2006 New York Code - Urban Development Corporation Act 174/68

Urban Development Corporation Act 174/68



 
                       Chapter 174 of the laws of 1968
  Section   1.    Short title.
            2.    Statement of legislative findings and purposes.
            3.    Definitions.
            4.    New York state urban development corporation.
            5.    Powers of the corporation.
            6.    Sale or lease of land use improvement projects.
           *6-a.  Sale or lease of infrastructure projects.
                    * NB Not implemented due to defeat of the Jobs for the
                    new, New York bond act in November, 1992
            7.    Sale or lease of residential projects.
            8.    Sale or lease of industrial projects.
            9.    Sale or lease of civic projects.
            9-a.  Financial assistance for small and medium-sized business
                    assistance projects.
            9-b.
            9-c.  Rules and regulations.
            9-d.  Reports and evaluation.
            9-e.  Creating  a Puerto Rican and Latino business development
                    center.
           10.    Findings of the corporation.
           11.    Construction contracts.
           12.    Subsidiaries: how created.
           13.    Acquisition of real property.
           13-a.  Conveyance of state lands.
           14.    Acquisition of real property from a municipality  or  an
                    urban renewal agency.
           15.    Special provisions relating to residential projects.
           16.    Cooperation with municipalities.
           16-a.  Regional revolving loan trust fund.
           16-b.  Job  retention and defense industry working capital loan
                    program.
           16-c.  Minority-  and  women-owned  business  development   and
                    lending program.
           16-d.  Urban and community development program.
           16-e.  Regional economic development partnership program.
           16-f.  Bonding guarantee assistance program.
           16-g.  Child care facilities construction program.
           16-h.  The JOBS Now program is hereby created.
           16-i.  The empire state economic development fund.
           16-j.  Strategic training alliance program.
           16-k.  Capital access program.
           16-l.  Rural revitalization program.
           16-m.  The empire state economic development fund.
           17.    Bonds and notes of the corporation.
           18.    Bond authorization.
           19.    Security   for   bonds   or   notes;   construction  and
                    acquisition of projects.
           20.    Reserve funds and appropriations.
           21.    Trust funds.
           22.    Exemption from taxation.
           23.    Notes and bonds as legal investments.
           24.    Agreement with the state.
           25.    State's right to require redemption of bonds.
           26.    State   payments   to   municipalities   and   political
                    subdivisions.
           27.    Remedies of noteholders and bondholders.
           28.    Monies of the corporation.

29. Assistance by state officers, departments, boards and commissions. 30. Reports and evaluations. 30-a. (Enacted without section heading. 31. Court proceedings; preferences; venue. 31-a. Actions against corporation. 32. Special provisions relating to directors of the corporation and members of the business advisory council for urban development. 33. Inconsistent provisions of other laws superseded. 34. Construction. 35. Separability. 36. Limitation on new projects 37. Assistance; application and evaluation, generally. 38. Small business and minority-owned and women-owned business enterprises transportation capital assistance and guaranteed loan program. 39. Lease and operation of seventh regiment armory. § 1. Short title. This act shall be known and may be cited as the "New York state urban development corporation act". § 2. Statement of legislative findings and purposes. It is hereby found and declared that there exists in urban areas of this state a condition of substantial and persistent unemployment and underemployment which causes hardship to many individuals and families, wastes vital human resources, increases the public assistance burdens of the state and municipalities, impairs the security of family life, contributes to the growth of crime and delinquency, prevents many of our youth from finishing their educations, impedes the economic and physical development of municipalities and adversely affects the welfare and prosperity of all the people of the state. Many existing industrial, manufacturing and commercial facilities in such urban areas are obsolete and inefficient, dilapidated, and without adequate mass transportation facilities and public services. Many of such facilities are underutilized or in the process of being vacated, creating additional unemployment. Technological advances and the provision of modern, efficient facilities in other states will speed the obsolescence and abandonment of existing facilities causing serious injury to the economy of the state. Many existing and planned industrial, manufacturing and commercial facilities are, moreover, far from or not easily accessible to the places of residence of substantial numbers of unemployed persons. As a result, problems of chronic unemployment are not being alleviated but are aggravated. New industrial, manufacturing and commercial facilities are required to attract and house new industries and thereby to reduce the hazards of unemployment. The unaided efforts of private enterprise have not met and cannot meet the needs of providing such facilities due to problems encountered in assembling suitable building sites, lack of adequate public services, the unavailability of private capital for development in such urban areas, and the inability of private enterprise alone to plan, finance and coordinate industrial and commercial development with residential developments for persons and families of low income and with public services and mass transportation facilities. It is further found and declared that there exist in many municipalities within this state residential, nonresidential,
commercial, industrial or vacant areas, and combinations thereof, which are slum or blighted, or which are becoming slum or blighted areas because of substandard, insanitary, deteriorated or deteriorating conditions, including obsolete and dilapidated buildings and structures, defective construction, outmoded design, lack of proper sanitary facilities or adequate fire or safety protection, excessive land coverage, insufficient light and ventilation, excessive population density, illegal uses and conversions, inadequate maintenance, buildings abandoned or not utilized in whole or substantial part, obsolete systems of utilities, poorly or improperly designed street patterns and intersections, inadequate access to areas, traffic congestion hazardous to the public safety, lack of suitable off-street parking, inadequate loading and unloading facilities, impractical street widths, sizes and shapes, blocks and lots of irregular form, shape or insufficient size, width or depth, unsuitable topography, subsoil or other physical conditions, all of which hamper or impede proper and economic development of such areas and which impair or arrest the sound growth of the area, community or municipality, and the state as a whole. It is further found and declared that there is a serious need throughout the state for adequate educational, recreational, cultural and other community facilities, the lack of which threatens and adversely affects the health, safety, morals and welfare of the people of the state. It is further found and declared that there continues to exist throughout the state a seriously inadequate supply of safe and sanitary dwelling accommodations for persons and families of low income. This condition is contrary to the public interest and threatens the health, safety, welfare, comfort and security of the people of the state. The ordinary operations of private enterprise cannot provide an adequate supply of safe and sanitary dwelling accommodations at rentals which persons and families of low income can afford. It is hereby declared to be the policy of the state to promote a vigorous and growing economy, to prevent economic stagnation and to encourage the creation of new job opportunities in order to protect against the hazards of unemployment, reduce the level of public assistance to now indigent individuals and families, increase revenues to the state and to its municipalities and to achieve stable and diversified local economies. In furtherance of these goals, it is the policy of the state to retain existing industries and to attract new industries through the acquisition, construction, reconstruction and rehabilitation of industrial and manufacturing plants and commercial facilities, and to develop sites for new industrial and commercial building. It is further declared to be the policy of the state to promote the development of such plants and facilities, reasonably accessible to residential facilities, in those areas where substantial unemployment or underemployment exists, to the end that the industrial and commercial development of our urban areas will proceed in sound fashion and in coordination with development of housing, mass transportation and public services, and that job opportunities will be available in those areas where people lack jobs. It is further declared to be the policy of the state to promote the safety, health, morals and welfare of the people of the state and to promote the sound growth and development of our
municipalities through the correction of such substandard, insanitary, blighted, deteriorated or deteriorating conditions, factors and characteristics by the clearance, replanning, reconstruction, redevelopment, rehabilitation, restoration or conservation of such areas, and of areas reasonably accessible thereto the undertaking of public and private improvement programs related thereto, including the provision of educational, recreational and cultural facilities, and the encouragement of participation in these programs by private enterprise. It is further declared to be the policy of the state to promote the safety, health, morals and welfare of the people of the state through the provision of adequate, safe and sanitary dwelling accommodations and facilities incidental or appurtenant thereto for persons and families of low income. For these purposes, there should be created a corporate governmental agency to be known as the "New York state urban development corporation" which, through issuance of bonds and notes to the private, investing public, by encouraging maximum participation by the private sector of the economy, including the sale or lease of the corporation's interest in projects at the earliest time deemed feasible, and through participation in programs undertaken by the state, its agencies and subdivisions, and by municipalities and the federal government, may provide or obtain the capital resources necessary to acquire, construct, reconstruct, rehabilitate or improve such industrial, manufacturing, commercial, educational, recreational and cultural facilities, and housing accommodations for persons and families of low income, and facilities incidental or appurtenant thereto, and to carry out the clearance, replanning, reconstruction and rehabilitation of such substandard and insanitary areas. It is further declared to be the policy of New York state to encourage the development of research and development facilities and high technology industrial incubator space at institutions of higher education located in this state and authorized to confer degrees by law or by the board of regents, or on lands in reasonable proximity to such institutions provided that (i) in the case of research and development facilities such facilities are for the cooperative use of one or more such institutions and one or more business corporations, research consortia or other industrial organizations involved in research, development, demonstration, or other technologically oriented industrial activities; and (ii) in the case of high technology industrial incubator space, such space shall be for rental to business concerns which are in their formative stages and which are involved in high technology activities, including but not limited to business concerns initiated by students, employees of such institution, including faculty members and other persons or firms academically associated with such institution. It is hereby declared that the acquisition, construction, reconstruction, rehabilitation or improvement of such industrial, manufacturing and commercial facilities, and of such cultural, educational and recreational facilities including but not limited to facilities identified as projects and called for to implement a state designated heritage area management plan as provided in title G of the parks, recreation and historic preservation law; the clearance, replanning, reconstruction and
rehabilitation of such substandard and insanitary areas; and the provision of adequate, safe and sanitary housing accommodations for persons and families of low income and such facilities as may be incidental or appurtenant thereto are public uses and public purposes for which public money may be loaned and private property may be acquired and tax exemption granted, and that the powers and duties of the New York state urban development corporation as hereinafter prescribed are necessary and proper for the purpose of achieving the ends here recited. § 3. Definitions. As used in this act, the following words and terms shall have the following meanings unless the context shall indicate another or different meaning or intent: (1) "Bonds" and "notes". The bonds and notes respectively issued by the corporation pursuant to this act. (2) "Comptroller". The comptroller of the state. (3) "Corporation". The corporate governmental agency created by section four of this act. (4) "Housing Company". A company organized pursuant to the provisions of either article two, four, five or eleven of the private housing finance law. (5) "Local Development Corporation". A corporation incorporated or reincorporated pursuant to the provisions of article fourteen of the not-for-profit corporation law. (6) PROJECT: A specific work or improvement including lands, buildings, improvements, real and personal properties or any interest therein, acquired, owned, constructed, reconstructed, rehabilitated or improved by the corporation or any subsidiary thereof, whether or not still owned or financed by the corporation or any subsidiary thereof, including a residential project, an industrial project, a land use improvement project, a civic project, an industrial effectiveness project, a small and medium-sized business assistance project, a fruit growing, fruit processing, or winery business project, or an economic development project, all as defined herein, or any combination thereof, which combination shall hereinafter be called and known as a "multi-purpose project". The term "project" as used herein shall include projects, or any portion of a project. (a) "Residential project". A project or that portion of a multi-purpose project designed and intended for the purpose of providing housing accommodations for persons or families of low income and such facilities as may be incidental or appurtenant thereto. (b) "Industrial project". A project or that portion of a multi-purpose project designed and intended for the purpose of providing facilities for manufacturing, warehousing, research, business or other industrial or commercial purposes, including but not limited to machinery and equipment deemed necessary for the operation thereof (excluding raw material, work in process or stock in trade). (c) "Land Use Improvement project". A plan or undertaking for the clearance, replanning, reconstruction and rehabilitation or a combination of these and other methods, of a substandard and insanitary area, and for recreational or other facilities incidental or appurtenant thereto, pursuant to and in accordance with article eighteen of the constitution and this act. The terms "clearance, replanning, reconstruction and rehabilitation" shall include renewal, redevelopment, conservation, restoration or improvement or any combination thereof as well as the testing
and reporting of methods and techniques for the arrest, prevention and elimination of slums and blight. (d) "Civic project". A project or that portion of a multi-purpose project designed and intended for the purpose of providing facilities for educational, cultural, recreational, community, municipal, public service or other civic purposes. (e) "Industrial effectiveness project". A project or that portion of a multi-purpose project designed and intended for the purpose of (i) improving the productivity and competitiveness of an industrial firm or group of industrial firms through such means as, but not limited to, the redesign of production facilities, the introduction of new production processes and management systems, the expansion or diversification of product lines, the development of new markets, and labor and management cooperative efforts to enhance productivity; (ii) implementing a corporate restructuring or turnaround plan for an industrial firm; (iii) effecting the transfer of the ownership and control of a viable industrial firm to its employees, managers or other investors resident in the state; or (iv) enhancing the opportunity for an industrial firm to create or retain jobs, thereby promoting fuller employment and economic development in the state. (f) "Small and medium-sized business assistance project". A project designed and intended for the purpose of providing assistance to industrial firms that employ five hundred or fewer employees within the state on a full-time basis. (g) Economic development project. The acquisition, construction, reconstruction, rehabilitation, or improvement of a project financed pursuant to the empire state economic development fund which will achieve the purposes of facilitating the creation or retention of jobs or increasing business activity within a municipality or region of the state. (h) "fruit growing, fruit processing, or winery business project". A project or that portion of a multi-purpose project designed and intended for the purpose of establishing, maintaining, or expanding fruit growing acreage or operations, or for providing facilities for the production, manufacture, processing, warehousing, research, or distribution and sale of fresh fruits or the processing of such fruits into juices, wines, or other food products. As specified in paragraph (b-1) of subdivision 6 of section 16-l of this act, such project costs may include, but not be limited to, the cost of buildings, machinery, equipment, New York raw fruits, New York unprocessed or partially processed fruits, root stock, other personal property, materials, working capital, or stock in trade required to establish such project. * (6) "Project". A specific work or improvement including lands, buildings, improvements, real and personal properties or any interest therein, acquired, owned, constructed, reconstructed, rehabilitated or improved by the corporation or any subsidiary thereof, whether or not still owned or financed by the corporation or any subsidiary thereof, including a residential project, an industrial project, a land use improvement project, a civic project, an industrial effectiveness project, a small and medium-sized business assistance project, or an infrastructure project, all as defined herein, or any combination thereof, which combination shall hereinafter be called and known as a "multi-purpose project".
The term "project" as used herein shall include projects, or any portion of a project. (a) "Residential project". A project or that portion of a multi-purpose project designed and intended for the purpose of providing housing accommodations for persons or families of low income and such facilities as may be incidental or appurtenant thereto. (b) "Industrial project". A project or that portion of a multi-purpose project designed and intended for the purpose of providing facilities for manufacturing, warehousing, research, business or other industrial or commercial purposes, including but not limited to machinery and equipment deemed necessary for the operation thereof (excluding raw material, work in process or stock in trade). (c) "Land Use Improvement project". A plan or undertaking for the clearance, replanning, reconstruction and rehabilitation or a combination of these and other methods, of a substandard and insanitary area, and for recreational or other facilities incidental or appurtenant thereto, pursuant to and in accordance with article eighteen of the constitution and this act. The terms "clearance, replanning, reconstruction and rehabilitation" shall include renewal, redevelopment, conservation, restoration or improvement or any combination thereof as well as the testing and reporting of methods and techniques for the arrest, prevention and elimination of slums and blight. (d) "Civic project". A project or that portion of a multi-purpose project designed and intended for the purpose of providing facilities for educational, cultural, recreational, community, municipal, public service or other civic purposes. (e) "Industrial effectiveness project". A project or that portion of a multi-purpose project designed and intended for the purpose of (i) improving the productivity and competitiveness of an industrial firm or a group of industrial firms through such means as, but not limited to, the redesign of production facilities, the introduction of new production processes and management systems, the expansion or diversification of product lines, the development of new markets, and labor and management cooperative efforts to enhance productivity; (ii) implementing a corporate restructuring or turnaround plan for an industrial firm; (iii) effecting the transfer of the ownership and control of a viable industrial firm to its employees, managers or other investors resident in the state; or (iv) enhancing the opportunity for an industrial firm to create or retain jobs, thereby promoting fuller employment and economic development in the state. (f) "Small and medium-sized business assistance project". A project designed and intended for the purpose of providing assistance to industrial firms that employ five hundred or fewer employees within the state on a full-time basis. (g) "Infrastructure project". Capital improvements to publicly-owned real property under the jobs for the new, New York bond act pursuant to article fifteen of the economic development law involving site clearance or preparation or the demolition, construction or reconstruction of basic utilities, systems or facilities, which, while not used directly for the production of goods or services, are required as the foundation for or to promote, stimulate or support economic activity
resulting in the retention or creation of permanent private-sector jobs. * NB Not implemented due to defeat of the Jobs for the new, New York bond act in November, 1992 (7) "Project cost". The sum total of all costs incurred by the corporation in carrying out all works and undertakings which the corporation deems reasonable and necessary for the development of a project. These shall include but are not necessarily limited to the costs of all necessary studies, surveys, plans and specifications, architectural, engineering or other special services, acquisition of land and any buildings thereon, site preparation and development, construction, reconstruction, rehabilitation, improvement and the acquisition of such machinery and equipment as may be deemed necessary in connection therewith (other than raw materials, work in process or stock in trade); the necessary expenses incurred in connection with the initial occupancy of the project; an allocable portion of the administrative and operating expenses of the corporation; the cost of financing the project, including interest on bonds and notes issued by the corporation to finance the project from the date thereof to the date when the corporation shall determine that the project be deemed substantially occupied; and the cost of such other items, including any indemnity and surety bonds and premiums on insurance, legal fees, fees and expenses of trustees, depositories and paying agents for the bonds and notes issued by the corporation; and relocation costs, all as the corporation shall deem necessary. (8) "Real property". Lands, structures, franchises and interests in land, including lands under water and riparian rights, space rights and air rights and any and all other things and rights usually included within said term. Real property shall also mean and include any and all interests in such property less than full title, such as easements, incorporeal hereditaments and every estate, interest or right, legal or equitable, including terms for years and liens thereon by way of judgments, mortgages or otherwise, and also all claims for damages for such real estate. (9) "State". The state of New York. (10) "State agency". Any officer, department, board, commission, bureau, division, public corporation, agency or instrumentality of the state. (11) "Subsidiary". A corporation created in accordance with section twelve of this act. (12) "Substandard or insanitary area". The term "substandard or insanitary area" shall mean and be interchangeable with a slum, blighted, deteriorated or deteriorating area, or an area which has a blighting influence on the surrounding area, whether residential, non-residential, commercial, industrial, vacant or land in highways, waterways, railway and subway tracks and yards, bridge and tunnel approaches and entrances, or other similar facilities, over which air rights and easements or other rights of user necessary for the use and development of such air rights, to be developed as air rights sites for the elimination of the blighting influence, or any combination thereof and may include land, buildings or improvements, or air rights and concomitant easements or other rights of user necessary for the use and development of such air rights not in themselves substandard or insanitary.
(13) "Municipality." Any county, city, town or village. (14) "Local governing body". The board of supervisors, county legislature, board of aldermen, common council, commission, or other elective governing board or body now or hereafter vested by state statute, charter or other law with jurisdiction to initiate and adopt local law whether or not such local laws or ordinances require the approval of the elective chief executive officer or other official or body to become effective, and except that with respect to a city having a population of one million or more the term "local governing body" shall mean the board of estimate. (15) "Public corporation". A municipal corporation, district corporation, or public benefit corporation, as all such terms are defined in section three of the general corporation law, or any agency or instrumentality of the foregoing. (16) "New community." A plan or undertaking for the development of housing together with such civic, industrial and commercial facilities and other ancillary facilities as the corporation may determine necessary, including the implementation thereof through one or more projects of the corporation and through such participation by private enterprise as may be necessary or desirable to carry out the development of such new community. (17) "Eligible business". For purposes of section sixteen-a of this act, a business that is resident in this state, and employs one hundred or less persons on a full-time basis. (18) "Regional corporation". For purposes of section sixteen-a of this act, a not-for-profit or public benefit corporation or consortium of such entities that has formed a not-for-profit corporation, that has jurisdiction within at least two entire contiguous counties. (19) "Minority business enterprise". A business enterprise which is at least fifty-one percent owned, or in the case of a publicly-owned business at least fifty-one percent of the common stock or other voting interests of which is owned, by one or more minority persons and such ownership interest is real, substantial and continuing. The minority ownership must have and exercise the authority to independently control the day-to-day business decisions of the entity. Minority persons shall mean persons who are: (a) Black; (b) Hispanic persons of Mexican, Puerto Rican, Dominican, Cuban, Central or South American descent of either Indian or Hispanic origin, regardless of race; (c) Asian and Pacific Islander persons having origins in the Far East, Southeast Asia, the Indian sub-continent or the Pacific Islands; or (d) American Indian or Alaskan Native persons having origins in any of the original peoples of North America and maintaining identifiable tribal affiliations through membership and participation or community identification. (20) "Women business enterprise". A business enterprise which is at least fifty-one percent owned, or in the case of a publicly-owned business at least fifty-one percent of the common stock or other voting interests of which is owned, by United States citizens or permanent resident aliens who are women, regardless of race or ethnicity, and such ownership interest is real, substantial and continuing and such women have and
exercise the authority to independently control the day to day business decisions of the enterprises. (21) "Industrial firm". A manufacturing firm involved with extracting, smelting, recovering, developing, preparing, compounding, converting, assembling or producing in any manner minerals, raw materials, products or substances of any kind or nature, and shall include facilities related thereto for storage, warehousing or distribution, for research and development or for the discovery of new, and the refinement of known, substances, processes and products. § 4. New York state urban development corporation. (1) There is hereby created the New York state urban development corporation. The corporation shall be a corporate governmental agency of the state, constituting a political subdivision and public benefit corporation. Its membership shall consist of nine directors as follows: the superintendent of banks, the chairman of the New York state science and technology foundation, and seven directors to be appointed by the governor with the advice and consent of the senate. From the seven directors appointed by him, the governor shall designate the chairman of the corporation and two others who shall all serve at the pleasure of the governor. Of the four remaining directors, one of such directors first appointed by the governor after the effective date of this subdivision as amended shall serve for a term ending January first next succeeding his appointment, one of such directors shall serve for a term ending one year from such date, one of such directors shall serve for a term ending two years from such date, and one of such directors shall serve for a term ending three years from such date. Their successors shall serve for terms of four years each. Directors shall continue in office until their successors have been appointed and qualified. In the event of a vacancy occurring in the office of a director by death, resignation or otherwise, the governor shall appoint a successor with the advice and consent of the senate to serve for the balance of the unexpired term. The governor shall appoint the president of the corporation, with the advice and consent of the senate, who shall be the chief executive officer of the corporation and who shall serve at the pleasure of the governor. Such president may be one of the directors appointed by the governor. (1-a) The superintendent of banks and the chairman of the New York state science and technology foundation each may designate a person from his department to represent him at all meetings of the corporation from which such director may be absent. Any representative so designated shall have the power to attend and to vote at any meeting of the corporation from which the director so designating him is absent, with the same force and effect as if the director designating him were present and voting. Such designation shall be by written notice filed with the chairman of the corporation by the director making the designation. The designation of each such person shall continue until revoked at any time by written notice to the chairman by the director making the designation. Such designation shall not limit the power of the director making the designation to attend and vote in person at any meeting of the corporation. (2) The directors, other than the chairman, shall serve without salary or other compensation, but each director, including the chairman, shall be entitled to reimbursement for
actual and necessary expenses incurred in the performance of his or her official duties. Anything to the contrary contained herein notwithstanding, the president of the corporation, whether or not he or she is a director, and the chairman if he or she is not the president shall be entitled to receive such salary as the directors may determine for their services as chief executive officer and chairman respectively. (3) Such directors other than the superintendent of banks, the chairman of the New York state science and technology foundation, and any director who serves as president of the corporation may engage in private employment, or in a profession or business. The corporation, its directors, officers and employees shall be subject to the provisions of sections seventy-three and seventy-four of the public officers law. (3-a) The state shall save harmless and indemnify any person who shall have served as a director, officer or employee of the corporation against financial loss or litigation expense arising in connection with any claim, demand, suit or judgment, or the defense thereof, based on a cause of action, whenever accrued, involving allegations that pecuniary harm was sustained by any person as a result of any transaction of the corporation taking place on or after the effective date of the New York state project finance agency act. In the event any such claim, demand, suit or judgment shall occur, a director, officer or employee of the corporation shall be saved harmless and indemnified by the state under this subdivision unless such individual is found by a final judicial determination not to have acted in good faith, for a purpose which he reasonably believed to be in the best interests of the corporation or not to have had reasonable cause to believe that his conduct was lawful. In any suit described in the first sentence of this subdivision, any director, officer or employee made a party defendant to such suit shall be entitled to be represented by private counsel of his choice; provided, however, that the attorney general is authorized, as a condition to indemnification of the fees and expenses of such representation, to require that appropriate groups of such individuals be represented by the same counsel; and provided further, that with the approval of the attorney general or of a court (obtained by application substantially as provided in section seven hundred twenty-five of the business corporation law), indemnification for such fees and expenses shall be paid from time to time during the pendency of such suit. The provisions of this subdivision shall be in addition to and shall not supplant any indemnification or other benefits heretofore or hereafter conferred upon directors, officers and employees of the corporation by section seventeen of the public officers law, by action of the corporation, or otherwise. The provisions of this subdivision shall inure only to directors, officers and employees of the corporation, shall not enlarge or diminish the rights of any other party, and shall not impair, limit or modify the rights and obligations of any insurer under any policy of insurance. (4) The directors of the corporation shall serve ex officio as directors of the corporation for urban development and research of New York, created by the New York state urban development and research corporation act, and of the urban development guarantee fund of New York, created by the urban development guarantee fund of New York act. The chairman of the corporation shall
serve as chairman of the corporation for urban development and research of New York and of the urban development guarantee fund of New York. (5) Notwithstanding any inconsistent provisions of law, general, special or local, no officer or employee of the state or of any civil division thereof, shall be deemed to have forfeited or shall forfeit his office or employment by reason of his acceptance of membership on the corporation created by this section; provided, however, a director who holds such other public office or employment shall receive no additional compensation or allowance for services rendered pursuant to this act, but shall be entitled to reimbursement for his actual and necessary expenses incurred in the performance of such services. (6) The governor shall appoint a business advisory council for urban development, to advise and make recommendations to the corporation with respect to development policies and programs and to encourage maximum participation in projects of the corporation by the private sector of the economy, including members of the council and firms and corporations with which they are affliated. Such council shall consist of not more than twenty-five members, who shall serve at the pleasure of the governor, and who shall be broadly representative of commerce and industry, the financial community and the construction and housing industries. Such members shall serve without salary, but shall be entitled to reimbursement for their actual and necessary expenses incurred in the performance of their duties. (7) The corporation shall establish one or more community advisory committees to consider and advise the corporation upon matters submitted to them by the corporation concerning the development of any area or any project, and may establish rules and regulations with respect to such committees. The members of such community advisory committees shall serve, at the pleasure of the corporation, without salary, but shall be entitled to reimbursement for their actual and necessary expenses incurred in the performance of their duties. Notwithstanding any inconsistent provision of law, general, special or local, no officer or employee of the state or of any civil division thereof, shall be deemed to have forfeited or shall forfeit his office or employment by reason of his acceptance of membership on such community advisory committee. (8) The governor may remove any director appointed by him for inefficiency, neglect of duty or misconduct in office after giving him a copy of the charges against him, and an opportunity to be heard, in person or by counsel, in his defense, upon not less than ten days' notice. If any such director shall be removed, the governor shall file in the office of the department of state a complete statement of charges made against such director and his findings thereon, together with a complete record of the proceeding. The foregoing provisions shall not apply in the case of the chairman and any other director who serves at the pleasure of the governor. (9) The corporation and its corporate existence shall continue until terminated by law, provided, however, that no such law shall take effect so long as the corporation shall have bonds, notes and other obligations outstanding, unless adequate provision has been made for the payment thereof in the documents securing the same. Upon termination of the existence of the
corporation, all its rights and properties shall pass to and be vested in the state. (10) A majority of the directors of the corporation then in office shall constitute a quorum for the transaction of any business or the exercise of any power or function of the corporation, except as otherwise provided in section sixteen, subdivision two, hereof. The corporation may delegate to one or more of its directors, or its officers, agents and employees, such powers and duties as it may deem proper. (11) The corporation shall take affirmative action in working with construction firms, contractors and subcontractors, labor unions and manufacturing and industrial firms, to the end that residents of areas in which projects are to be located shall be afforded participation in the construction work on projects of the corporation, and in the business operations of tenants and occupants of industrial projects undertaken by the corporation. § 5. Powers of the corporation. Except as otherwise limited by this act, the corporation shall have power: (1) To sue and be sued; (2) To have a seal and alter the same at pleasure; (3) To make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this act; (4) To make and alter by-laws for its organization and internal management and, subject to agreements with noteholders or bondholders, to make rules and regulations with respect to its projects, operations, properties and facilities, which rules and regulations shall be filed with the department of state in the manner provided by section one hundred two of the executive law; (5) To acquire, hold and dispose of personal property for its corporate purposes; (6) To appoint officers, agents and employees, prescribe their duties and qualifications and fix their compensation; (7) To acquire or contract to acquire from any person, firm, corporation, municipality, federal or state agency, by grant, purchase, condemnation or otherwise, leaseholds, real, personal or mixed property or any interest therein; to own, hold, clear, improve and rehabilitate, and to sell, assign, exchange, transfer, convey, lease, mortgage, or otherwise dispose of or encumber the same; (8) To create subsidiaries, as provided in section twelve of this act. (9) To acquire, construct, reconstruct, rehabilitate, improve, alter or repair or provide for the construction, reconstruction, improvement, alteration or repair of any project. (10) To arrange or contract with a municipality for the planning, replanning, opening, grading or closing of streets, roads, roadways, alleys or other places, or for the furnishing of facilities or for the acquisition by a municipality of property or property rights or for the furnishing of property or services in connection with a project. (11) To sell, lease, assign, transfer, convey, exchange, mortgage, or otherwise dispose of or encumber any project, and in the case of the sale of any project, to accept a purchase money mortgage in connection therewith; and to lease, repurchase or otherwise acquire and hold any project which the corporation
has theretofore sold, leased or otherwise conveyed, transferred or disposed of. (12) To grant options to purchase any project or to renew any leases entered into by it in connection with any of its projects, on such terms and conditions as it may deem advisable. (13) To prepare or cause to be prepared plans, specifications, designs and estimates of cost for the construction, reconstruction, rehabilitation, improvement, alteration or repair of any project, and from time to time to modify such plans, specifications, designs or estimates. (14) To manage any project, whether then owned or leased by the corporation, and to enter into agreements with the state or any municipality or any agency or instrumentality thereof, or with any person, firm, partnership or corporation, either public or private, for the purpose of causing any project to be managed. (15) To provide advisory, consultative, training and educational services, technical assistance and advice to any person, firm, partnership or corporation, either public or private, in order to carry out the purposes of this act. (16) To lend or donate monies, whether secured or unsecured, to any subsidiary corporation, and to purchase, sell or pledge the shares, bonds or other obligations or securities thereof, on such terms and conditions as the corporation may deem advisable. (17) To make mortgage loans, secured by a first mortgage lien, including temporary loans or advances, to any subsidiary corporation which is a housing company, and to undertake commitments therefor. Any such commitment, mortgage or bonds or notes secured thereby may contain such terms and conditions not inconsistent with the provisions of this act as the corporation may deem necessary or desirable to secure repayment of its loan, the interest, if any, thereon and other charges in connection therewith. (18) Subject to the provisions of any contract with noteholders or bondholders to consent to the modification, with respect to rate of interest, time of payments of any installment of principal or interest, security, or any other term, of any mortgage, mortgage loan, mortgage loan commitment, contract or agreement of any kind to which the corporation is a party. (19) In connection with any property on which it has made a mortgage loan, to foreclose on any such property or commence any action to protect or enforce any right conferred upon it by any law, mortgage, contract or other agreement, and to bid for and purchase such property at any foreclosure or at any other sale, or acquire or take possession of any such property; and in such event the corporation may complete, administer, pay the principal of and interest on any obligations incurred in connection with such property, dispose of, and otherwise deal with such property, in such manner as may be necessary or desirable to protect the interests of the corporation therein. (20) To borrow money and to issue its negotiable bonds and notes and to provide for the rights of the holders thereof. (21) As security for the payment of the principal of and interest on any bonds so issued and any agreements made in connection therewith, to mortgage and pledge any or all of its projects, whether then owned or thereafter acquired, and to pledge the revenues and receipts therefrom or from any thereof, and to assign or pledge the lease or leases on any portion or
all of said projects and to assign or pledge the income received by virtue of said lease or leases. (22) To invest any funds of the corporation including funds held in reserve or sinking funds, or any monies (including proceeds from the sale of any bonds or notes of the corporation) not required for immediate use or disbursement, at the discretion of the corporation, in (a) obligations of the state or of the United States government, (b) obligations the principal and interest of which are guaranteed by the state or the United States government, (c) obligations of agencies and instrumentalities of the state or of the United States, or (d) certificates of deposit of banks or trust companies in this state, secured by obligations described in clauses (a), (b) or (c) of this subdivision. (23) To procure insurance against any loss in connection with its property and other assets and operations in such amounts and from such insurers as it deems desirable. (24) To engage the services of consultants on a contract basis for rendering professional and technical assistance and advice. (25) To contract for and to accept any gifts or grants or loans of funds or property or financial or other aid in any form from the federal government or any agency or instrumentality thereof, or from the state or any agency or instrumentality thereof, or from any other source and to comply, subject to the provisions of this act, with the terms and conditions thereof. * (26) To make loans, whether secured or unsecured, in connection with the corporation's participation in a project (as defined in this act), to any person or entity, whether public or private, and to issue commitments for such loans, provided that such loans and commitments are made or issued in compliance with guidelines established by the board of directors of the corporation; to provide for the repayment of such loans on terms and conditions that the directors of the corporation deem advisable and to receive and hold real property or personal property as security for the repayment of such loans. * NB Repealed July 1, 2007 (27) To use a portion of appropriated funds generally designated as high risk targeted investment funds to establish a loan fund to be used to make loans to business enterprises located within empire zones designated pursuant to article eighteen-B of the general municipal law. (28) To do any and all things necessary or convenient to carry out its purposes and exercise the powers given and granted in this act. (29) Subject to any agreement with noteholders or bondholders, to enter into agreements to pay annual sums in lieu of taxes to any municipality or political subdivision of the state, in respect of any real property which is owned by the corporation or any subsidiary thereof and is located in such municipality or political subdivision. (30) To provide priority assistance to projects involving industry clusters. The term "industry cluster" shall mean a geographic concentration of competitive firms or establishments in the same industry that either have close buy-sell relationships with other industries in the region, use common technologies, or share a specialized labor pool that provides firms with a competitive advantage over the same industry in other places.
