Authorizes the canal corporation to abandon canal terminal lands in the Syracuse inner harbor

Title of bill

An act relating to authorizing the canal corporation to abandon canal terminal lands in the Syracuse inner harbor

Purpose of the bill

This bill would authorize the Canal Corporation to sell, conveyor otherwise dispose of property at the old canal terminal site in the Syracuse Inner Harbor.

Summary of provisions

Section 1 of this bill would authorize the Canal Corporation to abandon and dispose of barge canal terminal lands in the Syracuse Inner Harbor upon the approval of the Director of the Budget.

Section 2 of this bill would take effect immediately.

Existing law

Canal Law § 50 prohibits the Canal Corporation from abandoning canal barge terminal properties absent a prior special act of the Legislature that the properties are no longer necessary or useful as a part of the barge canal system, as an aid to navigation thereon, or for barge canal terminal purposes.

Pursuant to Article XV § 2 of the State Constitution, barge canal terminal properties which are no longer necessary or useful for canal or terminal purposes can be sold.

Prior legislative history

A similar bill, S.7378, was introduced in the Senate in 2008, and remained in the Transportation Committee.

Statement in support

Chapter 766 of the Laws of 1992 transferred the Canal System to the Thruway Authority and created its subsidiary, the Canal Corporation. PAL § 384 authorized and directed the Thruway Authority to make available $50 million to finance certain projects, including a project for the Syracuse Inner Harbor. The project anticipates the development of approximately 29 acres of land under the Canal Corporation's jurisdiction. Approximately 3.85 acres of Syracuse Inner Harbor land is barge canal terminal property located in the City of Syracuse. The Canal Corporation has determined that the property is no longer necessary or useful for Canal operations.

While the majority of the property that would be developed as part of this project may be abandoned ,by the Canal Corporation without the need for authorizing legislation, the canal terminal land in the Syracuse Inner Harbor will be subject to a long term lease. Canal Law § 56 limits canal leases to a period not to exceed forty years and a renewal period of such lease may not exceed an additional forty years. It would be in the Canal Corporation's best interest, and would facilitate development if the Canal Corporation would have the ability to abandon the property that is no longer needed for Canal purposes, rather than enter into leases for the use of the property.

Under this bill, any sale, conveyance or disposal of the barge canal terminal or terminal lands would be made only upon the approval of the Director of the Budget, and would be required to include as a condition the maintenance of existing public access to existing local waterfront revitalization facilities that were constructed with State funds from the State Environmental Protection Fund, including the existing pier and amphitheater facilities.

Budget implications

None to the State. Pursuant to the Constitution and State Finance Law § 92-u, revenues from sales for abandoned canal lands is held in the "New York State Canal System Development Fund" and can only be used for the maintenance, construction, reconstruction, development or promotion of the canal system.

Effective date

This act shall take effect immediately.