N.Y.
Public Authorities Law Section 2799-FFFF
Powers and duties of urban development corporation
- lease and tramway franchise
1.
The corporation shall perform all obligations of the urban development corporation or any of its subsidiaries with respect to the development, management and operation of Roosevelt Island, including, without limitation, all such obligations arising under the lease and the tramway franchise.2.
The urban development corporation, the division and the corporation shall each use their best efforts to obtain any required consents to the assignment of the lease and the tramway franchise from the urban development corporation to the corporation and to any other assumption by the corporation of the obligations of the urban development corporation or any of its subsidiaries under any other contracts, leases, agreements or instruments entered into by the urban development corporation, or any such subsidiary, relating to the development, management or operation of Roosevelt Island (other than any bonds or notes issued, or mortgages or security agreements held, by the urban development corporation or any of its subsidiaries) and, upon obtaining such consents, the corporation and the urban development corporation shall enter into such agreements and take such actions as shall be necessary to effectuate such assignments and assumptions, provided that in order to permit the urban development corporation to recover the investment which it has heretofore made in the development of Roosevelt Island, such agreements shall provide appropriate assurances satisfactory to the urban development corporation (a) for the prompt payment directly to the urban development corporation of all sums from time to time due from lessees under the development subleases and all sums received by the corporation from the city in connection with the termination of the lease, and(b)
for the amending or supplementing of the development subleases to the extent, if any, necessary to protect the rights of the holders of any mortgages on the leasehold interests created thereunder. Nothing in this title shall constitute or authorize an assignment by the urban development corporation, or any subsidiary thereof, of any mortgage or security interest held by the urban development corporation, or any such subsidiary, on any real or personal property or interest therein on Roosevelt Island or any rights or obligations of the urban development corporation, or any such subsidiary, arising under any such mortgage or security agreement, relieve the urban development corporation of any of its obligations under any bonds heretofore issued by the urban development corporation, or otherwise affect the interests of the holders of any such bonds.3.
All revenues, other than state appropriations, derived from the contracts, leases, agreements or instruments assigned to or assumed by the corporation pursuant to subdivision two of this section shall be applied first to the payment of those obligations assigned to or assumed by the corporation.4.
The urban development corporation and the corporation are hereby authorized to enter into such agreements with the city as the corporation shall determine to be appropriate to amend, reform or supplement the lease, including the development plan referred to therein, and the tramway franchise in order to carry out the purposes of this title. The provisions of any general, special or local law notwithstanding, the city is hereby authorized to enter into any such agreements with the corporation and the urban development corporation.
Source:
Section 2799-FFFF — Powers and duties of urban development corporation; lease and tramway franchise, https://www.nysenate.gov/legislation/laws/PBA/2799-FFFF (updated Dec. 20, 2019; accessed Oct. 26, 2024).