§ 6. Sale or lease of land use improvement projects. (1) The corporation may sell or lease for a term not exceeding ninety-nine years all or any portion of the real or personal property constituting a land use improvement project to any person, firm, partnership or corporation, either public or private, upon such terms and conditions as may be approved by the corporation, whenever the corporation shall find that such sale or lease is in conformity with a plan or undertaking for the clearance, replanning, reconstruction or rehabilitation of sub-standard and insanitary areas in the municipality in which the project is located. Such sale or lease may be made: (a) to any housing company, without public bidding, public sale or public notice; (b) to any local development corporation, without public bidding, public sale or public notice; (c) to any other person, firm, partnership or corporation, without public bidding or public sale, provided there is published in at least one newspaper of general circulation in the municipality in which the project is located a notice which shall include a statement of the identity of the proposed purchaser or lessee and of his proposed use or reuse of the land use improvement project area or applicable portion thereof, the price or rental to be paid by such purchaser or lessee, all other essential conditions of such sale or lease, and a statement that a public hearing upon such sale or lease will be held before the corporation at a specified time and place on a date not less than ten days after such publication, and provided further that such public hearing is held in accordance with such notice. * § 6-a. Sale or lease of infrastructure projects. (1) Notwithstanding the provisions of any general, special or local law, subject to any agreement with noteholders or bondholders, the corporation may sell or lease any infrastructure project, without public bidding or public sale, for such price or rental and upon such terms as may be agreed upon between the corporation and such purchaser or lessee, either prior to, at the date of, or subsequent to the completion of the project by the corporation, provided, however, that in the case of a lease, the term thereof shall not exceed ninety-nine years. Where such contract for sale or lease is entered into after the commencement of construction and prior to the physical completion of the improvement to be conveyed or leased, the corporation may complete the construction and development of such improvement prior to the actual conveyance or lease. (2) Except with respect to projects sold or leased to the state or any agency or instrumentality thereof, to any municipality or agency or instrumentality thereof, or to any public corporation, before any sale or lease of all or a substantial part of a project as authorized by subdivision one of this section is consummated, there shall be published in at least one newspaper of general circulation in the municipality in which the project is located a notice which shall include a statement of the identity of the proposed purchaser or lessee, the price or rental to be paid, all other essential conditions of such sale or lease, and a statement that a public hearing upon such sale or lease will be held before the corporation at a specified time and place on a date not less than ten days after
such publication, and such hearing shall be held in accordance with such notice. (3) The responsibilities of the corporation in connection with the implementation of this section may include requesting and receiving title to real property from the commissioner of general services pursuant to section thirteen-a of this act. Such transfers shall be on such terms as the commissioner of general services and the chairman of the corporation shall determine, and shall, subject to any agreement with noteholders and bondholders, include a reversionary interest to the state and the terms on which the property may subsequently be transferred. * NB Not implemented due to defeat of the Jobs for the new, New York bond act in November, 1992 § 7. Sale or lease of residential projects. (1) The corporation may sell or lease for a term not exceeding ninety-nine years a residential project only to a housing company or to a municipality or housing authority. It may enter into a contract for such sale or lease either prior to, at the date of, or subsequent to the completion of the project by the corporation. Where such contract for sale or lease is entered into after the commencement of construction and prior to the physical completion of the improvement to be conveyed or leased, the corporation may complete the construction and development of such improvement prior to the actual conveyance or lease. (2) Any such sale or lease pursuant to subdivision one of this section may be made without public bidding, public sale or public notice, pursuant to such negotiated contract, agreement or lease and containing such provisions, limitations, requirements, terms and conditions, as the corporation, within its discretion, may determine to be necessary or desirable. § 8. Sale or lease of industrial projects. (1) Notwithstanding the provisions of any general, special or local law, subject to any agreement with noteholders or bondholders, the corporation may sell or lease any industrial project, without public bidding or public sale, for such price or rental and upon such terms as may be agreed upon between the corporation and such purchaser or lessee, either prior to, at the date of, or subsequent to the completion of the project by the corporation, provided, however, that in the case of a lease, the term thereof shall not exceed ninety-nine years. Where such contract for sale or lease is entered into after the commencement of construction and prior to the physical completion of the improvement to be conveyed or leased, the corporation may complete the construction and development of such improvement prior to the actual conveyance or lease. (2) Before any sale or lease of all or a substantial part of a project as authorized by subdivision one of this section is consummated, there shall be published in at least one newspaper of general circulation in the municipality in which the project is located a notice which shall include a statement of the identity of the proposed purchaser or lessee, the price or rental to be paid, all other essential conditions of such sale or lease, and a statement that a public hearing upon such sale or lease will be held before the corporation at a specified time and place on a date not less than ten days after such publication, and such hearing shall be held in accordance with such notice; provided, however, that if the corporation
determines that trade secrets or other confidential information about the prospective purchaser's or lessee's business operations, products, processes or designs would otherwise be revealed by such public notice and public hearing, the requirements of this subdivision may be waived by unanimous vote of the directors of the corporation. § 9. Sale or lease of civic projects. (1) Subject to any agreement with noteholders or bondholders, the corporation may sell or lease for a term not exceeding ninety-nine years any civic project to the state or any agency or instrumentality thereof, to any municipality or agency or instrumentality thereof, to any public corporation, or to any other entity which is carrying out a community, municipal, public service or other civic purpose. (2) Any such sale or lease pursuant to subdivision one of this section may be made without public bidding, public sale or public notice, upon such terms and conditions as the corporation, within its discretion, may determine to be necessary or desirable. The corporation may enter into a contract for a sale or lease as authorized by subdivision one of this section either prior to, at the date of, or subsequent to the completion of the project by the corporation. Where such contract for sale or lease is entered into after the commencement of construction and prior to the physical completion of the improvement to be sold or leased, the corporation may complete the construction and development of such improvement prior to the actual conveyance or lease. § 9-a. Financial assistance for small and medium-sized business assistance projects. The corporation may provide loans for small and medium-sized business assistance projects for costs associated with: (1) The renovation or rehabilitation of industrial plants that are economically inefficient due to the need for changes in design, construction, technology or production processes; the renovation or rehabilitation of existing facilities for reuse as an industrial facility; the acquisition of real property and related improvements; new construction; working capital; and the acquisition of modern production technology, including machinery, equipment and computerized design and control systems, required to improve production processes, expand existing or enter new markets, or to otherwise remain competitive. The corporation shall determine the terms and interest rates of such loans, except that no loan shall exceed fifty percent of project costs, or seven hundred fifty thousand dollars, whichever is less, no loan shall have an interest rate lower than three percent, and no loan shall have a term that exceeds the estimated useful life of the asset; (2) Site acquisition, construction, renovation or acquisition of permanently installed equipment necessary to establish or expand a child day care facility located on the work site of the industrial firm sponsoring the child day care facility or at a proximate site where a consortia of industrial firms are sponsoring the child day care facility. Such loans shall be made upon a determination by the corporation that such facility is necessary to improve or maintain the productivity of the company or companies. Such loans shall only be made for child day care facilities: (a) that will be used primarily by the children of employees of the company or companies sponsoring the
facility; (b) that will not be operated for profit; (c) that demonstrate an ability to obtain, from the appropriate governmental agencies, all necessary approvals and licenses required to operate the facility; and (d) that demonstrate an ability to prevent access by children to any equipment in facilities which could be injurious to their health or safety. The corporation shall determine the terms and interest rates of such loans, except that no loan shall exceed sixty percent of project costs, or two hundred fifty thousand dollars, whichever is less, no loan shall have an interest rate lower than three percent, and no loan shall have a term longer than ten years. § 9-b. For any positions opened as a result of assistance provided pursuant to section nine-a of this act, industrial firms so assisted shall first consider persons eligible to participate in federal job training partnership act (P.L. 97-300) programs who shall be referred to the industrial firm by administrative entities of service delivery areas created pursuant to such act or by the job service division of the department of labor. § 9-c. Rules and regulations. The corporation shall, assisted by the commissioner of economic development and in consultation with the department of economic development, promulgate rules and regulations in accordance with the state administrative procedure act. Such rules and regulations shall be consistent with the program plan required by subdivision nineteen of section one hundred of the economic development law. § 9-d. Reports and evaluation. (1) Reporting. The corporation shall, on or before October 1, 1988 and on or before each October first thereafter, submit a report to the governor and the legislature on the operations and accomplishments of the small and medium-sized business assistance program. The report to be submitted on October 1, 2005 and on or before each October first thereafter shall be consolidated with the annual program report of the corporation required under the provisions of subdivision (b) of section thirty of this act, as amended. (2) Evaluation. (a) The corporation shall submit to the director of the budget, the chairperson of the senate finance committee and the chairperson of the assembly ways and means committee an evaluation of the small and medium-sized business assistance program prepared by an entity independent of the corporation. Such an evaluation shall be submitted by September 1, 2005 and by September first every four years thereafter. (b) Between evaluation due dates, the corporation shall maintain the necessary records and data required to satisfy such evaluation requirements and to satisfy information requests received from the director of the budget, the chairperson of the senate finance committee and the chairperson of the assembly ways and means committee between such evaluation due dates. § 9-e. Creating a Puerto Rican and Latino business development center. The corporation shall provide, with the assistance of the commissioner of economic development and in consultation with such commissioner, a Puerto Rican and Latino business development center for the purposes of rendering technical assistance and market information to not-for-profit service providers and the private businesses servicing Puerto Rican and Latino communities. § 10. Findings of the corporation. Notwithstanding any other provision of this act, the corporation shall not be empowered to
undertake the acquisition, construction, reconstruction, rehabilitation or improvement of a project unless the corporation finds: (a) in the case of a residential project: (1) That there exists, in the area in which the project is to be located, or in an area reasonably accessible to such area, a need for safe and sanitary housing accommodations for persons or families of low income, which the operations of private enterprise cannot provide; (2) That the project has been approved as a project of a housing company pursuant to the provisions of the private housing finance law. (b) in the case of an industrial project: (1) That the area in which the project is to be located is a substandard or insanitary area, or is in danger of becoming a substandard or insanitary area, wherein there exists a condition of substantial and persistent unemployment or underemployment; (2) That the acquisition or construction and operation of such project will prevent, eliminate or reduce unemployment or underemployment in such area; (3) That such project shall consist of a building or buildings which are suitable for manufacturing, warehousing or research or other industrial, business or commercial purposes. (4) That adequate provision has been, or will be made for the payment of the cost of the acquisition, construction, operation, maintenance and upkeep of such project. (5) That the acquisition and construction, proposed leasing, operation and use of such project will aid in the development, growth and prosperity of the state and the area in which such project is located; (6) That the plans and specifications assure adequate light, air, sanitation and fire protection. (c) in the case of a land use improvement project: (1) That the area in which the project is to be located is a substandard or insanitary area, or is in danger of becoming a substandard or insanitary area and tends to impair or arrest the sound growth and development of the municipality; (2) That the project consists of a plan or undertaking for the clearance, replanning, reconstruction and rehabilitation of such area and for recreational and other facilities incidental or appurtenant thereto; (3) That the plan or undertaking affords maximum opportunity for participation by private enterprise, consistent with the sound needs of the municipality as a whole. (d) in the case of a civic project: (1) That there exists in the area in which the project is to be located, a need for the educational, cultural, recreational, community, municipal, public service or other civic facility to be included in the project; (2) That the project shall consist of a building or buildings or other facilities which are suitable for educational, cultural, recreational, community, municipal, public service or other civic purposes; (3) That such project will be leased to or owned by the state or an agency or instrumentality thereof, a municipality or an agency or instrumentality thereof, a public corporation, or any other entity which is carrying out a community, municipal, public service or other civic purpose, and that adequate
provision has been, or will be, made for the payment of the cost of acquisition, construction, operation, maintenance and upkeep of the project; (4) That the plans and specifications assure or will assure adequate light, air, sanitation and fire protection. (e) in the case of an industrial effectiveness project: (1) That a feasibility study or productivity assessment exists demonstrating the potential for future profitability of the firm requesting financial assistance and such study or assessment has been reviewed and approved by the commissioner of economic development; (2) That for loans to implement a corporate restructuring or turnaround plan, the management of the industrial firm requesting assistance is capable and the firm has a sound business development plan that includes measures to ensure labor and management cooperation and to effect changes required to continue as a successful business; (3) That the requested financial assistance is not available from other public or private financing sources; and (4) That the area in which the project is to be located is a substandard or insanitary area, or is in danger of becoming a substandard or insanitary area, wherein there exists a condition of substantial and persistent unemployment or underemployment. (f) in the case of a small and medium-sized business assistance project: (1) That the area in which the project will be located is a substandard or insanitary area, or is in danger of becoming a substandard or insanitary area, wherein there exists a condition of substantial and persistent unemployment or underemployment; (2) That the project demonstrates market, management and financial feasibility and has a clear likelihood of success; (3) That the industrial firm provides at least a ten percent equity contribution and such contribution is not derived from other governmental sources; (4) That the requested financial assistance is not available from other public or private financing sources on terms compatible with the successful completion of the project; (5) That the project will not result in the relocation of any industrial firm from one municipality within the state to another municipality, except under one of the following conditions: (i) when an industrial firm is relocating within a municipality with a population of at least one million where the governing body of such municipality approves such relocation; or (ii) the corporation notifies each municipality from which such industrial firm will be relocated and each municipality agrees to such relocation; and (6) That the project is not for the purpose of refinancing any portion of the total project cost or other existing loans or debts of the project sponsor or owner. (g) in the case of all projects, that there is a feasible method for the relocation of families and individuals displaced from the project area into decent, safe and sanitary dwellings, which are or will be provided in the project area or in other areas not generally less desirable in regard to public utilities and public and commercial facilities, at rents or prices within the financial means of such families or individuals, and reasonably accessible to their places of employment. Insofar as is feasible, the corporation shall offer housing accommodations
to such families and individuals in residential projects of the corporation. The corporation may render to business and commercial tenants and to families or other persons displaced from the project area, such assistance as it may deem necessary to enable them to relocate. (h) in the case of all projects, the corporation shall state the basis for its findings. § 11. Construction contracts. (1) Construction contracts let by the corporation shall be in conformity with the applicable provisions of section one hundred thirty-five of the state finance law, provided, however, that construction contracts let by subsidiaries of the corporation which are housing companies shall be governed by the applicable provisions of the private housing finance law; provided further, however, that in the case of industrial projects, whenever the corporation determines that trade secrets or other confidential information about the prospective project occupant's business operations, products, processes or designs would be revealed by public bidding, the requirements of section one hundred thirty-five of the state finance law with respect to public bidding may be waived. In such event, separate specifications shall be prepared for, and separate and independent contracts shall be entered into, for the following three subdivisions of work to be performed: (a) plumbing and gas fitting; (b) steam heating, hot water heating, ventilating and air conditioning apparatus; and (c) electric wiring and standard illuminating fixtures. (2) The corporation may, in its discretion, assign contracts for supervision and coordination to the successful bidder for any subdivision of work for which the corporation receives bids. Any construction contract awarded by the corporation shall contain such other terms and conditions as the corporation may deem desirable. The corporation shall not award any construction contract except to the lowest bidder who, in its opinion, is qualified to perform the work required and who is responsible and reliable. The corporation may, however, reject any or all bids or waive any informality in a bid if it believes that the public interest will be promoted thereby. The corporation may reject any bid if, in its judgment, the business and technical organization, plant, resources, financial standing, or experience of the bidder justifies such rejection in view of the work to be performed. § 12. Subsidiaries: how created. (1) The corporation shall have the right to exercise and perform its powers and functions through one or more subsidiary corporations. The corporation by resolution may direct any of its directors, officers or employees to organize a subsidiary corporation pursuant to either the business corporation law, the not-for-profit corporation law or articles two, four or eleven of the private housing finance law. Such resolution shall prescribe the purposes for which such subsidiary corporation is to be formed. Such corporation shall be deemed a subsidiary corporation whenever and so long as (i) more than half of any voting shares of such subsidiary are owned or held by the corporation, or (ii) a majority of the directors, trustees or members of such subsidiary are designees of the corporation. (2) The corporation may transfer to any subsidiary corporation any moneys, real or personal or mixed property or any project in order to carry out the purposes of this act. Each such
subsidiary corporation shall have all the privileges, immunities, tax exemptions and other exemptions of the corporation to the extent the same are not inconsistent with the statute or statutes pursuant to which such subsidiary was incorporated. (3) Notwithstanding any provision of this act to the contrary, the superintendent of banks and the chairman of the New York state science and technology foundation shall not serve as a director, trustee or member of any such subsidiary corporation. (4) No officer or director of the corporation shall receive any additional compensation, either direct or indirect, other than reimbursement for actual and necessary expenses incurred in the performance of his duties, by reason of his serving as a member, director, or trustee of any subsidiary corporation. § 13. Acquisition of real property. The corporation, upon making a finding that it is necessary or convenient to acquire any real property for its immediate or future use, may acquire such property in any lawful manner, pursuant to the provisions of the eminent domain procedure law, notwithstanding that such property may already be devoted to a public use, nor shall such property thereafter be taken for any other public use without the consent of the corporation. Prior to the commencement of condemnation proceedings, the corporation shall cause a survey and map to be made of the property to be condemned and file the same in its office. There shall be annexed thereto a certificate, executed by such officer or employee as the corporation may designate, stating that the property described in such survey and map is necessary for corporate purposes. § 13-a. Conveyance of state lands. The commissioner of general services shall have power, in his discretion, from time to time to grant and convey to the corporation, upon such terms and conditions including consideration as the commissioner of general services may fix and determine, unappropriated state lands, lands under water, abandoned canal lands and salt springs lands which the corporation shall certify to be necessary or convenient for its corporate purposes. Certification shall be evidenced by a formal request from the President of the corporation. § 14. Acquisition of real property from a municipality or an urban renewal agency. (1) Notwithstanding anything to the contrary contained in article fifteen or article fifteen-A of the general municipal law or in any general, special or local law applicable to the sale of real property by a municipality or an urban renewal agency, a municipality or an urban renewal agency may, in addition to employing any other lawful method of utilizing or disposing of any real property and appurtenances thereto or any interest therein owned by such municipality or urban renewal agency or acquired by such municipality or urban renewal agency pursuant to article fifteen of article fifteen-A of the general municipal law, sell, lease for a term not exceeding ninety-nine years, or otherwise dispose of any such real property and appurtenances thereto or any interest therein to the corporation for the effectuation of any of the purposes of an urban renewal program, without public auction, or sealed bids or public notice. (2) Notwithstanding the provisions of any general, special or local law or charter, any municipality, by resolution of its
local governing body, is hereby empowered without referendum, public auction, sealed bids or public notice, to sell, lease for a term not exceeding ninety-nine years, grant or convey to the corporation any real property owned by it which the corporation shall certify to be necessary or convenient for its corporate purposes. Any such sale, lease, grant or conveyance shall be made with or without consideration and upon such terms and conditions as may be agreed upon by such municipality and the corporation. Certification shall be evidenced by a formal request from the president of the corporation. Before any such sale, lease, grant or conveyance may be made to the corporation, a public hearing shall be held by the local governing body to consider the same. Notice of such hearing shall be published at least ten days before the date set for the hearing in such publication and in such manner as may be designated by the local governing body. § 15. Special provisions relating to residential projects. (1) Notwithstanding any provision of law to the contrary, whenever a residential project is owned by or leased to a subsidiary which is a limited profit housing company, or is sold or leased to a limited profit housing company, such project shall be deemed to be a state-aided project, as defined in section two of the private housing finance law, unless such project is aided by a municipal mortgage loan, in which event such project shall be deemed to be a municipally-aided project. (2) Notwithstanding any provision of law to the contrary, but subject to any agreement with noteholders or bondholders, any city, town or village and any housing authority is hereby authorized to purchase or lease for a term not exceeding ninety-nine years a residential project. (3) Notwithstanding any other provision of this act, projects of a subsidiary organized pursuant to articles two, four or eleven of the private housing finance law shall be exempt from real property taxes to the extent and in the manner provided by applicable law. (4) In order to increase the availability of housing accommodations for persons and families of low income, the corporation shall undertake to utilize the state capital grant low rent assistance program, pursuant to section forty-four-a of the private housing finance law, in residential projects of the corporation. (5) Notwithstanding any inconsistent provision of this act or of any general or special law, no plan for a proposed residential project in a town or incorporated village which has not been affirmed by the corporation prior to May first, nineteen hundred seventy-three, shall be affirmed if, within thirty days after the public hearing held pursuant to subdivision two of section sixteen of this act or within thirty days after June first, nineteen hundred seventy-three, whichever date is later, the local governing body of such town or village submits in writing to the corporation formal objections to the proposed residential project, unless and until such objections are withdrawn and subject to the following conditions and limitations: (a) The foregoing shall not apply to residential projects initiated after June first, nineteen hundred seventy-three, if such local governing body has, prior to submission, either approved such plan or executed any agreement with the
corporation relating to such plan upon which the corporation has relied in authorizing expenditures of funds or contracts, unless such town or village reimburses the corporation for all of its expenditures and indemnifies the corporation for liabilities ensuing from cancellation of any contract, net of the proceeds of any resale of property acquired by the corporation for such project. (b) The corporation may affirm, in any event, plans for residential projects in the new community known as Audubon, in the town of Amherst, county of Erie or in the new community known as Lysander New Community, in the town of Lysander, county of Onondaga, and the provisions of this first paragraph of this subdivision shall not be applicable to any of such projects. § 16. Cooperation with municipalities. (1) In effectuating the purposes of this act, the corporation and community advisory committees created pursuant to section four of this act shall work closely, consult and cooperate with local elected officials and community leaders at the earliest practicable time. The corporation shall give primary consideration to local needs and desires and shall foster local initiative and participation in connection with the planning and development of its projects. Wherever possible, activities of the corporation shall be coordinated with local urban renewal and other community projects, and the corporation shall assist localities in carrying out such projects. Consideration shall also be given to local and regional goals and policies as expressed in urban renewal, community renewal and local comprehensive land use plans and regional plans. (2) Except with respect to a project consisting in whole or in part of real property acquired by the corporation pursuant to section fourteen of this act, before commencing the acquisition, construction, reconstruction, rehabilitation, alteration or improvement of any project: (a) upon adoption of the general project plan, the corporation shall file a copy of such plan, including the findings required pursuant to section ten of this act, in its corporate offices and in the office of the clerk of any municipality in which the project is to be located. Upon request, any other person shall be furnished with a digest of such plan; (b) pursuant to authorization from the chief executive officer of the corporation, which authorization may be given prior to the adoption of such plan by the corporation, the corporation shall: (i) publish in one newspaper of general circulation within the municipality, (ii) provide to the chief executive officer of the municipality within which the project is located, and (iii) in any city having a population of one million or more, provide to any community board in which the project will be located, a notice that such plan will be filed upon its adoption by the corporation and that digests thereof will be available, which notice shall also state that a public hearing will be held to consider the plan at a specified time and place on a date not less than ten days after such publication; (c) the corporation shall conduct a public hearing pursuant to such notice, provided that such public hearing shall not take place before the adoption or the filing of such plan by the corporation; (d) upon a written finding of the chief executive officer of the corporation that no substantive negative testimony or comment has been received at such public hearing, such plan shall be effective at the conclusion of such
hearing; provided, however, that if any substantive negative testimony or comment is received at such public hearing, the corporation may, after due consideration of such testimony and comment, affirm, modify or withdraw the plan in the manner provided for the initial filing of such plan in paragraph (a) of this subdivision. (3) After consultation with local officials, as provided in subdivision one of this section, the corporation and any subsidiary thereof shall, in constructing, reconstructing, rehabilitating, altering or improving any project, comply with the requirements of local laws, ordinances, codes, charters or regulations applicable to such construction, reconstruction, rehabilitation, alteration or improvement, provided however, that when, in the discretion of the corporation, such compliance is not feasible or practicable, the corporation and any subsidiary thereof shall comply with the requirements of the state building construction code, formulated by the state building code council pursuant to article eighteen of the executive law, applicable to such construction, reconstruction, rehabilitation, alteration or improvement. In those circumstances where, in the discretion of the corporation, such compliance with local laws, ordinances, codes, charters or regulations is not feasible or practicable, and in the case of any project where the corporation intends to acquire real property pursuant to section thirteen of this act, the requirements of subdivision two of this section shall be complied with; provided, however, that (a) the corporation shall provide a copy of the plan to the chief executive officer of any municipality within which the project is to be located, the chairman of the planning board or commission of any such municipality, or if there is no planning board or commission, to the presiding officer of the local governing body and in any city having a population of one million or more, to any community board in which the project is located, and the public hearing to consider the plan required pursuant thereto shall be held on thirty days notice following adoption of the plan by the corporation; (b) any person shall have the opportunity to present written comments on the plan within thirty days after the public hearing; (c) any municipality within which the project is to be located, by majority vote of its planning board or commission, or in the event there is no planning board or commission, by majority vote of its local governing body, may recommend approval, disapproval or modification of the plan, which recommendation shall be submitted in writing to the corporation within thirty days after such hearing; and (d) after due consideration of such testimony and comments and municipal recommendations, if any, the corporation may affirm, modify or withdraw the plan in the manner provided for the initial filing of such plan in paragraph (a) of subdivision two of this section, provided, however that in the event any such municipality has recommended disapproval or modification of the plan, as provided herein, the corporation may affirm the plan only by a vote of two-thirds of the directors thereof then in office. No municipality shall have power to modify or change the drawings, plans or specifications for the construction, reconstruction, rehabilitation, alteration or improvement of any project of the corporation or of any subsidiary thereof, or the construction, plumbing, heating, lighting or other mechanical
branch of work necessary to complete the work in question, nor to require that any person, firm or corporation employed on any such work shall perform any such work in any other or different manner than that provided by such plans and specifications, nor to require that any such person, firm or corporation obtain any other or additional authority, approval, permit or certificate from such municipality in relation to the work being done, and the doing of any such work by any person, firm or corporation in accordance with the terms of such drawings, plans, specifications or contracts shall not subject said person, firm or corporation to any liability or penalty, civil or criminal, other than as may be stated in such contracts or incidental to the proper enforcement thereof; nor shall any municipality have power to require the corporation or any subsidiary thereof, or lessee therefrom or successor in interest thereto, to obtain any other or additional authority, approval, permit, certificate or certificate of occupancy from such municipality as a condition of owning, using, maintaining, operating or occupying any project acquired, constructed, reconstructed, rehabilitated, altered or improved by the corporation or by any subsidiary thereof. The foregoing provisions shall not preclude any municipality from exercising the right of inspection for the purpose of requiring compliance by any such project with local requirements for operation and maintenance, affecting the health, safety and welfare of the occupants thereof, provided, however, that such compliance does not require changes, modifications or additions to the original construction of such project. (4) Each municipality or political subdivision, including but not limited to a county, city, town, village or district, in which any project of the corporation or of any subsidiary thereof is located, shall provide for such project, whether then owned by the corporation, any subsidiary thereof or any successor in interest thereto, police, fire, sanitation, health protection and other municipal services of the same character and to the same extent as those provided for other residents of such municipality or political subdivision. (5) Notwithstanding the provisions of any general, special or local law or charter, any municipality or any public corporation is hereby empowered to purchase or lease for a term not exceeding ninety-nine years a civic project, upon such terms and conditions as may be agreed upon by such municipality or such public corporation and the corporation. No agreement for such purchase or lease shall be deemed to be a contract for public work or purchase within the meaning of the general municipal law. Nothing contained in this subdivision shall be deemed to amend or supersede any other provision of law requiring a vote of the qualified voters of any school district upon a proposed expenditure of funds or incurring of indebtedness by such school district. (6) In carrying out any project, the corporation and its subsidiaries shall be empowered to enter into contractual agreements with municipalities and public corporations with respect to the furnishing of any community, municipal or public facilities or services necessary or desirable for such project, and any municipality or public corporation is hereby authorized and empowered, notwithstanding any other law, to enter into such contractual agreements with the corporation and its subsidiaries
