STATE OF NEW YORK
________________________________________________________________________
1765
2011-2012 Regular Sessions
IN ASSEMBLY
January 11, 2011
___________
Introduced by M. of A. PAULIN, MURRAY -- read once and referred to the
Committee on Judiciary
AN ACT to amend the eminent domain procedure law and the New York state
urban development corporation act, in relation to defining blight; and
to repeal certain provisions of the New York state urban development
corporation act relating thereto
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative findings and intent. The legislature hereby
2 finds and declares that eminent domain, while a meaningful tool for
3 government to move forward on important projects, has come under a great
4 deal of criticism in recent years for many alleged abuses that have
5 occurred within the state of New York. Traditionally, the right of
6 eminent domain, or the state's ability to seize private land was limited
7 for "public use". However, over the years, phrases such as "public use"
8 and "blighted" have taken on more expansive meanings.
9 Since Kelo v. City of New London, the 2005 decision in which the U.S.
10 Supreme Court approved the forcible transfer of property from one
11 private owner to another in the name of "economic development", forty-
12 three states have passed eminent domain reform legislation. New York has
13 thus far failed to take such action but continues again and again to
14 approve eminent domain condemnation for projects that benefit private
15 entities at the public's expense. A 2009 report by the Institute for
16 Justice entitled "Building Empires, Destroying Homes: Eminent Domain
17 Abuse in New York" detailed widespread eminent domain abuse throughout
18 the state.
19 Furthermore, two recent court decisions, Goldstein v. New York State
20 Urban Development Corporation and Kaur v. New York State Urban Develop-
21 ment Corporation demonstrate the need to balance the rights of property
22 owners without stifling positive economic development programs. Instead,
23 New Yorkers suffer under an inequitable system of eminent domain laws
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00885-01-1
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1 that greatly favors private developers partnered with public actors at
2 the expense of homeowners, businesses, and tenants.
3 The use of "blight" as a basis for condemnation is vaguely defined and
4 in need of clarification. Under the loose standards of existing law
5 practically anything can qualify as blighted. Consequently it is imper-
6 ative that the legislature enact objective criteria to ensure that
7 blight determinations are consistent, predictable, and based on factors
8 actually related to the public's health and safety. There also needs to
9 be better protections in place so that tenants and low income residents
10 are ensured that they are not excluded from the development process.
11 As Judge Catterson notes for the majority in the Kaur decision, it has
12 been well documented that the urban renewal schemes of the 1950s and
13 1960s displaced millions of people and destroyed hundreds of neighbor-
14 hoods. By and far, these programs disproportionately harmed low income
15 and minority families. Legislative reforms are needed to prevent a
16 repeat of these injustices. It is now time for New York to make the
17 necessary reforms that will ensure a fair and equitable use of our
18 eminent domain laws.
19 § 2. Section 103 of the eminent domain procedure law is amended by
20 adding five new subdivisions (H), (I), (J), (K) and (L) to read as
21 follows:
22 (H) "Blighted property" and "blighted area" mean property that is
23 declared blighted under section two hundred four-a of this chapter.
24 (I) "Slum" means property that is declared blighted under section two
25 hundred four-a of this chapter.
26 (J) "Substandard and insanitary property" means property that is
27 declared blighted under section two hundred four-a of this chapter.
28 (K) "Unfit for human habitation" means premises which have identifi-
29 able conditions that endanger the life, health and safety of the owners,
30 occupants, or the public. Conditions rendering property unfit for human
31 habitation include, but are not limited to, substantial structural
32 defects or deterioration, vermin infestation, lack of necessary utili-
33 ties, and fire hazards.
