N.Y. Public Authorities Law § 2770: Agreements relating to payment in lieu of taxes

§ 2770. Agreements relating to payment in lieu of taxes. 1. In order

to assure that municipalities may not suffer undue loss of taxes or

assessments in the event that the authority acquires any airport from

the county, any person paying real property taxes or assessments as of

the date of the transfer of title from the county to the authority on

any property located within any such airport shall make payments in lieu

of taxes in an amount equal to the sums which would ordinarily be

imposed as taxes by any municipality in which such property is located,

pursuant to the prevailing method of determining taxes and assessments.

2. Subject to any agreement with bondholders, the authority may, but

is not required to, enter into agreements with any municipality of the

state to pay annual sums in lieu of taxes to any such municipality in

respect of any real property which is owned by the authority is located

in such municipality and is used for public aviation purposes or

pollution control purposes. For the purposes of this section, such

public aviation purposes shall include without limitation air terminal

facilities, parking facilities, fuel facilities, maintenance facilities,

and facilities for the loading, unloading, holding, interchange or

transfer of passengers, freight, baggage or cargo.

3. In the event that any real property owned by the authority is used

or is to be used by the authority or a lessee thereof for purposes other

than public aviation purposes, the authority, or lessee thereof, as the

case may be, shall enter into agreements with any municipality of the

state to pay annual sums in lieu of taxes in respect of such real

property located in such municipality. For the purposes of this section,

such purposes other than public aviation purposes shall include without

limitation hotels, motels, restaurants and retail stores and concessions

not located within any air terminal building, office buildings to the

extent not used by the authority or any other public corporation for its

own corporate purposes, and such other buildings and improvements as

determined by the authority to be not exclusively for public aviation

purposes.

The authority shall determine (i) the amount of such annual payments

in lieu of taxes, (ii) whether the use of such property is for purposes

other than public aviation purposes and (iii) the extent to which such

property is used for purposes other than public aviation purposes. In

making such determinations the authority shall take into consideration

the recommendations, if any, of the county.