and to do all things necessary to carry out its obligations under the same. § 16-a. Regional revolving loan program. (1) The corporation shall establish a fund to be known as the "regional revolving loan trust fund" and shall pay into such fund any monies made available to the corporation for such fund from any source. The monies held in or credited to the fund shall be expended solely for the purposes set forth in this section. The corporation shall not commingle the monies of such fund with any other monies of the corporation or any monies held in trust by the corporation. (2) The corporation shall allocate any monies made available for such fund for the purpose of making grants to regional corporations. The grants shall be allocated as follows: (a) fifty percent divided equally among the regions; (b) fifty percent according to a formula weighted in favor of those regions with the greatest levels of economic distress as determined by poverty rates, number of persons receiving public assistance, unemployment rates, rate of employment decline and such other indicators of economic distress as the corporation deems appropriate; and (c) in the event a regional corporation advises the corporation that it does not require all or a portion of the funds to be distributed pursuant to this subdivision, such funds shall be re-distributed by the corporation equally among the other regional corporations. (3) In accordance with the rules and regulations of the corporation, each regional corporation shall establish two special accounts for monies received by the regional corporation pursuant to the provisions of this section. The grant monies received from the corporation, earnings on such monies, and any principal repayments shall be deposited in a loan fund account; any interest earned by the regional corporation on loans will be deposited in a separate interest repayment account. A regional corporation shall be authorized to provide financing assistance to eligible projects. Any interest earned from its loans may be used by a regional corporation for the cost of administering the programs authorized by this section. (4) Regional corporations shall be selected by the corporation from among eligible applicants to administer a regional revolving loan program. An eligible applicant shall: (a) represent at least two entire contiguous counties; (b) have available to it staff with sufficient expertise to analyze applications for financial assistance, to regularly monitor financial assistance to clients, and have made arrangements to provide management or technical assistance to clients; (c) have an effective plan to market its services to small businesses through such entities as chambers of commerce, industry trade associations, banks, local development corporations, community based organizations and industrial development agencies; and (d) have established a loan committee composed of five or more persons experienced in commercial lending or in the operation of a for-profit business and a staff person of the regional office of the department of economic development. Such loan committee shall review every application to the regional corporation for financial assistance pursuant to this section, shall determine
the feasibility of the transaction proposed in the application and shall recommend to the board of directors or other governing body of the regional corporation such action as the committee deems appropriate. (5) Applications to the corporation for certification or recertification as a regional corporation shall: (a) describe the applicant corporation, including its organization, membership, loan committee, staff, and sources of other funds, if any; (b) identify the geographic region to be served; (c) explain the methods and criteria to be used in determining firms eligible for financial assistance from the regional revolving loan program; (d) describe the means for coordinating financial assistance available from the regional revolving loan program with financial assistance available from other public funding sources within the region and how such program will be used to leverage private financing for projects; (e) at any time, the corporation may consider proposals to reconfigure geographic areas served by regional corporations; and (f) contain such other information as the corporation deems appropriate. (6) The corporation shall select, from among eligible applicants, regional corporations to administer revolving loan programs, on the basis of: (a) the ability of the regional corporation to administer the financial assistance programs authorized under this section; (b) the extent of coordination with other publicly supported financial assistance programs available within the region represented by the regional corporation; (c) the degree of public and private support within the region for the applicant regional corporation; and (d) the ability of the regional corporation to provide financial and other assistance to businesses located in distressed areas within the region. (6-a) The corporation shall, every five years, recertify that each regional corporation has complied with the terms and conditions of this section. In the event a regional corporation is not recertified, or its certification is withdrawn pursuant to subdivision nineteen of this section, then the corporation shall give written notice to such regional corporation which shall thereafter neither make new loans nor undertake new obligations except upon written approval of the corporation. The corporation may thereafter certify another regional corporation in the manner provided in this section for the selection of regional corporations. Upon the certification of a successor regional corporation, all remaining loan funds, records and accounts of the regional corporation not recertified shall be transferred to the corporation and the regional corporation not recertified shall cease to function pursuant to this section. The corporation shall transfer returned funds to a successor regional corporation, or in the event no successor regional corporation is formed, equally to other existing regional corporations. (7) A regional corporation certified by the corporation shall use the funds received from the corporation, subject to the terms, conditions and restrictions set forth in this section, to
provide financial assistance to eligible businesses as defined in subdivision seventeen of section three of this act, for projects that demonstrate a substantial likelihood of providing increases in net new permanent jobs or retaining jobs in businesses that need such financial assistance to remain viable. (8) The decision to approve or reject an application for financial assistance pursuant to the provisions of this section shall be made by a majority of the directors of the regional corporation, and such decision shall be final. No member of the board or other governing body of a regional corporation shall participate in a decision on a project application when such member is a party to or has a financial interest in such project. Any member who cannot participate in a decision on a project application for such reason shall not be counted as a member of the board or other governing body for purposes of determining the number of members required for a majority vote on such application. (9) No employee or officer of any regional corporation shall be a party to or have any financial interest in any project that receives financial assistance pursuant to this section. (10) A regional corporation, in approving applications for financial assistance, shall give priority to projects: (a) that will provide increases in net new permanent jobs; (b) located in economically distressed areas as defined by the corporation or employing persons who live in such areas; (c) of minority or women-owned enterprises or enterprises owned by dislocated workers, such workers as defined in the Workforce Investment Act (P.L. 105-220); and (d) of businesses in the early stages of development that have been denied access to credit. (11) The funds allocated to each regional corporation pursuant to this section may be used to guarantee the repayment of a working capital loan provided by a banking organization to finance an eligible project. Guarantees may be provided for up to ninety percent of the required total project financing, provided that no more than one hundred thousand dollars may be guaranteed for any project. Guarantees may be made for the following types of financing: short and medium term loans for working capital, revolving lines of credit, and seasonal inventory and accounts receivable loans. Guarantees may be made for up to ninety percent of the required total financing up to a maximum of one hundred fifty thousand dollars for interim financing where another lender or guarantor will provide permanent financing within one hundred eighty days. In no event may a loan guarantee be for a term longer than five years. Any loan made by a banking organization that is guaranteed pursuant to this subdivision shall be secured by a security agreement, chattel paper, loan agreement, or such other instruments or documents deemed necessary or convenient by the regional corporation to secure the loan. Any guarantee made pursuant to this subdivision shall be backed by a minimum reserve within the account established by each regional corporation of at least twenty-five percent of the amount guaranteed that is outstanding. (11-a) A regional corporation, in addition to receiving funds as provided in this section, may also apply for and accept funds from any other source for the purpose of furthering its goals and objectives. Such funds may be used in the same manner as
funds received from the corporation to carry out the purposes of this section. (12) The funds of each regional corporation derived pursuant to this section may be used to provide loans for working capital for eligible projects; provided that the amount of the loan does not exceed ninety percent of the total project cost, or one hundred thousand dollars, whichever is less. The interest rate and the terms on such loans shall be determined by the regional corporation, but in no event shall the interest rate be less than five percent. The term of any loan shall not exceed five years. All loans shall be secured by lien positions on collateral at the highest level of priority that can accommodate the borrower's ability to raise sufficient debt and equity capital for the project. (13) A regional corporation shall not provide any financial assistance authorized by this section unless the following conditions are met: (a) the applicant has demonstrated that there is little prospect of obtaining the project financing requested from other public sources of funding within the region, including local revolving loan funds, and that there is little prospect of obtaining adequate project financing from private sources of capital, or in the case of a loan guarantee, that there is little prospect of obtaining project financing without the guarantee; except that in the case of local revolving loan funds, financial assistance from the regional revolving loan fund account may be provided for a project in conjunction with financial assistance from a local revolving loan fund, provided that assistance from the regional revolving loan fund is no greater than that provided by the local revolving loan fund, and that a project qualifying for financial assistance available from a local revolving loan fund is not denied such assistance; (b) the applicant has a minimum equity interest of at least ten percent in the business or project; (c) there is a reasonable prospect of repayment; (d) the project is located in the region represented by the regional corporation; (e) the project will comply with any applicable environmental rules or regulations; (f) the applicant has certified that it will not discriminate against any employee or any applicant for employment because of race, religion, color, national origin, sex, or age; (g) a staff member or a representative of the regional corporation acting in an official capacity has personally visited the project site and/or the applicant's place of business; and (h) financial commitments for the project have been obtained from other public and private sources. (14) Grants made by the corporation pursuant to this section shall not be made available for: (a) projects that would result in the relocation of any business operation from one municipality within the state to another, except under one of the following conditions: (i) when a business is relocating within a municipality with a population of at least one million where the governing body of such municipality approves such relocation; or (ii) the regional corporation notifies each municipality from which such business
operation will be relocated and each municipality agrees to such relocation; (b) projects of newspapers, broadcasting or other news media; medical facilities, libraries, community or civic centers; or public infrastructure improvements; (c) refinancing any portion of the total project cost or other existing loans or debts of an applicant, except for the purpose of transferring to the employees or to other local interests ownership of a company that would otherwise depart from or cease or substantially reduce operations in the state; (d) providing funds, directly or indirectly, for payment, distribution, or as a loan, to owners, partners or shareholders of the applicant enterprise, except as ordinary income for services rendered; and (e) retail projects, except where the regional corporation finds there will be an increase in net new permanent jobs. (15) A regional corporation may charge application, commitment and loan guarantee fees pursuant to a schedule of fees adopted by the regional corporation and approved by the corporation. (16) The regional corporations shall submit annual reports for the previous fiscal year to the corporation describing the financial assistance provided pursuant to this section, including: the number of projects assisted; the amount and type of assistance provided; a description of the projects; the number of jobs created or retained; the status of outstanding loans, guarantees, earnings and account balances; and such other information as the corporation may require. (17) The corporation shall, assisted by the commissioner of economic development and in consultation with the department of economic development, promulgate rules and regulations in accordance with the state administrative procedure act setting forth procedures to be followed by, and the responsibilities and obligations of, regional corporations and the corporation. Such rules and regulations shall be consistent with the program plan required by subdivision nineteen of section one hundred of the economic development law. (18) For any positions opened as a result of assistance provided in this section, businesses so assisted shall first consider unemployed or low income individuals eligible to participate in programs funded through the Workforce Investment Act (P.L. 105-220) who shall be referred to the business by local workforce investment boards created pursuant to such act or by the job service division of the department of labor. (19) The corporation shall annually conduct an audit of each regional corporation to ensure conformity of all aspects of program administration and of financial assistance transactions with the substantive and procedural provisions of this section. In the event that the corporation finds instances of substantive noncompliance by a regional corporation with any of the provisions of this section and such instances were, or should have been, known to be in noncompliance, the regional corporation shall return, within thirty days, upon demand by the corporation, all uncommitted grant funds on hand and provide an accounting of the loans currently outstanding. The corporation may withdraw a regional corporation's certification:
(a) when a member of a board of directors or other governing body, an officer or an employee of said regional corporation is party to or has financial interests in loan projects; (b) when said regional corporation fails to comply with the requirements for project loans pursuant to this section; or (c) when a regional corporation makes no loans within the previous fiscal year and there is more than one hundred thousand dollars remaining in its loan fund account. The corporation shall transfer funds returned from a decertified regional corporation to a successor regional corporation, or, if there be none, distribute such funds equally among other existing regional corporations. Outstanding loans and other obligations payable to such a decertified regional corporation shall be assigned to its successor regional corporation, or to the corporation or an agent designated by the corporation upon such terms and conditions as the corporation shall determine. (20) Reporting. The corporation shall, on or before October 1, 1988 and on or before each October first thereafter, submit a report to the governor and the legislature on the operations and accomplishments of the regional revolving loan program. Such report shall include a summary of the information contained in the reports submitted pursuant to subdivision sixteen of this section and of the results of the audits performed by the corporation pursuant to subdivision nineteen of this section, and shall set forth the status of the regional revolving loan program for the previous fiscal year, including grants to the regional corporations, earnings and account balances as reported to the corporation. The report to be submitted on October 1, 2005 and on or before each October first thereafter shall be consolidated with the annual program report of the corporation required under the provisions of subdivision (b) of section thirty of this act, as amended. (21) Evaluation. (a) The corporation shall submit to the director of the division of the budget, the chairperson of the senate finance committee, and the chairperson of the assembly ways and means committee an evaluation of this program prepared by an entity independent of the corporation. Such evaluation shall be submitted by September 1, 2005 and by September first every four years thereafter. (b) Between evaluation due dates, the corporation shall maintain the necessary records and data required to satisfy such evaluation requirements and to satisfy information requests received from the director of the budget, the chairperson of the senate finance committee and the chairperson of the assembly ways and means committee between such evaluation due dates. (22) The corporation shall recertify existing regional corporations or, in the event a regional corporation's certification has been withdrawn, seek successor corporations among eligible applicants after April first, two thousand two. § 16-b. Job retention and defense industry working capital loan program. (1) Program established. The corporation shall establish the job retention and defense industry working capital loan program for the purpose of establishing an economic development working capital revolving loan fund to be administered by the corporation. Such fund shall be used to provide financial assistance in the form of working capital loans or loan guarantees to companies at imminent risk of
reducing employment including, but not limited to, companies in the defense sector or in the form of grants for the benefit of communities whose employment is or could be impacted by a planned or potential major military base closing and/or downsizing or for the benefit of communities whose employment is impacted by the downsizing of a community's major employer or employers including, but not limited to, communities impacted by cutbacks in defense contracts. (2) Application criteria. In addition to such other criteria as the corporation may adopt in rules and regulations for the consideration of applications for loans or loan guarantees pursuant to subdivision one of this section, the corporation shall: (a) determine that the company is unable to obtain sufficient funding on reasonable terms from other public or private sources to permit the company's planned investment to proceed without the required assistance; (b) give priority to those applications for assistance from companies located in highly distressed areas as defined pursuant to subdivision (a) of section nine hundred fifty-eight of article eighteen-b of the general municipal law; (c) consider whether the loan or loan guarantee will result in a reasonable likelihood of success in meeting the purposes for which it was sought by the applicant company; (d) assess the demonstrated need for such assistance, established by a showing of a short-term lack of liquidity of an existing solvent business; (e) request from a company a commitment to a business plan to turn around the financial condition of the business; (f) expect the existence of a completed company evaluation, or commitment to undertake such an evaluation, by the industrial effectiveness program, or its equivalent thereof; and (g) require companies receiving assistance pursuant to this section to first consider for any new position opened as a result of assistance, persons eligible to participate in federal job training partnership act programs (P.L. 97-3400) (29 U.S.C.A. SS 801 seq.) who shall be referred to the company by administrative entities of service delivery areas created pursuant to such act by the job service division of the department of labor. (3) Funds. The fund shall consist of such amounts as may be appropriated, any repayment of the principal amount of any loan made from the fund, and any interest earned by the corporation from the investment of moneys of the fund. (4) Nonapplication of certain provisions. The provisions of section ten and subdivision two of section sixteen of this act shall not apply to assistance provided under this program. (5) Reports. The chairman of the corporation shall submit to the director of the budget, the speaker of the assembly and the temporary president of the senate an evaluation of the effectiveness of the program prepared by an entity independent of the corporation. The corporation shall select the program evaluator through a request for proposal process. Such evaluation shall determine whether the assistance provided has enhanced the economic conditions of assisted companies or communities, and shall make recommendations for improvements which would make the program more effective. Such evaluation
shall be submitted by September first, nineteen hundred ninety-five and September first every two years thereafter. § 16-c. Minority- and women-owned business development and lending program. (1) Minority- and women-owned business development and lending program. (a) There is hereby created a minority- and women-owned business development and lending program for the purpose of providing financial and technical assistance to minority and women-entrepreneurs. (b) For the purposes of this section the following words or terms shall mean as follows: (i) "minority-owned business enterprise" or "minority-owned business" shall mean the same as "minority business enterprise" as defined in subdivision three of section two hundred ten of the economic development law. (ii) "women-owned business enterprise" or "women-owned business" shall mean the same as "women-owned business enterprise" as defined in subdivision five of section two hundred ten of the economic development law. (iii) "incubator" shall mean a facility providing low-cost space, technical assistance and support services, including, but not limited to, central services shared by tenants of the facility, to minority- and women-owned business enterprises. (c) Assistance shall not be provided under this section for: (i) the purchase or rehabilitation of real property for speculative purposes; (ii) payment of any tax or employee benefit arrearage; (iii) residential construction, renovation or development construction, except for assistance to minority and women contractors under subdivision four of this section; (iv) educational institutions and proprietary education firms, except licensed child care facilities; (v) hospitals or residential health care facilities; (vi) overnight lodging facilities; (vii) refinancing of debt or equity invested in an enterprise or project. (d) The corporation is authorized to: (i) establish programs in conjunction with locally, and community based entities to decentralize lending for small loans and loans to start up minority- and women-owned businesses; (ii) establish a comprehensive program for minority and women contractors, which may include assistance through loans, bonding assistance and technical assistance; (iii) establish a program to provide loans to established minority- and women-owned businesses and for minority- and women-owned businesses, including loans to such businesses seeking to acquire or expand a franchise; (iv) provide loan guarantees to financial institutions and make linked deposits into federally and state chartered credit unions for the purpose of encouraging private financial institutions to make loans to minority- and women-owned businesses; (v) establish a program to create incubators to assist small and high risk minority- and women-owned businesses to grow and prosper; (vi) promote equity investment in minority- and women-owned businesses; and
(vii) establish a comprehensive technical assistance program in cooperation with the department of economic development to assist minority- and women-owned businesses and potential minority and women-entrepreneurs. (2) Minority and women revolving loan trust fund. For the purpose of establishing programs in conjunction with locally and community based entities to decentralize lending for small loans and loans to start up minority- and women-owned businesses, the corporation shall establish minority and women revolving loan trust fund accounts and related administrative expenses trust fund accounts. (a) Each minority and women revolving loan trust fund account shall be administered by one or more of the following types of entities that provide services to community businesses and have as one of their primary purposes the provision of services and assistance to minority- and women-owned businesses: (i) empire zone capital corporations established pursuant to section nine hundred sixty-four of the general municipal law; (ii) community-based local development corporations or industrial development agencies that serve a municipality in which an empire zone has been established pursuant to article eighteen-B of the general municipal law and have as their primary purpose assistance to minority- and women-owned businesses located or to be located in such empire zone; or (iii) local and community development corporations, industrial development agencies, or other not-for-profit entities, representative of the community. (b) To be eligible to administer a minority and women revolving loan trust fund account, the entity must also: (i) have staff with sufficient expertise to analyze applications for financial assistance, to regularly monitor financial assistance to clients, and to provide management or technical assistance to clients; and (ii) have established a loan committee composed of six or more persons experienced in business management, commercial lending or in the operation of a for-profit business, at least one-half of whom shall be experienced in commercial lending, at least one-third of whom shall be minority persons and at least one-third of whom shall be women. Such loan committee shall review every application, determine the feasibility of the proposed project and the likelihood of repayment of the requested financing and shall recommend to the governing body of the entity such action on the application as the loan committee deems appropriate. The corporation shall identify entities eligible to administer minority and women revolving loan trust fund accounts through a competitive statewide request for proposal process. (c) Any entity selected to administer a minority and women revolving loan trust fund account shall be eligible to draw funds from the account as needed to provide the following types of financial assistance to minority- and women-owned businesses upon certification to and acceptance by the corporation that such assistance complies with rules and regulations promulgated by the corporation: (i) working capital loans, provided that the amount of the loan does not exceed thirty-five thousand dollars and the term of the loan does not exceed five years; and (ii) loans for the acquisition and/or improvement of real property and for the acquisition of machinery and equipment provided that the amount of the loan does not exceed fifty thousand dollars
and the term of the loan does not exceed the useful life of the equipment or property. (d) (i) Notwithstanding any provision of law to the contrary, the corporation may establish an administrative expenses trust fund account for the benefit of each entity selected to administer a minority and women revolving loan trust fund account. The initial deposit of funds to an administrative expenses trust fund account shall be an amount determined by the corporation but shall not exceed twenty-five thousand dollars. (ii) An entity selected to administer a minority and women revolving loan trust fund account may use the funds in the administrative expenses trust fund account for costs incurred by it in the start up and administration of the financial assistance program authorized pursuant to this subdivision. (iii) The corporation shall deposit into each administrative expenses trust fund account: (A) all income earned from the moneys on deposit in the corresponding minority and women revolving loan trust fund account during the first year of the entity's administration of said account; and (B) beginning with its second year in administering a minority and women revolving loan trust fund account, said amounts may be used for costs incurred by the entity in administering the minority and women revolving loan trust fund account; and (C) repayments of interest on loans made from the corresponding minority and women revolving loan trust fund account. (iv) Funds from the administrative expenses trust fund account may be used for costs incurred at any time by an administering entity in its administration of a minority and women revolving loan trust fund account pursuant to this section. (v) Funds deposited in an administrative expenses trust fund account shall be disbursed by the corporation to the entity that administers the corresponding minority and women revolving loan trust fund account on a periodic basis and shall be expended by the entity in accordance with an annual budget and any updates of same, approved by the corporation. (e) Any entity selected to administer a minority and women revolving loan trust fund account shall pay to the corporation for deposit any repayments received in connection with financial assistance provided from its account. Payments consisting of the repayment of the principal amount of a loan shall be deposited by the corporation into the minority and women revolving loan trust fund account from which the loan was made. The interest earned by the corporation from the investment of moneys in each minority and women revolving loan trust fund account during and after the second year of a selected entity's administration of said account shall be deposited by the corporation into the corresponding minority and women revolving loan trust fund account and used to provide the financial assistance to minority- and women-owned businesses as authorized pursuant to this section. (f) The provisions of subdivisions eight, nine, and fourteen through nineteen of section sixteen-a of this act pertaining to the regional revolving loan trust fund shall also be applicable to the minority and women revolving loan trust fund, provided that: where the term "regional corporation" appears therein it shall be interpreted to mean an entity selected to administer a
minority and women revolving loan trust fund account, and "regional revolving loans trust fund" shall mean a minority and women revolving loan trust fund, and where the term "this section" appears therein it shall mean this section sixteen-c. (g) The corporation may provide funds from an appropriation for the minority- and women-owned business development and lending program to any entity selected to administer a minority and women revolving loan trust fund for the purposes of recapitalizing such account and the entity's corresponding administrative expenses trust fund account following an evaluation by the corporation of the entity's administration and use of such accounts. (h) Notwithstanding any provision of law to the contrary, the corporation shall establish a minority and women revolving loan trust fund to pay into such fund any moneys made available to the corporation for such fund from any source, including moneys appropriated by the state and any income earned by, or increment to, the account due to the investment thereof, or any repayment of moneys advanced from the fund. The corporation shall not commingle the moneys of such fund with any moneys held in trust by the corporation, except for investment purposes. (3) Micro-loan program. (a) For the purposes of this subdivision "micro-loan" shall mean a loan of under seven thousand five hundred dollars. (b) The corporation shall, pursuant to requests for proposals, enter into agreements for other types of locally, community or regionally administered loan programs than those set forth in subdivision two of this section, including micro-loan programs to be administered by local development corporations, local industrial development organizations, municipalities and not-for-profit organizations, to provide micro-loans to small and high risk minority- and women-owned businesses located within their respective service areas, provided that loan review committees are established by such administering entity, including women and minority persons experienced in business management, business development, commercial lending, entrepreneurship, or in the operation of a for-profit business. (c) Agreements entered into pursuant to paragraph (b) of this subdivision shall be governed by paragraphs (d) through (h) of subdivision two of this section, and minority and women revolving loan trust fund accounts and administrative expenses trust fund accounts shall be established in a similar fashion for entities selected to administer micro-loan funds pursuant to this subdivision. (4) Minority and women contracting program. For the purpose of establishing a comprehensive program to assist minority and women contractors, the corporation may provide loans, loan guarantees, technical assistance and bonding assistance, the corporation may enter into cooperative agreements with cities, counties, municipalities, authorities, agencies, federally and state chartered credit unions in New York state and federally insured banking organizations and financial institutions for such purposes. (a) To be eligible for a contractor loan, the borrower must have either (i) a construction contract with, or a contract to provide goods or services to, a governmental entity or authority, (ii) a subcontract on a government-sponsored construction contract, (iii) a contract or subcontract on a
government sponsored residential project, or (iv) a contract or subcontract on a construction project previously approved by the corporation pursuant to section ten of this act. (b) The corporation shall provide technical assistance specifically oriented to minority and women-owned government contractors as part of its comprehensive technical assistance program. (c) The corporation is authorized to provide assistance through the creation of, or assistance to, a minority and women bonding guarantee program to enable minority and women contractors and subcontractors to meet payment or performance bonding requirements. (i) Through such program, assistance in the form of working capital loans and loan guarantees pursuant to subdivision six of this section may also be provided to minority and women contractors and subcontractors who have secured contracts by participating in the program. (ii) The corporation shall either establish criteria for the bonding guarantee program and for any required escrow funds which shall include detailed provisions for eligibility; or if the corporation is providing assistance to a program other than one established by the corporation, review and approve the criteria established for such other program. (5) Direct financial assistance for minority- and women-owned businesses. For the purpose of establishing a program to provide direct financial assistance to minority- and women-owned businesses, the corporation is authorized to provide assistance in the form of: (a) Business development loans and loan guarantees pursuant to subdivision six of this section to eligible enterprises for the acquisition or improvement of real property, machinery, equipment or working capital, provided that to be eligible for a business development loan, the borrowers must have been in business for at least three years and provided that the loans must be in an amount equal to or in excess of fifty thousand dollars; (b) Franchise loans to eligible enterprises seeking to acquire or expand franchises of nationally recognized corporations, provided that disbursements by the corporation of such loans shall be conditioned on obtaining such franchises; (c) Equity assistance for eligible minority and women-owned enterprises to match equity contributions to such enterprises by financial institutions and community development equity capital funds, provided, however, that such assistance shall be targeted to start-up and early stage enterprises in the manufacturing, retail and service sectors located in economically distressed areas. (6) Deposits and loan guarantees. For the purpose of encouraging private financial institutions to make loans to eligible enterprises pursuant to this section for any of the eligible projects pursuant to subdivisions four and five of this section, the corporation is authorized to: (a) Make linked deposits of funds into federally and state chartered credit unions in New York state, in order to encourage such organizations to make small loans to minority and women-owned businesses; and (b) Provide loan guarantees to private financial institutions for loans made to eligible minority- and women-owned businesses
pursuant to this subdivision for eligible projects, provided that the guarantee shall be at least fifty percent backed by funds of the corporation. Any such loan guaranteed by the corporation shall be made to borrowers that are approved by the corporation and substantially meet the underwriting criteria the credit union or financial institution customarily applies to similar borrowers for similar loans supported by similar guarantees, and no guaranteed loan funds shall be disbursed until the corporation has received, reviewed and concurred, in writing, with the recommendation of the credit union or banking or financial institution to make a loan. (7) Minority and women small business incubator program. (a) The corporation shall establish a minority and women small business incubator program for the purpose of providing financial support for the creation of incubators to nurture minority and women-owned business enterprises with growth potential. (b) Under this subdivision the corporation is authorized to provide low-interest loans and grants for construction financing and permanent financing of up to seventy-five percent of project costs up to a maximum of six hundred fifty thousand dollars per project, provided that the total amount of grant assistance provided pursuant to this paragraph shall not exceed twenty percent of an appropriation provided for the purposes of this section. (c) Incubator projects eligible for such assistance shall involve the renovation or reconstruction of existing facilities or the acquisition of equipment, except that construction shall be allowable in cases in which an applicant can demonstrate to the satisfaction of the corporation that an existing facility is unavailable in the area to be served by the new incubator facility. (d) Incubator projects are not eligible to receive loans for the purpose of covering operating costs or supplying incubator support services, except that incubators in their first eighteen months of operation may receive one-time grants not to exceed forty thousand dollars, which costs may include administrative costs of employing a resident administrator/advisor to the incubator, provided that the corporation shall not expend a sum greater than two hundred fifty thousand dollars in any one state fiscal year, or so much as may be specifically appropriated for this purpose. (e) Eligible incubator projects shall be required to demonstrate to the corporation's satisfaction: (i) public or private support and involvement sufficient to complete the renovation of existing facilities or the construction of new facilities and the acquisition of equipment; (ii) significant community support for the project; (iii) the existence of prospective tenants for such incubator space; (iv) demand for such incubator space, which may include evidence of the unavailability of suitable space for prospective tenants at appropriate rental or lease costs in the community in which such prospective tenants are located; and (v) the inability of the project to occur without financial assistance from the corporation.
