Authorizes SUNY Albany to lease or make available a certain parcel of land on the Uptown and Alumni Quad campuses to the UA Corporation (University at Albany Development Corporation) for purposes of constructing and operating certain facilities and spaces required to support the mission of SUNY.
TITLE OF BILL: An act authorizing the lease of lands located at the State University of New York at Albany
PURPOSE: This bill would authorize the University at Albany (State University of New York at Albany) to lease lands for two projects: 1) to implement a Biomedical and Information Innovation Research initiative; and 2) to undertake a growth and revitalization initiative for the University's Alumni Quad. These initiatives will promote the expansion of University research, help retain and create well-paying jobs in the Capital Region, and help revitalize and stabilize a downtown area of the City of Albany. This legislation is part of the University at Albany's proposal in response to Governor Cuomo's NYSUNY 2020 Challenge Grant initiative.
SUMMARY OF PROVISIONS: This bill is modeled after previous laws to allow land lease arrangements for the benefit of state universities. Section 1 sets forth the legislative findings, noting that these projects will promote enhanced research, technology deployment, improved undergraduate education, neighborhood revitalization and economic outreach across the Capital Region. Section 2 defines the University at Albany Development Corporation (UA Corporation). Section 3 authorizes the State University Trustees, without public bidding, to lease and otherwise contract to make available to the UA Corporation a portion of the lands at the University at Albany (approximately 25 acres) for the purpose of constructing and operating research, education, residential, and student support facilities required to support the academic programs and mission of the State University of New York. Section 4 would make any contract or lease entered pursuant to this act compliant with section 15-A of the Executive Law. Section 5 states that all work performed on projects authorized by this bill shall be deemed public work and shall be performed in accordance with Article 8 of the Labor Law. Section 6 states that the bill will not waive or impair any rights or benefits of SUNY employees, and that they shall continue their work as normal. Section 7 allows the UA Corporation to require contractors to enter into a project labor agreement when certain conditions are met. When a project labor agreement is not required, then any contractor, subcontractor, lease, grant, bond, covenant or other agreement for a project shall be awarded pursuant to section 135 of the State Finance Law. Section 8 relates to the grounds and facilities clause of the lease. Section 9 requires the lease to include an indemnity provision. Section 10 delineates the boundaries of the two property parcels to be leased. Section 11 gives SUNY three years to execute the lease authorized by this bill. Section 12 gives this bill preeminence over any inconsistent laws.
JUSTIFICATION: The University at Albany Development Corporation (UA Corporation) will be created as a not-for-profit New York State corporation established for the purpose of facilitating educational, research, and economic development activities related to the mission of the State University of New York. This legislation would allow for lands to be ground
leased to the UA Corporation, enabling the University at Albany to advance its $35 million NYSUNY 2020 Challenge Grant Program, which is part of a larger "UAlbany Impact" Initiative. The ground lease to this corporation is necessary to facilitate the envisioned public-private partnerships involved in the Biomedical and Information Innovation Research and Alumni Quad/Midtown Revitalization initiatives. The NYSUNY 2020 Challenge Grant Program will help finance a portion of the initiatives, but both initiatives will require the subleasing of space and multiple contracts and financing arrangements with private partners to help fully finance and operate the projects in their entirety. These projects will advance the University's educational, research, and student enrichment goals. More specifically, the Biomedical and Information Innovation Research initiative will involve the construction of a building on the Uptown campus, the costs for which will, in part, be offset by private research entities. The University is currently developing co-location, research, and job growth plans with a number of external private sector partners, all of which are preeminent in their respective fields for health sciences research. This will help trigger greater opportunities for not only University students and faculty, but the entire Capital Region of New York. Similarly, the Alumni Quad Revitalization Initiative will involve the renovation and limited expansion -- including the development of street-level retail/commercial space -- at the Alumni Quad residence facility, located in the Education District of the City of Albany. This area requires an enhanced University presence to help stabilize the neighborhood and create a more vibrant community. Partners for this initiative will likely include the College of Saint Rose, which has provided a letter of support for the project, as well as several retail and commercial vendors. The City of Albany is supportive as well. These initiatives are one part of a larger UAlbany Impact Plan, advanced by the University, which seeks to invigorate the University and the Capital Region economy with a bold multi-year strategy to increase enrollment, hire additional faculty, expand third-party funded research, and improve the range of educational and enrichment programs for students. Over the next 7 years, the UAlbany Impact Plan is estimated to result in over 1,343 new full-time jobs, with an operating and capital economic multiplier of some $4.3 billion.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: The 90th day after it shall have become law.
