§ 539. Acquisition of land and buildings. The commissioner of general
services, on the recommendation of the industrial commissioner and with
the approval of the director of the budget and on behalf of the state,
is hereby authorized

(1) to purchase land with or without buildings;

(2) to erect buildings thereon;

(3) to enter into contracts with any person, firm or corporation which
shall agree to erect on land owned by such person, firm or corporation,
suitable buildings at locations acceptable to the commissioner of
general services and the industrial commissioner, and to agree on behalf
of the state to lease such land and buildings for a period of not more
than fifteen years from the time of the completion of said buildings at
such rentals and subject to such terms and conditions as may be agreed
upon; such contract shall contain the plans and specifications for the
proposed buildings, which must be approved by the industrial
commissioner and the commissioner of general services; each such
contract and lease shall provide that upon the termination of said
lease, or upon the earlier payment in full of the total amount specified
therein the lessor shall convey to the state title in fee simple to the
land and buildings covered under said lease;

(4) to enter into lease-purchase contracts as specified under (3)
above with respect to buildings already in existence:

(5) to purchase and to provide for fixtures, equipment and facilities
in connection with the said buildings or premises and to make necessary
alterations and improvements thereof.

The provisions of section one hundred sixty-one-a of the state finance
law limiting the period for which the commissioner of general services
is authorized to lease premises to a term not exceeding five years shall
not be applicable to leases executed in accordance with this section.

Space in each of such buildings shall be primarily utilized by the
commissioner for the administration of this article, but space in any
such building in excess of such requirements, as determined by the
industrial commissioner, may be rented or sub-leased under an agreement
entered into by the commissioner of general services only to the state
of New York, or any agency or authority of the state of New York. Rents
received under such agreement shall be paid into the unemployment
administration fund. However, if, in connection with such building,
moneys were advanced by the special fund to carry out the purposes of
this section, the rents received under such agreement shall be paid into
the said fund until such time as it shall be fully reimbursed for such
advances. In addition, under such circumstances, an agreement shall be
entered into between the commissioner and the commissioner of general
services pursuant to which the fair rental value of all space in such
building utilized by the commissioner shall be determined and a transfer
of amounts equal to such rental value out of the unemployment
administration fund to the special fund is hereby authorized until the
special fund shall be fully reimbursed for such advances. The fair
rental value of space utilized by the commissioner shall not exceed the
prevailing rental rate for suitable space in privately owned buildings
in the same locality.