Rpld S859 sub 3, amd Gen Muni L, generally; amd Pub Auth L, generally; add S206, amd S1411, N-PC L
Relates to the purposes and powers of industrial development agencies and to improving the accountability and transparency of such agencies; makes conforming changes to general municipal law; extends the bond issuance charge to the debt issued by not-for-profit corporations acting on behalf of the state or its political subdivisions; and relates to the purposes and powers of local development corporations and certain other not-for-profit corporations thereof.
STATE OF NEW YORK
________________________________________________________________________
1556
2015-2016 Regular Sessions
IN ASSEMBLY
January 12, 2015
___________
Introduced by M. of A. MAGNARELLI, BRENNAN, RYAN -- read once and
referred to the Committee on Local Governments
AN ACT to amend the general municipal law and the public authorities
law, in relation to the purposes and powers of industrial development
agencies and to improve the accountability and transparency of such
agencies; to amend the public authorities law, in relation to extend-
ing the bond issuance charge to the debt issued by not-for-profit
corporations acting on behalf of the state or its political subdivi-
sions; to amend the not-for-profit corporation law, in relation to the
purposes and powers of local development corporations and certain
other not-for-profit corporations thereof; and to repeal subdivision 3
of section 859 of the general municipal law relating to an evaluation
of the activities of industrial development agencies and authorities
in the state prepared by an entity independent of the department
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 14 of section 854 of the general municipal law,
2 as added by chapter 356 of the laws of 1993, is amended and a new subdi-
3 vision 21 is added to read as follows:
4 (14) "Financial assistance" - shall mean the proceeds of bonds issued
5 by an agency, straight-leases, grants, loans, or exemptions from taxa-
6 tion claimed by a project occupant as a result of an agency taking
7 title, possession or control (by lease, license or otherwise) to the
8 property or equipment of such project occupant or of such project occu-
9 pant acting as an agent of an agency.
10 (21) "Civic facility" shall mean a facility to be owned or occupied by
11 a municipal corporation, a district corporation, or a not-for-profit
12 corporation organized and existing under the laws of this state or
13 authorized to conduct activities in this state; provided that such
14 facilities shall be limited to medical facilities including those
15 defined in article twenty-eight of the public health law, educational
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01739-02-5
A. 1556 2
1 facilities, recreational facilities for public use, facilities used for
2 municipal government or public safety purposes, or housing facilities
3 primarily designed to be occupied by individuals sixty years of age or
4 older. Nothing in this article shall be deemed to waive any applicable
5 requirement for an operating facility certificate, consent or other
6 approval as provided by law.
7 § 2. Subdivision 2 of section 856 of the general municipal law, as
8 amended by chapter 356 of the laws of 1993, is amended to read as
9 follows:
10 2. An agency shall be a corporate governmental agency, constituting a
11 public benefit corporation. Except as otherwise provided by special act
12 of the legislature, an agency shall consist of not less than [three]
13 five nor more than seven members who shall be appointed by the governing
14 body of each municipality and who shall serve at the pleasure of the
15 appointing authority. Such members may include representatives of local
16 government, school boards, organized labor and business. A member shall
17 continue to hold office until his successor is appointed and has quali-
18 fied. The governing body of each municipality shall designate the first
19 chairman and file with the secretary of state a certificate of appoint-
20 ment or reappointment of any member. Such members shall receive no
21 compensation for their services but shall be entitled to the necessary
22 expenses, including traveling expenses, incurred in the discharge of
23 their duties.
