Authorizes the lease-purchase of real property for a term of up to 30 years; makes permanent the authority to enter into leases for a term of up to fifteen years

Title of bill

An act to amend the public buildings law, in relation to authorizing lease-purchase of real property for a term of up to thirty years; and to amend chapter 95 of the laws of 2000, amending the state finance law, the general municipal law, the public buildings law and other laws relating to bonds, notes and revenues, in relation to making permanent the authority to enter into leases for a term of up to fifteen years

Purpose

This bill would authorize the Commissioner of General Services to contract for the lease purchase of real property to provide for space requirements of State departments, agencies and offices, and make permanent the authority to enter into leases with tern1S of up to 15 years.

Summary of provisions

Section 1 of this bill would amend Public Buildings Law § 3(12) to authorize the Commissioner of General Services to contract for the lease-purchase of real property to provide for space requirements of State departments, agencies and offices.

Section 2 of this bill would make permanent the authority of the Commissioner of General Services to enter into leases with a term of up to 15 years.

Section 3 of this bill would provide for the effective date.

Existing law

Public Buildings Law § 3 provides authority for the Commissioner of General Services to lease real property to provide for the space requirements of State departments, agencies and offices.

Legislative history

This is a new bill.

Statement in support

In order to provide for space requirements of State departments, agencies and offices under varying operational and economic circumstances, it is beneficial for the State to be able to use different methods of acquisition of real property. The addition of authority to enter into lease purchase agreements permits the State to take advantage of long term financing to support a State agency's mission and programs that may not be feasible through a traditional real property lease. Highly specialized real property needs may not otherwise be able to be addressed by a straight lease or available in a particular real estate market.

Furthermore, the ability to enter into leases for 15 years has been a highly effective tool when renegotiating leases to save money for the State. If current law sunsets as scheduled on June 30, 2010, leases will be limited to terms of up to 10 years, which would limit the amount of money saved in lease renegotiations.

Budget implications

None. EFFECTIVE DATE : This act would take effect immediately.