34 (L) "Abandoned property" means:
35 (1) unoccupied property which has been tax delinquent for at least two
36 years; or
37 (2) a building:
38 (a) that is unoccupied by owner or tenant;
39 (b) that is unfit for habitation;
40 (c) that has deteriorated to the point where:
41 (I) the building is structurally unsound or poses an immediate threat
42 to life or other property; or
43 (II) the cost of rehabilitation significantly exceeds the post-rehabi-
44 litation market value; and
45 (d) the owner is unknown or the owner fails to respond within six
46 months to a violation notice from the appropriate governing body requir-
47 ing the owner to:
48 (I) rehabilitate the building to conform to minimum code habitability
49 requirements; or
50 (II) demolish the building for health and safety reasons; or
51 (3) a vacant lot on which a building has been demolished and for which
52 a municipal lien for demolition costs remains unpaid for six months.
53 § 3. Paragraph 4 of subdivision (B) of section 204 of the eminent
54 domain procedure law is amended and a new paragraph 5 is added to read
55 as follows:
56 (4) such other factors as it considers relevant[.];
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1 (5) the findings required pursuant to subdivision (D) of section two
2 hundred four-a of this article.
3 § 4. The eminent domain procedure law is amended by adding a new
4 section 204-a to read as follows:
5 § 204-a. Blighted properties and areas. (A) Subject to the exceptions
6 listed in paragraph two of subdivision (B) of this section, any single
7 property may be declared blighted if it meets any of the following
8 conditions:
9 (1) Any premises, which because of dilapidation, deterioration, struc-
10 tural defects, vermin infestation, health hazards, fire hazards, lack of
11 utilities, lack of facilities or equipment required by statute or munic-
12 ipal code, neglect, or lack of maintenance:
13 (a) is unfit for human habitation;
14 (b) has deteriorated to the point where:
15 (I) the building is structurally unsound or poses an immediate threat
16 to life or other property; or
17 (II) the cost of rehabilitation significantly exceeds the post-rehabi-
18 litation market value; and
19 (c) the owner fails to remedy the problem within a reasonable time
20 after receiving notice of violation by the appropriate governing body
21 requiring the owner to:
22 (I) rehabilitate the building to conform to minimum code habitability
23 requirements; or
24 (II) demolish the building for health and safety reasons.
25 (2) Any abandoned property as defined in subdivision (L) of section
26 one hundred three of this chapter.
27 (3) Property that is environmentally contaminated and that requires
28 remediation for current or future use under state or federal law, if the
29 owner fails to remedy the problem within six months of receiving notice
30 of violation from the appropriate governing body.
31 (4) A premises which, because of physical condition or use, is
32 regarded as a public nuisance at common law or has been declared a
33 public nuisance under a statute or an applicable municipal code, and the
34 owner fails to abate the nuisance within six months of receiving notice
35 of violation from the appropriate governing body.
36 (5) Any well, shaft, basement, excavation, or unsafe fence or struc-
37 ture that, because of physical condition, use or occupancy, is deemed an
38 attractive nuisance to children, and the owner fails to abate the
39 nuisance within six months after receiving notice of violation from the
40 appropriate governing body.
41 (6) Vacant property that has become overgrown with weeds, is a place
42 for the accumulation of trash and debris, or a haven for vermin, if the
43 owner fails to remedy the problem within six months after receiving
44 notice of violation by the appropriate governing body requiring the
45 owner to rehabilitate the property to conform with minimum code require-
46 ments.
47 (7) Defective or unusual conditions of title that make the free trans-
48 fer or alienation of the property impossible.
49 (8) Occupied or unoccupied property that has tax delinquencies exceed-
50 ing the value of the property.
51 (9) Property that is used for pervasive and persistent criminal activ-
52 ity. For purposes of this section, such activity shall be defined as two
53 or more convictions of any person or persons had, within a period of one
54 year, for any of the following penal law offenses arising out of conduct
55 engaged in at the property:
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1 (a) sale of a controlled substance described in sections 220.31,
2 220.34, 220.39, 220.41, or 220.43 of the penal law; or
3 (b) offenses related to the crime of prostitution as described in
4 article two hundred thirty of the penal law; or
5 (c) offenses related to the crime of gambling as described in article
6 two hundred twenty-five of the penal law; or
7 (d) enterprise corruption as defined in article four hundred sixty of
8 the penal law.
