§ 2897. Disposal of public authority property. 1. Supervision and
direction. Except as otherwise provided in this section, the contracting
officer designated by each public authority shall have supervision and
direction over the disposition of property of such public authority.

2. Custody and control. The custody and control of the property of a
public authority, pending its disposition, and the disposal of such
property, shall be performed by the public authority in possession
thereof or by the commissioner of general services when so authorized
under this section.

3. Method of disposition. Subject to section twenty-eight hundred
ninety-six of this title, any public authority may dispose of property
for not less than the fair market value of such property by sale,
exchange, or transfer, for cash, credit, or other property, with or
without warranty, and upon such other terms and conditions as the
contracting officer deems proper, and it may execute such documents for
the transfer of title or other interest in property and take such other
action as it deems necessary or proper to dispose of such property under
the provisions of this section. Provided, however, that no disposition
of real property, or any interest in real property, shall be made unless
an appraisal of the value of such property has been made by an
independent appraiser and included in the record of the transaction,
and, provided further, that no disposition of any other property, which
because of its unique nature or the unique circumstances of the proposed
transaction is not readily valued by reference to an active market for
similar property, shall be made without a similar appraisal.

4. Sales by the commissioner of general services. When it shall be
deemed advantageous to the state, any public authority may enter into an
agreement with the commissioner of general services where under such
commissioner may dispose of property of such public authority under
terms and conditions agreed to by the public authority and the
commissioner of general services. In disposing of any such property of a
public authority, the commissioner of general services shall be bound by
the terms of this title and references to the contracting officer shall
be deemed to refer to such commissioner.

5. Validity of deed, bill of sale, lease, or other instrument. A deed,
bill of sale, lease, or other instrument executed by or on behalf of any
public authority, purporting to transfer title or any other interest in
property of a public authority under this title shall be conclusive
evidence of compliance with the provisions of this title insofar as
concerns title or other interest of any bona fide grantee or transferee
who has given valuable consideration for such title or other interest
and has not received actual or constructive notice of lack of such
compliance prior to the closing.

6. Bids for disposal; advertising; procedure; disposal by negotiation;
explanatory statement. a. All disposals or contracts for disposal of
property of a public authority made or authorized by the contracting
officer shall be made after publicly advertising for bids except as
provided in paragraphs c and f of this subdivision.

b. Whenever public advertising for bids is required under paragraph a
of this subdivision:

(i) the advertisement for bids shall be made at such time prior to the
disposal or contract, through such methods, and on such terms and
conditions as shall permit full and free competition consistent with the
value and nature of the property;

(ii) all bids shall be publicly disclosed at the time and place stated
in the advertisement; and

(iii) the award shall be made with reasonable promptness by notice to
the responsible bidder whose bid, conforming to the invitation for bids,
will be most advantageous to the state, price and other factors
considered; provided, that all bids may be rejected when it is in the
public interest to do so.

c. Disposals and contracts for disposal of property may be negotiated
or made by public auction without regard to paragraphs a and b of this
subdivision but subject to obtaining such competition as is feasible
under the circumstances, if:

(i) the personal property involved has qualities separate from the
utilitarian purpose of such property, such as artistic quality,
antiquity, historical significance, rarity, or other quality of similar
effect, that would tend to increase its value, or if the personal
property is to be sold in such quantity that, if it were disposed of
under paragraphs a and b of this subdivision, would adversely affect the
state or local market for such property, and the estimated fair market
value of such property and other satisfactory terms of disposal can be
obtained by negotiation;

(ii) the fair market value of the property does not exceed fifteen
thousand dollars;

(iii) bid prices after advertising therefor are not reasonable, either
as to all or some part of the property, or have not been independently
arrived at in open competition;

(iv) the disposal will be to the state or any political subdivision,
and the estimated fair market value of the property and other
satisfactory terms of disposal are obtained by negotiation; or

(v) under those circumstances permitted by subdivision seven of this
section; or

(vi) such action is otherwise authorized by law.

d. (i) An explanatory statement shall be prepared of the circumstances
of each disposal by negotiation of:

(A) any personal property which has an estimated fair market value in
excess of fifteen thousand dollars;

(B) any real property that has an estimated fair market value in
excess of one hundred thousand dollars, except that any real property
disposed of by lease or exchange shall only be subject to clauses (C)
and (D) of this subparagraph;

(C) any real property disposed of by lease, if the estimated annual
rent over the term of the lease is in excess of fifteen thousand
dollars;

(D) any real property or real and related personal property disposed
of by exchange, regardless of value, or any property any part of the
consideration for which is real property.

