Section 2310. Conveyance of property by the city to the authority and conveyance and leasing of said property by the authority

1.  The  city  may,  by duly adopted resolution of the common council or by instruments
  authorized by such resolution, convey, with or without consideration, to
  the authority real and personal property owned by the city  for  use  by
  the  authority  as  a project. In case of real property so conveyed, the
  title thereto shall remain in the city but the authority shall have  the
  use  thereof  for  so long as its corporate existence shall continue and
  said  real  property  shall  be  under  its  jurisdiction,  control  and
  supervision  within the ambit of section twenty-three hundred twenty-six
  of this title and exempt from all  taxes  and  assessments  except  such
  payments  in  lieu  thereof  as  may  be contained in such resolution or
  instrument of  conveyance.  However,  such  property  may  be  sold,  or
  optioned  for  sale, by the authority (1) under the payment or agreement
  to pay  reasonable  consideration  to  the  city  or  to  the  authority
  according  to  their  respective  interest, and (2) upon approval of the
  terms of such sale, or option for sale, by duly  adopted  resolution  of
  the common council.
    2.  To  the end that the city or any school district wherein a project
  or projects or a part thereof of  the  authority  are  located  may  not
  suffer  undue  loss  of  taxes  and  local  improvement  assessments the
  authority in connection with property owned or held  by  it  within  the
  city  and such district, is hereby authorized to pay annually in lieu of
  taxes and local improvement assessments  to  the  city  or  such  school
  district  such  sum  as may be mutually agreed between the authority and
  the city or such school district as the case may be. The  city  and  any
  such  school district wherein a project or part thereof of the authority
  is located is hereby authorized and empowered to enter into an agreement
  or agreements with the authority to accept the payment or payments which
  the authority is hereby authorized and empowered to  make.  The  sum  so
  received  by  the  city  or any such school district shall be devoted to
  purposes to which taxes may be applied.
    3. The city is authorized to install streets and utilities in the area
  of the project and to  contract  with  the  authority  with  respect  to
  payments  in  lieu  of  local  improvement  assessments therefor and the
  authority is authorized so to contract and to make appropriate  payments
  in accordance therewith.
    4.  The authority is authorized in the event it leases any of the real
  property conveyed to it by the city, to provide that a  portion  of  the
  rental derived therefrom shall be allocated to the aforesaid payments in
  lieu  of  taxes and assessments and to pay over said portion to the city
  or school district, as the case may be.  The  consent  of  the  city  or
  school  district as to the method and amount of such allocation shall be
  appended to any such lease.