9 (10) Property that does not otherwise meet any of the conditions list-
10 ed in this section may not be declared blighted.
11 (B) Notwithstanding the provisions of subdivision (A) of this section,
12 the following exceptions shall apply:
13 (1) Property shall in no case be declared blighted if it meets one or
14 more of the following criteria:
15 (a) Vacant and unimproved property located in any rural or suburban
16 area which is not served by existing utilities.
17 (b) Property which satisfies the definition of "farm woodland", "land
18 used in agricultural production", "unique and irreplaceable agricultural
19 land", or "viable agricultural land", as those terms are defined in
20 section three hundred one of the agriculture and markets law.
21 (2) For purposes of this section, if a developer or condemnor involved
22 in a redevelopment project has caused or brought about by action or
23 inaction or maintained for more than seven years a condition listed in
24 subdivision (A) of this section within the proposed project area, that
25 condition may not be used in the determination of blight.
26 (3) For purposes of this section, if property located in an urbanized
27 area generally served by municipal infrastructure and utilities meets
28 one or more of the conditions listed in subdivision (A) of this section
29 due to failure on the part of the appropriate governing body to provide
30 necessary utility services and/or infrastructure, that condition may not
31 be used in the determination of blight.
32 (C) Multiple properties and project areas may be declared blighted if
33 they meet any of the following conditions:
34 (1) For purposes of acquiring multiple units of property by eminent
35 domain, an area may be declared generally blighted only if:
36 (a) the area is located in an urban or suburban area generally served
37 by existing utilities and infrastructure; and
38 (b) seventy-five percent of the individual parcels in the area are
39 declared blighted under subdivision (A) of this section.
40 (2) A condemnor may use eminent domain to acquire any unit of property
41 within a blighted project area.
42 (3) Properties owned by a developer or condemnor involved in a rede-
43 velopment project may be included in any blighted project area determi-
44 nation.
45 (4) For purposes of this section, a building containing multiple units
46 shall be treated as a single property.
47 (D) The following findings shall be required before a property or
48 project area may be declared blighted:
49 (1) To declare any single property blighted, the condemnor must make
50 written findings identifying the specific conditions which render the
51 property blighted under subdivision (A) of this section.
52 (2) To declare multiple properties or project areas blighted, the
53 condemnor must make written findings demonstrating that the requirements
54 of subdivision (C) of this section have been met. To demonstrate that
55 seventy-five percent of the parcels in the area are individually blight-
56 ed, each blighted parcel must be identified and the specific conditions
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1 rendering it blighted under subdivision (A) of this section must be
2 identified.
3 (E) Any declaration made pursuant to subdivision (D) of this section
4 shall be valid for a period of ten years.
