N.Y. Public Authorities Law § 1680-b: Court facilities and combined occupancy structures

§ 1680-b. Court facilities and combined occupancy structures. 1. The

authority may enter into a lease, sublease or other agreement with a

participating municipality pursuant to which one or more court

facilities or combined occupancy structures are to be designed,

acquired, constructed, reconstructed, rehabilitated or improved, or a

court facility is to be furnished or equipped, provided that such lease,

sublease or other agreement has been approved by the chief administrator

of the courts. The authority shall not enter into any such lease,

sublease or other agreement unless such lease, sublease or other

agreement provides that (a) the parties thereto shall comply with such

standards and administrative policies relating to court facilities as

may be promulgated pursuant to section twenty-eight of article six of

the constitution and (b) the court facilities or combined occupancy

structures to which such lease, sublease or other agreement related

shall be constructed, reconstructed, rehabilitated, improved, furnished

or equipped substantially in accordance with the plans, specifications

and designs approved by the chief administrator of the courts. Such

lease, sublease or other agreement may contain such other terms and

conditions as the authority may require, including, but not limited to,

provisions relating to the maintenance and operation of the court

facilities, the establishment of reserve funds and the disposition of a

court facility or a combined occupancy structure or the interest of the

authority therein prior to or upon the termination or expiration of such

lease, sublease or other agreement. In connection with court facilities

and combined occupancy structures, the authority is hereby authorized to

issue bonds in an aggregate principal amount not to exceed three billion

dollars; provided, however, that bonds issued or to be issued shall be

excluded from such limitation if such bonds are issued to refund bonds

of the authority issued in connection with court facilities and combined

occupancy structures and the present value of the aggregate debt service

on the refunding bonds does not exceed the present value of the

aggregate debt service on the bonds refunded thereby. For purposes

hereof, the present value of the aggregate debt service of the refunding

bonds and the aggregate debt service of the bonds refunded, shall be

calculated by utilizing the true interest cost of the refunding bonds,

which shall be that rate arrived at by doubling the semi-annual interest

rate (compounded semi-annually) necessary to discount the debt service

payments on the refunding bonds from the payment dates thereof to the

date of issue of the refunding bonds to the purchase price of the

refunding bonds, including interest accrued thereon prior to the

issuance thereof. The maturity of such bonds, other than bonds issued to

refund outstanding bonds, shall not exceed the weighted average economic

life, as certified by the office of court administration, of the

facilities in connection with which the bonds are issued, and in any

case not later than the earlier of forty years or the expiration of the

term of any lease, sublease or other agreement relating thereto;

provided that no note, including renewals thereof, shall mature later

than five years after the date of issuance of such note.

2. No bonds may be issued by the authority in connection with a court

facility or combined occupancy structure unless:

(a) the chief administrator of the courts has certified that the court

facility or facilities in connection with which such bonds are to be

issued are consistent with the capital plan approved pursuant to section

sixteen hundred eighty-c of this chapter; and

(b) the lease, sublease or other agreement with the participating

municipality relating to such court facilities provides that the plans,

specifications, designs and cost estimates for the design, construction,

reconstruction, rehabilitation, improvement, furnishing or equipping of

the court facilities in connection with such bonds are to be issued

subject to the approval of the chief administrator of the courts

pursuant to paragraph (u) of subdivision one of section two hundred

twelve of the judiciary law.

3. Notwithstanding the provisions of any general, special or local

law, charter or ordinance to the contrary, a participating municipality

may sell, convey, lease, exchange or otherwise make available to the

authority, for nominal consideration, the title to or an interest in

real property for the purpose of providing court facilities or combined

occupancy structures and may enter into any lease, sublease or other

agreement with the authority in connection with court facilities or

combined occupancy structures without public auction or bidding or

restriction as to the term of such lease, sublease or other agreement,

provided that such sale, conveyance, lease, exchange, or other

disposition to the authority or lease, sublease or other agreement with

the authority is authorized by the board of county supervisors or the

county legislature of a participating municipality which is a county, or

the common council of a participating municipality which is a city other

than the city of New York or, if the participating municipality is the

city of New York, the board of estimate of the city of New York.

4. In the event that a participating municipality fails to pay to the

authority when due all or part of the rentals and other payments payable

pursuant to any lease, sublease or agreement with the authority, the

chairman or another officer of the authority shall certify at the times

provided in this subdivision the amount of rentals and other payments

then due from such participating municipality and unpaid. The state

comptroller, upon receipt of such certificate, shall deduct the amount

of such rentals and other payments as remains unpaid to the authority

first from the aid payable to such participating municipality from the

court facilities incentive aid fund established by section ninety-four

of the state finance law and, then, from the next succeeding payments of

state aid apportioned to such participating municipality, as revenue

sharing, per capita aid, and any other aid pursuant to section

fifty-four of the state finance law and, then, from the next succeeding

payments of state aid for any local governmental administrative costs

that are reimbursable to the participating municipality pursuant to

state law and, then, from the next succeeding payments of state aid from

moneys appropriated pursuant to section six hundred eight of the public

health law and pursuant to section ten-c of the highway law; provided,

however, that the right of the authority to the payment of any amount

deducted by the state comptroller pursuant to this section from per

capita aid apportioned to the city of New York shall be subject and

subordinate to the rights of the city university construction fund

pursuant to section sixty-two hundred seventy-nine of the education law,

the New York city housing development corporation pursuant to section

six hundred fifty-six of the private housing finance law, the trustees

of the police pension fund pursuant to paragraph e of subdivision seven

of section fifty-four of the state finance law, and the municipal

assistance corporation for the city of New York pursuant to section

three thousand thirty-six-a of this chapter and subdivision one of

section ninety-two-e of the state finance law. In order to insure that

the amount of rentals and other payments due and unpaid by a

participating municipality are paid, the authority on or within thirty

days prior to January twenty-fifth, April twenty-fifth, July

twenty-fifth and October twenty-fifth of each year shall certify to the

state comptroller the amount of rentals and other payments then due and

unpaid by each participating municipality pursuant to any lease,

sublease or other agreement. The amount required to be deducted by the

state comptroller pursuant to this subdivision shall be deducted from

such aid, whether or not the state aid from which such deduction is to

be made is then payable to the participating municipality, and thereupon

paid to the authority. The amount of state aid payable to such

participating municipality shall be reduced by the amount deducted by

the state comptroller notwithstanding the amount appropriated and

apportioned by the state to such participating municipality, and the

state shall not be obligated to make and the participating municipality

shall not be entitled to receive any additional apportionment or payment

of such state aid. Nothing shall be construed to create an obligation

upon the state to appropriate moneys, to preclude the state from

reducing the amount of moneys appropriated or level of assistance

provided, or to preclude the state from altering or modifying the manner

in which it provides for or provides assistance.

5. On and after the effective date of this subdivision, when bonds are

issued by the authority pursuant to this section, the authority and the

participating municipality shall agree in any lease, sublease or other

agreement to finance the acquisition, construction, reconstruction or

rehabilitation of a court facility or combined occupancy structure that,

so long as such bonds remain outstanding, the participating municipality

shall retain title to such court facility or combined occupancy

structure free of all liens and encumbrances except as shall be

expressly permitted by such lease, sublease or other agreement.