled

to reimbursement of the necessary expenses, including traveling

expenses, incurred in the discharge of their duties. No action shall be

taken by an authority except pursuant to the favorable vote of a

majority of the members then in office. Any one or more of the members

of an authority may be an official or an employee of such municipality.

In the event that an official or an employee of such municipality shall

be appointed as a member of the agency, acceptance or retention of such

appointment shall not be deemed a forfeiture of his municipal office or

employment, or incompatible therewith or affect his tenure or

compensation in any way. The term of office of a member of an authority

who is an official or an employee of such municipality when appointed as

a member thereof by special act of the legislature creating the

authority shall terminate at the expiration of the term of his municipal

office. Upon the creation of an authority, from time to time the

governing body of a municipality or a school district, may, by

resolution, appropriate sums of money to defray the expenses of the

authority.

(iii) Unless otherwise provided by this subdivision or by the special

act of the legislature establishing a municipal redevelopment authority

or empowering an existing public corporation to carry out the purposes

and provisions of this article, such authority or public corporation

shall have the powers, duties and responsibilities granted a

municipality and its legislative body pursuant to sections nine hundred

seventy-d through nine hundred seventy-m of this article, as well as the

authority to receive the taxes of each municipality and school district

allocated and paid pursuant to section nine hundred seventy-p of this

article. Such authority or public corporation shall have the power to

designate survey areas and select project areas as provided by sections

nine hundred seventy-d and nine hundred seventy-e of this article. Such

authority or public corporation shall obtain the report and

recommendation of the planning agency of each municipality or school

district on the redevelopment plan and its conformity to the master plan

of each municipality and school district before presenting the

redevelopment plan to the legislative body of each municipality or

school district. In order for a preliminary plan to be adopted or for a

redevelopment plan to be adopted or amended approval must be obtained by

resolution of the legislative body of each municipality and the board of

education of each school district acting separately.

(iv) The authority or public corporation shall have the power to apply

for and to accept any gifts or grants or loans of funds or property or

financial or other aid in any form from the federal government or any

agency or instrumentality thereof, or from the state or any agency or

instrumentality thereof or from any other source, for any or all of the

purposes specified in this article, and to comply, subject to the

provisions of this article, with the terms and conditions thereof.

(v) (1) An authority or public corporation shall have the powers and

duties granted municipalities pursuant to section nine hundred seventy-o

of this article to issue tax increment bonds and tax increment bond

anticipation notes. Such bonds and notes shall be bonds and notes of the

authority or public corporation and neither the state nor any

municipality shall be liable on such bonds and notes and such bonds and

notes shall not be a debt of the state or of any municipality.

(2) The bonds and notes of an authority or public corporation are

hereby made securities in which all public officials and bodies of the

state and all municipalities, all insurance companies and associations

and other persons carrying on an insurance business, all banks, bankers,

trust companies, savings banks and savings associations, including

savings and loan associations, investment companies and other persons

carrying on a banking business, and administrators, guardians,

executors, trustees and other fiduciaries and all other persons

whatsoever, who are now or may hereafter be authorized to invest in

bonds or other obligations of the state, may properly and legally invest

funds including capital in their control or belonging to them. The bonds

and notes are also hereby made securities which may be deposited with

and may be received by all public officers and bodies of this state and

all municipalities for any purposes for which the deposit of bonds or

other obligations of this state is now or hereafter may be authorized.

(3) The state does hereby pledge to and agree with the holders of any

bonds and notes issued by an authority or public corporation pursuant to

this article that the state will not alter or limit the rights hereby

vested in the authority to fulfill the terms of any agreement made with

or for the benefit of such holders, or in any way impair the rights and

remedies of such holders, until the bonds or notes, together with the

interest thereon, with interest on any unpaid installments of interest,

and all costs and expenses in connection with any action or proceeding

by or on behalf of such holders, are fully met and discharged. An

authority or public corporation is authorized to include this pledge and

agreement of the state in any agreement with such holders.

(vi) Any bonds or notes issued pursuant to this article and the

interest thereon as well as the revenues, moneys and all other property

and activities of an authority or public corporation shall be exempt

from taxation for municipal and state purposes, except for transfer and

estate taxes. The state hereby covenants with the purchasers and with

all subsequent holders and transferees of bonds issued by an authority

or public corporation pursuant to this paragraph, in consideration of

the acceptance of and payment for the bonds, that the bonds of the

authority or public corporation issued pursuant to this paragraph and

the income therefrom and all revenues, moneys, and other property

pledged to secure the payment of such bonds shall at all times be free

from such taxes, except for transfer and estate taxes.

(vii) All moneys of an authority from whatever source derived shall be

paid to the treasurer of an authority and shall be deposited forthwith

in a bank or banks in the state designated by the authority. The moneys

in such accounts shall be paid out on check of the treasurer upon

requisition by the chairman of the authority or of such other officer or

officers as the authority may authorize to make such requisitions. All

deposits of such moneys shall be secured by obligations of or guaranteed

by the United States or of the state of a market value equal at all

times to the amount on deposit and all banks and trust companies are

authorized to give such security for such deposits. An authority shall

have power, notwithstanding the provisions of this section, to contract

with the holders of any bonds as to the custody, collection, security,

investment and payment of any moneys of the authority or any moneys held

in trust or otherwise for the payment of bonds or in any way to secure

bonds. Moneys held in trust or otherwise for the payment of bonds or in

any way to secure bonds and deposits of such moneys may be secured in

the same manner as moneys of an authority and all banks and trust

companies are authorized to give such security for such deposits.

(viii) No action or proceeding shall be prosecuted or maintained

against an authority for personal injury or damage to real or personal

property alleged to have been sustained by reason of the negligence or

wrongful act of the authority or any member, officer, agent or employee

thereof, unless (1) notice of claim shall have been made and served upon

the authority or the secretary of state within the time limit

established by and in compliance with section fifty-e of this chapter,

(2) it shall appear by and as an allegation in the complaint or moving

papers that at least thirty days have elapsed since the service of such

notice and that the adjustment or payment thereof has been neglected or

refused, and (3) the action or proceeding shall be commenced within one

year and ninety days after the cause of action shall have accrued.