Enacts the "Atlantic Yards governance act"; creates the Atlantic Yards development trust with purposes and powers of the trust and further establishes a stakeholder council.
STATE OF NEW YORK
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11395
IN ASSEMBLY
May 27, 2008
___________
Introduced by M. of A. JEFFRIES, MILLMAN, BRENNAN -- read once and
referred to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to enacting the
"Atlantic Yards governance act"
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative findings and intent. The legislature hereby
2 finds, determines and declares the following:
3 1. The planning and development of the Atlantic Yards project is a
4 matter of state concern and in the interest of the people of the state.
5 It may include both market rate and below market housing, new open
6 space, commercial and retail development and a sports arena for New
7 Yorkers, as well as alleviate unsatisfactory conditions of the current
8 site.
9 2. It is in the public interest for the state and city of New York to
10 act together to oversee the development of the Atlantic Yards project
11 and to ensure the public is fully engaged and involved in the design,
12 development, and operation of the project, and in the development and
13 implementation of policies to mitigate the project's anticipated envi-
14 ronmental impacts.
15 3. The planning, environmental review, interim improvement, and devel-
16 opment process for the project that has been conducted to date has
17 furthered the foregoing purposes. It is intended that the Atlantic Yards
18 development trust, to the extent provided and subject to the limitations
19 set forth in this act, replace the New York state urban development
20 corporation with respect to its authority over the project, for among
21 other things, the completion of the development process and the
22 construction, operation and maintenance of the project, all in accord-
23 ance with this act.
24 4. The legislature finds that this act is in the public interest, is a
25 matter of state concern, and is necessary to accomplish these important
26 public purposes. The legislature intends that this act shall operate
27 exclusively for purposes relating to the promotion of the health and
28 social welfare of the people of the state.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD16848-03-8
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1 § 2. Short title. This act shall be known and may be cited as the
2 "Atlantic Yards governance act."
3 § 3. Article 8 of the public authorities law is amended by adding a
4 new title 5 to read as follows:
5 TITLE 5
6 ATLANTIC YARDS GOVERNANCE ACT
7 Section 1700. Definitions.
8 1701. Creation of the Atlantic Yards development trust.
9 1702. Purposes of the Atlantic Yards development trust.
10 1703. Powers of the Atlantic Yards development trust.
11 1704. Moneys of the Atlantic Yards development trust.
12 1705. Other state laws and agencies.
13 1706. Notice of tort.
14 1707. Tax exemptions.
15 1708. Stakeholder council.
16 § 1700. Definitions. As used in this title, the following terms shall
17 have the following meanings, unless the context clearly requires other-
18 wise:
19 1. "Board" means the board of directors of the Atlantic Yards develop-
20 ment trust.
21 2. "General project plan" means the "Atlantic Yards Land Use Improve-
22 ment and Civic Project General Project Plan" dated July eighteenth, two
23 thousand six, and any successor plan or statement of findings created
24 thereafter consistent with the state environmental quality review act;
25 provided that the general project plan shall be consistent with this
26 title.
27 3. "Atlantic Yards" or "the project" means the area in the city of New
28 York and county of Kings roughly bounded by Flatbush and Fourth Avenues
29 to the west, Vanderbilt Avenue to the east, Atlantic Avenue to the
30 north, and Dean and Pacific Streets to the south and including the
31 approximately nine-acre below-grade Long Island Rail Road Vanderbilt
32 storage yard and metropolitan transportation authority storage yard for
33 inactive New York city transit authority buses.
34 4. "Atlantic Yards development trust" or "Trust" means the public
35 benefit corporation established pursuant to section seventeen hundred
36 one of this title.
37 § 1701. Creation of the Atlantic Yards development trust. 1. There is
38 hereby created the Atlantic Yards development trust which shall be a
39 body corporate and politic, constituting a public benefit corporation.
40 The trust shall come into existence upon the thirtieth day following the
41 appointment of not fewer than eight members of its board as herein
42 provided, and the trust and its corporate existence shall continue until
43 terminated by the legislature. The trust shall have the rights, powers,
44 responsibilities and duties set forth in this title, subject to the
45 limitations set forth herein, and it shall replace the New York state
46 urban development corporation, in its authority over the planning,
47 design, construction, operation and maintenance of the project. Upon the
48 coming into existence of the trust, the trust shall succeed to all
49 contracts, leases, licenses and other legal obligations respecting the
50 project to which its predecessors are party at or after the effective
51 date of this title; provided that the trust shall not assume any debt or
52 financial obligation to any public benefit corporation or governmental
53 entity.
