QUESTION
What are the Economic Development Corporation's remedies if the Port Authority defaults on rent payments, and who is responsible for lease agreements?
0:21:49
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62 sec
The discussion clarifies that while the Economic Development Corporation (EDC) could default the Port Authority for non-adherence to lease terms, the city itself, not the EDC, is the lease signatory and responsible for such decisions.
- The EDC can default the Port Authority if it fails to comply with lease terms, potentially leading to city or private takeover of airport operations.
- Mikelle Adgate emphasizes that the EDC is not a lease signatory; the lease is actually signed by the city, particularly by the SBS Commissioner.
- Any decisions regarding the default and its practical implications are city decisions, not those of the EDC.
- This clarification separates the responsibilities and roles between the EDC and city government in lease agreements and defaults.
Amanda Farías
0:21:49
And could you go into more detail the remedies EDC has in regards to if the PA NY and J defaults on payments for rents.
Jennifer Sun
0:21:59
The remedy through the lease is to default the port authority if it's not performing in accordance to the lease terms.
0:22:06
What that would mean practically if we were to default the port authority is that either the city or a private operator would need to step into the port authority's role in taking over the contract to operate the airports.
Amanda Farías
0:22:21
Okay.
0:22:22
And what types of
Mikelle Adgate
0:22:24
I'm sorry to interrupt if I could just add on to that One thing to keep in mind is that EDC is not a signatory to the lease.
0:22:32
The city signs the lease that SBS commissioner signed it.
0:22:36
And so questions about default and, like, what the practical reality of that would be would be a city decision and not a New York City Economic Development Corporation decision.
Amanda Farías
0:22:49
Got it.
0:22:50
Thank you for that comment.