5 § 5. Section 2 of section 1 of chapter 174 of the laws of 1968,
6 constituting the New York state urban development corporation act, the
7 ninth undesignated paragraph as added by chapter 280 of the laws of 1984
8 and the tenth undesignated paragraph as amended by chapter 747 of the
9 laws of 2005, is amended to read as follows:
10 § 2. Statement of legislative findings and purposes. It is hereby
11 found and declared that there exists in [urban] some areas of this state
12 a condition of substantial and persistent unemployment and underemploy-
13 ment which causes hardship to many individuals and families, wastes
14 vital human resources, increases the public assistance burdens of the
15 state and municipalities, impairs the security of family life, contrib-
16 utes to the growth of crime and delinquency, prevents many of our youth
17 from finishing their educations, impedes the economic and physical
18 development of municipalities and adversely affects the welfare and
19 prosperity of all the people of the state. [Many existing industrial,
20 manufacturing and commercial facilities in such urban areas are obsolete
21 and inefficient, dilapidated, and without adequate mass transportation
22 facilities and public services. Many of such facilities are underuti-
23 lized or in the process of being vacated, creating additional unemploy-
24 ment. Technological advances and the provision of modern, efficient
25 facilities in other states will speed the obsolescence and abandonment
26 of existing facilities causing serious injury to the economy of the
27 state. Many existing and planned industrial, manufacturing and commer-
28 cial facilities are, moreover, far from or not easily accessible to the
29 places of residence of substantial numbers of unemployed persons. As a
30 result, problems of chronic unemployment are not being alleviated but
31 are aggravated. New industrial, manufacturing and commercial facilities
32 are required to attract and house new industries and thereby to reduce
33 the hazards of unemployment. The unaided efforts of private enterprise
34 have not met and cannot meet the needs of providing such facilities due
35 to problems encountered in assembling suitable building sites]
36 It is further found and declared that the unaided efforts of private
37 industrial, manufacturing and commercial businesses are negatively
38 affected by aging and inefficient facilities, difficulties in finding
39 suitable building sites for new facilities, lack of adequate public
40 services, the unavailability of private capital for development [in such
41 urban areas], and the inability of private enterprise alone to plan[,]
42 and finance development and to coordinate [industrial and commercial
43 development] such development with [residential developments for persons
44 and families of low income and with] affordable housing development,
45 community development programs, public services and mass transportation
46 facilities.
47 It is further found and declared that there exist in many munici-
48 palities within this state [residential, nonresidential, commercial,
49 industrial or vacant areas, and combinations thereof, which are slum or
50 blighted, or which are becoming slum or blighted areas because of
51 substandard, insanitary, deteriorated or deteriorating conditions,
52 including obsolete and dilapidated buildings and structures, defective
53 construction, outmoded design, lack of proper sanitary facilities or
54 adequate fire or safety protection, excessive land coverage, insuffi-
55 cient light and ventilation, excessive population density, illegal uses
56 and conversions, inadequate maintenance, buildings abandoned or not
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1 utilized in whole or substantial part, obsolete systems of utilities,
2 poorly or improperly designed street patterns and intersections, inade-
3 quate access to areas, traffic congestion hazardous to the public safe-
4 ty, lack of suitable off-street parking, inadequate loading and unload-
5 ing facilities, impractical street widths, sizes and shapes, blocks and
6 lots of irregular form, shape or insufficient size, width or depth,
7 unsuitable topography, subsoil or other physical conditions, all of]
8 blighted properties and blighted areas, which are characterized by prem-
9 ises unfit for human habitation and dangerous to life and property, and
10 which hamper or impede proper and economic development of such areas and
11 which impair or arrest the sound growth of the area, community or muni-
12 cipality, and the state as a whole.
13 It is further found and declared that there is a serious need through-
14 out the state for adequate educational, recreational, cultural and other
15 community facilities, the lack of which threatens and adversely affects
16 the health, safety[, morals] and welfare of the people of the state.
17 It is further found and declared that there continues to exist
18 throughout the state a seriously inadequate supply of [safe and sani-
19 tary] decent dwelling accommodations for persons and families of low
20 income. This condition is contrary to the public interest and threatens
21 the health, safety, welfare, comfort and security of the people of the
22 state. The ordinary operations of private enterprise cannot provide an
23 adequate supply of safe and sanitary dwelling accommodations [at
24 rentals] which persons and families of low income can afford.
25 It is further found and declared that there is an urgent need to
26 protect and enhance the quality of the natural environment, to encourage
27 the development and expansion of existing and alternative sources of
28 energy and the conservation of energy, and to abate and prevent the
29 generation of hazardous waste, toxic by-products, and other types of
30 environmental pollution.