54 2. The members of the board of the Atlantic Yards development trust
55 board shall be as follows:
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1 (a) Eight members shall be appointed by and serve at the pleasure of
2 the governor, at least one of whom shall be a representative of a not-
3 for-profit, non-governmental environmental or civic organization.
4 (b) Two members shall be appointed by the speaker of the assembly, in
5 consultation with the member of the assembly that represents the
6 district or districts in which the project is located.
7 (c) Two members shall be appointed by the temporary president of the
8 senate, in consultation with the senator that represents the district or
9 districts in which the project is located.
10 (d) Two members shall be appointed by and serve at the pleasure of the
11 mayor of the city of New York.
12 (e) One member shall be appointed by and serve at the pleasure of the
13 borough president of the borough of Brooklyn, appointed in consultation
14 with Brooklyn community boards two, six and eight.
15 (f) One non-voting member shall be appointed by the stakeholder coun-
16 cil as provided in section seventeen hundred eight of this title.
17 (g) Each appointing authority, with the exception of the Brooklyn
18 borough president and the stakeholder council, may appoint no more than
19 half their members as city or state employees.
20 3. Each member, except for the non-voting member, of the board shall
21 be entitled to one vote on all matters voted on by the board. Eight
22 members shall constitute a quorum. All actions authorized by a vote of
23 the board shall require the affirmative vote of a quorum in order to
24 pass. The chair shall be designated by the governor and serve as chair
25 at the pleasure of the governor, and the vice-chair shall be designated
26 by the mayor of the city of New York and serve at the pleasure of the
27 mayor. Designation as chair or vice-chair shall be for a term of two
28 years.
29 4. Members of the board shall not be compensated for their services
30 but may be reimbursed for their necessary and actual expenses incurred
31 in connection with the performance of their duties. The board may dele-
32 gate to one or more of its members or to its officers, agents or employ-
33 ees such powers and duties as it may deem proper.
34 5. It shall not be deemed a conflict of interest for a person to
35 simultaneously hold positions as a member of the board and as an officer
36 of the trust. No public officer or employee shall forfeit or be deemed
37 to have forfeited such public office or employment by accepting member-
38 ship on the board.
39 § 1702. Purposes of the Atlantic Yards development trust. The trust is
40 hereby created to permit the following purposes to be fulfilled in
41 accordance with this title:
42 1. to plan, design, develop, construct, operate and maintain the
43 project;
44 2. to create affordable and market-rate housing, to create new public
45 open space and commercial and retail development;
46 3. to ensure the public is fully involved and engaged in the gover-
47 nance of the project;
48 4. to cooperate, and to coordinate matters relating to the project,
49 with the federal government, the state and the city of New York as well
50 as with community, environmental, and civic groups;
51 5. to accept appropriations, subsidies and grants from federal, state
52 and local governments; and
53 6. to receive rents, payments in lieu of taxes, and other revenues
54 generated within the project, and to use the same solely to improve,
55 operate and maintain the project.
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1 § 1703. Powers of the Atlantic Yards development trust. 1. To fulfill
2 its purposes under this title, the trust shall have the following
3 powers, functions, duties and authority subject to the limitations set
4 forth in this title:
5 (a) to plan, design, develop, construct, operate, and maintain the
6 project;
7 (b) to implement the general project plan for the project;
8 (c) to oversee implementation of the design guidelines for the
9 project;
10 (d) to establish a stakeholder council as provided in section seven-
11 teen hundred eight of this title;
12 (e) to approve changes to the general project plan in consultation
13 with the stakeholder council;
14 (f) to oversee policies to mitigate environmental impacts of the
15 project and coordinate the implementation of these policies with the
16 relevant city and state agencies;
17 (g) when necessary, to develop additional policy to mitigate antic-
18 ipated environmental impacts of the project;
19 (h) to adopt rules of procedure for consultation with the stakeholder
20 council, established pursuant to section seventeen hundred eight of this
21 title;
22 (i) to provide for the health, safety and welfare of the public using
23 facilities under its jurisdiction;
24 (j) to exercise the following general corporate powers:
25 (i) to make and alter by-laws for its organization and internal
26 management;
27 (ii) to adopt, amend or rescind such rules, regulations and orders as
28 may be necessary or convenient for the performance or exercise of the
29 functions, powers and duties of the trust in accordance with the
30 provisions of this title;
31 (iii) to enter into contracts, including customary trade credits in
32 the ordinary course of business, with any person and do all things
33 necessary or convenient to carry out the functions, powers and duties of
34 the trust;
35 (iv) to conduct meetings and hearings with respect to any matter under
36 the jurisdiction and control of the trust;
37 (v) to bring or defend such actions, suits or proceedings as may be
38 necessary or proper to perform any of the powers, functions and duties
39 of the trust;
40 (vi) to exercise and perform such other functions, powers and duties
41 as shall have been or may be from time to time conferred or imposed by
42 or pursuant to law;
43 (vii) to appoint such officers and employees as it may require for the
44 performance of its duties, and to fix and determine their qualifica-
45 tions, duties, and compensation and to retain or employ such persons as
46 landscape architects, architects, historians, ecologists, educators,
47 engineers, counsel, auditors, and private consultants on a contract
48 basis or otherwise to render professional or technical services and
49 advice;
50 (viii) to submit legal matters to the attorney general of the state
51 who may furnish any necessary legal services and advice required to
52 assist the trust in accomplishing its corporate purposes;
53 (ix) to designate the depositories of its money and the persons
54 authorized to sign checks and other such instruments on its behalf;
55 (x) to establish and re-establish its fiscal year; and
56 (xi) to prepare and approve an annual budget for its operations.
