Senate Bill S9409A

                                 
BILL NUMBER: S9409A

SPONSOR: MARTINEZ
 
TITLE OF BILL:

An act authorizing the commissioner of transportation to extend a lease
of certain state lands located in the hamlet of Farmingdale, town of
Babylon, county of Suffolk, state of New York

 
PURPOSE:

To authorize, notwithstanding section 3 of the Public Lands Law or any
other inconsistent provision of law, the Commissionerof Transportation
to execute a one-time extension of the existing lease for state-owned
property located at 1 and 2 Marriott Plaza, Farmingdale, New York.

 
SUMMARY OF PROVISIONS:

Section 1. Authorizes the Commissioner of Transportation to negotiate
and execute a single lease extension forthe existing tenant of the
subject property, fora term not to exceed a specified number of years,
upon such terms and conditions as the Commissioner deems appropriate and
              

in the best interests of the State, subject to the approval of the
Director of the Budget, State Comptroller, and the Office of the Attor-
ney General.

Section 2: Identifies the property as state-owned lands under the juris-
diction of the Department of Transportation.

Section 3: Clarifies the authorization is limited to this specific lease
extension and does not create precedent or broader authority for other
state lands.

Section 4: Is the effective date.

 
JUSTIFICATION:

The property located at 1 and 2 Marriott Plaza, Farmingdale, is owned by
the State of New York and under the jurisdiction of the Department of
Transportation. It is presently operated as a hotel property serving
business travelers, regional visitors, and activity associated with the
surrounding commercial corridor.

Since 2020, the hospitality industry has experienced unprecedented
disruption as a result of the COVID19 pandemic. State-imposed shutdowns,
travel restrictions, the collapse of business travel, and broader
economic instability significantly altered revenue streams for hotels
throughout New York State. While conditions have improved, the industry
continues to operate in a materially different economic environment
characterized by increased operating costs, higher interest rates,
shifts in corporate travel behavior, and labor market pressures.

These impacts have been particularly pronounced on Long Island and with-
in the Town of Babylon and surrounding communities. Commercial occupancy
patterns have shifted, tourism recovery has been uneven, and financing
conditions have tightened. As a result, otherwise viable hospitality
properties continue to face constraints not contemplated at the time the
existing lease was negotiated.

Granting a one-time, legislatively authorized lease extension will
provide stability and continuity of operations at this state-owned prop-
erty while ensuring the State preserves an active, revenue -produdng use
of the land. Maintaining continuous hotel ope rations supports local
employment, generates sales and occupancy-related tax revenue, sustains
nearby commercial establishments, and protects the underlying value of
the State's asset.

Importantly, this bill does not authorize a sale or transfer of state
land. It authorizes only a single lease extension, subject to appropri-
ate executive approvals, and leaves all terms and conditions to the
discretion of the Commissioner of Transportation to ensure the best
interests of the State are protected.

In light of materially changed economic circumstances following the
pandemic, this targeted and limited authorization is a prudent measure
to balances fiscal responsibility, asset management, and economic
stability.

 
FISCAL IMPLICATIONS:

The bill is expected to preserve and stabilize lease revenue to the
State by maintaining continuous tenancy of the property. It does not
authorize the expenditure of state funds.

 
EFFECTIVE DATE:
This act shall take effect immediately.