Authorizes the city of New York to sell certain property that cannot be independently developed

BILL NUMBER:S8361

Title of bill

An act to amend the New York city charter, in relation to authorizing the city of New York to sell to abutting property owners real property owned by such city, consisting of tax lots that cannot be independently developed due to the size, shape, configuration and topography of such lots and the zoning regulations applicable thereto; and providing for the repeal of such provisions upon expiration thereof

Purpose or general idea of bill

This bill would amend section 384 of the New York City Charter to allow the sale of certain types of real property owned by the City directly to abutting property owners without an action or competitive bidding, which are processes that would otherwise be required by the provisions of section 384. The Mayor would have to find, based on the certification by the commissioner of citywide administrative services that independent development is economically impracticable or infeasible and that the sale of this property is in the best interest of the city. Direct sales would be authorized only in the limited circumstances where the property cannot be independently developed due to its size, shape, configuration, topography or applicable zoning or a combination of such factors. Sales of such real property would remain subject to approval pursuant to the Uniform Land Use Review Procedure (ULURP), section 197-c of the New York City Charter.

Justification

DCAS has jurisdiction over various limited market properties, which are not independently developable due to size, shape, zoning, configuration and topography. Under current law, DCAS is not authorized to conduct direct negotiated sales to abutting property owners of this type of property. These properties are not appropriate for sale through the public auction or competitive bidding processes that would be required under existing law, as they have no independent utility. Future utili- zation of these lots is completely dependent on and linked to the privately-owned adjacent lots. In some cases, portions of these lots have been used by adjacent property owners for years.

This legislation would provide authority for DCAS to transfer these limited market properties directly to private ownership without the necessity of a public auction or sealed bidding process. Eligibility to purchase such City owned real property would be determined at the discretion of the Mayor, but would be limited to abutting property owners or an entity comprised of such owners. DCAS has identified approximately 1,000 lots in all five boroughs that are potentially eligible for this program.

Additionally, the sale of the real property would be subject to approval pursuant to the Uniform Land Use Review Procedure (ULURP), Section 197-c of the New York City Charter. Once legislation is passed and ULURP approval is obtained, direct sales could be effectuated.

Prior legislative history

New bill.

Fiscal implications to state and local government

Will reduce administrative costs to DCAS.

Effective date

Immediately. This authorization will expire on December 31, 2015, and this section shall be deemed repealed at that time.