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1 (k) to provide for meaningful public notice, participation, consulta-
2 tion and review in the planning, development and operation of the
3 project, which shall include, but not limited to:
4 (i) consultation with the stakeholder council and elected officials
5 representing communities neighboring the project; and
6 (ii) timely and reasonable notification to appropriate news media of
7 each meeting of the trust and any public hearings regarding significant
8 plans or proposed actions with respect to the project;
9 (l) to develop and oversee an annual financing plan that will combine
10 contributions from the state, the city of New York and private sources
11 for the planning and development of the project; and
12 (m) to lend or donate monies, whether secured or unsecured, to any
13 subsidiary corporation, and to purchase, sell or pledge the shares,
14 bonds or other obligations or securities thereof, on such terms and
15 conditions as the corporation may deem advisable.
16 2. The trust shall be subject to article eight of the environmental
17 conservation law. The general project plan adopted prior to the coming
18 into existence of the trust shall constitute the general project plan
19 for the project. However, should the trust decide to amend the general
20 project plan, then the trust shall continue the preparation of an envi-
21 ronmental impact statement in accordance with the ongoing state environ-
22 mental quality review processes begun by its predecessors and shall act
23 as lead agency in connection therewith in order that there shall be no
24 interruption or impediment to that process as a result of this title.
25 Such use by the trust of the environmental impact statement begun by the
26 New York state urban development corporation shall not be deemed illegal
27 or an objection under article eight of the environmental conservation
28 law. Unless the context clearly requires otherwise, any reference to the
29 urban development corporation doing business as the empire state devel-
30 opment corporation in the final environmental impact statement or any
31 other document that is part of the process of developing or approving
32 the general project plan, or in the general project plan itself, shall
33 be deemed to refer to and may be amended to refer to the Atlantic Yards
34 development trust, and such referral and amendment shall not be deemed
35 illegal or an objection under article eight of the environmental conser-
36 vation law. The plan resulting from such environmental review process
37 shall be consistent with this title and shall be the basis for the
38 design and development of the project and be known as the general
39 project plan.
40 3. (a) The trust shall receive and have exclusive title to all rents,
41 fees, and other revenues required to be transferred to it under para-
42 graph (b) of this subdivision and also to all rents, fees, and other
43 revenues paid or to be paid to it pursuant to any lease, concession
44 arrangement, license or other agreement relating to any part of the
45 project, made by it or any predecessor, and all such monies shall be
46 used solely for constructing, improving, operating and maintaining the
47 project.
48 (b) All net revenues paid to the state of New York or any instrumen-
49 tality thereof, the New York state urban development corporation, the
50 city of New York or any instrumentality thereof, pursuant to any lease,
51 concession agreement, license or other agreement relating to any part of
52 the project, and any such revenues hereafter paid to and in the
53 possession of any of those entities.
54 4. The accounts, records, and performance of the trust shall be
55 subject to annual audit by the comptrollers of the state and city of New
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1 York, in accordance with the procedural requirements governing audits
2 under the laws of such jurisdictions.
3 5. The trust may establish and finance staff or consultant positions
4 to serve as liaisons to the trust for the stakeholder council.