STATE OF NEW YORK ________________________________________________________________________ 5772 2011-2012 Regular Sessions IN SENATE June 15, 2011 ___________Introduced by Sens. FARLEY, BRESLIN, McDONALD -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT authorizing the lease of lands located at the State University of New York at Albany THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Legislative findings. The legislature finds that the state university of New York at Albany, ("University") is in need of addi- tional facilities to fulfill its legislatively mandated mission of research, education, and workforce training. Specifically, additional instructional, laboratory, residential and student support spaces are required to support the academic and research programs of the Universi- ty, including those necessary to realize a Biomedical and Information Innovation Research initiative and those necessary for a growth and revitalization initiative for the University's Alumni Quad, a residen- tial complex in the Education District of the City of Albany. Both initiatives (hereinafter described as "the project") would be funded, in part, by active partnerships between government and private industry. The legislature further finds that these activities will promote enhanced research, technology deployment, improved undergraduate educa- tion, neighborhood revitalization, and economic outreach across the capital region of New York state. The legislature further finds that granting the trustees of the state university of New York the authority and power to lease and otherwise contract to make available grounds and facilities of the campus of the state university of New York at Albany will help promote and accomplish these goals. S 2. As used in this act "the UA Corporation" shall mean the Universi- ty at Albany Development Corporation, which will be a not-for-profit corporation established for the purpose of facilitating the educational, research and economic development activities related to the mission ofEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13155-01-1 S. 5772 2
the state university of New York by constructing, developing and operat- ing facilities which support economic development, academic and research activities and the mission of the state university of New York and its University at Albany campus. S 3. Notwithstanding any other law to the contrary, the state univer- sity trustees are hereby authorized and empowered, without any public bidding, to lease and otherwise contract to make available to the UA Corporation a portion of the lands of the state university of New York at Albany generally described as all that real property consisting of approximately 25 acres of land on the Uptown and Alumni Quad campuses of the University at Albany, for the purpose of constructing and operating research, education, residential, and student support facilities to provide additional instructional, laboratory, residential, and student support spaces required to support the academic programs and the mission of the state university of New York. Such lease or contract shall be for a period not exceeding 40 years without any fee simple conveyance and otherwise upon terms and conditions determined by such trustees, subject to the approval of the director of the division of the budget, the attorney general and the state comptroller. In the event that the real property that is the subject of such lease or contract shall cease to be used for the purpose described in this act, such lease or contract shall immediately terminate and the real property and any improvements thereon shall revert to the state university of New York. Any lease or contract entered into pursuant to this act shall provide that the real property that is the subject of such lease or contract and any improvements ther- eon shall revert to the state university of New York on the expiration of such contract or lease. S 4. Any contract or lease entered into pursuant to this act shall be deemed to be a state contract for purposes of article 15-A of the execu- tive law, and any contractor, subcontractor, lessee or sublessee enter- ing into such contract or lease for the construction, demolition, recon- struction, excavation, rehabilitation, repair, renovation, alteration or improvement authorized pursuant to this act shall be deemed a state agency for the purposes of article 15-A of the executive law and subject to the provisions of such article. S 5. Notwithstanding any general, special or local law or judicial decision to the contrary, all work performed on a project authorized by this act where all or any portion thereof involves a lease or agreement for construction, demolition, reconstruction, excavation, rehabili- tation, repair, renovation, alteration or improvement shall be deemed public work and shall be subject to and performed in accordance with the provisions of article 8 of the labor law to the same extent and in the same manner as a contract of the state, and compliance with all the provisions of article 8 of the labor law shall be required of any lessee, sublessee, contractor and/or subcontractor performing on the project, including the enforcement of prevailing wage requirements by the fiscal officer as defined in paragraph e of subdivision 5 of section 220 of the labor law to the same extent as a contract of the state. S 6. Nothing in this act shall be deemed to waive or impair any rights or benefits of employees of the state university of New York that other- wise would be available to them pursuant to the terms of agreements between the certified representatives of such employees and the state of New York pursuant to article 14 of the civil service law; all work performed on such property that ordinarily would be performed by employ- ees subject to article 14 of the civil service law shall continue to be performed by such employees.S. 5772 3