(f) The corporation shall establish criteria for eligibility for funding for incubator projects, including but not limited to the following: (i) the project must be designed to provide low-cost space and support services to incubator tenants, coordination with other sources of assistance and flexible leasing arrangements for tenants; (ii) the project sponsors must provide a management plan and a business plan for operating the incubator satisfactory to the corporation; and (iii) the project gives preference for incubator space and assistance to minority- and women-owned businesses which currently receive, or have received, assistance from the corporation pursuant to this section and to incubator projects proposed to be located in economically distressed areas. (8) Minority- and women-owned business technical assistance program. (a) The corporation shall establish a comprehensive technical assistance program within the minority and women business development office, in cooperation with the department of economic development's division of minority- and women-business development established pursuant to article four-A of the economic development law, to provide technical assistance to minority- and women-owned business enterprises and to prospective minority- and women-business entrepreneurs through third party service providers, which assistance shall include, but not be limited to: (i) technical assistance in development and execution of business plans, including the formation of, acquisition of, management of, or diversification of a minority- or women-owned business enterprise; (ii) technical assistance with applications for obtaining funds from public and private financing sources; (iii) technical assistance in the development of a working capital budget; (iv) referrals to other providers of technical assistance to minority- and women-owned businesses and minority and women entrepreneurs, where appropriate, including the entrepreneurial assistance program established pursuant to article nine of the economic development law; and (v) technical assistance through education programs directed primarily at women and minority entrepreneurs. (b) Technical assistance may be provided through direct corporate support, through grants to or contracts with service providers or governmental entities, and minority- and women-owned business enterprises and individuals. (9) Priorities. The corporation shall give priority to applications for assistance pursuant to this section in which the business seeking such assistance indicates a commitment to first consider persons eligible to participate in federal job training partnership act (P.L. 97-300) programs. (10) Non-application of certain provisions. The provisions of section ten and subdivision two of section sixteen of this act shall not apply to assistance or projects authorized pursuant to this section. (11) Rules and regulations. The corporation shall, assisted by the commissioner of economic development and in consultation with the department of economic development, promulgate rules and regulations in accordance with the state administrative procedure act. Such rules and regulations shall be consistent with the program plan required by subdivision nineteen of section one hundred of the economic development law. No funds
shall be disbursed under this program until such rules and regulations have been reviewed and approved by the corporation. All assistance and projects funded under this program shall be funded in accordance with the rules and regulations in effect on the date the completed application for such assistance shall be received by the corporation. (12) Minority and women business development and lending account. Notwithstanding any provision of law to the contrary, the corporation shall establish within the treasury of the corporation a minority and women business development and lending account, and shall pay into such account any moneys which may be made available to the corporation for this purpose from any source including, but not limited to, moneys appropriated by the state and any repayment of principal and interest on loans made by the corporation pursuant to the minority- and women-owned business development and lending program. Funds in the minority and women business development and lending account, including funds from the repayment of principal and interest on loans made by the corporation, may be used for any form of assistance authorized hereunder. The amounts deposited in the minority and women business development and lending account may not be interchanged with any other account, but may be commingled with any other account for investment purposes. All loans disbursed by the corporation shall be repaid into the account. The corporation shall enter into a written agreement with the director of the budget for repayment, to the state comptroller to the credit of the capital projects fund, of all moneys in the account after a period of time to be determined by the corporation and the director of the budget. The corporation shall transfer to the minority and women business development and lending account: all moneys appropriated or reappropriated by New York state for the minority and women revolving loan trust fund that have not been committed prior to the effective date of the appropriation for the program in the current fiscal year, or become uncommitted subsequent to the effective date of the program's appropriation for the current fiscal year; and all repayments of principal and interest on loans made by the corporation which are currently on deposit in, or payable to, the minority and women business development and lending account. (13) Standardization. The corporation shall streamline the review and approval process for projects and wherever possible standardize all relevant attendant documentation and legal documents. (14) Approval cycle. The corporation shall approve eligible loans or grants on at least a four-month cycle and shall give priority consideration to the comparative degree of economic distress within the areas in which the project is located. Other factors to be considered by the corporation shall include the impact of the project on the employment and economic condition of the community and the financial feasibility of the project. (15) Repayment. Notwithstanding the provisions of section forty-a of the state finance law and any other general or special law, no written agreement under this program shall require repayment at any time or on any terms inconsistent with the provisions of this act or the New York state project finance agency act; except, however, that the corporation may make
grants to projects using funds appropriated for this purpose and that the repayment provision may not apply to such grants. (16) Reports. The chairman of the corporation shall submit to the director of the budget, the speaker of the assembly and the temporary president of the senate an evaluation of the effectiveness of the program prepared by an entity independent of the corporation. The corporation shall select the program evaluator through a request for proposal process. Such evaluation shall determine whether the assistance provided has enhanced the economic condition of assisted companies or communities, and shall make recommendation for improvements which would make the program more effective. Such evaluation shall be submitted by September first, nineteen hundred ninety-five and September first every two years thereafter. § 16-d. Urban and community development program. (1) Definitions. For the purposes of this section: (a) "Business improvement district" shall mean a special assessment district established pursuant to article nineteen-A of the general municipal law. (b) "Business district" or "central business district" shall mean the central district of a municipality or neighborhood area traditionally used for commercial purposes. (c) "Commercial strip" shall mean a predominantly commercial area traditionally used for commercial purposes which may not be the primary business district and which is one of several commercial districts in the municipality in which it is located. (d) "Economically distressed areas" shall mean areas as determined by the corporation meeting criteria indicative of economic distress, including unemployment rate; rate of employment change; percentages and numbers of low-income persons; per capita income and per capita real property wealth; such other indicators of distress as the corporation shall determine. Economically distressed areas may include cities, municipalities, block numbering areas, and census tracts. (e) "Highly distressed" shall mean suffering from severe economic distress as determined by the corporation using criteria similar to those set forth in subdivision (a) of section nine hundred fifty-eight of article eighteen-B of the general municipal law for determining eligibility for empire zone status. (f) "Not-for-profit corporation" shall mean a corporation organized under the provisions of the not-for-profit corporation law. (2) Urban and community development program. The corporation shall establish an urban and community development program which shall offer the following assistance: (a) Urban and community development assistance grants pursuant to subdivision five of this section. (b) Urban and community project development assistance pursuant to subdivision six of this section. (c) Neighborhood and community partnership assistance pursuant to subdivision seven of this section. (d) Urban and community commercial revitalization revolving loan fund assistance pursuant to subdivision eight of this section. (e) Urban and community technical assistance pursuant to subdivision nine of this section.
(3) Applications. Applications for support under this program shall be made in a form and manner as determined by the corporation and applicants shall be required to meet the criteria and requirements established by the corporation, which shall include but not be limited to: (a) Factors of economic distress; (b) The extent of support for, and involvement in, the program or project of units of local government, the local business community and local economic development professionals; and (c) Such other requirements as are necessary to implement the provisions of this section. (4) Preference. Preference will be given to projects which are located in highly distressed communities, and for which other public or private funding sources are not available. (5) Urban and community development assistance grants. (a) Grants awarded under this subdivision shall be awarded on a competitive basis, in response to requests for proposals, and through direct applications accepted at other times at the discretion of the corporation, distributed to business improvement districts, local development corporations, municipalities and other not-for-profit economic development organizations by the corporation for the purpose of soliciting applications. Requests for proposals under this subdivision shall set forth such criteria as the corporation deems necessary, including those set forth in subdivision three of this section and including, but not limited to the following: (i) the potential impact the proposed project would have on economic development and employment opportunities in the community and the region; and (ii) the existence of significant support for such activities from the local business community, local government and community organizations within the community, including the commitment of financial resources. (b) The corporation is hereby authorized, under this subdivision to: (i) provide grants to business improvement districts, local development corporations, other not-for-profit economic development organizations, and municipalities involved in commercial revitalization activities in central business districts or commercial strips, such activities to include architectural design studies and services and other redevelopment work in connection with the design and implementation of a plan for facade and other improvements to commercial strips and central business districts throughout New York state. Such grants may include monies available for individual property owners and/or tenants who agree to improve their property in accordance with an overall design plan, provided that, such individual property owners and/or tenants shall be required to match the amount of any grant awarded to them. (ii) provide grants to local development corporations, business improvement districts and other not-for-profit organizations for studies, surveys or reports, and feasibility studies and preliminary planning studies to assess a particular site or sites or facility or facilities for any economic development purpose other than residential; and to identify development opportunities within established business improvement districts.
(iii) provide urban planning grants on a matching basis to cities, counties, or municipalities desiring to prepare and develop strategic development plans for a city, county, or municipality or a significant part thereof. (iv) provide grants to municipalities for studies, surveys, or reports and feasibility studies or preliminary planning studies to assess the economic viability and local credit needs of the community for the purposes of establishing a banking development district pursuant to section ninety-six-d of the banking law. (c) Notwithstanding anything contained to the contrary in this subdivision, section ten and subdivision two of section sixteen of this act shall not apply to any grants authorized under this subdivision. (6) Urban and community project development assistance. (a) Grants, loans and loan guarantees authorized pursuant to this subdivision shall be limited to fifty percent of the actual cost of the proposed projects, and shall be located in empire zones designated pursuant to article eighteen-B of the general municipal law or in highly distressed areas. (b) The corporation is hereby authorized, under this subdivision to: provide loans, loan guarantees and grants for projects as set forth in paragraph (c) of this subdivision, and to provide project development assistance by the corporation acting as a project developer pursuant to paragraph (d) of this subdivision. (c) Project development loans, loan guarantees and grants. (i) The corporation may make loans, loan guarantees and grants in accordance with the provisions of this act for which no other funds of the corporation are available, with the exception of the appropriations for this program and moneys reappropriated under the high risk targeted investment program, for the acquisition, renovation, and construction of commercial industrial and mixed-use facilities, or for feasibility or planning studies in connection with such development. (ii) Such projects shall include projects related to the implementation of necessary construction and reconstruction projects identified or planned under grants received pursuant to subdivision five of this section. (iii) Projects intended to be publicly-owned shall not be eligible for financial assistance in connection with the acquisition, construction or renovation of a facility or development hereunder unless such project is leased to a private enterprise. (d) Notwithstanding anything contained to the contrary in this subdivision, section ten and subdivision two of section sixteen of this act shall not apply to any feasibility grants or planning studies authorized under paragraph (c) of this subdivision. (e) Project development assistance. (i) The corporation may act as developer in the acquisition, renovation, construction, leasing or sale of development projects, other than residential projects, authorized pursuant to this act in order to stimulate private sector investment within the affected community. (ii) In acting as a developer, the corporation may borrow for purposes of this paragraph for approved projects in which the lender's recourse is solely to the assets of the project, and may make such arrangements and agreements with community-based
organizations and local development corporations as may be required to carry out the purposes of this section. (iii) Prior to developing any such project, the corporation shall secure a firm commitment from entities, independent of the corporation, for the purchase or lease of such project. (iv) Projects authorized under this paragraph whether developed by the corporation or a private developer, must be located in either state-designated empire zones or in highly distressed communities. (v) The corporation, for purposes of this paragraph shall only select projects that have project costs not to exceed three million dollars of which the corporation's participation shall not exceed sixty percent of the total, for which there is a demonstrated demand within the particular community. (f) Any other provisions of this subdivision notwithstanding, the corporation may establish a loan guarantee program in conjunction with banks and other financial institutions to guarantee working capital loans and loans for real estate, construction and renovations to not-for-profit community and economic development organizations that serve highly distressed areas. (7) Neighborhood and community partnership. (a) There is hereby created within the urban and community development program a neighborhood and community partnership program which shall be used to support regional and local activities designed to retain existing businesses and jobs within a region or locality, increase the viability of existing businesses, and stimulate and encourage the formation of new enterprises and small business growth. (b) The corporation shall, within available appropriations, award grants or enter into contracts for services to eligible entities and organizations as set forth in this subdivision on a competitive basis, in response to requests for proposals, and through direct applications accepted at other times at the discretion of the corporation. Grants shall not exceed one hundred thousand dollars per project, and an applicant shall be permitted to apply for support in more than one project area listed under paragraph (e) of this subdivision, but the sum total of grants received under this subdivision by any one applicant for more than one project approved under paragraph (e) of this subdivision shall not exceed two hundred fifty thousand dollars. (c) For the purposes of this subdivision the corporation shall enter into annual contracts for services or award grants in an amount not to exceed fifty percent of program or project costs in economically distressed areas, or forty percent of such costs for eligible projects or programs in non-economically distressed areas, or seventy percent of program or project costs in empire zones established pursuant to article eighteen-B of the general municipal law. (d) The corporation shall enter into no more than one contract or make more than one grant per year per application under this subdivision regardless of the number of projects for which an applicant has applied and for which funding has been approved. In the case of applications for multiple projects to be conducted by a single applicant, the corporation may, at its discretion, provide a grant or enter into a contract for
services with the applicant for some or all of the projects for which an applicant has applied. (e) Not-for-profit corporations, business improvement districts and community development organizations shall be eligible to apply for support under this subdivision to operate a program or programs of business and economic development services to stabilize, retain or revitalize existing businesses, and to assist small and new businesses, including, but not limited to assistance to individual businesses or business sectors in such project areas as: (i) the analysis of industrial sectors; (ii) the provision of services, such as regulatory compliance, security and marketing, to industries; (iii) productivity assistance to mature industries and small businesses, including but not limited to, high performance work organization and quality improvement programs; (iv) labor-management cooperation specific to an area or industry; (v) management services to industrial parks and incubator facilities; (vi) the creation of business support networks, including flexible manufacturing networks composed of small businesses, surveys of existing businesses and business sectors, the formation of quality networks, the targeting of firms or sectors with networking potential, analysis of network firms' production potential, group marketing, group purchasing, shared employee programs, and the establishment of regular lines of communication between such firms; (vii) the establishment and staffing of network service centers for flexible manufacturing networks, combining business services, marketing/procurement assistance, and technology demonstration/training centers, such centers to be industry managed and to maintain strong connections to labor unions, universities, and the services provided through the industrial effectiveness program pursuant to article seven of the economic development law, local or federal economic assistance programs; (viii) export, marketing, procurement and subcontracting assistance to small and medium-sized industrial firms, including minority- and women-owned businesses, and to flexible manufacturing networks, and programs to assist regional and multi-county business marketing and procurement programs; (ix) assistance to targeted incubator facilities to support new firms producing products and services for which there exists a stable demand but no local production; (x) business planning, management assistance and counseling, and financial packaging assistance to small and medium-sized industrial firms, including minority- and women-owned businesses, flexible manufacturing networks, and new enterprises and small businesses, including the establishment of neighborhood-based business service centers designed to deliver comprehensive technical assistance to new and small businesses in specific communities and neighborhoods; (xi) programs to assist economically distressed regions and communities to identify new business opportunities, plan for new enterprise development, and manage economic development projects; (xii) innovative programs of public and private cooperation to foster new enterprise development and small business growth;
(xiii) programs to assist new enterprises and small businesses to identify and access public and private sources of equity, working capital and other types of financing; (xiv) programs that improve the ability of small businesses to access state job training programs; (xv) programs to assess the need for, or to implement total quality management training programs, employee retraining, and skills remediation and/or upgrading; (xvi) employment exchange services such as job placement and job development; (xvii) tourism matching grants to regions, as defined by the commissioner of economic development, to conduct tourism marketing, promotion and information activities; (xviii) programs to assist small businesses in developing workplace policies, including but not limited to the design of employee benefit and assistance programs and developing child care programs; (xix) assistance to formulate and implement a business retention strategy developed by the corporation in cooperation with a local development corporation. Such assistance may include grants to local development corporations as well as funding for services and expenses for that purpose. (g) Applications for support or assistance under this subdivision shall be made in a form and manner as determined by the corporation, and applicants shall be required to meet the criteria and requirements set forth in subdivision three of this section and other criteria and requirements determined by the corporation pursuant to this act, including: (i) the likelihood that state assistance will enable local not-for-profit organizations or other eligible organizations to provide services and activities not otherwise provided in the area served by the applicant; (ii) the potential of the project or program to stimulate or enhance economic development in the area and to create or retain substantial, permanent private sector jobs; (iii) the innovative nature of the proposed project or program in furtherance of community economic development; and (iv) the demonstrated ability of the applicant to deliver the proposed assistance and services. (h) Projects and programs in communities that do not qualify as economically distressed areas shall be eligible for funding under this subdivision if such projects meet one or more of the following purposes: (i) projects located in a non-distressed area that will significantly contribute to the revitalization of an economically distressed area; (ii) support for business development projects of women, members of minority groups, or dislocated workers; (iii) assistance to small or medium-sized manufacturing firms which are seeking to modernize to remain competitive; (iv) projects to diversify the economic base of a community heavily dependent on a single industry; (v) projects that will prevent the loss or significant contraction of a company which is the primary employer in a community, or where loss of a company would have a major adverse impact on a community's overall economic condition; (vi) projects involving expanding companies that will create substantial numbers of new, private sector jobs;
(vii) projects creating permanent private sector jobs for dislocated workers, public assistance recipients, or the long-term unemployed; or (viii) projects that are an integral part of a community commercial revitalization strategy which contributes to the economic health of a community, including the provision of matching funds to newly formed business improvement districts pursuant to paragraph (i) of this subdivision. (i) Notwithstanding any other subdivision of this section, the corporation may make grants to newly formed small- and medium-sized business improvement districts during their first three years of operation. Such grants shall provide up to sixty-six percent of eligible project costs in highly distressed areas and up to fifty percent of project costs in distressed areas. (j) Notwithstanding anything contained to the contrary in this subdivision, section ten and subdivision two of section sixteen of this act shall not apply to any grants authorized under this subdivision. (8) Urban and community commercial revitalization revolving loan and loan guarantee fund. (a) The corporation shall, from any appropriations made available for this purpose, establish an urban and community commercial revitalization revolving loan fund account and a related administrative expenses trust fund account in order to stimulate the development of central business districts and commercial strips through a decentralized lending program operated in conjunction with business improvement districts, local development corporations and other not-for-profit corporations serving central business districts or commercial strips. Assistance from this subdivision will be awarded through a competitive process initiated by the urban development corporation, which includes a request for proposals as well as direct applications accepted at other times at the discretion of the corporation. (b) Loans and loan guarantees made from the urban and community commercial revitalization revolving loan fund shall be for improvements, expansions, and start-ups of businesses located in central business districts and commercial strips. (c) Such loans and loan guarantees shall be administered by qualified business improvement districts, local development corporations and other not-for-profit corporations designated by the corporation on a competitive basis pursuant to a request for proposals process. (d) For the purpose of this subdivision, "local trust fund account" and "local revolving loan fund" shall mean a local urban and community commercial revitalization revolving loan fund account. (e) The corporation shall pay into such fund any monies made available to the corporation for such fund from any source including monies appropriated by the state and any income earned by, or incremental to, the fund due to the investment thereof, or any repayment of monies advanced from the fund. The monies held in or credited to the fund shall be expended for the purposes set forth in this subdivision and may not be interchanged with any other account or fund, but may be commingled with any other account for investment purposes. All loans disbursed by the corporation from such fund shall be repaid into the fund.