5 6. In the case of any proposed significant action affecting the
6 project or the neighboring community, including the adoption of, and any
7 amendment to, the general project plan or the annual financing plan, the
8 trust shall:
9 (a) hold a public hearing on not less than thirty days' advance public
10 notice;
11 (b) solicit and consider the views of the community stakeholder coun-
12 cil, the planning commission of the city of New York, elected officials
13 representing communities neighboring the project, allowing not less than
14 sixty days following the notice of the proposed action for the
15 submission of such views;
16 (c) publish notice of the hearing and proposed action in the city
17 record and state register;
18 (d) meet with representatives of the stakeholder council not less than
19 twenty days following the end of the public comment period; and
20 (e) prepare a findings statement summarizing public comment and views
21 of stakeholder council and outline how the proposed action addresses
22 identified concerns.
23 7. No later than February first of each year following the effective
24 date of this title and within sixty days after the later of the effec-
25 tive date of this title or the adoption of the general project plan or
26 any amendment, the trust shall deliver to the governor, the speaker of
27 the assembly, the temporary president of the senate, the state comp-
28 troller, the mayor of the city of New York, the speaker of the city
29 council of the city of New York, the comptroller of the city of New York
30 and the chairs of community boards two, six, and eight within the
31 borough of Brooklyn, a current copy of the annual financing plan and any
32 amendments to the general project plan for the project and the trust
33 shall, within the same time, make such plan and a current copy of its
34 regulations available for public inspection during business hours at the
35 offices of the trust within the city of New York.
36 8. Notwithstanding any provision of law to the contrary the Atlantic
37 Yards development trust shall establish the Atlantic Yards purposes
38 account and other sub-accounts which may be necessary or convenient for
39 the authorized purposes of the trust within the treasury of the trust
40 which shall reflect and consist of all funds made available to the trust
41 at any time, from any sources, for its authorized purposes. Such account
42 and sub-accounts shall be included in detailed quarterly reports of the
43 trust commencing with the quarterly report for the period immediately
44 preceding January first, two thousand nine, which set forth the status
45 of the account and sub-accounts, the amount in such account at the
46 beginning of such quarter (from and including the entire period for the
47 first day of the operative calendar year), the payments of such account,
48 and the amount in such account at the close of such quarter (to and
49 including the entire period of the last day of the operative calendar
50 year). Such detailed quarterly reports shall be prepared and submitted
51 within thirty days of the close of the fiscal quarter of the trust, to
52 the governor, the speaker of the assembly, the temporary president of
53 the senate, the state comptroller, the chair of the senate finance
54 committee, the chair of the assembly ways and means committee, the mayor
55 of the city of New York, the speaker of the city council of the city of
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1 New York, the comptroller of the city of New York, and the chairs of
2 community boards two, six and eight within the borough of Brooklyn.
3 § 1704. Moneys of the Atlantic Yards development trust. All moneys of
4 the trust from whatever source derived shall be paid to the treasurer of
5 the trust and shall be deposited forthwith in one or more banks or trust
6 companies in the state, as designated by the trust. The moneys in such
7 accounts shall be paid out by the treasurer of the trust upon requisi-
8 tion by the chairperson of the board or of such officer or officers as
9 the board may authorize. Any moneys of the trust not required for imme-
10 diate use or disbursement may, at the discretion of the trust, be
11 invested in those obligations specified pursuant to section ninety-
12 eight-a of the state finance law.
13 § 1705. Other state laws and agencies. 1. The trust shall be subject
14 to articles six and seven of the public officers law.
15 2. Whenever in the opinion of the trust it would be in the public
16 interest, it may, after approval of the director of the budget or the
17 director of the office of management and budget of the city of New York
18 as the case may be, request the temporary assignment and transfer of
19 certain employees of any board, commission, agency or department of the
20 state or the city of New York, and such board, commission, agency or
21 department, if in the opinion of the transferring agency such transfer
22 will not interfere with the performance of its duties and functions, may
23 make such assignment and transfer or extension thereof which shall not
24 in any way affect the civil service status, continuity of service,
25 retirement plan status, right to compensation, grade or compensation or
26 the rights or privileges of any employee so transferred.
27 3. For purposes of sections two hundred twenty and two hundred thirty
28 of the labor law, the commissioner of labor and the comptroller of the
29 city of New York shall both be deemed the fiscal officer for the trust.
