Opinion 89-23

This opinion represents the views of the Office of the State Comptroller at the time it was rendered. The opinion may no longer represent those views if, among other things, there have been subsequent court cases or statutory amendments that bear on the issues discussed in the opinion.


REAL PROPERTY -- Lease (to State agency at less than fair and adequate consideration)

GENERAL MUNICIPAL LAW, §72-h: A village may allow a State agency, by lease or license, to utilize space in the village hall several times per month for nominal or no consideration.

This is in reply to your letter asking whether a village may allow the New York State Division of Parole to utilize space in the village hall several times per month without consideration or for nominal consideration.

General Municipal Law, §72-h provides, in pertinent part, as follows:

Notwithstanding any provision of any general, special or local law or of any charter ... the board of trustees of a village ... may sell, transfer or lease to or exchange with any municipal corporation or municipal corporations, school district, board of cooperative educational services, fire district, the state of New York, or the government of the United States and any agency or department thereof, either without consideration or for such consideration and upon such terms and conditions as shall be approved by such body, any real property owned by such county, town, village, fire district or city ... The term of any lease entered into pursuant to the provisions of this section shall not exceed ten years but nothing herein contained shall prevent the renewal of any such lease.

It is clear from the above provision a village may lease space in a village hall, either without consideration or for nominal consideration, to an agency or department of the State of New York (see, e.g., 1988 Opns St Comp No. 88-26, p 47).

Since the Division of Parole is a division of the State Executive Department, it is our opinion that it is an agency of the State within the meaning and intent of section 72-h. Therefore, it is our opinion that the village may lease space in the village hall to the Division for no or nominal consideration. Further, since we believe the power to transfer, lease or sell necessarily implies the power to grant the lesser right of a revocable license to use (see 1983 Opns St Comp No. 83-162, p 205), it is our opinion that the village may also grant such a license to the Division of Parole without consideration or for nominal consideration.

June 16, 1989
Gordon D. Tresch, Esq., Village Attorney
Village of Kenmore