31 It is hereby declared to be the policy of the state to promote a
32 vigorous and growing economy, to prevent economic stagnation and to
33 encourage the creation of new job opportunities in order to protect
34 against the hazards of unemployment, reduce the level of public assist-
35 ance to now indigent individuals and families, increase revenues to the
36 state and to its municipalities and to achieve stable and diversified
37 local economies. In furtherance of these goals, it is the policy of the
38 state to retain existing industries and to attract new industries
39 through the acquisition, construction, financing, reconstruction and
40 rehabilitation of industrial and manufacturing plants and commercial
41 facilities, and to develop sites for new industrial and commercial
42 building. It is further declared to be the policy of the state to
43 promote the development of such plants and facilities, reasonably acces-
44 sible to residential facilities, in those areas where substantial unem-
45 ployment or underemployment exists, to the end that the industrial and
46 commercial development [of our urban areas] will proceed in sound fash-
47 ion and in coordination with development of housing, mass transportation
48 and public services, and that job opportunities will be available in
49 those areas where people lack jobs.
50 It is further declared to be the policy of the state to promote the
51 safety, health[, morals] and welfare of the people of the state and to
52 promote the sound growth and development of our municipalities through
53 the [correction of such substandard, insanitary, blighted, deteriorated
54 or deteriorating conditions, factors and characteristics by the clear-
55 ance, replanning, reconstruction, redevelopment, rehabilitation, resto-
56 ration or conservation of such areas,] redevelopment of blighted areas
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1 and [of areas reasonably accessible thereto] the undertaking of public
2 and private improvement programs [related thereto], including the
3 provision of educational, recreational and cultural facilities, and the
4 encouragement of participation in these programs by private enterprise.
5 In furtherance of these goals, it is the policy of the state to engage
6 and empower the public through educational programs, community outreach,
7 and an open and inclusive redevelopment planning process; to coordinate
8 redevelopment projects and improvement programs with local government
9 planning goals; to respect communities' existing social and cultural
10 fabric and to limit residential and business displacement to maximum
11 extent possible; to reuse existing resources and infrastructure and
12 recycle materials and structures; to encourage energy efficiency and
13 sustainable building; to conserve undeveloped land and encourage infill
14 and brownfield development; to improve or restore natural systems such
15 as streambeds, drainage courses, wetlands, rivers, and other ecological
16 features, and to encourage the creation of publicly available open spac-
17 es; to ensure that environmental pollution does not disparately affect
18 areas with a substantial number of minority or low income households; to
19 incorporate cultural resources and landscapes into project designs by
20 preserving and rehabilitating buildings with cultural, historical or
21 architectural significance, encouraging adaptive reuse as an alternative
22 to demolition and new construction, and encouraging compatible design of
23 new construction; to encourage the retention and construction of afford-
24 able housing through incentives, loans, and other programs; to encourage
25 development that is accessible and inviting to pedestrians, bicyclists
26 and transit users, and to discourage development that is reliant on
27 personal automobile transportation; to increase opportunities for
28 private enterprise, especially for small businesses, local businesses,
29 and businesses owned by minorities and women, through procedures that
30 are fair, open, equitable, transparent, and demonstrated to be the best
31 choice for the public interest; to provide sufficient guarantees and
32 protections in the event that private developers withdraw from partic-
33 ipation in a redevelopment project or improvement program; to increase
34 employment opportunities for local residents, especially low income
35 residents, homeless persons, single parents, formerly incarcerated
36 persons, and persons with other barriers to employment, through job
37 training, local hiring and other assistance programs; and to encourage
38 the creation of quality jobs that provide a living wage, adequate health
39 benefits, and opportunities for advancement.
40 It is further declared to be the policy of the state to promote the
41 safety, health[, morals] and welfare of the people of the state through
42 the provision of adequate, safe and sanitary dwelling accommodations and
43 facilities incidental or appurtenant thereto for persons and families of
44 low income.