(ii) Each such statement shall be transmitted to the persons entitled
to receive copies of the report required under section twenty-eight
hundred ninety-six of this title not less than ninety days in advance of
such disposal, and a copy thereof shall be preserved in the files of the
public authority making such disposal.

e. Disposals and contracts for disposal of real property by the canal
corporation may be made by negotiated sale rather than public auction
provided that all of the following conditions have been satisfied:

(i) The canal corporation has determined that: such real property is
no longer necessary or useful to the purposes of the canal corporation;
disposal of such real property complies with all applicable provisions
of the canal law; and disposal of such real property is in the best
interest of the canal corporation;

(ii) An appraisal of the fair market value of such property has been
made by an independent appraiser and included in the record of the
transaction;

(iii) The fair market value of such real property is greater than
fifteen thousand dollars but not greater than seventy-five thousand
dollars;

(iv) Such real property was improved prior to April first, nineteen
hundred ninety-two under a municipal permit or a permit issued pursuant
to section one hundred of the canal law, thereby creating an
encroachment on canal corporation real property;

(v) The purchaser of such real property is, or will be, the owner of
the improvement that either fully or partially encroaches on canal
corporation real property; and

(vi) The consideration paid for such real property will be not less
than the fair market value of the real property exclusive of the value,
fair market or otherwise, of the encroaching improvements.

f. Notwithstanding anything to the contrary in this section, disposals
for use of the thruway authority's fiber optic system, or any part
thereof, may be made through agreements based on set fees that shall not
require public auction, provided that:

i. the thruway authority has determined the disposal of such property
complies with all applicable provisions of this chapter;

ii. the thruway authority has determined that disposal of such
property is in the best interest of the thruway authority;

iii. the set fees established by the thruway authority for use of the
fiber optic system, or part thereof, shall be based on an independent
appraisal of the fair market value of the property; and

iv. any public authority, state agency, municipality, not-for-profit
hospital organized under section forty-three hundred one of the
insurance law, public library, or institution of higher education
located in New York state shall be required only to pay the actual cost
of providing for use of the fiber optic system, but not exceeding the
fair market value determined pursuant to subparagraph (iii) of this
paragraph. For purposes of this paragraph, "public authority" shall
refer to entities defined in section two of the public authorities law.
For purposes of this paragraph, "institution of higher education" shall
refer to entities as defined in subdivisions two and three of section
six hundred one of the education law.

Disposals of the fiber optic system, or any part thereof, through
agreements based on set fees shall not require the explanatory
statements required by this section. Any disposal of property, contract
for disposal of property or agreement made pursuant to this paragraph
shall not be deemed valid and enforceable unless it shall first have
been approved by both the comptroller and the attorney general.

7. Disposal of property for less than fair market value. a. No asset
owned, leased or otherwise in the control of a public authority may be
sold, leased, or otherwise alienated for less than its fair market value
except if:

(i) the transferee is a government or other public entity, and the
terms and conditions of the transfer require that the ownership and use
of the asset will remain with the government or any other public entity;

(ii) the purpose of the transfer is within the purpose, mission or
governing statute of the public authority; or

(iii) in the event a public authority seeks to transfer an asset for
less than its fair market value to other than a governmental entity,
which disposal would not be consistent with the authority's mission,
purpose or governing statutes, such authority shall provide written
notification thereof to the governor, the speaker of the assembly, and
the temporary president of the senate, and such proposed transfer shall
be subject to denial by the governor, the senate, or the assembly.
Denial by the governor shall take the form of a signed certification by
the governor. Denial by either house of the legislature shall take the
form of a resolution by such house. The governor and each house of the
legislature shall take any such action within sixty days of receiving
notification of such proposed transfer during the months of January
through June, provided that if the legislature receives notification of
a proposed transfer during the months of July through December, the
legislature may take any such action within sixty days of January first
of the following year. If no such resolution or certification is
performed within sixty days of such notification of the proposed
transfer to the governor, senate, and assembly, the public authority may
effectuate such transfer. Provided, however, that with respect to a
below market transfer by a local authority that is not within the
purpose, mission or governing statute of the local authority, if the
governing statute provides for the approval of such transfer by the
executive and legislative branches of the political subdivision in which
such local authority resides, and the transfer is of property obtained
by the authority from that political subdivision, then such approval
shall be sufficient to permit the transfer.

b. In the event a below fair market value asset transfer is proposed,
the following information must be provided to the authority board and
the public:

(i) a full description of the asset;

(ii) an appraisal of the fair market value of the asset and any other
information establishing the fair market value sought by the board;

(iii) a description of the purpose of the transfer, and a reasonable
statement of the kind and amount of the benefit to the public resulting
from the transfer, including but not limited to the kind, number,
location, wages or salaries of jobs created or preserved as required by
the transfer, the benefits, if any, to the communities in which the
asset is situated as are required by the transfer;

(iv) a statement of the value to be received compared to the fair
market value;

(v) the names of any private parties participating in the transfer,
and if different than the statement required by subparagraph (iv) of
this paragraph, a statement of the value to the private party; and

(vi) the names of other private parties who have made an offer for
such asset, the value offered, and the purpose for which the asset was
sought to be used.

c. Before approving the disposal of any property for less than fair
market value, the board of an authority shall consider the information
described in paragraph b of this subdivision and make a written
determination that there is no reasonable alternative to the proposed
below-market transfer that would achieve the same purpose of such
transfer.