24 § 3. Section 858 of the general municipal law, as added by chapter
25 1030 of the laws of 1969, the opening paragraph as amended by chapter
26 478 of the laws of 2011, subdivision 4 as amended by chapter 747 of the
27 laws of 2005, subdivision 9 as amended by chapter 444 of the laws of
28 1997 and subdivision 8 as amended, subdivision 15 as added and subdivi-
29 sions 16 and 17 as renumbered by chapter 356 of the laws of 1993, is
30 amended to read as follows:
31 § 858. Purposes and powers of the agency. The purposes of the agency
32 shall be to promote, develop, encourage and assist in the acquiring,
33 constructing, reconstructing, improving, maintaining, equipping and
34 furnishing industrial, manufacturing, warehousing, commercial, research
35 and recreation facilities including industrial pollution control facili-
36 ties, educational or cultural facilities, civic facilities, railroad
37 facilities, horse racing facilities, automobile racing facilities and
38 continuing care retirement communities, provided, however, that, of
39 agencies governed by this article, only agencies created for the benefit
40 of a county and the agency created for the benefit of the city of New
41 York shall be authorized to provide financial assistance in any respect
42 to a continuing care retirement community, and thereby advance the job
43 opportunities, health, general prosperity and economic welfare of the
44 people of the state of New York and to improve their recreation opportu-
45 nities, prosperity and standard of living; and to carry out the afore-
46 said purposes, each agency shall have the following powers:
47 (1) To sue and be sued;
48 (2) To have a seal and alter the same at pleasure;
49 (3) To acquire, hold and dispose of personal property for its corpo-
50 rate purposes;
51 (4) To acquire by purchase, grant, lease, gift, pursuant to the
52 provisions of the eminent domain procedure law, or otherwise and to use,
53 real property or rights or easements therein necessary for its corporate
54 purposes in compliance with the local zoning and planning regulations
55 and shall take into consideration regional and local comprehensive land
56 use plans and state designated heritage area management plans, and to
A. 1556 3
1 sell, convey, mortgage, lease, pledge, exchange or otherwise dispose of
2 any such property in such manner as the agency shall determine. In the
3 case of railroad facilities, however, the phrase to use real property or
4 rights or easements therein shall not be interpreted to include opera-
5 tion by the agency of rail service upon or in conjunction with such
6 facilities.
7 (5) To acquire real property from a municipality as necessary for its
8 corporate purposes pursuant to section eight hundred fifty-eight-c of
9 this title.
10 (6) To make by-laws for the management and regulation of its affairs
11 and, subject to agreements with its bondholders, for the regulation of
12 the use of a project or projects.
13 [(6)] (7) With the consent of the municipality, to use agents, employ-
14 ees and facilities of the municipality, paying the municipality its
15 agreed proportion of the compensation or costs;
16 [(7)] (8) To appoint officers, agents and employees, to prescribe
17 their qualifications and to fix their compensation and to pay the same
18 out of funds of the agency;
19 [(8)] (9) (a) To appoint an attorney, who may be the counsel of the
20 municipality, and to fix the attorney's compensation for services which
21 shall be payable to the attorney, and to retain and employ private
22 consultants for professional and technical assistance and advice;
23 (b) An attorney acting as bond counsel for a project must file with
24 the agency a written statement in which the attorney identifies each
25 party to the transaction which such attorney represents. If bond counsel
26 provides any legal services to parties other than the agency the written
27 statement must describe the nature of legal services provided by such
28 bond counsel to all parties to the transaction, including the nature of
29 the services provided to the agency.
30 [(9)] (10) To make contracts and leases, and to execute all instru-
31 ments necessary or convenient to or with any person, firm, partnership
32 or corporation, either public or private; provided, however, that any
33 extension of an existing contract, lease or other agreement entered into
34 by an agency with respect to a project shall be guided by the provisions
35 of this article;
36 [(10)] (11) To acquire, construct, reconstruct, lease, improve, main-
37 tain, equip or furnish one or more projects;
38 [(11)] (12) To accept gifts, grants, loans, or contributions from, and
39 enter into contracts or other transactions with, the United States and
40 the state or any agency of either of them, any municipality, any public
41 or private corporation or any other legal entity, and to use any such
42 gifts, grants, loans or contributions for any of its corporate purposes;
43 (13) To provide financial assistance in the form of loans to improve,
44 maintain or equip one or more projects consistent with its corporate
45 purposes.