(f) The corporation shall allocate any monies made available for such fund for the purpose of establishing local trust fund accounts and a corresponding number of local administrative expenses trust fund accounts. (g) The corporation shall establish a local administrative expenses trust fund account for the benefit of each entity selected to administer a local trust fund account pursuant to the following conditions: (i) the initial deposit in each local administrative expenses trust fund account shall be in an amount to be determined by the corporation, but shall not exceed twenty-five thousand dollars; (ii) an entity designated to administer a local trust fund account may use the funds in its local administrative expenses trust fund account for expenses incurred by it in the start-up and administration of the financial and technical assistance programs it is required to administer under this section; and (iii) the corporation shall also deposit into each local administrative expenses trust fund account: (A) all income earned from the moneys on deposit in the corresponding local loan trust fund account during the first year of the entity's administration of said account. Beginning with its second year in administering a local revolving loan trust fund account, said amounts may be used for costs incurred by the entity in administering the local revolving loan trust fund account; and (B) repayments of interest on loans made from the corresponding local revolving loan trust fund account. Such funds may be used for costs incurred at any time by an administering entity in its administration of a local revolving loan trust fund hereunder; (iv) funds deposited in an administrative expenses trust fund account shall be disbursed by the corporation to the entity that administers the corresponding local revolving loan trust fund account on a semiannual basis and shall be expended by the entity in accordance with a semiannual budget and any updates of same approved by the corporation. (h) To be eligible to apply for designation to administer a local trust fund account, a not-for-profit corporation shall be required to: (i) have represented on its board of directors, in such cases where an area to be served by a local trust fund account has located within its service area an empire zone designated pursuant to section nine hundred sixty of the general municipal law, one or more of the following: (A) an empire zone capital corporation if established pursuant to section nine hundred sixty-four of the general municipal law; or (B) community based local development corporations, industrial development agencies, or other not-for-profit entities which serve a municipality in which an empire zone has been established and which, as one of their primary purposes, provide services and assistance to business enterprises located or to be located in such empire zone, including minority- and women-owned businesses; (ii) have represented on its board of directors, selected local and community development corporations, industrial development agencies, and other not-for-profit entities that provide services to community businesses and, as one of their
primary purposes, provide services and assistance to business enterprises located in central business districts or commercial strips; (iii) have strong written commitments from any empire zone capital corporation, local and community development corporation, industrial development agency, and other not-for-profit entities, if represented on its board, to assist the not-for-profit corporation in administering the local trust fund account, including the provision of business planning, loan application preparation, loan application analysis, management and other technical assistance as needed; (iv) have staff, or have access to staff from organizations which participate in the administration of a designated local revolving loan trust fund with sufficient expertise to analyze applications for financial assistance, to regularly monitor financial assistance to clients, and to provide or arrange for the provision of management or technical assistance to clients; (v) have an effective plan to market its services and market programs provided by the corporation and the department of economic development; and (vi) have established a loan committee composed of six or more persons experienced in business management, commercial lending or in the operation of a for-profit business. Such committee shall review every application submitted by an eligible entity for financial assistance from the local trust fund account and shall determine the feasibility of the project proposed in the application and the likelihood of repayment of the requested financing and recommend to the governing body of the eligible entity such action as the loan committee deems appropriate. (i) Any entity selected to administer a local revolving loan trust fund account shall be eligible to draw funds from the account as needed to provide the following types of financial assistance to eligible businesses upon certification to and acceptance by the corporation that such assistance complies with rules and regulations promulgated by the corporation: (i) working capital loans, provided that the amount of the loan does not exceed fifteen thousand dollars and the term of the loan does not exceed five years; and (ii) loans for the acquisition and/or improvement of real property and for the acquisition of machinery and equipment, provided that the amount of the loan does not exceed twenty thousand dollars and the term of the loan does not exceed the useful life of the equipment or property. (j) Any other provisions of this subdivision notwithstanding, the corporation may enter into agreements for other types of locally, community or regionally administered loan programs interested in making small loans, including micro-loans, administered by municipalities and not-for-profit organizations, to provide loans to businesses located in commercial strips and central business districts located within their respective service areas, provided that: (i) the corporation must secure certification from an entity administering such a program that the loans will be made to businesses through these agreements and meet the purposes and requirements set forth pursuant to this subdivision; (ii) loan review committees are established by each such administering entity and that each entity designated under this paragraph have established a loan committee composed of six or
more persons experienced in business management, commercial lending or in the operation of a for-profit business; (iii) no other entity eligible under this subdivision which satisfactorily meets all requirements of this program has applied to meet the needs of an area proposed to be served under this paragraph; and (iv) the corporation shall not expend any more than twenty-five percent of the amount appropriated for programs pursuant to this subdivision in any one fiscal year, or an amount appropriated specifically for the purpose of this paragraph. (k) An entity designated to administer such a revolving loan trust fund account shall pay to the corporation for deposit any repayments received in connection with financial assistance provided from such account pursuant to the following: (i) payments consisting of the repayment of the principal amount of a loan shall be deposited by the corporation in the local trust fund account from which the loan was made; and (ii) the interest earned from the investment, by the corporation, of monies in each local revolving loan trust fund during and after the second year of a selected entity's administration of said account shall be deposited by the corporation into the corresponding local revolving loan trust fund account and used to provide the financial assistance to businesses located in commercial strips and central business districts. (l) The decision to approve or reject an application for financial assistance pursuant to the provisions of this subdivision shall be made by the majority of the board of directors of the entity designated to administer the local revolving loan trust fund account and such decision shall be final. (m) An entity designated to administer a local revolving loan trust fund account shall not provide any financial assistance authorized by this subdivision unless the following conditions are met: (i) the applicant has a minimum equity interest of at least ten percent in the project; (ii) there is reasonable prospect of repayment; (iii) the project will comply with applicable environmental rules and regulations; (iv) the applicant has certified that it will not discriminate against any employee or any applicant for employment because of race, religion, color, national origin, sex, or age; and (v) a staff member or a representative of the entity designated to administer the local revolving loan trust fund account acting in an official capacity has personally visited the project site or the applicant's place of business. (n) Financial assistance from the local trust fund shall not be made available for: (i) projects that would result in the relocation of any business operation from one municipality within the state to another, provided, however, that such a project shall not be deemed ineligible if all municipalities from which such business will be relocated are notified in writing of the corporation's approval of such funding and the chief executive officers of the municipalities do not object to the corporation in writing within a period of twenty days of receipt of the notification;
(ii) refinancing any portion of the total project cost or other existing loans or debts of an applicant, except for the purpose of transferring to the employees or to other local interests ownership of a company that would otherwise depart from or cease or substantially reduce operations in the state; and (iii) providing funds, directly or indirectly, for payment, distribution, or as a loan, to owners, partners or shareholders of the applicant enterprise, except as ordinary income for services rendered. (o) An entity designated to administer a local revolving loan trust fund account may charge application, commitment and loan guarantee fees pursuant to a schedule of fees adopted by such entity and approved by the corporation. (p) An entity designated to administer a local revolving loan trust fund account shall submit annual reports to the corporation describing the financial assistance provided pursuant to this subdivision, including: (i) the number of projects assisted, the amount and type of assistance provided and a description of the projects; (ii) the number of jobs created or retained; and (iii) such other information as the corporation may require. (q) The corporation shall, assisted by the commissioner of economic development and in consultation with the department of economic development, promulgate rules and regulations in accordance with the state administrative procedure act to implement the provisions of the urban and community commercial revitalization revolving loan fund established pursuant to this subdivision, and to implement such revolving loan trust fund established pursuant to this subdivision, setting forth procedures to be followed by, and the responsibilities and obligations of, entities designated to administer local trust fund accounts. Such rules and regulations shall be consistent with the program plan required by subdivision nineteen of section one hundred of the economic development law. No funds shall be disbursed from amounts appropriated to implement the provisions of this section until such rules and regulations have been reviewed and approved by the commissioner of economic development and the director of the budget. (9) Urban and community technical assistance. There is hereby established within the urban and community development program an urban and community technical assistance program. Assistance awarded under this subdivision shall be awarded on a competitive basis, in response to requests for proposals and through direct applications accepted at other times at the discretion of the corporation. The corporation shall, from appropriations made available therefor, provide assistance for the purpose of developing the capacity of local and regional development organizations and communities to undertake economic development initiatives by: (a) Conducting outreach to communities in areas where little, if any, economic development capacity exists, including identifying potential applicants and providing assistance to potential applicants in completing the application process for assistance and meeting eligibility requirements for federal, state and local programs. Assistance may be provided through grants to not-for-profit economic development organizations and through the deployment by the corporation of circuit riders.
(b) Providing community building grants to not-for-profit economic development or community development organizations where necessary, in organizing for economic development, analyzing potential development opportunities or obstacles to development, and developing economic development strategies, including feasibility studies for the creation of business improvement districts in highly distressed areas. (c) Providing technical and financial packaging assistance to not-for-profit community development and economic development organizations through grants to third party providers of such services. (d) Contracting with third parties for the purpose of providing technical assistance to municipalities, not-for-profit organizations, local development corporations, local empire zone administrative boards, or business improvement districts to analyze potential development opportunities or obstacles. (e) Providing grants to not-for-profit economic development or community development organizations for approved costs to strengthen their capacity to implement economic development, job creation, or business retention strategies, including assistance to enable such organizations to provide technical and financial packaging assistance to local businesses, manage economic development projects, and provide other economic development services that are identified in their strategic plans. (f) Creating an urban internship program to provide training and field experience to individuals committed to working in highly distressed communities. (g) Organizing and coordinating seminars and conferences to facilitate the exchange of information regarding commercial revitalization strategies. (h) Establishing a community revitalization economic self-help program to assist public officials, community leaders, economic development and community groups to undertake an economic development planning process and to organize for economic development. Eligible applicants for assistance under this paragraph shall consist of a municipality or a consortium of municipalities from a region of the state, such regions as established by the commissioner of the department of economic development pursuant to section two hundred thirty of the economic development law. (i) Each training program shall require each participating municipality to: (A) establish an economic development planning group; (B) undertake a community profile and needs assessment; (C) undertake labor market and resource surveys; and (D) produce a five-year strategic plan and a one-year work program. (ii) Requests from municipalities or consortia of municipalities for technical assistance under this paragraph shall be made directly to the corporation or through the regional offices of the department of economic development. (iii) Participating municipalities shall be required to provide matching funds in an amount at least equal to any funds provided by the corporation under this paragraph. (iv) The corporation is authorized to enter into cooperative agreements with statewide and regional economic development organizations in New York state, acting as consultants, to conduct joint training programs to train and educate local
officials and economic development practitioners pursuant to this paragraph. Any contract for services with such organizations shall not exceed the sum of fifty thousand dollars for the conduct of each training program. (10) Standard project program application. The corporation shall, for assistance provided in this program, develop and use standard project program applications pursuant to rules and regulations, which shall be promulgated by the corporation in accordance with the state administrative procedure act. (11) Standardization. The corporation shall streamline the review and approval process for projects and shall standardize all relevant attendant documentation and legal documents. (12) Master agreement. The corporation shall enter into a written master agreement with the director of the budget providing for repayment by such corporation to the state of New York of all amounts expended by the state from such appropriation for loans, on terms which may include interest thereon at a rate per annum to be determined by the director of the budget and a copy of such agreement shall be filed with the state comptroller, the chairman of the senate finance committee and the chairman of the assembly ways and means committee. (13) Repayment. Notwithstanding the provisions of section forty-a of the state finance law and any other general or special law, such written agreement shall not require repayment at any time or on any terms inconsistent with the provisions of this act or the New York state project finance agency act. Except, however, that the corporation may make grants to projects using funds appropriated for this purpose and that the repayment provision may not apply to such grants. (14) Report. The corporation shall: (a) Monitor the performance of each recipient of a grant or contract under the provisions of this section and require periodic and annual reports from each such recipient at such time and in such a manner as prescribed by the chairman. (b) Submit to the director of the budget, the speaker of the assembly and the temporary president of the senate an evaluation of the effectiveness of the urban and community development program prepared by an entity independent of the corporation. The corporation shall select the program evaluator through a request for proposal process. Such evaluation shall discuss the variety and types of programs supported by the corporation under this program; and, as appropriate, the extent to which the program has served to create and maintain jobs; the extent to which the program has helped to increase the vitality of local communities; the extent to which the program is coordinated with other related state and local assistance programs; the extent to which the program serves minorities and women; the extent to which the program serves urban and rural areas; the extent to which the program serves economically distressed and highly distressed areas; the extent to which the program has helped to increase the capacity of local governments and organizations to undertake economic development activities; and such other components as the commissioner of economic development shall deem appropriate; and shall make recommendations for improvements which would make the program more effective. Such evaluation shall be submitted by September first, nineteen hundred ninety-five and by September first every two years thereafter.
§ 16-e. Regional economic development partnership program. (1) For the purposes of this section, the following words and terms shall have the following meanings: (a) "Business development project". A project involving an industrial, manufacturing, commercial, research and development, high technology, tourism, agricultural or service company. (b) "Business infrastructure project". A project involving an industrial, manufacturing, commercial, research and development, high technology, tourism, agricultural or service company which shall include, but not be limited to, basic systems and facilities on public or privately owned property including drainage systems, sewer systems, access roads, sidewalks, docks, wharves, water supply systems, and site clearance, preparation, improvements, and demolition. (c) "Child care assistance project". A project for the establishment, expansion, and development of licensed not-for-profit child day care centers which serve the needs of small and medium-sized commercial, industrial, service and other small and medium-sized businesses, health-related businesses and degree-granting institutions of higher education. (d) "Infrastructure investment project". A project consisting solely of site preparation, clearance and demolition on property owned by a municipality, local development corporation, urban renewal agency or industrial development agency designated by a municipality. (e) "Infrastructure planning projects" shall mean projects consisting solely of planning, including the preparation of schematic designs and preliminary environmental assessments for a business infrastructure project or an infrastructure investment project. (f) "Skills training assistance". A project related to the provision of firm-specific or industry-specific employee retraining, skills upgrading, and productivity enhancement, including assessment and training related to the implementation of high-performance work organization strategies. (g) "Tourism destination". A location or facility which is likely to attract a significant number of visitors from outside the region. (h) "Revolving loan fund account grants" shall include: (i) grants to provide the local match for federally funded community-based loan funds; (ii) grants to capitalize and recapitalize regional revolving loan trust fund accounts pursuant to section sixteen-a of this act; and (iii) grants to recapitalize minority and women revolving loan trust fund accounts established pursuant to section sixteen-c of this act. (2) Loans and grants. The corporation may make loans and grants for regional strategic planning, business development projects, business infrastructure and infrastructure investment projects, skills training assistance projects, economic development assistance projects, and child care assistance projects, that create or retain permanent private-sector jobs. Such projects and programs except as specifically provided herein: (a) Must be consistent with a regional strategic plan for economic development, as coordinated by the chairman of the corporation and approved by the director of the budget, with copies filed with the speaker of the assembly and the temporary president of the senate;
(b) Must create or retain substantial permanent private-sector jobs in the case of business development loans and business infrastructure projects, or in the case of a child care assistance project the corporation determines that the child day care center will improve or maintain the productivity of the sponsoring company or companies; (c) Must be reasonably likely to be completed within the time and cost estimates presented in the proposal; and (d) Must be unable to obtain sufficient funding on reasonable terms from other public or private sources to permit the project to proceed without the requested assistance; and (3) Ineligible projects. Ineligible projects shall include retail businesses, overnight lodging facilities, debt refinancing, or the relocation of a business from one municipality within the state to another municipality, provided, however, that such a project shall not be deemed ineligible if all municipalities from which such business will be relocated are notified in writing of the corporation's approval of such funding and the chief executive officers of the municipalities do not object to the corporation in writing within a period of twenty days of receipt of the notification. (4) Nonapplication to certain grants and projects. Section ten and subdivision two of section sixteen of this act shall not apply to grants and projects funded pursuant to the provisions of this section. (5) Business development project loans. (a) Business development project loans made by the corporation: (i) may be for working capital, the purchase or leasing of equipment and machinery, land acquisition, and the acquisition, renovation or construction of facilities; (ii) shall not exceed one-third of the total project cost or five hundred thousand dollars, whichever is less; and (iii) shall be at interest rates that are necessary to make the project feasible, as determined by the corporation. (b) Notwithstanding section five of this act, no more than twenty percent of the funds available for business development projects shall be grants limited to: (i) interest subsidies to reduce costs of financing projects that demonstrate an inability to occur without subsidy, which shall not exceed one-third of project cost or four hundred thousand dollars, whichever is less; and (ii) feasibility studies of the transfer of ownership to local interests of a company which shall not exceed forty thousand dollars. (c) The corporation may make loans or grants for business development projects in economically distressed areas and in other areas; provided, however, that in the case of other areas, the project furthers: (i) business development by women, minorities, or unemployed persons; (ii) modernization and productivity improvements by eligible firms; (iii) diversification of the economic base of a community; (iv) creation of substantial, permanent private-sector jobs, including jobs for dislocated workers, public assistance recipients, disadvantaged youth, or long-term unemployed persons;
(v) retention of jobs involving companies at imminent risk of reducing employment; (vi) prevention of the loss of a primary employer which will have a major adverse impact on the economic condition of a community; or (vii) furthers the development of a tourism destination. (6) Business infrastructure projects. (a) The corporation may make loans and grants to businesses, municipalities, industrial development agencies and local, county or regional development corporations designated by local governments for specific business infrastructure projects directly related and essential to specific business developments. (b) Grants and loans for infrastructure projects may be made in areas encompassed by empire zones established pursuant to article eighteen-b of the general municipal law and in other areas, except that in the case of other areas, a project loan or grant for a business infrastructure project must be for one of the purposes authorized for business development projects in such areas pursuant to paragraph (c) of subdivision five of this section, and shall be available only where there is a firm commitment by a company to carry out a related business development to create or retain substantial permanent private-sector jobs. (c) Assistance for business infrastructure projects shall not exceed forty-nine percent of the total project cost or seven hundred fifty thousand dollars, whichever is less. Loans for such projects shall be at interest rates determined by the corporation, that are necessary to make the project feasible. (d) No more than fifty percent of funds available from the corporation for any infrastructure project not located in an empire zone, and no more than sixty percent of the funds available from the corporation for any infrastructure project located in an empire zone shall be disbursed as a grant. (7) Infrastructure investment projects. Notwithstanding paragraph (b) of subdivision two of this section, grants may be made by the corporation for up to four hundred thousand dollars or eighty percent of the total project cost, whichever is less, for infrastructure investment projects which: (a) Meet highly distressed area criteria as defined in article eighteen-b of the general municipal law; (b) Are part of an economic development or urban renewal plan to attract, retain or permit the expansion of an industrial, manufacturing, research and development, high-technology, tourism, service, food processing or distribution company; and (c) Are located in areas that are zoned industrial or commercial. (8) Infrastructure planning projects. The corporation may make infrastructure planning project grants in an amount not to exceed twenty-five thousand dollars or fifty percent of project costs, whichever is less, for the purpose of conducting preliminary planning on business infrastructure development and infrastructure investment projects that meet the criteria set forth in subdivisions six and seven of this section. (9) Tourism destination projects. (a) The corporation may make business development and business infrastructure loans and grants for tourism destination projects. Such projects must: (i) involve the development of a recreational, educational, cultural or historical facility;
(ii) significantly contribute to the development of a tourism destination; and (iii) either (A) involve construction of a new facility that will encourage investment in an area where a shortage of tourism-related facilities, attractions or services has deterred business growth and where the proposed facility would significantly increase overall business activity and the marketability of the location as a tourism destination; or (B) improve an existing recreational, educational, or cultural or historical facility where the proposed improvement would significantly increase overall business activity and the marketability of the location as a tourism destination. (b) The corporation may make grants involving the regional marketing of tourism destinations, including commercial tourism destination areas, where an increase of visitors to such areas will contribute to the stability and economic viability of the area. (c) Preference shall be given to tourism destination projects which attract a significant number of visitors from outside the state, provided, however, that funding priority shall be given to tourism destination projects in distressed areas of the state. (d) No assistance shall be provided pursuant to this subdivision to finance a tourism destination project consisting solely of overnight lodging facilities or retail businesses. Provided, however, that nothing contained herein shall prohibit the corporation from providing assistance to a tourism destination project which includes such facilities or businesses. (10) Economic development assistance grants. (a) The corporation shall, within available appropriations, award grants or enter into contracts for services to eligible entities and organizations as set forth in this subdivision on a competitive basis and in response to requests for proposals issued by the corporation. Grants shall not exceed one hundred thousand dollars per project. An applicant shall be permitted to apply for support in more than one project area listed under paragraph (c) of this subdivision, provided, however, that the sum total of the grant received under this subdivision by any one applicant for more than one project approved under paragraph (c) of this subdivision shall not exceed two hundred fifty thousand dollars. No application for industrial effectiveness on global export and marketing assistance shall be approved by the corporation unless it is first approved by the department of economic development. (b) The corporation shall enter into no more than one contract or make more than one grant per year per application under this subdivision regardless of the number of projects for which an applicant has applied and for which funding has been approved. In the case of applications for multiple projects to be conducted by a single applicant, the corporation may, at its discretion, provide a grant or enter into a contract for services with the applicant for some or all of the projects for which an applicant has applied. (c) Not-for-profit corporations, business improvement districts and regional and community development organizations shall be eligible to apply for support under this subdivision to operate a program or programs of business and economic
development services to stabilize, retain or revitalize existing businesses, and to assist small and new businesses, including, but not limited to assistance to individual businesses or business sectors in project areas, including, but not limited to: (i) the preparation of strategic plans for the economic development of the region; (ii) analysis of industrial sectors; (iii) productivity assistance to mature industries; (iv) assistance in marketing and promoting regional business clusters; (v) export assistance; (vi) management and procurement assistance to small business, including minority- and women-owned businesses; (vii) regional marketing of state economic development programs to areas underserved in those programs; (viii) assistance in the training of community and economic development staff to assist communities to build capacity to engage in economic development; (ix) assistance to expand the capacity of existing entities administering minority and women revolving loan funds to deliver services; (x) feasibility studies for the establishment of business improvement districts and for initial eligible organizational costs; and (xi) grants for the establishment and operation of neighborhood-based small business service centers. (d) In awarding grants or contracts pursuant to this subdivision, preference shall be given to programs that: (i) are located in distressed areas; (ii) meet a substantial regional need; (iii) complement local programs or provide services not readily available from units of local government or the private sector; (iv) provide a local match; or (v) foster small business and minority business development. (11) Skills training projects. (a) Funds may be available for expenditure related to the provision of skills training assistance when utilized in conjunction with other public or private development funds for the purposes of the prevention of worker dislocation or the creation of new employment opportunities. (b) To the extent that training expenditures involve classroom or on-the-job training, all funding by the corporation shall be in the form of grants or contracts with employers matching fifty percent of the cost of training. (c) Allowable training expenditures may include expenses for classroom instruction and on-the-job training. (d) No skills training assistance shall be provided by the corporation unless and until the department of economic development has reviewed and approved each project. (e) For those projects funded pursuant to the provisions of this subdivision, the corporation shall submit to the governor, the speaker of the assembly, the temporary president of the senate, and the chair of the commission on skills development and vocational education a report of the training assistance provided by such projects to be submitted not later than September first of each year. Such report shall include, but not
be limited to, a description of the training activity provided, evidence of linkages with other publicly funded training programs, specification of outcomes achieved including number of job placements, jobs retained, jobs created, or a measure of productivity improvement, the types of businesses served by size and sector, and funds provided for the construction/renovation of facilities or purchase of equipment for training purposes. (12) Child care assistance projects. (a) The corporation shall provide financing for child care assistance projects for the establishment, expansion and development of not-for-profit child day care centers which serve the needs of small and medium-sized commercial, industrial, service and other small and medium-sized businesses, and of health-related businesses and degree-granting institutions of higher education. Such financing may consist of grants for the establishment of licensed, not-for-profit child day care centers developed in conjunction with small and medium-sized businesses, health-related businesses and degree-granting institutions of higher education. Such grants shall not exceed forty percent of the total project cost, may be in amounts up to one hundred thousand dollars and may be used for general project development costs, including, but not limited to: (i) studies to assess the feasibility of, or preliminary planning for, the development of child day care centers sponsored by a not-for-profit provider or a consortia of firms; (ii) the acquisition, design, construction, improvement or renovation of the child day care center; and (iii) the purchase of permanently installed machinery and equipment necessary to establish or expand a child day care center. (b) Loans for costs associated with the development or expansion of child day care centers to a not-for-profit child care provider, or a small or medium-sized business, consortia of such firms or health-related business or degree-granting institution of higher education that has contracted with a not-for-profit child care provider to supply child care services, provided, however, that: (i) such loans may be used for the acquisition, design, construction, improvement or renovation of a child day care center at the project site and/or for the purchase of permanently installed machinery and equipment in connection therewith, or for the provision of working capital to such center; and (ii) the corporation shall determine the terms and interest rates of such loans, except that no loan shall exceed fifty percent of the total project cost, or two hundred fifty thousand dollars, whichever is less, provided that the total amount given to any individual child care project shall not exceed two hundred fifty thousand dollars. (c) Financing for child care assistance projects authorized pursuant to this subdivision, shall only be made upon a determination by the corporation that such center will improve or maintain the productivity of the sponsoring company or companies. Such loans and grants shall only be made for child care centers where adequate day care facilities are not available for employees of businesses within the area of the proposed center. Such centers shall:
(i) demonstrate an ability to obtain, from the appropriate governmental agencies, all necessary approvals and licenses required to operate the center; and (ii) demonstrate an ability to prevent access by children to any equipment in such centers which could be injurious to their health or safety. (d) The corporation shall work closely with the New York state job development authority, the New York state department of economic development, the New York state department of social services, child care resource and referral centers, and other sources offering assistance for child care in the state in order to assure coordination of services. (13) Regional loan fund account grants. Assistance from this program may be provided for grants of up to five hundred thousand dollars to capitalize, and up to two hundred thousand dollars to recapitalize, regional revolving loan trust fund accounts established pursuant to section sixteen-a of this act and up to two hundred thousand dollars to recapitalize minority and women revolving loan trust fund accounts established pursuant to section sixteen-c of this act; and up to two hundred thousand dollars to provide the local match for appropriately federally-financed community-based loan funds. (14) Determination of economic distress. (a) The corporation shall develop and consider criteria for determining economic distress within the areas of the state. Factors to be considered in determining economic distress shall include: (i) unemployment rate; (ii) rate of employment change; (iii) percentages and numbers of low-income persons; (iv) per capita income and per capita real property wealth; and (v) such other indicators of distress as the corporation shall determine. (b) Economically distressed areas shall also include parts of municipalities otherwise not qualifying, which meet unemployment, income and other criteria established by the corporation. (15) Application. (a) The corporation shall develop and use a standard project application form. Project applications shall be completed, reviewed and evaluated by the regional economic development councils established pursuant to this section, pursuant to eligibility requirements and criteria promulgated by the corporation pursuant to this section. Such applications shall be submitted to the corporation with recommendations for the project ranked in priority order; provided, however, that an applicant may make an application directly to the corporation for approval. Upon such direct application, the applicable regional economic development council shall review the application and shall make a recommendation within twenty days of receipt of such application. The corporation may act on any such application twenty days after the receipt of such application by the regional council. (b) The corporation shall expedite the processing of approved loans and grant awards with the objectives of simplifying the administrative process and making prompt and timely payments to recipients and simplify procedures by which approved applications are processed.