S 7. Notwithstanding the provisions of any general, special, or local law or judicial decision to the contrary: (a) the UA Corporation may require a contractor awarded a contract, subcontract, lease, grant, bond, covenant or other agreement for any single construction project exceeding ten million dollars in the aggre- gate, for which more than twenty-five percent of such aggregate amount is to be paid from appropriations furnished by the state of New York or the state university of New York, to enter into a project labor agree- ment during and for the work involved with such project when such requirement is part of the UA Corporation request for proposals for the project and when UA Corporation determines that the record supporting the decision to enter into such an agreement establishes that the inter- ests underlying the competitive bidding laws are best met by requiring a project labor agreement including: obtaining the best work at the lowest possible price; preventing favoritism, fraud and corruption; the impact of delay; the possibility of cost savings; and any local history of labor unrest. For the purposes of this act, "project labor agreement" shall mean work at the property authorized by this act to be leased to the UA Corporation as described in this act that involves the design, construction, reconstruction, demolition, excavation, rehabilitation, repair, renovation, alteration or improvements. (b) If the UA Corporation does not require a project labor agreement, then any contractor, subcontractor, lease, grant, bond, covenant or other agreements for a project shall be awarded pursuant to section 135 of the state finance law. S 8. Without limiting the determination of the terms and conditions of such contracts or leases, such terms and conditions may provide for leasing, subleasing, construction, reconstruction, rehabilitation, improvement, operation and management of and provision of services and assistance and the granting of licenses, easements and other arrange- ments with regard to such grounds and facilities by the UA Corporation, and parties contracting with the UA Corporation, and, in connection with such activities, the obtaining of funding or financing, whether public or private, unsecured or secured (including, but not limited to, secured by leasehold mortgages and assignments of rents and leases), by the UA Corporation and parties contracting with the UA Corporation for the purposes of completing the project described in this act. S 9. Such lease shall include an indemnity provision whereby the lessee or sublessee promises to indemnify, hold harmless and defend the lessor against all claims, suits, actions, and liability to all persons on the leased premises, including tenant, tenant's agents, contractors, subcontractors, employees, customers, guests, licensees, invitees and members of the public, for damage to any such person's property, whether real or personal, or for personal injuries arising out of tenant's use or occupation of the demised premises. S 10. The property authorized by this act to be leased to the UA Corporation is generally described as those parcels of real property with improvements thereon, consisting of a total of approximately 25 acres, situated on the Uptown and Alumni campuses of the state universi- ty of New York at Albany. The descriptions in this section of the parcels to be made available pursuant to this act are not meant to be legal descriptions, but are intended only to generally identify the parcels: FIRST PARCEL: All or portions of the tract, piece or parcel of land situate on the Uptown Campus of the state university of New York at Albany, portions ofS. 5772 4
which lie in the Town of Guilderland, County of Albany, State of New York and portions of which lie in the City of Albany, County of Albany, State of New York, the total consisting of approximately 14.5 acres, subject to any and all easements, restrictions, and rights of way of record, and being more particularly bounded on the south by Justice Drive, on the west by Chemistry Lane and Life Sciences Lane, on the north by State Drive, and on the east by University Drive. SECOND PARCEL: All or portions of that tract, piece or parcel of land situate on the Alumni Quad Campus of the state university of New York at Albany in the City of Albany, County of Albany, State of New York, consisting of approximately 10.5 acres, subject to any and all easements, restrictions, and rights of way of record, and being more particularly bounded on the south by Western Avenue, on the west by O'Leary Boule- vard, on the north by State Street, and on the east by Ontario Street. S 11. The state university of New York shall not lease lands described in this act unless any such lease shall be executed within three years of the effective date of this act. S 12. Insofar as the provisions of this act are inconsistent with the provisions of any law, general, special or local, the provisions of this act shall be controlling. S 13. This act shall take effect on the ninetieth day after it shall have become a law.