Allows municipalities to lease naming rights of government owned property

BILL NUMBER:S2067

Title of bill

An act to amend the general municipal law, in relation to allowing municipalities to lease naming rights for government owned property

Purpose or general idea of bill

This bill allows municipalities counties, cities, towns and villages- an option to lease naming rights for governmentally owned properties and facilities (examples include but are not limited to waterfront property, parks, rail-trails, railroad tracks, city buses and stadiums etc.)

Summary of specific provisions

Section 1. The general municipal law is amended by adding a new section 99-X to read as follows:

99-X. Transfer and lease of naming rights. As used in this section the term municipality shall mean a county, city, town, or village.

Section 2. A municipality may enter into a contract to lease the naming rights of any property owned by such municipality according to the requirements of this section. The chief executive officer of the municipality shall he responsible for negotiating the contract, subject to the ratification of a majority of the members of the legislative body of such municipality.

Section 3. Such leasing agreement shall be for a period of not less than one year and not more than five years.

Section 4. Any transaction described in this section may be used by such municipality for any lawful municipal purpose.

Existing law

New York State Municipal Law; Article 5, is amended to include part 99-X that will allow municipalities to lease naming rights for governmental real property.

Justification

The continued weakening economy is severely impacting many local governments. Property taxes are increasing and many taxpayers are unable to afford annual tax increases. Because of the weak economy in many of these communities, establishing a sound budget and providing the necessary services is becoming much tougher. In today's environment, local governments are consequently searching for new, innovative and creative ways of finding revenue streams. It is therefore incumbent upon the New York State legislature to provide municipalities with local options that would assist generating revenues to fund services and maintain municipality owned property. Providing the local government with greater flexibility in leasing naming rights for municipal owned facilities can generate critical revenues, thereby relying less on property tax increases.

Prior legislative history

2009-10: A.9433 (Latimer) - Referred to Local Governments 2011-12 A.240A (Latimer) - Referred to Local Governments 2011-12: 5.4324A (McDonald) - REFERRED TO LOCAL GOVERNMENT:

Fiscal implications

None to New York State

Local fiscal implications

To be determined

Effective date

This act shall take effect immediately.