30 4. The trust shall be subject to article nine of this chapter, and its
31 contracts shall be subject to section one hundred thirty-five of the
32 state finance law and the provisions of state law pertaining to prevail-
33 ing wages, labor standards and working hours. The trust shall be deemed
34 a "state agency" for purposes of article fifteen-a of the executive law
35 and its contracts for procurement, design, construction, services and
36 materials shall be deemed state contracts within the meaning of that
37 term as set forth in such article fifteen-a.
38 § 1706. Notice of tort. In an action against the trust founded upon
39 tort:
40 1. a notice of claim shall be required as a condition precedent to the
41 commencement of an action or special proceeding against the trust or any
42 officer, appointee or employee thereof, and the provisions of section
43 fifty-e of the general municipal law shall govern the giving of such
44 notice; and
45 2. the complaint shall contain an allegation that at least thirty days
46 have elapsed since the demand, claim or claims upon which the action is
47 founded were presented to a member of the trust's board of directors and
48 to the trust's secretary and that the trust has neglected or refused to
49 make an adjustment or payment thereof for thirty days after such
50 presentment.
51 No such action shall be commenced more than one year after the cause
52 of action therefor shall have accrued, except an action against the
53 trust for wrongful death which is commenced in accordance with the
54 notice of claim and time limitation provisions of title eleven of arti-
55 cle nine of this chapter.
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1 § 1707. Tax exemptions. It is hereby determined that the creation of
2 the trust and the carrying out of its corporate purposes is in all
3 respects for the benefit of the people of the state and is a public
4 purpose, and the trust shall be regarded as performing a governmental
5 function in the exercise of the powers conferred upon it by this title.
6 In furtherance of the same and notwithstanding any other provision of
7 any other law to the contrary:
8 1. The income, moneys, operations and properties of the trust shall be
9 exempt from taxation, including without limitation any and all state and
10 local income, franchise, transfer, recording, real property and sales
11 taxation and any assessments of payments in lieu of taxes.
12 2. Any real property taxes or payments in lieu of taxes payable by any
13 enterprise operating within the project to the city of New York shall be
14 paid to the trust following the coming into existence of the trust and
15 the city of New York shall promptly remit any such payments received
16 after such time to the trust. All contributions of personal property
17 made to the trust whether by gift, devise or bequest shall qualify as
18 deductions in computing the net taxable income of the donor for the
19 purposes of any income tax imposed by the state or any political subdi-
20 vision thereof.
21 § 1708. Stakeholder council. 1. There is hereby created the "Atlantic
22 Yards stakeholder council". All members of the stakeholder council shall
23 reside in the borough of Brooklyn, and shall be representatives of local
24 community, park, environmental, civic, labor and business organizations.
25 2. Upon the coming into existence of the Atlantic Yards development
26 trust, members of the stakeholder council shall be appointed in the
27 following manner:
28 (a) Two members shall be appointed by each of the members of the
29 assembly representing the district or districts in which the project is
30 located; two members shall be appointed by each of the senators repres-
31 enting the district or districts in which the project is located; two
32 members shall be appointed by the city council member representing the
33 districts in which the project is located; one member each shall be
34 appointed by Brooklyn community boards two, six and eight respectively;
35 and two members shall be appointed by the Brooklyn borough president.
36 Each of the stakeholder council members shall serve at the pleasure of
37 the appointing official or body and shall serve for a term of two years.
38 (b) All elected officials representing districts bordering or contain-
39 ing the project shall serve on the stakeholder council on an "ex-offi-
40 cio" basis.
41 3. The stakeholder council shall make and alter by-laws for its organ-
42 ization and internal management.
43 4. The stakeholder council members shall elect a chair based on a
44 majority vote.
45 5. The stakeholder council may hold public meetings and may advise and
46 make recommendations to the board of directors of the trust on all
47 matters regarding the planning, design, construction and operation of
48 the project.
49 6. The stakeholder council shall appoint one representative to the
50 trust.
51 7. The trust shall provide the stakeholder council with such staff
52 support as the trust determines is required for the performance of the
53 stakeholder council's duties.
54 8. Members of the stakeholder council shall serve without compen-
55 sation.
A. 11395 9
1 § 4. Severability. If any clause, sentence, paragraph, subdivision,
2 section, part or title of this act shall be adjudged by a court of
3 competent jurisdiction to be invalid, such judgment shall not affect,
4 impair or invalidate the remainder thereof, but shall be confined in its
5 operation to the clause, sentence, paragraph, subdivision, section, part
6 or title of this act directly involved in the controversy in which such
7 judgment shall have been rendered.
8 § 5. This act shall take effect immediately.