As noted in the NY Post story on this:
"If the sponsors were looking for property anywhere at a distance that would be such that it would accommodate a better feeling among the people who are frustrated, I would look into trying to provide them with the state property they would need," Paterson told reporters.
New York Gov. David Paterson
Paterson spokesman Morgan Hook later acknowledged the state must competitively sell state land by bidding, and couldn't simply "provide" it to a religious group.
He added that the state was not actively looking for a parcel to house the mosque and would not do so unless both sides in the controversy agreed."
Read more: http://www.nypost.com/p/news/local/g...#ixzz0xQO23Fk4