(16) Regional economic development assistance revolving loan account. Notwithstanding any provisions of law to the contrary, the corporation shall establish within its treasury a regional economic development assistance revolving loan account, shall pay into such account any moneys which may be made available to the corporation for this purpose from any source including, but not limited to, moneys appropriated by the state and any income earned by, or increment to, the account due to the investment thereof, or any repayment of principal and interest on loans made by the corporation for projects authorized pursuant to this section. The amounts deposited in the regional economic development assistance revolving loan account may not be interchanged with any other account. All loans disbursed by the corporation shall be repaid into such account and such repayments shall be available to the corporation for relending and up to one hundred twenty-five thousand dollars of such repayments shall be available for the co-location of staff of the corporation in the regional offices of the department of economic development, expediting project disbursement or outreach in highly distressed areas. (17) Approval cycle. The corporation shall approve project loans or grants made under this section on at least a four-month cycle. (18) Priority. In approving loans or grants authorized pursuant to the provisions of this section, the corporation shall give priority consideration to whether a project is located in an area of economic distress. Other factors to be considered by the corporation shall include: (a) The number of jobs created or retained; (b) The number of jobs created for persons eligible for benefits under the provisions of the job training partnership act (P.L. 97-3400)(29 U.S.C.A. § 801 et seq.); (c) The priority accorded the proposed project by the regional economic development council; (d) The participation of minority- and women-owned businesses; (e) The impact of the project on the employment and economic condition of the community; (f) The cost per job created or retained based on total project cost; (g) The amount of private investment leveraged; (h) The level of local public support; and (i) The likelihood of accomplishing the project in a timely fashion. In the event that the corporation does not follow the priorities of a regional economic development council, it shall make a finding, in writing, as to why the council priority was not followed. (19) Preference. For any positions opened as a result of business development project loans, entities assisted shall first consider persons eligible to participate in federal job training partnership act programs (P.L. 97-3400) (29 U.S.C.A. &#167801 et. seq.) who shall be referred to the business by administrative entities of service delivery areas created pursuant to such act by the job service division of the department of labor. (20) Regional economic development council. Beginning April first, nineteen hundred ninety-five, there shall be established within each economic development region of the state, pursuant
to section two hundred thirty of the economic development law, a regional economic development council. (a) Appointments to a regional economic development council shall be made according to the following provisions: (i) Except as provided in subparagraph (iii) of this paragraph, in regions composed of two or more counties, the chief executive officer of each county within such region shall each appoint one representative to serve on the regional economic development council; and the mayor or other chief executive of each city within the region whose population exceeds fifty thousand, shall each appoint one member to serve on the regional economic development council; except that for regions that do not contain a city of at least fifty thousand inhabitants, the mayor or other chief executive of the municipality with the largest population shall make such appointment. (ii) In the case of regions composed of two or fewer counties, the chief executive officer of each county within a region shall each appoint three representatives to serve on the regional economic development council; and the mayor or other chief executive of the two largest towns within each county shall each appoint one member to serve on the regional economic development council. (iii) In the case of cities of one million or more constituting an economic development region, six appointments to the regional economic development council shall be made by the mayor, and one appointment each shall be made by the chief executive officer of any county within such city, who shall represent the county. (iv) The governor shall make a number of appointments in each region equal to the total number of appointments made pursuant to subparagraph (i), (ii) or (iii) of this paragraph, as appropriate; provided however, that of the appointments made by the governor in each region, one shall be the director of the regional office of the department of economic development; one shall be the regional representative of the New York state job development authority, and one shall be a regional office representative of the corporation. In addition, the governor shall appoint the chair of each regional economic development council. (b) Each individual appointed to a regional economic development council shall serve for a term of four years but shall serve for no longer than two consecutive terms. (c) The chair of a regional economic development council shall serve as chair for a single term of four years only. (d) Representatives appointed pursuant to this section may be removed for cause by the appointing authority. (e) Any vacancy on a regional economic development council shall be filled for the unexpired term in the same manner as the original appointment. (21) Reports. The chairman of the corporation shall submit to the director of the budget, the speaker of the assembly and the temporary president of the senate an evaluation of the effectiveness of the program prepared by an entity independent of the corporation. The corporation shall select the program evaluator through a request for proposal process. Such evaluation shall determine whether the assistance provided has enhanced the economic conditions of assisted businesses or
projects, and shall make recommendations for improvements which would make the program more effective. Such evaluation shall be submitted by September first, nineteen hundred ninety-six. (22) Co-location of services. The commissioner of economic development, in consultation with the New York state science and technology foundation, the New York state urban development corporation, the New York state job development authority, the state university of New York and the city university of New York shall develop and implement a plan and schedule for the co-location of services provided by such agencies in each economic development region throughout the state. Such plan and schedule shall provide that at least one employee of each agency providing such services shall be located at each co-located regional office in New York state on at least a regularly scheduled part time basis. The commissioner of economic development shall report to the temporary president of the senate, the speaker of the assembly, the chairpersons of the fiscal committees of the senate and assembly, and the governor on the plan and schedule required pursuant to this act by December thirty-first, nineteen hundred ninety-four. § 16-f. Bonding guarantee assistance program. (1) Program created. There is hereby created a state bonding guarantee assistance program to enable small businesses, and minority-owned and women-owned business enterprises, certified as a minority-owned or women-owned business enterprise pursuant to article fifteen-A of the executive law, to meet payment and/or performance bonding requirements by providing additional financial backing needed to induce a surety company to issue a bond for construction projects, including but not limited to, government sponsored, transportation related construction projects. For purposes of this section, the term small business shall have the same meaning as defined in section one hundred thirty-one of the economic development law. Such program shall give preference to minority-owned and women-owned business enterprises and shall: (a) Make available funds to surety companies providing bonds to small businesses and minority- owned or women-owned business enterprises in an amount equal to a percentage not to exceed fifty percent of the face value of bonds issued by the surety. (b) Provide technical assistance in completing bonding applications for small businesses and minority-owned or women-owned business enterprises seeking to become eligible for bonding in preparation for bidding on construction projects, including transportation related projects. The corporation shall provide and may refer such businesses to the department of economic development for technical assistance as such businesses may need, including but not limited to: (i) a review of the applicants' market and business competitive strategy; (ii) consultation and review of the development and planned implementation of a working capital budget; (iii) assistance with applications for the receipt of funding from other financial sources and providing referrals to other appropriate public and private sources of financing; and (iv) assistance from the regional offices of the department of economic development, pursuant to article eleven of the economic development law, and the entrepreneurial assistance program, pursuant to article nine of such law, and any other such program
receiving state funds from this act or the department of economic development or any other state agency that is intended to provide technical assistance to small businesses and minority-owned and women-owned small business enterprises. (2) Criteria and regulations. (a) The corporation shall by rule establish criteria for such program, such criteria to include detailed provisions for eligibility. (b) The corporation shall promulgate rules and regulations to effectuate the purposes of this section which shall be approved by the director of the budget. (3) Funds. Funds for this program shall consist of such amounts as may be appropriated, any repayment of funds made available under this program, and any interest earned by the corporation from the investment of moneys from this program. (4) Nonapplication of certain provisions. The provisions of section ten and subdivision two of section sixteen of this act shall not apply to assistance provided under this program. § 16-g. Child care facilities construction program. 1. Definitions. For the purposes of this section: (a) "Child care facilities construction project" shall mean a project for the establishment, expansion, and development of licensed not-for-profit child day care centers which are intended to serve the needs of low-income working families or economically distressed areas or highly distressed communities. The project shall be used as a licensed child day care center for a period of at least ten years with at least one-quarter of the available day care placements offered to the local department of social services or set aside for persons eligible for low-income day care subsidies. (b) "Economically distressed areas" shall have the same meaning as provided for in section 16-d of this act. (c) "Highly distressed" shall have the same meaning as provided for in section 16-d of this act. (d) "Not-for-profit corporation" shall mean a corporation organized under the provisions of the not-for-profit corporation law. 2. The corporation shall, from any appropriations made available for this purpose, establish a child care facilities construction program which shall offer the following assistance: (a) Child care construction grants pursuant to paragraphs (a) and (b) of subdivision 3 of this section. (b) Child care construction revolving loans and loan guarantees pursuant to paragraphs (c) and (d) of subdivision 3 of this section. 3. To the extent that monies are appropriated for the child care facilities construction program, the corporation shall provide financing for child care facilities construction projects for the establishment, expansion and development of not-for-profit child day care centers which are intended to serve the needs of low-income working families or economically distressed areas or highly distressed communities. The corporation, in consultation with the department of economic development, shall develop a joint request for applications with the department of social services soliciting potential applicants seeking assistance for the development of licensed, not-for-profit child day care centers. In determining award recipients, the corporation shall consider, among other factors, the department of social services' grouped rankings of the
applications. Such financing shall consist of grants, revolving loans and loan guarantees for the establishment, expansion, and development of licensed, not-for-profit child day care centers in accordance with section 410-ccc of the social services law and this section. (a) Grants shall be used for general project development costs, including, but not limited to: (i) the acquisition, design, construction, improvement or renovation of the site; and (ii) the purchase of necessary equipment. (b) For the purposes of this subdivision grants shall not exceed eighty percent of the total project cost in highly distressed communities; shall not exceed sixty-five percent of the total project cost in economically distressed areas; and shall not exceed fifty percent of the total project cost in non-economically distressed areas. (c) Child care construction revolving loan and loan guarantees. The corporation shall provide revolving loans and loan guarantees for the establishment of licensed, not-for-profit child day care centers. Such revolving loans and loan guarantees shall be for construction costs, including, but not limited to the design, construction, improvement or renovation of a child day care center, and may include interim financing. (d) Child care construction revolving loan and loan guarantee fund. For the purposes of this subdivision, the corporation shall establish a child care construction revolving loan and loan guarantee fund account. The corporation shall determine the terms and interest rates of such loans, except that no loan shall exceed eighty percent of the total project cost in highly distressed communities; sixty-five percent of the total project cost in economically distressed areas; and fifty percent of the total project cost in non-economically distressed areas. In instances where an otherwise qualified applicant lacks equity in a project, equity participation may include any commitment for grants. Payments consisting of the repayment of the principal amount of the loan and interest shall be deposited by the corporation into the child care construction revolving loan fund account from which the loan was made. 4. Financing for child care facilities construction projects authorized pursuant to this subdivision, shall only be made upon a determination by the corporation, in consultation with the department of economic development, and the department of social services that such a center will increase supply and access to day care services. Such revolving loans, loan guarantees and grants shall only be made for child care centers where there is an insufficient supply of child day care. Such centers shall demonstrate the potential to obtain, from the local department of social services and other appropriate governmental agencies, all necessary approvals, licenses, and other supports required to operate the center. 5. In addition to the department of social services, the corporation shall work closely with the job development authority, the department of economic development, child care resource and referral programs, local development corporations, neighborhood preservation companies, rural preservation companies, and other sources offering assistance for child care in the state in order to assure coordination of services.
§ 16-h. The JOBS Now program is hereby created. 1. Funds of this program, within available appropriations, shall be available to any regional partnership, as provided in section 3154 of the public authorities law, eligible business expansion or attraction project: (a) Job creation grants. Proceeds from a job creation grant shall be used by an eligible business to pay any tax liability resulting from any tax imposed by the state or a local government that the business owes for any taxable period beginning on or after the date in which the job creation grant was awarded. A job creation grant shall equal a portion, as determined by the urban development corporation, of the New York state income tax that is withheld on the employees that were hired as a result of the expansion or attraction project not to exceed one million five hundred thousand dollars; (b) Worker training grants. Worker training grants, that are completed pursuant to eligible expansion and attraction projects, may receive partial or total reimbursement of the costs associated with such programs through a worker training grant if such training programs include, but are not limited to skills training and upgrading, productivity enhancement and total product/service quality improvements; (c) Capital loans and grants. Capital loans and grants may be awarded if the proceeds are used for the acquisition or improvements of land, infrastructure and buildings and the acquisition of machinery and equipment; (d) Interest subsidy grants. Interest subsidy grants may be awarded if the proceeds of such grants are used to offset debt service costs which are associated with loans supplied to the business by a private lending institution; and (e) Working capital loan and loan guarantees. Working capital loans may be awarded if the proceeds are used to cover capital-related expenses such as, but not limited to, accounts receivable, inventory, and other expenses required to upgrade and reconfigure the competitive position of the project applicant. 2. To be eligible for a loan or grant from the JOBS Now program, a regional partnership, as provided in section 3154 of the public authorities law, or a business expansion or attraction project must result in the creation of at least 100 new, permanent, full-time private sector jobs. Not more than twenty-five percent of funds appropriated for this program shall be allocated for projects that create less than 300 jobs. At least seventy-five percent of funds appropriated for this program shall be allocated to projects that create at least 300 jobs. Provided, however, a regional partnership, as provided in section 3154 of the public authorities law, shall be able to aggregate the total number of jobs created among more than one eligible business in order to meet the job creation amounts in this subdivision. Provided further, however, that such aggregation shall be within similar industry clusters. 3. Applications for assistance pursuant to this section shall be reviewed and evaluated in consultation with local government officials and regional economic development offices pursuant to eligibility requirements and criteria set forth in rules and regulations promulgated by the corporation. The corporation shall develop and use a standard application project form. 4. The corporation shall, on or before March 1, 1997, submit a report to the governor, the temporary president of the senate
and the speaker of the assembly on the operation and accomplishments of the assistance provided pursuant to this section, including a complete inventory of projects financed pursuant to this section. * § 16-i. The empire state economic development fund. 1. The empire state economic development fund is hereby created. The corporation is authorized, within available appropriations, to provide financial, technical or other assistance from such fund for the following: (a) Loans, loan guarantees and grants including interest subsidy grants to manufacturing and non-retail service firms, for headquarters facilities of firms engaged generally in retail industries, retail firms located in distressed areas and to other businesses, for the purpose of developing recreational, cultural, or historical facilities that are likely to attract significant numbers of visitors. Loans, loan guarantees and interest subsidy grants may be used to finance new construction, renovation or leasehold improvements and the acquisition of land, buildings, machinery and equipment. The proceeds of such loans, loan guarantees and interest subsidy grants may also be used to finance working capital; (b) Loans, loan guarantees, and grants including interest subsidy grants may be provided to municipalities, industrial development agencies, not-for-profit corporations or local development corporations for the purpose of developing federal facility sites, urban industrial sites, industrial parks and incubator buildings; or to undertake preliminary planning relating thereto; (c) Grants for the purpose of creating or retaining jobs or preventing, reducing or eliminating unemployment or underemployment including, but not limited to, productivity assessments, export market development plans and other projects to promote international trade; skills training assistance including classroom instruction or on the job training; and programs to assist economically distressed regions and communities to identify new business opportunities, plan for new enterprise development and manage economic development projects; (d) Loans, loan guarantees, interest subsidies and grants to businesses, municipalities, industrial development agencies and local and regional economic development corporations for projects for the purpose of attracting, retaining or permitting the expansion of industrial, manufacturing, commercial, research and development, high technology, tourism, agricultural or non-retail service businesses and not-for-profit organizations which shall include, but not be limited to basic systems and facilities on public and privately owned property including drainage systems, sewer systems, access roads, sidewalks, docks, wharves, water supply systems, and site clearance, preparation, improvements and demolition. In addition, grants for preliminary planning of projects eligible to apply for financing pursuant to this paragraph may be provided; (e) Grants to municipalities, not-for-profit corporations and local and regional economic development organizations seeking to attract, stabilize, retain or revitalize existing businesses, and to assist small and new businesses for activities including, but not limited to, the preparation of strategic plans for local or regional economic development, the analysis of business sectors, marketing and promoting regional business clusters, and feasibility studies;
(f) Loans, loan guarantees, interest subsidy grants and direct grants for feasibility studies, surveys and reports, architectural design, studies, and other redevelopment work for non-residential improvements to commercial buildings, commercial strips, downtown areas or business districts; (g) Assistance to local or regional organizations to facilitate financing for small- and medium-sized business, including minority- and women-owned business enterprises through flexible financing programs, including, but not limited to, loan loss reserve and revolving loan programs, working capital loans, working capital loan guarantees, or other flexible financing programs that leverage traditional financing; (h) Assistance to eligible entities and organizations as set forth in section 16-l of this act to support community economic development programs and activities, including value-added small business growth, agricultural, agribusiness and forest products and those projects that promote the family farm, increase or retain employment opportunities and otherwise contribute to the revitalization of local rural areas which are economically distressed. 2. Applications for assistance pursuant to this section shall be reviewed and evaluated in cooperation with regional economic development offices pursuant to eligibility requirements and criteria set forth in rules and regulations promulgated by the corporation. Approval of project applications shall be made only upon a determination by the corporation: (a) that the proposed project would promote the economic health of New York state by facilitating the creation or retention of jobs or would increase business activity within a municipality or region of the state or would enhance or help to maintain the economic viability of family farms; (b) that the project would be unlikely to take place in New York state without the requested assistance. (c) that the project is reasonably likely to accomplish its stated objectives and that the likely benefits of the project exceed costs; and (d) the project is undertaken in accordance with the memorandum of understanding executed in accordance with this section. 3. The provisions of this section shall expire, notwithstanding any inconsistent provision of subdivision 4 of section 469 of chapter 309 of the laws of 1996 or of any other law, upon the effective date of a chapter of the laws of 2000 which appropriates funds for the principal support of the urban development corporation for the 2000-01 state fiscal year. * NB Expired upon appropriation of funds to UDC for 2000--01 fiscal year notwithstanding being repealed March 31, 1997 by chap. 309/1996 § 469 sub. 4. See ch. 413/99 Pt. M § 16-j. Strategic training alliance program. 1. Program created. Pursuant to this section and article 24-A of the labor law there is hereby established within the corporation and the department of labor a strategic training alliance program to identify and address employer demands for skilled workers. The corporation and the department of labor may cooperate with the department of economic development, the state university of New York, the city university of New York, and the state education department, in providing support within amounts available for
the program for training activities by an eligible applicant which is defined as an employer or an employer in conjunction with a labor organization, a strategic alliance or network or association of employers with common problems or concerns, a private industry council established pursuant to the federal job training partnership act (P.L. 97-300) or one or more local workforce investment boards established pursuant to the federal workforce investment act (P.L. 105-300) representing a strategic alliance. 2. Project plans. (a) Project plans shall be submitted to the corporation or the department of labor by applicants. The corporation and the department of labor shall, upon receipt of project plans, jointly review such plans in order to assure that they are approved or disapproved within the time limits set forth in paragraph (c) of this subdivision. (b) Plans submitted pursuant to this article shall include: (i) documentation of the need for such training; (ii) the type of training and the number of individuals to be trained; (iii) a commitment of a cash or in-kind contribution to the cost of the project; (iv) a commitment to first consider individuals who are unemployed, dislocated, or economically disadvantaged for employment in positions created as a result of training; (v) the identification of an eligible training provider which is defined as a community college, agricultural and technical college, an institution of higher education, a local education agency, a community based organization or a strategic alliance; (vi) the identification of specific projects to be assisted; and, (vii) a description of technologies to be used to disseminate the training to participating employers. (c) The corporation and the department of labor shall jointly approve or disapprove project plans within thirty days of receipt of such plans. 3. Assistance. (a) Assistance provided by the corporation to eligible applicants pursuant to the joint approval involving the department of labor set forth in this article shall be used for the costs of classroom training, curriculum development, and training materials associated with on the job training, skills upgrading, skills retraining, and basic skills training; and (b) The corporation and the department of labor shall ensure that: (i) not less than twenty percent of the program funds are used in support of projects that assist small businesses as defined in section one hundred thirty-one of the economic development law; and (ii) not less than twenty percent of program funds are used in support of projects that assist strategic alliances or networks or associations of employers with common problems or concerns. (c) The corporation and the department of labor may within amounts available for the program provide additional funds for regional and statewide initiatives that lead to the development and implementation of an electronically supported training and workforce education system. 4. Report and evaluation. (a) The corporation and the department of labor shall report to the legislature annually identifying the employers or alliances receiving training
assistance, the type of training provided, and the number of individuals trained and newly hired including those who were previously unemployed or economically disadvantaged. (b) The corporation and the department of labor shall also provide for an independent evaluation of the program on or before June 1, 2002, and every three years after. The cost of such evaluation shall be deemed to be an eligible expense of the New York state strategic training alliance program. § 16-k. Capital access program. 1. Definitions. For the purposes of this section: (a) "Financial institution", means any bank, trust company, savings bank, savings and loan association or cooperative bank chartered by the state or any national banking association, federal savings and loan association or federal savings bank; provided, however, that the financial institution has its principal office located in the state. (b) "Participating financial institution" shall mean any financial institution participating in the program established by this section. (c) "Small business" shall have the same meaning as set forth in section 131 of the economic development law, whose primary place of business is in New York state. 2. (a) The corporation, or its agent, shall establish a capital access program to provide a loan loss reserve to assist small businesses that otherwise find it difficult to obtain regular bank financing. (b)(i) Assistance from this program shall be provided for a capital access program under which the corporation or its agent shall be authorized to assist small businesses that otherwise find it difficult to obtain regular bank financing. Such assistance shall take the form of deposits by the corporation or its agent in the reserve funds in participating financial institutions to fund loan loss reserves for loans made to such small businesses. (ii) Any financial institution desiring to become a participating financial institution shall execute an agreement in such form as the corporation or its agent may prescribe, which agreement shall contain the terms and provisions set forth in paragraph (c) of this subdivision and such other terms and provisions as the corporation or its agent may deem necessary or appropriate. (c) A participating financial institution originating a loan to a small business pursuant to this section shall: (i) provide a plan to the corporation or its agent for the marketing of the capital access program in highly distressed areas and to minority- and women-owned businesses, with appropriate lending objectives identified by the financial institution for such areas and businesses; (ii) disperse funds for the purposes of expansion, facility/technology upgrading, start-up and working capital; (iii) not disperse funds which exceed an amount greater than five hundred thousand dollars; (iv) set aside an amount specified by the corporation or its agent, but which shall not be less than one and one-half percent nor more than three and one-half percent of the principal amount of the loan, into a loan loss reserve which the institution shall maintain, applicable to all such loans by said institution to small businesses pursuant to this section;
(v) obtain from the small business an amount equal to the reserve contribution made by the participating financial institution with respect to such loan; (vi) set aside such amount into said loan loss reserve maintained by the participating financial institution applicable to all loans pursuant to this section; and (vii) certify to the corporation or its agent in such a fashion and with such supporting information as the corporation or its agent shall prescribe, that it has made such loan and has set aside its contribution and the equal contribution of the small business. (d) The corporation or its agent shall after such certification as provided in subparagraph (vii) of paragraph (c) of this subdivision, transfer to the participating financial institution an amount equal to the total of the contributions of the participating financial institution and the small business or such additional amount up to one hundred fifty percent of such contributions as determined by the corporation or its agent. The participating financial institution shall set aside such amount so received into said loan loss reserve. (e) In the event the participating financial institution suffers a loss on any such loan, it may in its discretion draw upon the funds in such loan loss reserve to repay the loan in whole or in part. (f) All amounts set aside by the participating financial institution into said loan loss reserve shall be in an account at said institution. (g) Earnings or interest from the principal of said loan loss reserve accounts shall be: (i) maintained in the account and held as additional loan loss reserves; and (ii) available to the corporation or its agent at any time and from time to time, to be used to defray the costs of administering the program or to replenish the loan loss reserve account of the corporation or its agent. 3. Administration of the capital access program. (a) The corporation is hereby authorized to do the following: (i) enter into a contract with the New York business development corporation, hereinafter referred to as NYBDC, established under section 210 of the banking law, to act as the agent of the corporation with respect to the administration of the program; (ii) conduct an annual review and assessment of the performance of the NYBDC in its capacity as agent for the corporation to determine whether the contract referenced in subparagraph (i) of this paragraph should be renewed for an additional two year period. The review shall be based on whether the NYBDC has satisfactorily met the terms and conditions of the contract; (iii) where an initial determination finds that the NYBDC's performance is unsatisfactory, allow the NYBDC the opportunity to take corrective action; (iv) where a final review of the NYBDC's performance continues to conclude that the NYBDC's performance is unsatisfactory, submit to the speaker of the assembly and the temporary president of the senate its recommendation to terminate the contract with the NYBDC and transfer the contract to another agent; and
(v) promulgate rules and regulations with respect to the implementation of the capital access program established by this section and any other rules and regulations necessary to fulfill the purposes of this section, in accordance with the state administrative procedure act, and shall be consistent with the program plan required by subdivision 19 of section 100 of the economic development law. (b) Any contract entered into pursuant to subparagraph (i) of paragraph (a) of this subdivision shall: (i) be for a period of two years and shall be renewed for an additional two year period subject to requirements of subparagraph (ii) of paragraph (a) of this subdivision; and (ii) provide for compensation for expenses incurred by the NYBDC in connection with its services as agent and for such other services as the corporation may deem appropriate including, but not limited to the use of the premises, personnel and personal property of the NYBDC. § 16-l. Rural revitalization program. 1. Statement of legislative intent. The legislature finds that vast areas of rural New York state show signs of severe economic distress and lag behind the rest of the state in employment growth and income, with the gap widening with passing years. Poverty in many rural areas is pervasive, with the poor often outnumbering the affluent. The legislature further finds that rural communities in New York state need immediate assistance to develop the capacity to plan and organize for economic development, to undertake new economic development initiatives, to overcome obstacles to economic development and to fully utilize indigenous resources to provide rural residents with economic opportunities. The legislature further finds that, to begin to address these needs, a catalyst is needed to stimulate and encourage innovative economic development alternatives to declining employment in the agricultural and manufacturing sectors. The legislature further finds that, while agriculture is considered to be a major New York industry, state economic development financing programs do not treat agriculture as an industrial sector, and financing is not available to provide farmers with assistance to become more competitive in national and international markets. Therefore, the legislature declares that the revitalization of the state's rural economy is essential to New York's economic health and that state assistance in this regard is necessary and proper for achieving this public purpose. 2. Rural revitalization assistance grants. (a) The corporation is authorized, within available appropriations in the empire state economic development fund established pursuant to section 16-i of this act, to award grants or enter into contracts for services, on a competitive basis in response to requests for proposals, to eligible entities and organizations as set forth in this subdivision to support community economic development programs and activities which increase or retain employment opportunities in rural New York state and otherwise contribute to the revitalization of local rural areas which are economically distressed through innovative activities designed to generate economic alternatives and opportunities in rural areas.
(b) Grants and contracts made by the corporation pursuant to this subdivision shall be subject to the following limitations: (i) no such grant shall exceed one hundred thousand dollars per year, except that for the purpose of paragraph (f) of this subdivision, no such grant shall exceed fifty thousand dollars. (ii) the corporation shall enter into no more than one grant per year per application under this subdivision. (c) Preference shall be given to programs which meet highly distressed area criteria or which support empire zones established pursuant to article 18-B of the general municipal law; provide a local match; meet a substantial local or regional need; complement local programs or provide services not readily available from units of local government or the private sector. (d) For the purposes of this subdivision, "rural area" shall mean a rural area as defined in subdivision 7 of section 481 of the executive law. (e) Not-for-profit corporations, agricultural cooperative corporations, public benefit corporations and educational institutions serving rural areas, shall be eligible to apply for support under this subdivision for the following activities, provided, however, that the sum total of grants received by any one eligible entity does not exceed two hundred fifty thousand dollars in any one year: (i) innovative activities and programs designed to encourage value-added small business development and growth in rural areas, including cottage and crafts industries; group marketing of local products; women-owned industries; natural resources development; and tourism. Such activities and programs shall also include projects pertaining to agriculture and agribusiness development to stimulate the development and implementation of new and alternative production, processing, storage, distribution and marketing technologies and improvements for New York food, agricultural and forest products. Projects promoting strengthened farm management practices shall also be eligible for assistance; (ii) in-depth analysis within rural areas to support local efforts to identify new business opportunities, and to organize industry-wide collaborative efforts designed to create jobs and to develop growth strategies; (iii) support for the operation of programs designed to generate and leverage equity-type or working capital financing for new and small business enterprises in rural areas, or to meet other critical financing needs of existing rural businesses; (iv) support for multi-county activities designed to provide small business development and financial packaging assistance to new and small rural business enterprises to assure the continuation and growth of such enterprises; and (v) provide, or cause to be provided, technical assistance to small businesses to help such businesses comply with applicable federal, state and local rules and regulations, including, but not limited to, assistance to applicants for permits required by such rules and regulations. (f) Any vocational education agency offering technical assistance services to small business, any small business development center located at a post-secondary educational institution, any county cooperative extension service, any agricultural cooperative corporation offering technical
assistance services to farmers and non-farm agricultural businesses or any not-for-profit corporation offering technical assistance, shall be eligible to apply under this paragraph to establish rural enterprise extension services designed to provide technical assistance and services to entrepreneurs who are seeking to establish or who are operating small business ventures in rural areas where, for reasons of distance, population dispersal, or scale of business venture, conventional business incubation and assistance programs are not feasible, such extension services to sponsor, employ and support technical assistance specialists as circuit riders to serve the rural area served by the sponsoring entity. (i) Such specialists shall be the outreach arm of the technical assistance program and shall: (A) provide technical and management assistance to entrepreneurs seeking to establish a new small business, including but not limited to, agribusinesses, part-time businesses, crafts-related businesses, tourism-related businesses, and other new businesses that are started in areas distant from other existing programs and sources of technical assistance; (B) regularly visit outlying areas of the region or areas served by the entity sponsoring the rural enterprise extension service program to provide both short-term and ongoing technical assistance and services to clients; (C) arrange, when needed, for supplemental assistance to be provided by the sponsoring entity; (D) conduct, with assistance from both local sources of expertise and the sponsoring entity local seminars in outlying regions on various aspects of entrepreneurship and new enterprise development; and (E) provide information on other sources and programs of assistance, services and support, including financial sources, to entrepreneurs and small business operators. (ii) Applications for support under this paragraph shall be required to demonstrate a need for a rural enterprise extension service program in the area to be served; the ability and willingness of the applicant to support technical assistance specialists employed as circuit riders with additional resources to provide intensive, long-term technical assistance or specialized technical assistance to client entrepreneurs and small business operators when necessary; and the ability to assist entrepreneurs and small business operators in locating appropriate sources of financial assistance. (iii) For the purposes of this subdivision "vocational education agency" shall mean a community college or board of cooperative educational services operating within the state. 3. Agricultural job training assistance. The corporation is authorized, within available appropriations in the empire state economic development fund established pursuant to section 16-i of this act, to contract with the commissioner of agriculture and markets, in consultation with the commissioner of labor, to administer a program of job training for workers engaged in or to be engaged in the production, harvesting and processing of farm or aquatic products. 4. Farmers' market grant program. (a) The corporation is authorized, within available appropriations in the empire state economic development fund established pursuant to section 16-i
of this act, to award grants, on a competitive basis in response to requests for proposals, to municipal corporations, local development corporations, business improvement districts, not-for-profit corporations, regional marketing authorities and agricultural cooperatives organized pursuant to the cooperative corporations law, for the construction, reconstruction, improvement, expansion or rehabilitation of farmers' markets. The corporation is further authorized to contract with the commissioner of agriculture and markets, and such commissioner is authorized to contract with the corporation, to prepare and issue requests for proposals, accept grant applications, recommend those applications which best meet established criteria and to administer grants awarded under this subdivision. (b) Grants made by the corporation pursuant to this subdivision shall: (i) not exceed fifty thousand dollars per year; and (ii) be limited to fifty percent of the total proposed farmers' market start-up or expansion costs, not including any capital expenditures except as set forth in paragraph (a) of this subdivision. (c) The corporation shall enter into no more than one grant per year per application under this subdivision. (d) The corporation shall consult with the department of agriculture and markets in order to establish such criteria governing the award of grants as authorized herein, as the corporation and such department deem necessary. Such criteria shall include, but not be limited to: (i) the relative impact of the proposed farmers' market project on the economy of the area to be served; (ii) the anticipated level of municipal support and local participation in the project by farmers and others; (iii) the extent to which New York farmers would benefit, through the direct sale of farm and food products; (iv) the equitable distribution of monies awarded for state assistance for farmers' markets among urban and rural areas; and (v) the anticipated quantity of non-farm jobs which would be created and retained due to the proposed project. (e) Preference shall be given to: applicants located in highly distressed areas and providing services not readily available from units of local government or the private sector and to applicants who are proposing to start a new farmers' market. 5. Rural single-tenant entrepreneurship and incubator facilities. The corporation is authorized, within available appropriations in the empire state economic development fund established pursuant to section 16-i of this act, to award grants, loans and loan guarantees to vocational education agencies for the development of single tenant entrepreneurship and incubator facilities in rural areas as provided in this subdivision. (a) For the purposes of this subdivision: (i) "rural area" shall mean a rural area as defined in subdivision 7 of section 481 of the executive law; (ii) "vocational education agency" shall mean a community college or board of cooperative educational services operating within the state; and (iii) "entrepreneurship and incubator facility" shall mean a single-tenant facility providing low-cost space, technical assistance and support services, to new business enterprises.
