The Legislature, by unanimous vote, authorized a lease-sublease agreement with Cornell Cooperative Extension of Tompkins County to finance a $350,000 capital improvement at Extension’s facility at 615 Willow Avenue, Ithaca. The arrangement has been used in the past to finance CCE capital improvements. Under the arrangement, the County will make a $350,000 lump sum payment to the CCE (pursuant to the Lease) and the CCE will make semi-annual payments to the County (pursuant to the Sublease) through July 2028.
While the NYS Constitution prohibits application of municipal funds for non-governmental purposes, NYS County Law describes a county extension service, such as CCE, as a “subordinate governmental agency,” and specifically authorizes a county to support and maintain its extension service, which may include provision of space in a County facility, through lease or otherwise. The leasehold arrangement enables the County to issue its obligations to pay for the improvements, and CCE to reimburse the County for the lump sum payment to CCE.