N.Y.
Public Authorities Law Section 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.
Source:
Section 553-B — Additional powers and provisions in relation to convention center, https://www.nysenate.gov/legislation/laws/PBA/553-B (updated Sep. 22, 2014; accessed May 4, 2024).
