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December 3, 2009
New Bill Requires More MTA Oversight
WNYC Radio
by Matthew Schuerman
The Metropolitan Transportation Authority and other public authorities in New York will have to operate differently now that the legislature has passed a bill requiring more oversight.
The measure makes many wide-ranging changes to reign in the state's semi-autonomous authorities. It also seeks to discourage those entities from selling their property for below-market value. That provision arose after former Gov. George Pataki and Mayor Michael Bloomberg prompted the MTA to sell its rail yards on Manhattan's West Side in 2005 to make way for a new football stadium. And critics say the same thing is happening in Brooklyn with Atlantic Yards now.
A version of the bill that passed this summer would have prohibited those deals. But after Mayor Bloomberg objected, arguing the provision would hamper economic development, the state legislature agreed to rework the bill. The revised legislation still allows authorities to sell property below market value, though it gives the governor, the assembly, or the state senate veto power.
Additional coverage...
Atlantic Yards Report, Revised public authority reform legislation passes Senate, should be signed by Paterson
But the language regarding selling assets at less than fair market value was tweaked to allow more flexibility. While such transfers are still allowed, the governor, the Senate, or the Assembly can veto such a proposed transfer.
Should a below fair market value asset transfer be proposed, not only is an appraisal required, but also a description of the expected benefits of the transfer and the names of the private parties participating in the transfer and the private parties who made an offer for the asset.
Also, the board must determine, in writing, that "there is no reasonable alternative to the proposed below-market transfer that would achieve the same purpose of such transfer."
Posted by eric at December 3, 2009 9:03 AM