N.Y. Public Authorities Law § 553-b: Additional powers and provisions in relation to convention center

§ 553-b. Additional powers and provisions in relation to convention

center. 1. In relation to the convention center and for the purpose of

effectuating the development of the same, the authority shall have

power, in its discretion and subject to and in accordance with all

contract provisions with respect to any bonds and the rights of the

holders of bonds, to:

(a) Finance all or any part of the costs of and incidental to studies,

the site acquisition, planning, design, construction and development of

the convention center, through the issuance of its negotiable notes or

bonds or other obligations;

(b) Lease in its own name the convention center from the subsidiary of

New York state urban development corporation (such subsidiary being

herein referred to as the development corporation) created pursuant to a

chapter of the laws of nineteen hundred seventy-nine for studies, site

acquisition, planning, design, construction and development of the

convention center, and sublease its interest therein to the state

(acting by and through the commissioner of general services), each of

such lease and sublease to be upon such terms and conditions as the

parties thereto shall agree, provided that (i) such lease shall (a)

provide for an initial lump-sum rental in the amount of the aggregate of

those costs of and incidental to the studies, site acquisition,

planning, design, construction and development of the convention center

theretofore temporarily financed by the State and for a nominal rental

thereafter, (b) provide to the lessee the option to purchase for a

nominal price the leased property in its own name at the expiration or

earlier termination of the term of the lease, and (c) relieve the

development corporation of any obligation to operate, repair, maintain

or reconstruct the convention center, and (ii) such sublease shall (a)

provide for rental payments equal to the amount needed to pay debt

service on said notes, bonds or other obligations as the same becomes

due, (b) provide that the obligations of the state to make such rental

payments shall not constitute a debt of the state within the meaning of

any constitutional or statutory provision and shall be deemed executory

only to the extent of moneys made available to the state, and that no

liability on account thereof shall be incurred by the state beyond the

moneys available for the purpose thereof, (c) provide to the sublessee

the option to purchase for a nominal price any interest of the authority

in the subleased property at the expiration or earlier termination of

the term of the sublease, and (d) relieve the authority of any

obligation to operate, repair, maintain or reconstruct the convention

center;

(c) Agree with the development corporation (in the lease referred to

in paragraph (b) above or by separate agreement) to make payments to the

development corporation from the proceeds of the sale of the obligations

referred to in paragraph (a) above upon requisition therefor by the

development corporation, in an aggregate amount equal to the costs of

and incidental to the studies, site acquisition, planning, design,

construction and development of the convention center less the amount

theretofore paid to the development corporation as rentals under the

lease referred to in paragraph (b) above; and

(d) Additionally participate in the site acquisition, planning,

design, construction and development of the convention center through

representation on the board of directors of the development corporation.

2. Bonds, notes or other obligations issued for the purposes

enumerated in paragraph (a) of subdivision one of this section shall be

issued in the manner provided in section five hundred sixty-one of this

chapter, subject only to the following limitations:

(a) The aggregate principal amount of such bonds, notes or other

obligations shall not exceed three hundred seventy-five million dollars

($375,000,000), excluding bonds, notes or other obligations issued to

refund or otherwise repay bonds, notes or other obligations theretofore

issued for such purposes; provided, however, that upon any such

refunding or repayment the total aggregate principal amount of

outstanding bonds, notes or other obligations may be greater than three

hundred seventy-five million dollars ($375,000,000) only if the present

value of the aggregate debt service of the refunding or repayment bonds,

notes or other obligations to be issued shall not exceed the present

value of the aggregate debt service of the bonds, notes or other

obligations so to be refunded or repaid. For purposes hereof, the

present values of the aggregate debt service of the refunding or

repayment bonds, notes or other obligations and of the aggregate debt

service of the bonds, notes or other obligations so refunded or repaid,

shall be calculated by utilizing the effective interest rate of the

refunding or repayment bonds, notes or other obligations, 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 or repayment bonds, notes or other obligations

from the payment dates thereof to the date of issue of the refunding or

repayment bonds, notes or other obligations and to the price bid

including estimated accrued interest or proceeds received by the

authority including estimated accrued interest from the sale thereof;

and

(b) Bonds issued for such purposes may be issued as a single issue or

in series from time to time provided that (i) such issue or each such

series shall be scheduled to mature over a term of not less than twenty

and not more than forty years, (ii) with respect to bonds issued prior

to the date of completion of the convention center, as estimated by the

authority, any principal payments or principal installments to be made

or provided for shall commence not later than two years following the

estimated date of such completion, (iii) with respect to bonds issued on

or after the date of completion of the convention center, as certified

by the authority, any principal payments or principal installments to be

made or provided for shall commence not later than one year following

the date of issue of such bonds, and (iv) the aggregate amount of

principal and interest or principal installments and interest payable in

each year during which such principal payments or installments are made

or provided for shall, (1) with respect to such issue, or (2) with

respect to each such series or the aggregate of all such series, as the

authority shall elect, be as nearly equal as practicable.

3. The authority shall have power to enter into such other agreements

with the city, the state, New York state urban development corporation

and the development corporation to effectuate the provisions of this

article, and to perform any act or thing, transfer such rights or

interests and execute and deliver such instruments, documents or papers

as it may deem necessary, convenient or desirable to carry out any of

the foregoing. The powers conferred in this section shall be in addition

to and not in limitation of the other powers conferred in this title.