§ 556. Disposition of property. 1. An agency may sell, lease for a
term not exceeding ninety-nine years, or otherwise dispose of any real
property and appurtenances thereto or any interest therein acquired by
it pursuant to section five hundred fifty-five of this article, to any
person, firm or corporation at the highest marketable price or rental at
public auction or by sealed bids.

2. Notwithstanding the provisions of subdivision one of this section,
such real property and appurtenances thereto may be sold, leased for a
term of not exceeding ninety-nine years or otherwise disposed of for the
effectuation of any of the purposes of an urban renewal program in
accordance with the urban renewal plan pursuant to the provisions of
subdivision two of section five hundred seven of article fifteen of this
chapter.

3. Any deed, lease or instrument by which real property and
appurtenances thereto, or air rights and concomitant easements or other
rights of user necessary for the use and development of such air rights
over streets, alleys, highways or other public rights of way, railway or
subway tracks, bridge or tunnel approaches or entrances, or other
similar facilities, or air rights sites and necessary sitework, the
foundations and platforms constructed or to be constructed in connection
therewith, or any interest therein is conveyed or disposed of pursuant
to this section shall contain provisions requiring the purchaser, lessee
or grantee to replan, clear, rehabilitate, restore, renew, conserve,
improve, reconstruct or redevelop such property in accordance with the
urban renewal plan, as approved by the governing body, and within a
definite and reasonable period of time, subject to the terms of the
contract relating thereto between the agency and the sponsor and
provisions insuring the use of such real property for purposes
consistent with such urban renewal plan.

4. Notwithstanding anything to the contrary in this article or article
fifteen of this chapter and notwithstanding any provision of any
general, special or local law, such real property and appurtenances
thereto may be sold, leased for a term not exceeding ninety-nine years,
exchanged with or otherwise disposed of, for the effectuation of any of
the purposes of the urban renewal program in accordance with the urban
renewal plan, to any municipal corporation, school district, fire
district, housing authority, the state of New York, or the government of
the United States and any agency or department thereof, for a valuable
consideration and upon such terms and conditions as shall be approved by
the governing body of the municipality, without public auction or sealed
bids or public notice.