Section 539. Acquisition of land and buildings

The commissioner of general
  services, on the recommendation of the industrial commissioner and  with
  the  approval  of the director of the budget and on behalf of the state,
  is hereby authorized
    (1) to purchase land with or without buildings;
    (2) to erect buildings thereon;
    (3) to enter into contracts with any person, firm or corporation which
  shall agree to erect on land owned by such person, firm or  corporation,
  suitable  buildings  at  locations  acceptable  to  the  commissioner of
  general services and the industrial commissioner, and to agree on behalf
  of the state to lease such land and buildings for a period of  not  more
  than  fifteen years from the time of the completion of said buildings at
  such rentals and subject to such terms and conditions as may  be  agreed
  upon;  such  contract shall contain the plans and specifications for the
  proposed  buildings,  which  must  be   approved   by   the   industrial
  commissioner  and  the  commissioner  of  general  services;  each  such
  contract and lease shall provide  that  upon  the  termination  of  said
  lease, or upon the earlier payment in full of the total amount specified
  therein  the lessor shall convey to the state title in fee simple to the
  land and buildings covered under said lease;
    (4) to enter into lease-purchase  contracts  as  specified  under  (3)
  above with respect to buildings already in existence:
    (5)  to purchase and to provide for fixtures, equipment and facilities
  in connection with the said buildings or premises and to make  necessary
  alterations and improvements thereof.
    The provisions of section one hundred sixty-one-a of the state finance
  law  limiting  the period for which the commissioner of general services
  is authorized to lease premises to a term not exceeding five years shall
  not be applicable to leases executed in accordance  with  this  section.
  Space  in  each  of  such  buildings  shall be primarily utilized by the
  commissioner for the administration of this article, but  space  in  any
  such  building  in  excess  of  such  requirements, as determined by the
  industrial commissioner, may be rented or sub-leased under an  agreement
  entered  into  by the commissioner of general services only to the state
  of New York, or any agency or authority of the state of New York.  Rents
  received  under  such  agreement  shall  be  paid  into the unemployment
  administration fund.   However, if, in connection  with  such  building,
  moneys  were  advanced  by the special fund to carry out the purposes of
  this section, the rents received under such agreement shall be paid into
  the said fund until such time as it shall be fully reimbursed  for  such
  advances.  In  addition, under such circumstances, an agreement shall be
  entered into between the commissioner and the  commissioner  of  general
  services  pursuant  to  which the fair rental value of all space in such
  building utilized by the commissioner shall be determined and a transfer
  of  amounts  equal  to  such  rental  value  out  of  the   unemployment
  administration  fund  to the special fund is hereby authorized until the
  special fund shall be fully reimbursed for  such  advances.    The  fair
  rental  value of space utilized by the commissioner shall not exceed the
  prevailing rental rate for suitable space in privately  owned  buildings
  in the same locality.