A07748 Summary:

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.
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A07748 Actions:

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
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A07748 Votes:

A07748 06/10/2015 145/2
AbbateYClarkYGanttYKimYMorelleYRichardYStecY
AbinantYColtonYGarbariYKolbYMosleyYRiveraYSteckY
ArroyoERCookYGiglioYLalorYMoyaYRobertsYStirpeY
AubryYCorwinYGjonajYLavineYMurrayYRobinsoYTediscoY
BarclayYCrespoYGlickYLawrencYNojayNORodriguYTenneyY
BarrettYCrouchYGoldfedYLentolYNolanNORosenthYThieleY
BarronYCurranYGoodellYLiftonYOaksYRozicYTitoneY
BenedetYCusickYGottfriYLinaresYO'DonneYRussellYTitusER
BichottYCymbrowYGrafYLopezYOrtizYRyanYWalkerY
BlakeYDavilaYGuntherYLupardoYOtisYSaladinYWalterY
BlankenYDenDekkYHawleyYLupinacYPalmesaYSantabaYWeinsteY
BorelliYDilanYHevesiYMageeYPalumboYSchimelYWeprinY
BrabeneYDinowitYHikindYMagnareYPaulinYSchimmiYWoernerY
BraunstYDiPietrYHooperYMalliotYPeoplesYSeawrigYWozniakY
BrennanYDupreyYJaffeeYMarkeyYPerryYSepulveYWrightY
BrindisYEnglebrYJean-PiYMayerYPersaudYSilverYZebrowsY
BronsonYFahyYJohnsYMcDonalYPichardYSimanowYMr SpkrY
Brook-KYFarrellYJoynerYMcDonouYPretlowYSimonY
BuchwalYFinchYKaminskYMcKevitYQuartYSimotasY
ButlerYFitzpatYKatzYMcLaughYRaYSkartadY
CahillYFriendYKavanagYMillerYRaiaYSkoufisY
CerettoYGalefYKearnsYMontesaYRamosYSolagesY

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A07748 Memo:

BILL NUMBER:A7748

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
Management, 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.
Shortly 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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A07748 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         7748

                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                     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    S 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.
                                                                  LBD11227-01-5
       A. 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    S 2. This act shall take effect immediately.
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