Press Release: NYS CANAL CORP., June 24, 2004

The New York State Canal Corporation board today adopted a revised Canal Real Property Management Policy, following an eight-month comprehensive internal review of the Canal Corporation’s policy and procedures governing use and disposal of real estate.

“The guidelines outlined in the Policy ensure that all interested parties will have an opportunity to participate in future Canal land transactions, and that the Canal Corporation will receive a fair return on its investment," said Canal Corporation Executive Director Michael Fleischer. The Policy authorizes the Executive Director to promulgate standard operating procedures to implement the Policy’s directives; a copy of these procedures was circulated to the Board today.

By adopting the Policy, the Board sets guidelines for sales, acquisitions, leases, and other transactions with private and governmental entities. The Corporation will follow a competitive process except in limited circumstances, provide for review and approval by the Office of the State Comptroller, and guarantee that leases and/or sales of land to for-profit entities are responsive to market forces.

“The Corporation values its role as caretaker of the System on behalf of State residents and the many out-of-state visitors, and we are now better positioned to fulfill that role,” said Director of Canals Robert Bulman. “The Canals are a unique asset. With a new policy and procedures in place, the Canal System will more effectively serve as an economic engine for Upstate New York, as well as a historical, educational, and recreational resource.”

Below are some of the highlights of the Policy adopted today:

• The Corporation will use a competitive process for all real property transactions, except in limited circumstances. These circumstances may include an encroachment, a municipal lease, sale to the adjoining property owner, or where the size and marketability of the parcel do not warrant the use of a competitive process. Even in these limited circumstances, the Corporation is bound to statutory requirements for notice, written comment and, if necessary, public hearing. Competitive processes will ensure the optimal use and maximum financial return for Canal lands, and guard against favoritism, fraud, and collusion. The procedures will require increased advertising in newspapers, trade journals, and the State Contract Reporter. All parties expressing interest will be contacted.
   
• The following land transactions will be submitted to the Comptroller for review and approval: (1) Transfers of real property interests where the property value exceeds $10,000, other than public benefit leases. (2) Acquisitions of real property where the property value exceeds $15,000. (3) Leases where the aggregate projected rental revenue exceeds $10,000.
   
• Appraisals will be required for all proposed uses of Canal lands: all appraisals in excess of $25,000 will be completed by third parties, and where the real property value is estimated to be more than $150,000, two external appraisals will be required. The Comptroller requires two external appraisals for real property whose value is greater than $300,000; the Canal Corporation is exceeding that threshold to ensure best value is obtained.
   
• Permit fees and lease rents will be consistent for similar uses and property sizes within the same geographical area.
   
• Leases and permits sought by a governmental entity, such as a municipality, that result in revenue generation for the entity will require a portion of those revenues be shared with the Corporation. If a government entity subleases to a for-profit entity, a competitive process shall be required.
   
• The Corporation will create a clear and comprehensive record for each real property transaction, demonstrating and documenting compliance with the Policy.