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MANUAL 500-2

 

 

 

SECTION 02.8

 

 

 

LEASES

 

 

 

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BUREAU OF MANAGEMENT ANALYSIS AND PROJECTS

 

1.   Purpose

 

      The purpose of this procedure is to ensure consistency with respect to the review and issuance of leases for real property under the jurisdiction of the New York State Thruway Authority (Authority).

 

2.   Applicable Law and/or Guidance

 

      New York State Public Authorities Law, Article 2, Title 9, New York State Thruway Authority, Article 9, Title 5-A

 

      New York State Finance Law §139-j, §139-k

 

      New York State Public Authorities Accountability Act of 2005

 

      21 NYCRR §106 Leasing of Facilities

 

      New York State Constitution

 

      Thruway Real Property Management Policy (25-6-02)

 

      Executive Instruction entitled Inappropriate Lobbying Influence In Authority/Corporation Procurements

 

3.   Introduction

 

      The Authority is responsible for the financing, construction, reconstruction, improvement, development, maintenance and operation of the highway system known as the Thruway.  In accordance with the provisions of Title 9 of Article 2 of the Public Authorities Law, the Authority has the power to acquire and hold real property necessary for its corporate purposes and dispose of real property not necessary for its corporate purposes or whenever the Authority Board shall determine that it is in the interest of the Authority and thus, the interest of the State. 

 

      The Authority may enter into leases for real property under the jurisdiction of the Authority for gas stations, restaurants, and other facilities, or for other real property not presently required for Authority needs but held for future use in carrying out its corporate purposes.  Leases are considered disposals under the Thruway Real Property Management Policy and are also subject to the Public Authorities Accountability Act of 2005.


      Lease rental rates shall be based on fair market value as determined by appraisals or other means, except in limited circumstances.  The Authority shall use a competitive process open to the public for all transactions, except in limited circumstances described in SOP-TRANSACTION ANALYSIS PROCESS (500-2-02.1).  Where a competitive process is not required, the annual lease rental rate or fee will be market based. 

 

      Where a lease is contemplated, as determined by the completion and approval of the THRUWAY TRANSACTION AND ANALYSIS/RECOMMENDATION (TTAR) form (TA-N5516), unless otherwise authorized by the Executive Director, no permits will be issued in advance of completion of the lease.  See SOP-OCCUPANCY PERMITS (500-2-02.5) and SOP-WORK PERMITS (500-2-02.6).

 

      The Board shall approve all leases under the Authority’s jurisdiction, except as otherwise delegated.  Leases may need to be resubmitted to the Board in the following circumstances:

 

      ●    If the lease is not completed within one year of Board authorization, the proposed lease will be resubmitted to the Board.

 

      ●    If the circumstances change following Board action and the approved terms and conditions cannot be followed, the proposed lease must be resubmitted to the Board for reconsideration.

 

      ●    If the background information about the lease presented to the Board changes in any material way, the Executive Director, in consultation with the Contracting Officer, will determine whether the item should be resubmitted to the Board. 

 

      ●    If a Board approved transaction cannot be progressed, a report must be provided to the Board detailing the reasons that the item is not being progressed.  In limited circumstances as determined by the Executive Director, in consultation with the Contracting Officer, an item may be submitted to the Board withdrawing the prior authorization.

 

4.   Procedure

 

      4.1.   Processing the Proposed Lease from an Applicant Inquiry

 

               4.1.1.   If the proposed lease is initiated by the Authority and there is no applicant, go to Section 4.2.

 

                           Upon receipt of an inquiry for the lease of real property under the jurisdiction of the Authority, the Division Permit Coordinator (DPC) will follow SOP-TRANSACTION ANALYSIS PROCESS (500-2-02.1) to record the inquiry and send out the application package.

 

                           Upon receipt of the completed application, the DPC will assign a Transaction Reference Number, forward the application fee and appraisal and survey deposit to Finance for deposit, and send a receipt to the applicant. 

 

                           Note:   Once a Transacti