46 (14) To provide financial assistance in the form of grants for one or
47 more projects consistent with its corporate purposes.
48 [(12)] (15) To borrow money and to issue bonds and to provide for the
49 rights of the holders thereof;
50 [(13)] (16) To grant options to renew any lease with respect to any
51 project or projects and to grant options to buy any project at such
52 price as the agency may deem desirable;
53 [(14)] (17) To designate the depositories of its money either within
54 or without the state;
55 [(15)] (18) To enter into agreements requiring payments in lieu of
56 taxes. Such agreements shall be in writing and in addition to other
A. 1556 4
1 terms shall contain: the amount due annually to each affected tax juris-
2 diction (or a formula by which the amount due can be calculated), the
3 name and address of the person, office or agency to which payment shall
4 be delivered, the date on which payment shall be made, and the date on
5 which payment shall be considered delinquent if not paid. Unless other-
6 wise agreed by the affected tax jurisdictions, any such agreement shall
7 provide that payments in lieu of taxes shall be allocated among affected
8 tax jurisdictions in proportion to the amount of real property tax and
9 other taxes which would have been received by each affected tax juris-
10 diction had the project not been tax exempt due to the status of the
11 agency involved in the project. A copy of any such agreement shall be
12 delivered to each affected tax jurisdiction within fifteen days of sign-
13 ing the agreement[. In the absence of any such written agreement,
14 payments in lieu of taxes made by an agency shall be allocated in the
15 same proportions as they had been prior to January first, nineteen
16 hundred ninety-three for so long as the agency's activities render a
17 project non-taxable by affected tax jurisdictions] and published by the
18 agency on its website;
19 [(16)] (19) To establish and re-establish its fiscal year; and
20 [(17)] (20) To [do all things necessary or convenient to] carry out
21 its purposes and exercise [the] those powers expressly given in this
22 title.
23 § 4. The general municipal law is amended by adding a new section
24 858-c to read as follows:
25 § 858-c. Purchase or lease of real property owned by a county, city,
26 town or village. 1. The local legislative body of a county, city, town
27 or village may by resolution determine that specifically described real
28 property owned by the county, city, town or village is not required for
29 use by such county, city, town or village and authorize the county,
30 city, town or village to sell or lease such real property to an agency;
31 provided, however, that title to such land be not declared inalienable
32 as a forest preserve or a parkland.
33 2. Notwithstanding the provisions of any general, special or local
34 law, charter or ordinance to the contrary, such sale or lease may be
35 made without appraisal, public notice (except as provided in subdivision
36 four of this section), or public bidding for such price or rental and
37 upon such terms as may be agreed upon between the county, city, town or
38 village and said agency; provided, however, that in the case of a lease
39 the term may not exceed ninety-nine years and provided, further, that in
40 cities having a population of one million or more, no such sale or lease
41 shall be made without the approval of a majority of the members of the
42 borough board of the borough in which such real property is located.
43 3. Before any sale or lease to an agency shall be authorized, a public
44 hearing shall be held by the local legislative body or borough board to
45 consider the proposed sale or lease.
46 4. Notice of such hearing shall be published at least ten days before
47 the date set for the hearing in such publication and in such manner as
48 may be designated by the local legislative body or borough board. Such
49 notice shall include a description of the real property proposed to be
50 sold or leased; a statement of the estimated fair market value of the
51 real property proposed to be sold or leased; the value of the financial
52 consideration to be received by the county, city, town or village from
53 such sale or lease of the real property; and a statement of the intended
54 use or disposition of such real property by the agency.