45 For these purposes, there should be created a corporate governmental
46 agency to be known as the "New York state urban development corporation"
47 which, through issuance of bonds and notes to the private, investing
48 public, by encouraging maximum participation by the private sector of
49 the economy, including the sale or lease of the corporation's interest
50 in projects at the earliest time deemed feasible, and through partic-
51 ipation in programs undertaken by the state, its agencies and subdivi-
52 sions, and by municipalities and the federal government, may provide or
53 obtain the capital resources necessary to acquire, construct, recon-
54 struct, rehabilitate or improve such industrial, manufacturing, commer-
55 cial, educational, recreational and cultural facilities, and housing
56 accommodations for persons and families of low income, and facilities
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1 incidental or appurtenant thereto, and to carry out the [clearance,
2 replanning, reconstruction and rehabilitation of such substandard and
3 insanitary] redevelopment of blighted areas.
4 It is further declared to be the policy of New York state to encourage
5 the development of research and development facilities and high technol-
6 ogy industrial incubator space at institutions of higher education
7 located in this state and authorized to confer degrees by law or by the
8 board of regents, or on lands in reasonable proximity to such insti-
9 tutions provided that (i) in the case of research and development facil-
10 ities such facilities are for the cooperative use of one or more such
11 institutions and one or more business corporations, research consortia
12 or other industrial organizations involved in research, development,
13 demonstration, or other technologically oriented industrial activities;
14 and (ii) in the case of high technology industrial incubator space, such
15 space shall be for rental to business concerns which are in their form-
16 ative stages and which are involved in high technology activities,
17 including but not limited to business concerns initiated by students,
18 employees of such institution, including faculty members and other
19 persons or firms academically associated with such institution.
20 It is hereby declared that the acquisition, construction, financing,
21 reconstruction, rehabilitation or improvement of such industrial, manu-
22 facturing and commercial facilities, and of such cultural, educational
23 and recreational facilities including but not limited to facilities
24 identified as projects and called for to implement a state designated
25 heritage area management plan as provided in title G of the parks,
26 recreation and historic preservation law; the [clearance, replanning,
27 reconstruction and rehabilitation of such substandard and insanitary]
28 redevelopment of blighted areas; and the provision of adequate, safe and
29 sanitary housing accommodations for persons and families of low income
30 and such facilities as may be incidental or appurtenant thereto are
31 public uses and public purposes for which public money may be loaned and
32 private property may be acquired and tax exemption granted, and that the
33 powers and duties of the New York state urban development corporation as
34 hereinafter prescribed are necessary and proper for the purpose of
35 achieving the ends here recited.
36 § 6. Section 3 of section 1 of chapter 174 of the laws of 1968,
37 constituting the New York state urban development corporation act, is
38 amended by adding two new subdivisions 31 and 32 to read as follows:
39 (31) "Blighted property" and "blighted area". Property that is
40 declared blighted under section 204-a of the eminent domain procedure
41 law.
42 (32) "Slum". Property that is declared blighted under section 204-a of
43 the eminent domain procedure law.
44 § 7. Subdivision 12 of section 3 of section 1 of chapter 174 of the
45 laws of 1968, constituting the New York state urban development corpo-
46 ration act, is REPEALED and a new subdivision 12 is added to read as
47 follows:
48 (12) "Substandard and insanitary property". Property that is declared
49 blighted under section 204-a of the eminent domain procedure law.
