§ 39. Lease and operation of seventh regiment armory. (a) The
corporation is hereby authorized to act on behalf of the state and the
division of military and naval affairs to enter into a lease or
subsequent leases and the management agreement on behalf of the state
and the division with a lessee, subsequent lessee or the manager
pursuant to the terms of the management agreement in order to accomplish
the purposes of this section. The leasing of the armory to a lessee or
subsequent lessee and the entrance into the management agreement and the
repair, restoration and refurbishment of the armory and operation
thereof by a lessee or subsequent lessee for cultural and other civic
uses pursuant to the lease is hereby declared to be a valid use under
the city lease, and is undertaken for public purposes.

(b) The lease with a lessee or subsequent lessee authorized by this
section shall require a lessee or subsequent lessee to undertake a
program of repair, restoration and refurbishment of the armory and to
manage and use the same as a facility for cultural and other civic uses.
The lease shall demise all portions of the armory other than those
reserved for a homeless shelter for women operated by the city of New
York pursuant to agreement with the state and for that reserved for
military use by the division. The portion of the premises allocated to
the shelter for homeless women shall be sufficient and suitable space
for the current and uninterrupted operation of the shelter by the city
of New York. The division shall cause the 107th corps support group or
its lineal descendent to maintain military use within the reserved
portions of the armory. The division, and the city of New York,
respectively, shall be responsible to repair and maintain their reserved
premises, including the costs of renovation and uninterrupted use, and
to pay an annual common maintenance charge to a lessee or subsequent
lessee to cover allocated costs of repair, maintenance and operation of
the common portions of the armory. The lessee or subsequent lessee shall
be required to apply all revenues generated by operations at the armory
to pay or provide for costs of repairs, restoration, refurbishment,
operating, maintenance and programming of the armory and the uses
therein and the activities of the lessee or subsequent lessee with
respect thereto.

(c) The corporation, in carrying out its authorization under this
section may exercise all of the power granted it in law, as if fully
enumerated herein. Without limiting the generality of the foregoing, the
powers granted to the corporation under sections sixteen and twenty-two
of this act shall be utilized by the corporation in its administration
of the lease, and shall be applicable in respect to the repair,
restoration, refurbishment and operation of the armory pursuant to the
lease.

(d) In no event shall the lessee or subsequent lessee be deemed a
state actor or an agent or an instrumentality of the state by reason of
the lease or this section or any of the activities of the lessee or
subsequent lessee with respect to the armory pursuant to the lease or
this section.

(e) Except with respect to military use or periods of civil or
military emergency, for any action involving the armory that may have a
significant effect on the environment, the corporation shall be the lead
agency having principal responsibility for carrying out or approving
such action for purposes of article eight of the environmental
conservation law.