A. 1556 5
1 § 5. Subdivision 2 of section 859 of the general municipal law, as
2 amended by chapter 356 of the laws of 1993, is amended to read as
3 follows:
4 2. On or before September first of each year, the [commissioner of the
5 department of economic development] director of the authorities budget
6 office shall prepare and submit to the governor, speaker of the assem-
7 bly, majority leader of the senate, the chairperson of the senate
8 finance committee, the chairperson of the assembly ways and means
9 committee, the chairperson of the senate local government committee, the
10 chairperson of the assembly local government committee and the state
11 comptroller, a report setting forth a summary of the significant trends
12 in operations and financing by agencies and authorities; departures from
13 acceptable practices by agencies and authorities; a compilation by type
14 of the bonds and notes outstanding; a compilation of all outstanding
15 straight-lease transactions; an estimate of the total number of jobs
16 created and retained by agency or authority projects; and any other
17 information which in the opinion of the [commissioner] director bears
18 upon the discharge of the statutory functions of agencies and authori-
19 ties.
20 § 6. Subdivision 3 of section 859 of the general municipal law is
21 REPEALED.
22 § 7. Section 859-a of the general municipal law, as added by chapter
23 356 of the laws of 1993, is amended to read as follows:
24 § 859-a. Additional prerequisites to the provisions of financial
25 assistance. Prior to providing any financial assistance [of] totaling
26 more than one hundred thousand dollars to any project, the agency must
27 comply with the following prerequisites:
28 1. The agency must adopt a resolution describing the project and the
29 type and amount of financial assistance that the agency is contemplating
30 with respect to such project. Such assistance shall be consistent with
31 the uniform [tax exemption] financial assistance policy adopted by the
32 agency pursuant to subdivision four of section eight hundred seventy-
33 four of this [chapter] title, unless the agency has followed the proce-
34 dures for deviation from such policy specified in paragraph (b) of such
35 subdivision.
36 2. The agency must hold a public hearing with respect to the project
37 and the proposed financial assistance being contemplated by the agency
38 not less than thirty days prior to executing a written agreement to
39 provide financial assistance. Said public hearing shall be held in [a]
40 each city, town or village where the project to receive financial
41 assistance is located or proposes to locate. At said public hearing,
42 interested parties shall be provided reasonable opportunity, both orally
43 and in writing, to present their views with respect to the project and
44 the type and amount of financial assistance to be provided. The agency
45 shall also accept written comments up to seven days after such hearing
46 is held.
47 3. The agency must give at least ten days published notice of said
48 public hearing and shall, at the same time, provide notice of such hear-
49 ing to the chief executive officer of each affected tax jurisdiction
50 within which the project is located. The notice of hearing must state
51 the time and place of the hearing, contain a general, functional
52 description of the project, describe the prospective location of the
53 project, identify the initial owner, operator or manager of the project
54 and generally describe the financial assistance contemplated by the
55 agency with respect to the project.
A. 1556 6
1 4. The agency shall maintain a complete record of the hearing, includ-
2 ing all documents, oral statements, and written statements presented at
3 or within seven days following the hearing. All members shall be
4 provided with a copy of such record at least seven days before voting
5 whether to approve financial assistance for the project. Such record
6 shall also be posted on the agency web site at the time it is provided
7 to members.
8 § 8. The general municipal law is amended by adding four new sections
9 859-c, 859-d, 859-e and 859-f to read as follows:
10 § 859-c. Project application and approval criteria. 1. The project
11 applicant shall submit an application, developed by the agency, for
12 approval of a proposed project and financial assistance. The agency
13 shall adopt project application review and approval criteria that shall
14 be applied to all project applications under consideration for approval
15 and financial assistance. The decision to approve or not approve finan-
16 cial assistance shall be based on, but not limited to, consideration of
17 the following criteria:
18 (a) Strategic objectives. Consideration is to be given to the purpose
19 of the project, such as the nature of the planned business activity, the
20 extent to which the planned business activity is unrepresented or under-
21 represented in the community, and whether the project involves a busi-
22 ness interested in relocating from outside the state of New York.