(b) In sparsely populated rural areas where multi-tenant incubator facilities are not feasible, assistance from the rural revitalization program may be provided to vocational education agencies that have an existing technical assistance capability that can be applied to the incubation of new firms for the purpose of constructing a single-tenant entrepreneurship and incubator facility or rehabilitating an existing space for use as a single-tenant entrepreneurship and incubator facility. (c) Funds from the rural revitalization program pursuant to this subdivision shall only be provided for construction or rehabilitation of a facility. A vocational education agency receiving such assistance shall be required to provide any machinery and equipment necessary for a tenant to operate a start-up enterprise and shall be responsible for operating the facility, such operation to include classroom training in business principles and practices to the prospective owners of such enterprises prior to entering into any tenancy agreement with such prospective owners, and the provision of technical assistance and services to a tenant. 6. Agricultural industry competitiveness assistance. (a) For the purposes of this subdivision, "project" shall mean an agricultural project as set forth in paragraphs (b) and (b-1) of this subdivision. (b) The corporation is authorized, within available appropriations in the empire state economic development fund established pursuant to section 16-m of this act, to provide financial assistance in the form of loans, loan guarantees, and interest subsidy grants to subsidize loans from federally chartered instrumentalities and state and private lending institutions, including agricultural cooperative corporations, provided that such assistance to state lending institutions shall not exceed one-third of the total project cost or four hundred thousand dollars, whichever is less, to agricultural enterprises seeking to implement the following agricultural projects: (i) making the transition from dairy farming to crop or livestock farming or specialty wood productions, or using former dairy farms for crop, livestock or specialty wood production, in order to keep farmland in production by producing products in local, national or international demand; (ii) start-ups of new agribusinesses or expansions or upgrades of the facilities, technologies and operations of existing agribusinesses. (b-1) The corporation is authorized, within available appropriations in the empire state economic development fund established pursuant to section 16-m of this act, to provide financial assistance in the form of loans, loan guarantees, working capital loans, and interest subsidy grants to subsidize loans from federally chartered instrumentalities and state and private lending institutions, including agricultural cooperative corporations, provided that such assistance to state lending institutions shall not exceed one-third of the total project cost or four hundred thousand dollars, whichever is less, to agricultural enterprises seeking to implement the projects listed in this paragraph. Funds for such loans, grants, subsidies, or any other assistance specified pursuant to this act may come from funds derived from the financial assistance for small and medium-sized business assistance projects
established pursuant to section 9-a of this act, the regional revolving loan trust fund established pursuant to section 16-a of this act, the regional economic development partnership program established pursuant to section 16-e of this act, the empire state economic development fund established pursuant to section 16-m of this act, or from any other funds, programs, or projects administered by the corporation or by other state appropriations. (i) the establishment or replanting of existing vineyards with other varieties that are in greater demand in the national and international marketplace and which will increase the national and international competitiveness of New York state grape growers; (ii) the establishment or replanting of fruit orchards or small fruit acreages that have reached the end of their natural life cycles, with preference to plantings in the more popular varieties which have national and international markets; (iii) the establishment, construction, retention, or expansion of facilities, buildings, machinery, equipment, and other productive assets used in the production, manufacture, processing, warehousing, research, or distribution or sale of fresh fruits or the processing of such fruits into juices, wines, or other food products. Such project costs may include, but not be limited to, buildings, machinery, equipment, New York raw fruits, New York unprocessed or partially processed fruits, or other necessary working capital or operational funds or assistance needed to ensure the success of such project. (c) The corporation shall determine the terms and interest rates of such loans; provided, however, in the case of financial assistance for vineyards, orchards, small fruit acreages, wineries, or processing plants, the corporation may defer repayment of principal and interest on loans for up to five years. (d) Funds may be used to undertake feasibility studies to determine the projected local, national, and/or international demand for the proposed crop or product to be financed and the suitability of the land and climate for such production. In the case of a proposal to establish or replant a vineyard, the corporation shall consult with the New York state wine and grape foundation and the agricultural extension service of Cornell University to determine the appropriateness and feasibility of the proposed project. (e) The provisions of section 10 and subdivision 2 of section 16 of this act shall not apply to assistance provided under this subdivision. 7. Micro business revolving loan assistance grants. (a) The corporation is authorized, within available appropriations in the empire state economic development fund, to provide financial assistance in the form of grants for the purpose of developing a statewide infrastructure that delivers financing and technical assistance to micro businesses across the state to stimulate new and existing micro business development relating to the use of agricultural products, forest products, cottage and crafts industries, tourism, and other businesses as provided for in subparagraph (i) of paragraph (e) of subdivision 2 of this section; provided such business employs five or fewer full-time persons and is based on the production, processing, and/or marketing of products grown or produced in this state.
Assistance provided under this subdivision shall be awarded through a competitive process initiated by the corporation, in response to a request for proposals. (b) Not-for-profit corporations and public benefit corporations located in the state shall be eligible to apply to the corporation, in response to a request for proposals, for a grant, not to exceed two hundred thousand dollars in any one calendar year, to create a micro business revolving loan fund to be administered by the entity applying for such grant, hereafter referred to in this subdivision as "micro loan administrators", who shall be selected by the corporation from among eligible applicants. The corporation shall show preference in its awarding of grants to micro loan administrators whose service area meets the provisions of paragraph (c) of subdivision 2 of this section. All grant funds shall be dedicated to being re-lent to individual micro business borrowers, except that ten percent of such funds as are awarded may be used by micro loan administrators to provide training and technical assistance for such borrowers. Micro business loans shall be limited to twenty-five thousand dollars per borrower. Borrowers shall provide ten percent equity for loans up to ten thousand dollars. Loans above ten thousand dollars shall be matched on a one to one basis by including other loans, equity capital and in some circumstances, leveraged capital. The interest rate and the terms on such loans shall be determined by the micro loan administrators. The term of any loan shall not exceed five years. All loans shall be secured by lien positions on collateral at the highest level of priority that can accommodate the borrower's ability to raise sufficient debt and equity capital for the project. Any interest earned on micro business loans shall be retained in a special account for the purpose of paying expenses of the loan administrator associated with administering the micro loan program. (c) An eligible micro loan administrator applicant shall: (i) serve one or more rural counties; (ii) have established a loan committee comprised of five or more persons experienced in commercial lending in rural areas or in the operation of a for-profit small business and a staff person of the regional office of the department of economic development. Such loan committee shall review every application for micro loan assistance pursuant to this subdivision, shall determine the feasibility of the transaction proposed in the application and shall recommend to the board of directors or other governing body of the micro loan administrator such action as the committee deems appropriate; (iii) have available to its staff sufficient expertise to analyze applications for micro loan assistance, provide technical assistance to borrowers and to regularly monitor micro loan assistance to clients; and (iv) have an acceptable plan to market its services to potential borrowers through such entities as chambers of commerce, industry trade associations, banks, local development corporations, community based organizations and industrial development agencies. (d) Applications to the corporation for certification or recertification as a micro loan administrator shall: (i) describe the organization, membership, loan committee, staff and sources of other funds, if any;
(ii) identify the geographic area to be served; (iii) explain the method and criteria to be used in determining businesses eligible for micro loan assistance; (iv) describe the means for coordination of micro loan assistance with other funding sources within the geographic area to be served for the purposes of leveraging project financing; (v) include a proposal to reconfigure the geographic area served by the micro loan administrator, if applicable; and (vi) contain such other information as the corporation deems appropriate. (e) The corporation shall, every five years, recertify that each micro loan administrator has complied with the terms and conditions of this subdivision. In the event a micro loan administrator is not recertified, or its certification is withdrawn, then the corporation shall give written notice to such micro loan administrator which shall thereafter neither make new loans under this subdivision nor undertake new obligations except upon written approval of the corporation. The corporation may thereafter certify another micro loan administrator in the manner provided in this subdivision for the selection of micro loan administrators. Upon the certification of a successor micro loan administrator, all remaining micro business loan funds, records and accounts of the micro loan administrator not recertified shall be transferred to the corporation, and the micro loan administrator not recertified shall cease to function pursuant to this subdivision. The corporation shall transfer returned funds to a successor micro loan administrator, or in the event no successor micro loan administrator is certified, equally to other existing micro loan administrators. * § 16-m. The empire state economic development fund. 1. The empire state economic development fund is hereby created. The corporation is authorized, within available appropriations, to provide financial, technical or other assistance from such fund for the following: (a) Loans, loan guarantees and grants including interest subsidy grants to manufacturing and non-retail service firms, for headquarters facilities of firms engaged generally in retail industries, retail firms located in distressed areas and to other businesses, for the purpose of developing recreational, cultural, or historical facilities that are likely to attract significant numbers of visitors. Loans, loan guarantees and interest subsidy grants may be used to finance new construction, renovation or leasehold improvements and the acquisition of land, buildings, machinery and equipment. The proceeds of such loans, loan guarantees and interest subsidy grants may also be used to finance working capital; (b) Loans, loan guarantees, and grants including interest subsidy grants may be provided to municipalities, industrial development agencies, not-for-profit corporations or local development corporations for the purpose of developing federal facility sites, urban industrial sites, industrial parks and incubator buildings; or to undertake preliminary planning relating thereto; (c) Grants for the purpose of creating or retaining jobs or preventing, reducing or eliminating unemployment or underemployment including, but not limited to, productivity assessments, export market development plans and other projects to promote international trade; skills training assistance
including classroom instruction or on the job training; and programs to assist economically distressed regions and communities to identify new business opportunities, plan for new enterprise development and manage economic development projects; (d) Loans, loan guarantees, interest subsidies and grants to businesses, municipalities, industrial development agencies and local and regional economic development corporations for projects for the purpose of attracting, retaining or permitting the expansion of industrial, manufacturing, commercial, research and development, high technology, tourism, agricultural or non-retail service businesses and not-for-profit organizations which shall include, but not be limited to basic systems and facilities on public and privately owned property including drainage systems, sewer systems, access roads, sidewalks, docks, wharves, water supply systems, and site clearance, preparation, improvements and demolition. In addition, grants for preliminary planning of projects eligible to apply for financing pursuant to this paragraph may be provided; (e) Grants to municipalities, not-for-profit corporations and local and regional economic development organizations seeking to attract, stabilize, retain or revitalize existing businesses, and to assist small and new businesses for activities including, but not limited to, the preparation of strategic plans for local or regional economic development, the analysis of business sectors, marketing and promoting regional business clusters, and feasibility studies; (f) Loans, loan guarantees, interest subsidy grants and direct grants for feasibility studies, surveys and reports, architectural design, studies, and other redevelopment work for non-residential improvements to commercial building, commercial strips, downtown areas or business districts; (g) Assistance to local or regional organizations to facilitate financing for small- and medium-sized business, including minority- and women-owned business enterprises through flexible financing programs, including, but not limited to, loan loss reserve and revolving loan programs, working capital loans, working capital loan guarantees, or other flexible financing programs that leverage traditional financing; (h) Assistance to eligible entities and organizations as set forth in section 16-l of this act to support community economic development programs and activities, including value-added small business growth, agricultural, agribusiness, and forest products and those projects that promote the family farm, increase or retain employment opportunities and otherwise contribute to the revitalization of local rural areas which are economically distressed; (i) Assistance to eligible entities set forth in section 16-l of this act to support value-added small businesses in the agricultural and agribusiness industries that promote fruit production, fruit processing, or wineries and which increase or retain employment opportunities in such industries or in the related tourism industry; (j) Assistance to local or regional organizations to facilitate financing for the come home to New York program pursuant to article 9-A of the economic development law; (k) Assistance for regional partnership proposals, as provided in subdivision 12 of section 3154 of the public authorities law.
2. Applications for assistance pursuant to this section shall be reviewed and evaluated in cooperation with regional economic development offices pursuant to eligibility requirements and criteria set forth in rules and regulations promulgated by the corporation. Approval of project applications shall be made only upon a determination by the corporation: (a) that the proposed project would promote the economic health of New York state by facilitating the creation or retention of jobs or would increase activity within a municipality or region of the state or would enhance or help to maintain the economic viability of family farms; (b) that the project would be unlikely to take place in New York state without the requested assistance. (c) that the project is reasonably likely to accomplish its stated objectives and that the likely benefits of the project exceed costs; and (d) the project is undertaken in accordance with the memorandum of understanding executed in accordance with this section. 3. The provisions of this section shall expire, notwithstanding any inconsistent provision of subdivision 4 of section 469 of chapter 309 of the laws of 1996 or of any other law, upon the effective date of a chapter of the laws of 2007 which appropriates funds for the principal support of the urban development corporation for the 2007-08 state fiscal year. * NB Expires upon appropriation of funds to UDC for 2007--08 fiscal year notwithstanding Ch. 309/1996 § 469 sub. 4. See Ch. 756/2005 § 4 § 17. Bonds and notes of the corporation. (1) Subject to the provisions of section eighteen of this act, the corporation shall have the power and is hereby authorized from time to time to issue its negotiable bonds and notes in conformity with applicable provisions of the uniform commercial code in such principal amounts, as, in the opinion of the corporation, shall be necessary to provide sufficient funds for achieving any of its corporate purposes, including the payment of interest on bonds and notes of the corporation, establishment of reserves to secure such bonds and notes, and all other expenditures of the corporation incident to and necessary or convenient to carry out its corporate purposes and powers. (2) All bonds and notes issued by the corporation may be secured by the full faith and credit of the corporation or may be payable solely out of the revenues and receipts derived from the lease, mortgage or sale by the corporation of its projects or of any thereof, all as may be designated in the proceedings of the corporation under which the bonds or notes shall be authorized to be issued. Such bonds and notes may be executed and delivered by the corporation at any time and from time to time, may be in such form and denominations and of such tenor and maturities, may be in bearer form or in registered form, as to principal and interest or as to principal alone, all as the corporation may determine. (3) Bonds may be payable in such installments and at such time or times not exceeding fifty years from the date thereof, as shall be determined by the corporation. (4) Notes, or any renewals thereof, may be payable in such installments and at such time or times as shall be determined by
the corporation, not exceeding ten years from the date of the original issue of such notes. (5) Bonds and notes may be payable at such place or places whether within or without the state, may bear interest at such rate or rates payable at such time or times and at such place or places and evidenced in such manner, and may contain such provisions not inconsistent herewith, all as shall be provided in the proceedings of the corporation under which the bonds or notes shall be authorized to be issued. (6) If deemed advisable by the corporation, there may be retained in the proceedings under which any bonds or notes of the corporation are authorized to be issued an option to redeem all or any part thereof as may be specified in such proceedings, at such price or prices and after such notice or notices and on such terms and conditions as may be set forth in such proceedings and as may be recited in the face of the bonds or notes, but nothing herein contained shall be construed to confer on the corporation any right or option to redeem any bonds or notes except as may be provided in the proceedings under which they shall be issued. (7) Any bonds or notes of the corporation may be sold at such price or prices, at public or private sale, in such manner and from time to time as may be determined by the corporation, and the corporation may pay all expenses, premiums and commissions which it may deem necessary or advantageous in connection with the issuance and sale thereof. No bonds or notes of the corporation may be sold at private sale, however, unless such sale and the terms thereof have been approved in writing by (a) the comptroller where such sale is not to the comptroller, or (b) the state director of the budget, where such sale is to the comptroller. (8) Any moneys of the corporation, including proceeds from the sale of any bonds or notes, and revenues, reciepts and income from any of its projects or mortgages, may be invested and reinvested in such obligations, securities and other investments as shall be provided in the resolution or resolutions under which such bonds or notes are authorized. (9) Issuance by the corporation of one or more series of bonds or notes for one or more purposes shall not preclude it from issuing other bonds or notes in connection with the same project or any other project, but the proceedings whereunder any subsequent bonds or notes may be issued shall recognize and protect any prior pledge or mortgage made for any prior issue of bonds or notes unless in the proceedings authorizing such prior issue the right is reserved to issue subsequent bonds or notes on a parity with such prior issue. (10) The corporation is authorized to provide for the issuance of its bonds or notes for the purpose of refunding any bonds or notes of the corporation then outstanding, including the payment of any redemption premium thereon and any interest accrued or to accrue to the earliest or subsequent date of redemption, purchase or maturity of such bonds or notes, and, if deemed advisable by the corporation, for the additional purpose of paying all or any part of the cost of acquiring, constructing, reconstructing, rehabilitating, or improving any project, or the making of any mortgage loan on any project. The proceeds of any such bonds or notes issued for the purpose of refunding outstanding bonds or notes, may, in the discretion of the
corporation, be applied to the purchase or retirement at maturity or redemption of such outstanding bonds or notes either on their earliest or any subsequent redemption date, and may, pending such application, be placed in escrow to be applied to such purchase or retirement at maturity or redemption on such date as may be determined by the corporation. Any such escrowed proceeds, pending such use, may be invested and reinvested in obligations of or guaranteed by the United States of America, or in certificates of deposit or time deposits secured in such manner as the corporation shall determine, maturing at such time or times as shall be appropriate to assure the prompt payment, as to principal, interest and redemption premium, if any, on the outstanding bonds or notes to be so refunded. The interest, income and profits, if any, earned or realized on any such investment may also be applied to the payment of the outstanding bonds or notes to be so refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of such proceeds and interest, income and profits, if any, earned or realized on the investments thereof may be returned to the corporation for use by it in any lawful manner. The portion of the proceeds of any such bonds or notes issued for the additional purpose of paying all or any part of the cost of acquiring, constructing, reconstructing, rehabilitating, or improving any project, or the making of any mortgage loan on any project, may be invested and reinvested in obligations of or guaranteed by the United States of America, maturing not later than the time or times when such proceeds will be needed for the purpose of paying all or any part of such cost, or the making of any such mortgage loan. The interest, income and profits, if any, earned or realized on such investments may be applied to the payment of all or any part of such cost, or the making of any such mortgage loan, or may be used by the corporation in any lawful manner. All such bonds or notes shall be issued and secured and shall be subject to the provisions of this act in the same manner and to the same extent as any other bonds or notes issued pursuant to this act. § 18. Bond authorization. The corporation shall not issue bonds and notes in an aggregate principal amount exceeding one billion two hundred ninety-five million dollars, excluding (1) bonds and notes issued to refund or otherwise repay outstanding bonds and notes of the corporation or of the New York state project finance agency, (2) notes issued by the corporation to evidence eligible loans made to the corporation pursuant to the New York state project finance agency act, and (3) bonds and notes issued with the approval of the state director of the budget and the New York state public authorities control board which are secured by and payable solely out of a specific project, other than a residential project, undertaken by the corporation subsequent to June first, nineteen hundred seventy-seven, and the revenues and receipts derived therefrom, without recourse against other assets of the corporation or against a debt service reserve fund to which state funds are apportionable pursuant to subdivision three of section twenty of this act, provided that the corporation shall not issue bonds or notes pursuant to this clause (3) if (a) (i) the arrangements under which the project is undertaken do not provide for annual real property taxes, or payments in lieu of real property taxes, on the real property included in the project securing such bonds
or notes which together at least equal the average annual real property taxes which were paid with respect to such real property for three years prior to the acquisition of such project or any portion thereof by the corporation or a subsidiary thereof, and (ii) after a public hearing, the local legislative body of the city, town or village in which such project is to be located has not consented to such arrangements, provided, however, that in a city having a population of one million or more such consent shall be given by the board of estimate of such city, or (b) the aggregate principal amount of any such bonds and notes is less than twice the amount of any moneys appropriated by the state and made available by the corporation to the project securing such bonds and notes, or (c) the aggregate principal amount of the bonds and notes issued pursuant to this clause (3) will thereby exceed three hundred seventy-nine million dollars, excluding bonds and notes issued to refund or otherwise repay outstanding bonds and notes issued pursuant to this clause (3), provided, however, that the corporation may provide for a pooled financing arrangement with regard to bonds issued for the purposes of financing the construction of the Center for Computers, Microelectronics and Telecommunications at Columbia University, the Center for Science and Technology at Syracuse University, the Cornell Super Computer Center at Cornell University, the Onondaga County Convention Center Complex, the Center for Advanced Materials Processing at Clarkson University, the Center for Electro-Optic Imaging at University of Rochester, the Center for Neural Science at New York University, the Alfred University Incubator Facilities in Allegany County and Steuben County, the Broadway Redevelopment Project, and the Sematech Semiconductor facility, and, that the aggregate amount of bonds which may be issued pursuant to this clause (3) shall be increased above the amounts in the following schedule for the purposes of providing for the costs of issuance including any debt service reserve requirements that may be necessary in accordance with the following schedule: Schedule Project Amount The Carborundum Company Niagara Falls............................ 4,400,000 Hooker Chemicals & Plastics Corporation Niagara Falls............................ 13,500,000 Moog, Inc. Town of Elma............................. 8,925,000 Sybron Corporation Rochester................................ 6,600,000 Refined Syrups & Sugars, Inc. Yonkers.................................. 7,500,000 Sheraton Hotel Utica.................................... 4,300,000 Urban Renewal Parcel Office Building Utica.................................... 5,000,000 Downtown Retail Center Binghamton............................... 3,000,000 American Stock Exchange/Office Facility New York City............................ -0
New Printing Plant New York City (Bronx).................... 16,000,000 New Electronics Manufacturing Plant New York City (Bronx).................... 8,000,000 Savin Corporation Binghamton............................... 6,000,000 Industrial Renewal Project New York City (Brooklyn)................. 2,700,000 Manufacturing Plant Expansion New York City (Bronx).................... 15,000,000 Shopping Mall City of Buffalo.......................... 2,100,000 Nettleton Shoe Syracuse................................. 2,200,000 Batten Kill Railroad Project Warren/Washington Counties............... 2,250,000 Carrier Corporation Onondaga County.......................... 27,000,000 Center for Industrial Innovation City of Troy............................. 33,000,000 Fordham Plaza New York City (Bronx).................... 10,000,000 Freezer Queen Foods, Inc. Buffalo.................................. 2,380,000 Chelsea Homes Project Marlboro (Ulster County)................. 2,700,000 Columbia University Center for Computers, Microelectronics and Telecommunications City of New York......................... 36,000,000 Syracuse University Center for Science and Technology City of Syracuse......................... 27,000,000 Cornell University Cornell Super Computer Center City of Ithaca........................... 5,000,000 Onondaga County Convention Center Complex at Syracuse............... 40,000,000 Clarkson University Center for Advance Materials Processing..................... 23,500,000 University of Rochester Center for Elector-Optic Imaging......... 10,000,000 New York University Center for Neural Science................ 5,000,000 Alfred University Incubator Facilities in Allegany County and Steuben County....... 10,000,000 Broadway Redevelopment Project at Schenectady........................... 5,500,000 Albany International East Greenbush (Rensselaer County)....... 2,500,000 Sematech Semi-Conductor Facility New York State........................... 40,000,000 Stony Brook Incubator Project.................................. 2,305,000 ----------- Total of Schedule...................... $389,360,000 ============
The amounts in the above schedule are interchangeable among the projects listed but in no case may be used to fund or initiate any other project. § 19. Security for bonds or notes; construction and acquisition of projects. (1) The principal of and interest on any bonds or notes issued by the corporation may be secured by a pledge of any revenues and receipts of the corporation and may be secured by a mortgage or other instrument covering all or any part of a project, including any additions, improvements, extensions to or enlargements of any projects thereafter made. (2) Bonds or notes issued for the acquisition, construction, reconstruction, rehabilitation, or improvement of a project may also be secured by an assignment of any lease of or mortgage on such project and by an assignment of the revenues and receipts derived by the corporation from any such lease or mortgage. (3) The resolution under which the bonds or notes are authorized to be issued and any such mortgage, lease or other instrument may contain agreements and provisions respecting the maintenance of the projects covered thereby, the fixing and collection of rents or other revenues therefrom, including monies received in repayment of mortgage loans, and interest thereon, the creation and maintenance of special funds from such rents or other revenues and the rights and remedies available in the event of default, all as the corporation shall deem advisable. (4) Each pledge, agreement, mortgage or other instrument made for the benefit or security of any of the bonds or notes of the corporation shall continue effective until the principal of and interest on the bonds or notes for the benefit of which the same were made shall have been fully paid, or until provision shall have been made for such payment in the manner provided in the resolution or resolutions under which the same may be authorized. (5) The corporation may provide in any proceedings under which bonds or notes may be authorized that any project or part thereof may be constructed, reconstructed, rehabilitated or improved by the corporation, any subsidiary, or any lessee or any designee of the corporation, and may also provide in such proceedings for the time and manner of and requisites for disbursements to be made for the cost of such construction, and for all such certificates and approvals of construction and disbursements as the corporation shall deem necessary and provide for in such proceedings. (6) Any resolution or resolutions or trust indenture or indentures under which bonds or notes of the corporation are authorized to be issued may contain provisions for vesting in a trustee or trustees such properties, rights, powers and duties in trust as the corporation may determine which may include any or all of the rights, powers and duties of the trustee appointed by the holders of any issue of notes or bonds pursuant to section twenty-seven of this act, in which event the provisions of said section twenty-seven authorizing the appointment of a trustee by such holders of bonds or notes shall not apply. (7) It is the intention hereof that any pledge or assignment for security made by the corporation shall be valid and binding from the time when the same is made; that the monies or property so pledged or assigned and then held or thereafter received by the corporation shall immediately be subject to the lien or
security interest of such pledge or assignment without any physical delivery thereof or further act; and that the lien or security interest of any such pledge or assignment shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the corporation, irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which any such pledge or assignment is created need be recorded, and no filing with respect to such pledge or assignment need be made under the uniform commercial code. § 20. Reserve funds and appropriations. (1) The corporation may create and establish one or more reserve funds to be known as debt service reserve funds and may pay into such reserve funds (a) any moneys appropriated and made available by the state for the purposes of such funds, (b) any proceeds of sale of bonds and notes to the extent provided in the resolution of the corporation authorizing the issuance thereof, and (c) any other moneys which may be made available to the corporation for the purposes of such funds from any other source or sources. The moneys held in or credited to any debt service reserve fund established under this subdivision, except as hereinafter provided, shall be used solely for the payment of the principal of bonds of the corporation secured by such reserve fund, as the same mature, the purchase of such bonds of the corporation, the payment of interest on such bonds of the corporation or the payment of any redemption premium required to be paid when such bonds are redeemed prior to maturity; provided, however, that moneys in any such fund shall not be withdrawn therefrom at any time in such amount as would reduce the amount of such fund to less than the maximum amount of principal and interest maturing and becoming due in any succeeding calendar year on the bonds of the corporation then outstanding and secured by such reserve fund, except for the purpose of paying principal and interest on the bonds of the corporation secured by such reserve fund maturing and becoming due and for the payment of which other moneys of the corporation are not available. Any income or interest earned by, or increment to, any such debt service reserve fund due to the investment thereof may be transferred to any other fund or account of the corporation to the extent it does not reduce the amount of such debt service reserve fund below the maximum amount of principal and interest maturing and becoming due in any succeeding calendar year on all bonds of the corporation then outstanding and secured by such reserve fund. (2) The corporation shall not issue bonds at any time if the maximum amount of principal and interest maturing and becoming due in a succeeding calendar year on the bonds outstanding and then to be issued and secured by a debt service reserve fund will exceed the amount of such reserve fund at the time of issuance, unless the corporation, at the time of issuance of such bonds, shall deposit in such reserve fund from the proceeds of the bonds so to be issued, or otherwise, an amount which together with the amount then in such reserve fund, will be not less than the maximum amount of principal and interest maturing and becoming due in any succeeding calendar year on the bonds then to be issued and on all other bonds of the corporation then outstanding and secured by such reserve fund. (3) To assure the continued operation and solvency of the corporation for the carrying out of the public purposes of this