50 § 8. Subdivision 7 of section 5 of section 1 of chapter 174 of the
51 laws of 1968, constituting the New York state urban development corpo-
52 ration act, is amended to read as follows:
53 (7) To acquire or contract to acquire from any person, firm, corpo-
54 ration, municipality, federal or state agency, by grant, purchase,
55 condemnation or otherwise, leaseholds, real, personal or mixed property
56 or any interest therein, subject to the limitations in section 204-a of
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1 the eminent domain procedure law; to own, hold, clear, improve and reha-
2 bilitate, and to sell, assign, exchange, transfer, convey, lease, mort-
3 gage, or otherwise dispose of or encumber the same;
4 § 9. Section 10 of section 1 of chapter 174 of the laws of 1968,
5 constituting the New York state urban development corporation act,
6 subdivision (d) as amended by chapter 847 of the laws of 1971, subdivi-
7 sions (e) and (f) as added and subdivisions (g) and (h) as relettered by
8 chapter 839 of the laws of 1987, is amended to read as follows:
9 § 10. Findings of the corporation. Notwithstanding any other provision
10 of this act, the corporation shall not be empowered to undertake the
11 acquisition, construction, reconstruction, rehabilitation or improvement
12 of a project unless the corporation finds:
13 (a) in the case of a residential project:
14 (1) That there exists, in the area in which the project is to be
15 located, or in an area reasonably accessible to such area, a need for
16 [safe and sanitary] decent housing accommodations for persons or fami-
17 lies of low income, which the operations of private enterprise cannot
18 provide;
19 (2) That the project has been approved as a project of a housing
20 company pursuant to the provisions of the private housing finance law.
21 (b) in the case of an industrial project:
22 (1) That the area in which the project is to be located is a
23 [substandard or insanitary area, or is in danger of becoming a substand-
24 ard or insanitary area] blighted area, as that term is defined in subdi-
25 vision (H) of section 103 of the eminent domain procedure law, wherein
26 there exists a condition of substantial and persistent unemployment or
27 underemployment;
28 (2) That the acquisition or construction and operation of such project
29 will prevent, eliminate or reduce unemployment or underemployment in
30 such area;
31 (3) That such project shall consist of a building or buildings which
32 are suitable for manufacturing, warehousing or research or other indus-
33 trial, business or commercial purposes[.];
34 (4) That adequate provision has been, or will be made for the payment
35 of the cost of the acquisition, construction, operation, maintenance and
36 upkeep of such project[.];
37 (5) That the acquisition and construction, proposed leasing, operation
38 and use of such project will aid in the development, growth and prosper-
39 ity of the state and the area in which such project is located;
40 (6) That the plans and specifications assure adequate light, air,
41 sanitation and fire protection.
42 (c) in the case of a land use improvement project:
43 (1) That the area in which the project is to be located is a
44 [substandard or insanitary area, or is in danger of becoming a substand-
45 ard or insanitary area and tends to impair or arrest the sound growth
46 and development of the municipality] blighted area, as that term is
47 defined in subdivision (H) of section 103 of the eminent domain proce-
48 dure law;
49 (2) That the project consists of a plan or undertaking for the clear-
50 ance, replanning, reconstruction and rehabilitation of such area and for
51 recreational and other facilities incidental or appurtenant thereto;
52 (3) That the plan or undertaking affords maximum opportunity for
53 participation by private enterprise, consistent with the sound needs of
54 the municipality as a whole.
55 (d) in the case of a civic project:
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1 (1) That the area in which the project is to be located is a blighted
2 area, as that term is defined in subdivision (H) of section 103 of the
3 eminent domain procedure law, wherein there exists [in the area in which
4 the project is to be located,] a need for the educational, cultural,
5 recreational, community, municipal, public service or other civic facil-
6 ity to be included in the project;
7 (2) That the project shall consist of a building or buildings or other
8 facilities which are suitable for educational, cultural, recreational,
9 community, municipal, public service or other civic purposes;
10 (3) That such project will be leased to or owned by the state or an
11 agency or instrumentality thereof, a municipality or an agency or
12 instrumentality thereof, a public corporation, or any other entity which
13 is carrying out a community, municipal, public service or other civic
14 purpose, and that adequate provision has been, or will be, made for the
15 payment of the cost of acquisition, construction, operation, maintenance
16 and upkeep of the project;
17 (4) That the plans and specifications assure or will assure adequate
18 light, air, sanitation and fire protection.
