BILL NO A07748 SAME AS SAME AS S05614 SPONSOR Englebright COSPNSR MLTSPNSR Amd S2, Chap 830 of 1986 Extends the aggregate term of a lease between SUNY Stony Brook and a not-for-profit corporation from 60 years to 83 years.Go to top
BILL NO A07748 05/26/2015 referred to higher education 06/01/2015 reported referred to ways and means 06/03/2015 reported referred to rules 06/09/2015 reported 06/09/2015 rules report cal.174 06/09/2015 ordered to third reading rules cal.174 06/10/2015 passed assembly 06/10/2015 delivered to senate 06/10/2015 REFERRED TO HIGHER EDUCATION 06/11/2015 SUBSTITUTED FOR S5614 06/11/2015 PASSED SENATE 06/11/2015 RETURNED TO ASSEMBLY 11/30/2015 delivered to governor 12/11/2015 signed chap.535Go to top
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NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7748 SPONSOR: Englebright
TITLE OF BILL: An act to amend chapter 830 of the laws of 1986, authorizing the state university of New York to contract or lease for hotel/conference center facilities at the state university of New York at Stony Brook, in relation to extending the aggregate term of said contract or lease from sixty to eighty-three years   PURPOSE OF LEGISLATION: To authorize the State University of New York at Stony Brook to amend the term of an existing ground lease between the State University of New York and the Stony Brook Foundation Realty, Inc. and the sublease between the Stony Brook Foundation Realty and Harbor Financial Manage- ment, the operator of the Hilton Garden Inn on the campus of Stony Brook University.   SUMMARY OF SPECIFIC PROVISIONS: This proposal would authorize SUNY to amend the term of a 1989 ground lease with the Stony Brook Foundation Realty (SBFR) and the 2009 sublease with Harbor Financial Management, thereby fulfilling the original intent of Chapter 830 which is to provide a private developer with a sixty year ground lease.   JUSTIFICATION: In 1986, the state Legislature authorized the SUNY Board of Trustees to enter a contract with a non-profit corporation to lease designated land at SUNY Stony Brook for the construction and operation of a hotel on the campus, for a term not to exceed sixty years. The hotel is located on thirteen acres of land bounded on the north by Fine Arts Drive and Entry Drive, on the east by Nicolls Road, on the south by HSC Service Drive and on the west by South Loop Road. In 1989, SUNY negotiated a ground lease with the Stony Brook Foundation Realty, Inc. ("SBFR"), as tenant. SBFR is an affiliate of the Stony Brook Foundation, whose sole corporate purpose is to engage in a broad variety of real estate-related transactions for the University. The ground lease was approved by the State Director of Budget, the Attorney General and the Comptroller, and was assigned State Comptroller's Contract No. L000592. After the approval, the University faced unexpected difficulties in securing a developer willing to construct and operate the hotel. Short- ly after the original ground lease legislation passed, the nation plunged into an economic downturn that made it difficult for private developers to obtain the financing necessary for the project. When the economy did improve, a coalition of the project's opponents initiated a lawsuit which further delayed development on the site. The University was finally able to secure a developer in 2009 and, in 2011, broke ground on the project. The hotel, operating as a Hilton Garden Inn, finally opened in 2013. The University is making this request to fulfill the original intent of Chapter 830 which is to provide a private developer with a sixty year ground lease. As a result, the new expiration date will provide the assurance of a long-term business relationship that will encourage the operator's long-term business decisions. It will also protect the University from negotiating a new lease with a new business owner at the end of the existing lease term who, at that time, would be investing in a building that is more than thirty-years old - an age when the building may require increased maintenance and renovations.   PRIOR LEGISLATIVE HISTORY: Chapter 830 Laws of New York 1986 and Chapter 200 Laws of New York 1989.   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect immediately.
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STATE OF NEW YORK ________________________________________________________________________ 7748 2015-2016 Regular Sessions IN ASSEMBLY May 26, 2015 ___________ Introduced by M. of A. ENGLEBRIGHT -- read once and referred to the Committee on Higher Education AN ACT to amend chapter 830 of the laws of 1986, authorizing the state university of New York to contract or lease for hotel/conference center facilities at the state university of New York at Stony Brook, in relation to extending the aggregate term of said contract or lease from sixty to eighty-three years The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 2 of chapter 830 of the laws of 1986, authorizing 2 the state university of New York to contract or lease for 3 hotel/conference center facilities at the state university of New York 4 at Stony Brook, is amended to read as follows: 5 § 2. The trustees of state university of New York are hereby author- 6 ized to enter into a contract with a not-for-profit corporation, an 7 educational corporation or any other person (other than the state 8 government or any agency thereof or any public authority) for lease of 9 the lands described in section three of this act. Such lease shall be 10 made for the purposes set forth in section one hereof, specifically, 11 construction and operation of a hotel and/or conference center including 12 facilities for the accommodation of overnight visitors to the campus and 13 other related service, commercial or recreational facilities. No such 14 contract or lease shall provide for a fee simple conveyance of such 15 lands. Construction, acquisition, reconstruction, rehabilitation, 16 improvement, operation, management, mortgaging with any private lender 17 (including other security or financing arrangements incidental or 18 related thereto or customary in connection therewith, leasehold mortgag- 19 ing or assignment of rents) leasing or subleasing of, providing services 20 for or otherwise assisting, or granting easements, or licenses or other 21 arrangements in regard to, such facilities and underlying land may be 22 provided for from time to time without public bidding or sale by such EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11227-01-5A. 7748 2 1 contract or lease (and replacements, modifications, substitutions or 2 renewals thereof), upon such terms as the trustees may approve, not to 3 exceed in the aggregate [ sixty] eighty-three years. Any such contract 4 or lease shall be approved by the attorney general as to form, the 5 director of the budget and the comptroller of the state of New York. 6 Private lender, as used herein, shall mean any person other than the 7 state government or any agency thereof or any public authority. 8 § 2. This act shall take effect immediately.