act provision is made in subdivision one of this section for the accumulation in each debt service reserve fund of an amount equal to the maximum amount of principal and interest maturing and becoming due in any succeeding calendar year on all bonds of the corporation then outstanding and secured by such reserve fund. In order further to assure the maintenance of such debt service reserve funds, there shall be annually apportioned and paid to the corporation for deposit in each debt service reserve fund such sum, if any, as shall be certified by the chairman of the corporation to the governor and state director of the budget as necessary to restore such reserve fund to an amount equal to the maximum amount of principal and interest maturing and becoming due in any succeeding calendar year on the bonds of the corporation then outstanding and secured by such reserve fund. The chairman of the corporation shall annually, on or before December first, make and deliver to the governor and state director of the budget his certificate stating the sum, if any, required to restore each such debt service reserve fund to the amount aforesaid, and the sum or sums so certified, if any, shall be apportioned and paid to the corporation during the then current state fiscal year. (4) In computing any debt service reserve fund for the purposes of this section, securities in which all or a portion of such reserve fund shall be invested shall be valued at par, or if purchased at less than par, at their cost to the corporation. (5) With respect to any project, the corporation may create and establish a special fund to be known as the project reserve fund and deposit therein (a) any moneys appropriated and made available by the state for the purposes of such fund, (b) such amount as may be determined by the corporation in connection with any lease by the corporation to others to be charged to such lessee for deposit in such fund, and (c) any other moneys which may be made available to the corporation for the purpose of such fund from any other source or sources. All moneys held in or credited to any project reserve fund shall be first used for the payment of the principal of and interest on the bonds or notes of the corporation issued for the project secured by such project reserve fund in the event that other moneys of the corporation, other than moneys held in the debt service reserve fund, are not available for such purpose. Upon the retirement of the bonds or notes of the corporation issued for the project secured by such project reserve fund, moneys so held in such fund may be used by the corporation for any lawful purpose. § 21. Trust funds. All moneys received pursuant to the authority of this act, whether as proceeds from the sale of bonds or notes or as revenues, receipts or income, shall be deemed to be trust funds to be held and applied solely as provided in the proceedings under which such bonds or notes are authorized. Any officer with whom or any bank or trust company with which such moneys shall be deposited as trustee thereof shall hold and apply the same for the purposes thereof, subject to such provisions as this act and the proceedings authorizing the bonds or notes of any issue or the trust agreement securing such bonds or notes may provide. § 22. Exemption from taxation. The exercise of the powers granted by this act will be in all respects for the benefit of the people of this state, for the increase of their commerce,
welfare and prosperity, and for the improvement of their health and living conditions, and will constitute the performance of an essential governmental function and the corporation and its subsidiaries shall not be required to pay any taxes, other than assessments for local improvements, upon or in respect of a project or of any property or moneys of the corporation or any of its subsidiaries, levied by any municipality or political subdivision of the state, nor shall the corporation or its subsidiaries be required to pay state taxes of any kind, and the corporation, its subsidiaries, projects, property and moneys and, except for estate and gift taxes and taxes on transfers, any bonds or notes issued under the provisions of this act and the income therefrom, shall at all times be free from taxation of every kind by the state and by the municipalities and all other political subdivisions of the state. § 23. Notes and bonds as legal investments. The notes and bonds of the corporation are hereby made securities in which all public officers and bodies of this state and all municipalities and municipal subdivisions, all insurance companies and associations, and other persons carrying on an insurance business, all banks, bankers, trust companies, savings banks and savings associations, including savings and loan associations, building and loan associations, investment companies and other persons carrying on a banking business, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons whatsoever who are now or may hereafter be authorized to invest in bonds or other obligations of the state, may properly and legally invest funds, including capital, in their control or belonging to them. § 24. Agreement with the state. The state does hereby pledge to and agree with the holders of any bonds or notes issued under this act, that the state will not limit or alter the rights hereby vested in the corporation to fulfill the terms of any agreements made with the holders thereof, or in any way impair the rights and remedies of such holders until such bonds or notes, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged. The corporation is authorized to include this pledge and agreement of the state in any agreement with the holders of such bonds or notes. § 25. State's right to require redemption of bonds. Notwithstanding and in addition to any provisions for the redemption of bonds which may be contained in any contract with the holders of the bonds, the state may, upon furnishing sufficient funds therefor, require the corporation to redeem, prior to maturity, as a whole, any issue of bonds on any interest payment date not less than twenty years after the date of the bonds of such issue at one hundred five per centum of their face value and accrued interest or at such lower redemption price as may be provided in the bonds in case of the redemption thereof as a whole on the redemption date. Notice of such redemption shall be published at least twice in at least two newspapers publishing and circulating respectively in the cities of Albany and New York, the first publication to be at least thirty days before the date of redemption. § 26. State payments to municipalities and political subdivisions. In order to prevent undue loss of revenues to
municipalities and political subdivisions, there shall be annually apportioned and paid by the state, during the then current state fiscal year, to any municipality or political subdivision in which an industrial project is located, a sum equal to one hundred per centum of the average annual real property taxes paid or due to such municipality or political subdivision on the real property constituting the project site for three years prior to the time of its acquisition by the corporation or subsidiary thereof, or in the case of real property acquired by the corporation from an urban renewal agency or from a municipality which acquired such property for urban renewal purposes, for three years prior to the time of its acquisition by such urban renewal agency or municipality. The chairman of the corporation shall annually, on or before December first, make and deliver to the governor and director of the budget his certificate stating the sum, if any, required to be paid to each municipality and political subdivision by reason of tax exemptions for industrial projects received pursuant to section twenty-two of this act, and the sum or sums so certified, if any, shall be apportioned and paid to each such municipality and political subdivision, as provided herein. Such apportionment and payment shall also be made to each municipality and political subdivision in which is located real property of the corporation as to which no project findings have been made by the corporation, pursuant to section ten hereof, and the chairman of the corporation shall certify the sums required to be paid in respect of such real property, and the state shall apportion and pay such sums, if any, in the manner provided herein. § 27. Remedies of noteholders and bondholders. (1) In the event that the corporation shall default in the payment of principal of or interest on any issue of notes or bonds after the same shall become due, whether at maturity or upon call for redemption, and such default shall continue for a period of thirty days, or in the event that the corporation shall fail or refuse to comply with the provisions of this act, or shall default in any agreement made with the holders of any issue of notes or bonds, the holders of twenty-five per centum in aggregate principal amount of the notes or bonds of such issue then outstanding, by instrument or instruments filed in the office of the clerk of the county of Albany and approved or acknowledged in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of such notes or bonds for the purposes herein provided. (2) Such trustee may, and upon written request of the holders of twenty-five per centum in principal amount of such notes or bonds then outstanding shall, in his or its own name: (a) by suit, action or proceeding in accordance with the civil practice law and rules, enforce all rights of the noteholders or bondholders, to require the corporation to carry out any other agreements with the holders of such notes or bonds and to perform its duties under this act; (b) bring suit upon such notes or bonds; (c) by action or suit, require the corporation to account as if it were the trustee of an express trust for the holders of such notes or bonds;
(d) by action or suit, enjoin any acts or things which may be unlawful or in violation of the rights of the holders of such notes or bonds; (e) declare all such notes or bonds due and payable, and if all defaults shall be made good, then, with the consent of the holders of twenty-five per centum of the principal amount of such notes or bonds then outstanding, to annul such declaration and its consequences. (3) Such trustee shall in addition to the foregoing have and possess all of the powers necessary or appropriate for the exercise of any functions specifically set forth herein or incident to the general representation of bondholders or noteholders in the enforcement and protection of their rights. (4) The supreme court shall have jurisdiction of any suit, action or proceeding by the trustee on behalf of such noteholders or bondholders. The venue of any such suit, action or proceeding shall be laid in the county in which the principal office of the corporation is located. (5) Before declaring the principal of notes or bonds due and payable, the trustee shall first give thirty days notice in writing to the governor, to the corporation, and to the attorney general of the state. § 28. Monies of the corporation. (1) All monies of the corporation, except as otherwise authorized or provided in this act, shall be paid to the commissioner of taxation and finance as agent of the corporation, who shall not commingle such monies with any other monies. Such monies shall be deposited in a separate bank account or accounts. The monies in such accounts shall be paid out on checks signed by the commissioner of taxation and finance on requisition of the chairman of the corporation or of such other officer or employee or officers or employees as the corporation shall authorize to make such requisition. All deposits of such monies shall, if required by the commissioner of taxation and finance or the corporation, be secured by obligations of the United States or of the state of a market value equal at all times to the amount of the deposit, and all banks and trust companies are authorized to give such security for such deposits. Notwithstanding the provisions of this section, the corporation shall have power to contract with the holders of any of its notes or bonds, as to the custody, collection, securing, investment, and payment of any monies of the corporation, of any monies held in trust or otherwise for the payment of notes or bonds, and to carry out such contract. Monies held in trust or otherwise for the payment of notes or bonds or in any way to secure notes or bonds and deposits of such monies may be secured in the same manner as monies of the corporation, and all banks and trust companies are authorized to give such security for such deposits. (2) Subject to agreements with noteholders and bondholders and the approval of the comptroller, the corporation shall prescribe a system of accounts. (3) The comptroller, or his legally authorized representative, is hereby authorized and empowered from time to time to examine the books and accounts of the corporation including its receipts, disbursements, contracts, reserve funds, sinking funds, investments, and any other matters relating to its financial standing. Such an examination shall be conducted by
the comptroller at least once in every five years; the comptroller is authorized, however, to accept from the corporation, in lieu of such an examination, an external examination of its books and accounts made at the request of the corporation. (4) The corporation shall submit to the governor, chairman of the senate finance committee, chairman of the assembly ways and means committee and the comptroller, within thirty days of the receipt thereof by the corporation, a copy of the report of every external examination of the books and accounts of the corporation other than copies of the reports of such examinations made by the comptroller. § 29. Assistance by state officers, departments, boards and commissions. (1) The department of audit and control, department of law, and all other state agencies may render such services to the corporation within their respective functions as may be requested by the corporation. (2) Upon request of the corporation, any state agency is hereby authorized and empowered to transfer to the corporation such officers and employees as it may deem necessary from time to time to assist the corporation in carrying out its functions and duties under this act. Officers and employees so transferred shall not lose their civil service status or rights. (3) In order most effectively to carry out its corporate purposes, the corporation shall assist and cooperate with the corporation for urban development and research of New York, created by the New York state urban development and research act. § 30. Reports and evaluations. (a) Annual fiscal report. The corporation shall submit to the governor, the chairman of the senate finance committee, the chairman of the assembly ways and means committee, the comptroller and the director of the budget within 6 months after the end of its fiscal year, a complete and detailed report setting forth: (1) its operations and accomplishments; (2) its receipts and expenditures during such fiscal year in accordance with the categories or classifications established by the corporation for its operating and capital outlay purposes, including a listing of all private consultants engaged by the corporation on a contract basis and a statement of the total amount paid to each such private consultant; (3) its assets and liabilities at the end of its fiscal year, including a schedule of its leases and mortgages and the status of reserve, special or other funds; and (4) a schedule of its bonds and notes outstanding at the end of its fiscal year, together with a statement of the amounts redeemed and incurred during such fiscal year. (b) Annual program report. The corporation shall report on an annual basis beginning October 1, 2005, and on each October 1 thereafter, to the governor, the chairpersons of the senate committees on finance, commerce, economic development and small business, and corporations, authorities and commissions, the chairpersons of the assembly committees on ways and means, economic development, job creation, commerce and industry, corporations, authorities and commissions, and small business on each of the financial assistance programs, and for each program, each category of assistance administered by the corporation, identifying each proposal for assistance through such program
for which the corporation has received a formal application or otherwise has begun to undertake an analysis. (1) For those requests which are currently being evaluated but which have not yet been approved such description shall include, but not be limited to, the name and location of the applicant, the amount of assistance requested, the date of receipt of such request, and the status of such request. (2) In providing such report, where necessary to promote the development of proposed projects, the corporation may delete references to the specific names of the participants, instead making references to them in some other form so as to make it possible to identify the progress of specific proposals. (3) Such report shall provide a breakdown, for each of the regions established pursuant to section 230 of the economic development law, of proposals for assistance through each program. In addition, such report shall summarize, by program, the data reported pursuant to this paragraph. (4) For those requests which have been evaluated and for which no further action has been recommended, the corporation shall present summary data indicating why no further action was taken. (5) The corporation shall make available to each of the legislative committees specified in this subdivision, a copy of the materials provided to its board prior to each board meeting. (c) Evaluations. (1) In addition to any other requirements imposed by the act or otherwise regarding evaluations of programs administered by the corporation, each evaluation shall include an analysis of the job creation effect of such program, the number of small businesses that received assistance, the number of minority and women-owned firms that received assistance, the number of projects undertaken in distressed and highly distressed communities, and, if applicable, the repayment experience of borrowers of funds from the corporation. (2) (i) In the case of any assistance programs administered by the corporation for which independent evaluations are not otherwise required, the corporation shall submit to the director of the budget, the chairperson of the senate finance committee and the chairperson of the assembly ways and means committee an evaluation of such programs prepared by an entity independent of the corporation. Such evaluations shall be submitted by September 1, 2005 and by September 1 every four years thereafter. (ii) Between evaluation due dates, the corporation shall maintain the necessary records and data required to satisfy such evaluation requirements and to satisfy information requests received from the director of the budget, the chairperson of the senate finance committee and the chairperson of the assembly ways and means committee between such evaluation due dates. § 30-a. With respect to applications for assistance submitted pursuant to this act: (a) The corporation shall, upon receipt of an application or other formal request for funding for any project, provide notice of such application or request within ten days of such receipt to the senator and member of assembly representing the district in which such project is to be located; (b) The corporation shall provide copies of all correspondence relating to each such application to such senator or member of assembly on a timely basis; provided, however, that proprietary information may be withheld from such correspondence if such
senator and member of assembly is given notice that such information has been withheld; (c) Such senators and members of assembly shall be provided notice of all proceedings relating to such application and shall be invited to participate in such proceedings. A copy of such notice shall also be provided to the designees of the temporary president of the senate and the speaker of assembly; (d) Such senators and members of assembly shall be provided with notice of the final disposition of the application by the corporation and the reasons for such disposition; (e) In order to ensure that the funds appropriated for existing statutory programs are approved in a equitable, ratable and timely manner, the corporation shall: (1) require all projects, including those in an amount of fifty thousand dollars or less, be approved by the governing board of the corporation and included in the agenda and the minutes of the meetings of the board, accompanied by a summary of the proposed project and the source of funds used to finance the project; and (2) require projects to be financed out of the empire state economic development fund be approved generally in amounts which are proportional to amounts appropriated for the urban and community development program, and the minority and women-owned business development and lending program; (f) The corporation shall accept no funds through transfer from the department of economic development for personal or nonpersonal service expenses, except for economic development program funds where such transfer will facilitate the prompt and effective distribution of program funds to projects, provided that those funds are used for the statutory purposes for which they were appropriated to the department of economic development; (g) No later than twenty days after the end of each fiscal year quarter, the chairman of the urban development corporation shall: (1) report to the senate majority leader and the speaker of the assembly on the status of all economic development programs administered during the current fiscal year. Such report shall include but not be limited to: (A) a cumulative summary of commitments and disbursements by year of original appropriation; (B) the geographic distribution of approved projects; (C) the extent to which approved projects are expected to create or retain jobs in New York state; and (D) the impact of approved projects, where quantified and available, on distressed urban and rural communities, small- and medium-sized businesses, and strategic industries. (2) Copies of such report shall also be provided to the designees of the temporary president of the senate and the speaker of the assembly in both paper and electronic format; (h) If: (1) such report is not submitted on or before the required date, or (2) the corporation has failed to undertake a good faith effort to comply with this act, upon a written determination of non-compliance issued, not more than quarterly, by either the temporary president of the senate or speaker of the assembly, the corporation agrees that it shall approve no further project commitments from the empire state economic development fund and no state funds appropriated from the local
assistance account shall be allocated to the corporation for such commitments until such report is submitted or the corporation provides evidence of good faith effort to be in compliance with provisions hereof; and (i) Upon the issuance of such a determination of non-compliance, the corporation shall undertake the necessary acts to comply with this agreement and shall provide evidence of such compliance within ten days of receipt of such determination. § 31. Court proceedings; preferences; venue. Any action or proceeding to which the corporation or the people of the state of New York may be parties, in which any question arises as to the validity of this act, shall be preferred over all other civil causes except election causes in all courts of the state of New York and shall be heard and determined in preference to all other civil business pending therein except election causes, irrespective of position on the calendar. The same preference shall be granted upon application of counsel to the corporation in any action or proceeding questioning the validity of this act in which he may be allowed to intervene. The venue of any such action or proceeding shall be laid in the county in which the principal office of the corporation is located. § 31-a. Actions against corporation. Except in an action for wrongful death, in any case founded upon tort a notice of claim shall be required as a condition precedent to the commencement of an action or special proceeding against the corporation, any of it subsidiary corporations, or any officer, appointee or employee thereof, and the provisions of section fifty-e of the general municipal law shall govern the giving of such notice. No such action shall be commenced more than one year and ninety days after the cause of action therefor shall have accrued. An action for wrongful death shall be commenced in accordance with the notice of claim and time limitation provisions of title eleven of article nine of the public authorities law. § 32. Special provisions relating to directors of the corporation and members of the business advisory council for urban development. Notwithstanding the provisions of any other law, any state instrumentality, including any state agency, trust fund or public benefit corporation other than the corporation, may purchase from, sell to, borrow from, loan to, contract with or otherwise deal with any corporation, trust, association, partnership or other entity in which any director of the corporation or any member of the business advisory council for urban development, created by section four of this act, has a financial interest, direct or indirect, and the corporation may engage in any such transaction with any other state instrumentality with which any director of the corporation is affiliated as a state officer or employee, provided that prior to such transaction such interest or affiliation is disclosed to such other state instrumentality and is disclosed in the minutes of the corporation, and provided further that no director having such an affiliation (except such an affiliation with a subsidiary corporation of the corporation organized in accordance with section twelve of this act or with any authority or commission heretofore or hereafter continued or created under the public authorities law) may participate in any decision of the corporation affecting such transaction.
§ 33. Inconsistent provisions of other laws superseded. Insofar as the provisions of this act are inconsistent with the provisions of any other law, general, special or local, the provisions of this act shall be controlling. § 34. Construction. This act, being necessary for the welfare of the state and its inhabitants, shall be liberally construed so as to effectuate its purposes. § 35. Separability. If any clause, sentence, paragraph, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, section or part thereof directly involved in the controversy in which such judgment shall have been rendered. § 36. Limitation on new projects The corporation shall not expend any proceeds of the sale of assets to, or borrowings from, the New York state project finance agency for the construction or development of any new project which on February twenty-fifth, nineteen hundred seventy-five, was not under construction by the corporation, or the subject of a contract or legally binding commitment for the construction or financing thereof by the corporation, except for expenditures related to the prompt and orderly termination of the corporation's activities in relation to a project that was not under construction or subject to such a contract or legally binding commitment on that date. § 37. Assistance; application and evaluation, generally. (1) The corporation shall develop guidelines for application for assistance through each of its programs which are consistent with the rules published pursuant to section 9-c of this act and pursuant to the state administrative procedure act. Guidelines shall provide clear guidance to potential applicants as to criteria for program eligibility, and shall specify criteria used by the corporation in evaluating applications. (2) The corporation shall prepare forms, application procedures and evaluation processes which are consistent with the rules and guidelines promulgated by the corporation and which are developed with the goal of making them easily understandable to applicants. (3) The corporation shall make available, with the department of economic development, applications and guidance to applicants for each of its programs of assistance at the regional offices of the department of economic development. (4) The corporation shall establish, by rule, procedures for (i) the notification to each applicant for assistance of the receipt of such application; (ii) notification to each applicant for assistance of such additional materials as the corporation requires for evaluation of such application; and (iii) periodic notifications not exceeding thirty days apart to each applicant of the status of such application. Such rule shall specify uniform time periods within which the corporation shall make the notifications required by this paragraph. (5) Whenever possible, the corporation shall render a determination on an application within thirty working days of the receipt of a completed application including necessary documentation. In the event that a determination cannot be reached within the thirty working day period, the corporation shall submit to the applicant a statement of the reasons for
such delay upon or prior to the expiration of the thirty working day period. (6) Upon approval of an application for financial assistance, the corporation shall inform the recipient of all steps which must be taken in order to receive the promised assistance. The requirements imposed by the corporation shall be pursuant to statute or rules adopted pursuant to the state administrative procedure act. § 38. Small business and minority-owned and women-owned business enterprises transportation capital assistance and guaranteed loan program. 1. To provide financial assistance to small business and minority-owned and women-owned business enterprises engaged in government sponsored, transportation related construction projects, the corporation shall establish a small business and minority-owned and women-owned business enterprise transportation capital assistance revolving loan fund which shall provide loans or loan guarantees to small business and minority-owned and women-owned business enterprises. For purposes of this section: (a) the term small business shall have the same meaning as defined in section one hundred thirty-one of the economic development law and (b) the term project shall mean a project of state agency or authority that sponsors transportation related construction projects and participates in this program and any definition of project contained elsewhere in this act shall not apply. 2. Such loans, or loan guarantees for loans made by federally and state chartered credit institutions, financial institutions, and federally insured banking organizations to small business and minority-owned and women-owned business enterprises, shall be used to (a) enable such businesses, through the acquisition, leasing or improvement of real property, machinery or equipment, or through the provision of working capital to secure service, commodity or construction contracts; (b) restore working capital to such businesses which have successfully completed work under a contract but whose liquidity has been adversely affected by problems resulting from delayed payments; and (c) ensure the completion of the work associated with a governmental service, commodity or construction contract in order to prevent default on such contract. 3. (a) To be eligible for such loans or loan guarantees (i) a minority-owned or women-owned business enterprise must be certified as a minority-owned or women-owned business enterprise pursuant to article 15-A of the executive law; and (ii) a small business or a minority-owned or women-owned business enterprise shall have a contract or sub-contract to provide goods or services related to a government sponsored, transportation related construction project. (b) Only such business enterprises referred to the corporation by a written application of a state agency or authority that sponsors transportation related construction projects shall be eligible for program assistance. Such assistance shall be provided to such an enterprise only in connection with its performance as a contractor or sub-contractor on a specific transportation related project of the referring agency or authority. In order for such an agency or authority to refer such enterprises to the corporation, such agency or authority shall enter into a master agreement with the corporation covering procedures and requirements for providing program
assistance. The corporation shall determine whether or not to approve such an agency's or authority's written application for program assistance to such a business within twenty business days of the corporation's receipt of such application. If it approves the application, the corporation will provide assistance pursuant to the applicable master agreement. 4. The corporation shall give preference to minority-owned and women-owned business enterprises in making such loans and loan guarantees and shall establish such other criteria as it may deem necessary for this program and for any required amount that shall be held in reserve for any guarantees made under this program. 5. Notwithstanding any inconsistent provision of law, general, special or local, including pursuant to capital projects budget appropriations or reappropriations, where applicable, the corporation is hereby authorized to enter into such agreements as may be necessary for the operation and administration of a small business and minority-owned and women-owned business enterprises transportation capital assistance and guaranteed loan program. 6. The corporation is authorized to establish a revolving loan fund account into which funds may be received and from which funds may be expended for the aforementioned purposes. 7. The provisions of section ten and subdivision two of section sixteen of this act shall not apply to assistance provided under this program. § 39. Lease and operation of seventh regiment armory. (a) The corporation is hereby authorized to act on behalf of the state and the division of military and naval affairs to enter into a lease or subsequent leases and the management agreement on behalf of the state and the division with a lessee, subsequent lessee or the manager pursuant to the terms of the management agreement in order to accomplish the purposes of this section. The leasing of the armory to a lessee or subsequent lessee and the entrance into the management agreement and the repair, restoration and refurbishment of the armory and operation thereof by a lessee or subsequent lessee for cultural and other civic uses pursuant to the lease is hereby declared to be a valid use under the city lease, and is undertaken for public purposes. (b) The lease with a lessee or subsequent lessee authorized by this section shall require a lessee or subsequent lessee to undertake a program of repair, restoration and refurbishment of the armory and to manage and use the same as a facility for cultural and other civic uses. The lease shall demise all portions of the armory other than those reserved for a homeless shelter for women operated by the city of New York pursuant to agreement with the state and for that reserved for military use by the division. The portion of the premises allocated to the shelter for homeless women shall be sufficient and suitable space for the current and uninterrupted operation of the shelter by the city of New York. The division shall cause the 107th corps support group or its lineal descendent to maintain military use within the reserved portions of the armory. The division, and the city of New York, respectively, shall be responsible to repair and maintain their reserved premises, including the costs of renovation and uninterrupted use, and to pay an annual common maintenance charge to a lessee or
subsequent lessee to cover allocated costs of repair, maintenance and operation of the common portions of the armory. The lessee or subsequent lessee shall be required to apply all revenues generated by operations at the armory to pay or provide for costs of repairs, restoration, refurbishment, operating, maintenance and programming of the armory and the uses therein and the activities of the lessee or subsequent lessee with respect thereto. (c) The corporation, in carrying out its authorization under this section may exercise all of the power granted it in law, as if fully enumerated herein. Without limiting the generality of the foregoing, the powers granted to the corporation under sections sixteen and twenty-two of this act shall be utilized by the corporation in its administration of the lease, and shall be applicable in respect to the repair, restoration, refurbishment and operation of the armory pursuant to the lease. (d) In no event shall the lessee or subsequent lessee be deemed a state actor or an agent or an instrumentality of the state by reason of the lease or this section or any of the activities of the lessee or subsequent lessee with respect to the armory pursuant to the lease or this section. (e) Except with respect to military use or periods of civil or military emergency, for any action involving the armory that may have a significant effect on the environment, the corporation shall be the lead agency having principal responsibility for carrying out or approving such action for purposes of article eight of the environmental conservation law.

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