19 (e) in the case of an industrial effectiveness project:
20 (1) That a feasibility study or productivity assessment exists demon-
21 strating the potential for future profitability of the firm requesting
22 financial assistance and such study or assessment has been reviewed and
23 approved by the commissioner of economic development;
24 (2) That for loans to implement a corporate restructuring or turn-
25 around plan, the management of the industrial firm requesting assistance
26 is capable and the firm has a sound business development plan that
27 includes measures to ensure labor and management cooperation and to
28 effect changes required to continue as a successful business;
29 (3) That the requested financial assistance is not available from
30 other public or private financing sources; and
31 (4) That the area in which the project is to be located is a
32 [substandard or insanitary area, or is in danger of becoming a substand-
33 ard or insanitary area] blighted area, as that term is defined in subdi-
34 vision (H) of section 103 of the eminent domain procedure law, wherein
35 there exists a condition of substantial and persistent unemployment or
36 underemployment.
37 (f) in the case of a small and medium-sized business assistance
38 project:
39 (1) That the area in which the project will be located is a [substand-
40 ard or insanitary area, or is in danger of becoming a substandard or
41 insanitary area] blighted area, as that term is defined in subdivision
42 (H) of section 103 of the eminent domain procedure law, wherein there
43 exists a condition of substantial and persistent unemployment or under-
44 employment;
45 (2) That the project demonstrates market, management and financial
46 feasibility and has a clear likelihood of success;
47 (3) That the [industrial] firm provides at least a ten percent equity
48 contribution and such contribution is not derived from other govern-
49 mental sources;
50 (4) That the requested financial assistance is not available from
51 other public or private financing sources on terms compatible with the
52 successful completion of the project;
53 (5) That the project will not result in the relocation of any [indus-
54 trial] firm from one municipality within the state to another munici-
55 pality, or in the abandonment of one or more of the firms' plants or
56 facilities located within the state, except under one of the following
A. 1765 11
1 conditions: (i) when [an industrial] a firm is relocating within a muni-
2 cipality with a population of at least one million where the governing
3 body of such municipality approves such relocation; [or] (ii) the corpo-
4 ration notifies each municipality from which such [industrial] firm will
5 be relocated and each municipality agrees to such relocation; or (iii)
6 the corporation shall determine on the basis of the application before
7 it that the project is reasonably necessary to discourage the firm from
8 relocating to a location outside the state and to preserve the compet-
9 itive position of the firm within its respective industry; and
10 (6) That the project is not for the purpose of refinancing any portion
11 of the total project cost or other existing loans or debts of the
12 project sponsor or owner.
13 (g) in the case of all projects, that [there is a feasible method for
14 the relocation of families and individuals displaced from the project
15 area into decent, safe and sanitary dwellings] the displacement of resi-
16 dents and businesses is limited to the maximum extent possible, and that
17 all displaced residents and businesses will be afforded adequate compen-
18 sation and/or assistance to be relocated to substantially comparable
19 properties, which are or will be [provided] located in the project area
20 or in [other areas] an area reasonably proximate to the project area and
21 not generally less desirable in regard to public utilities and public
22 and commercial facilities, at substantially comparable rents or prices
23 [within the financial means of such families or individuals], and
24 reasonably accessible to their places of dwelling and/or employment.
25 [Insofar as is feasible, the] The corporation shall offer substantially
26 comparable housing accommodations to [such families and individuals]
27 displaced residents in [residential] projects [of the corporation] that
28 include a residential component, and insofar as is feasible, the corpo-
29 ration shall offer substantially comparable industrial or commercial
30 accommodations to displaced businesses in projects that include an
31 industrial or commercial component. The corporation may render to busi-
32 ness and commercial tenants and [to families or other persons] displaced
33 [from the project area,] residents any other such assistance as it may
34 deem [necessary to enable them to relocate] appropriate.
35 (h) in the case of all projects, the corporation shall state the basis
36 for its findings.
37 § 10. This act shall take effect immediately.
