(h) Upon the effective date of this article all rights, title and interest in all assets, equipment and property, both tangible and intangible, used in connection with the ownership, planning, development, maintenance and operation of Stewart and Republic airports of the metropolitan transportation authority and/or any subsidiary corporation of such authority are hereby transferred to the department of transportation. Any and all appropriations or reappropriations made in any capital projects fund or state purposes account to the metropolitan transportation authority in connection with either Stewart and/or Republic airports which remain unencumbered on the effective date of this article are hereby transferred to the department of transportation. The commissioner, subject to the approval of the division of the budget, shall enter into an agreement or agreements with the metropolitan transportation authority and/or any subsidiary corporation of such authority and authorization is hereby granted to the metropolitan transportation authority and/or any subsidiary corporation of such authority to enter into such agreement or agreements to transfer and assign to the department of transportation any other rights and obligations and contract rights and obligations resulting from or arising out of the ownership, planning, development, maintenance and/or operation of Stewart and/or Republic airports, and notwithstanding the provisions of chapter four hundred seventy-two of the laws of nineteen hundred seventy-one, the metropolitan transportation authority and/or any subsidiary corporation of such authority is authorized to contract with the commissioner to provide service as an airport operator for Stewart and/or Republic airports. In lieu of contracting with the metropolitan transportation authority and/or any subsidiary corporation of such authority for such services, the commissioner may contract for the operation of Stewart and/or Republic airports with any qualified operator. Any service contract shall contain the clause that the term of such contract with respect to either Stewart airport or Republic airport or both shall be subject to cancellation upon six months' notice from the commissioner. Such notice shall be given only after the consultation, guidance, advice and assistance relative to such action by either the Stewart airport commission or the Republic airport commission or both with respect to such service contract as it affects either Stewart airport or Republic airport or both respectively. Until the effective date of any such contract between the metropolitan transportation authority and/or subsidiary corporation of such authority or another entity and the commissioner to provide airport operator services at Stewart and/or Republic airports respectively, the metropolitan transportation authority through its subsidiary metropolitan airports authority shall continue to provide the service as an airport operator for both Stewart and Republic airports with the costs and expenses of such activities throughout the period of the effective date of this article through the effective date of such contract being the obligation of the metropolitan transportation authority, but not longer than one year from the effective date of this article. Notwithstanding anything to the contrary contained in this paragraph on or after the effective date of this article, interests in the real property and air transportation facilities at Stewart airport hereinafter set forth shall be leased by the state to the United States government upon terms and consideration and for a term to be mutually agreed upon by the commissioner and said United States government with the concurrence of the adjutant general for the purpose of establishing an air national guard facility:
(i) For such temporary period or periods as the adjutant general deems necessary, and for the purposes of an interim air national guard facility, pending construction of a permanent facility- Such real property and such air transportation facilities as shall be agreed upon by the commissioner and the United States government with the concurrence of the adjutant general. The federal government has appropriated five hundred thousand dollars for rehabilitation of the said interim air national guard facility. Upon relocation of the air national guard to said permanent facilities all improvements constructed by the federal government shall become the property of the state of New York.
(ii) For a term of fifty years with option for renewal for the purposes of a permanent air national guard facility- Building 105 with adjacent parking compound located in rear of building, and the land commonly known as the "pad area" situated between runways twenty-seven and thirty-four and the eastern boundary of the airport property, this site being the location upon which a permanent air national guard facility will be constructed.