23 (b) Job creation. A decision to fund a project shall be based on the
24 number of jobs to be created or retained by the proposed project, the
25 range of projected salaries and benefits associated with jobs to be
26 created, and the benchmarks and timeframes to be used by the project to
27 determine whether it is meeting projected job creation and retention
28 goals.
29 (c) The financial viability of the project. Approval for funding must
30 consider the extent to which the viability and success of the project is
31 dependent on financial assistance from the agency. The agency shall also
32 consider the amount and type of financial assistance being requested,
33 the amount and type of private financing required, the amount and type
34 of capital investment to be provided by the project applicant, and any
35 prior financial assistance provided to the project or to the project
36 applicant.
37 (d) Economic benefits. Funding decisions shall consider the potential
38 economic and financial impact of the project on existing businesses in
39 the area, on the affected tax jurisdictions, and on the local labor
40 market.
41 (e) Legal issues. Consideration shall be given to the project appli-
42 cant's record of compliance with applicable laws and regulations.
43 2. The project application review and approval criteria shall be
44 reviewed and approved annually at a regular meeting of the agency and
45 made available to the public on the agency's web site.
46 3. The agency shall provide the director of the authorities budget
47 office with an electronic copy of the application and project review and
48 approval criteria within thirty days of their adoption or revision.
49 4. The agency shall retain a written record of the evaluation of each
50 project application to document its decision to provide or deny finan-
51 cial assistance.
52 § 859-d. Financial assistance agreement. 1. The agency shall enter
53 into a written agreement with the project applicant prior to providing
54 financial assistance. The agreement shall include the following informa-
55 tion:
A. 1556 7
1 (a) a description of the amount and type of financial assistance to be
2 provided by the agency, including a description and the value of proper-
3 ty conveyed at less than fair market value;
4 (b) a description of the amount of financing to be provided by the
5 project applicant, including the amount and type of capital investment
6 to be provided;
7 (c) the purpose of the project;
8 (d) the amount, types, sources and commitments of any private financ-
9 ing;
10 (e) the projected number of new full-time and part-time positions
11 expected to be created over the period of financial assistance, and an
12 estimated schedule by year of when those positions will be created;
13 (f) the number and types of full-time and part-time jobs to be
14 retained, and the number of filled positions at the project as of the
15 date the agreement is executed;
16 (g) the types and value of other forms of financial assistance
17 provided to the project or requested by the project applicant from other
18 state or local government agencies or authorities; and
19 (h) the penalties to be imposed on the project applicant if the terms
20 of the agreement are not met.
21 2. The length of a financial assistance agreement shall be limited to
22 no more than five years; provided however that the agreement may be
23 renewed for up to five additional years if the agency determines that
24 the project applicant has acted in good faith to meet the terms and
25 conditions of the agreement. In no event may financial assistance in the
26 form of a loan or exemption from taxation be provided to a project for
27 more than ten years.
28 3. The financial assistance agreement shall be made available to the
29 public on the web site of the agency.
30 4. The agency shall adopt a methodology to evaluate the conformance of
31 each assisted project to the terms and conditions of the financial
32 assistance agreement. This methodology shall be made available to the
33 public on the agency's web site.
34 § 859-e. Recapture of certain financial assistance. 1. The agency,
35 pursuant to the terms and conditions of its financial assistance agree-
36 ment, may recapture financial assistance to a project from real property
37 tax exemptions, mortgage recording tax exemptions, or local sales or
38 compensating use tax exemptions if (a) the project violates state or
39 federal tax law, labor law, environmental protection law, or contract
40 law, or any state or federal rule or regulation implementing such law,
41 as determined by a court of competent jurisdiction or administrative
42 tribunal, provided that such court or tribunal concludes that the
43 violation would cause material harm to the economy or quality of life of
44 the community; or (b) all or part of the project's business activity or
45 workforce is moved to a location outside the community served by the
46 agency and by doing so violates the terms and conditions of its finan-
47 cial assistance agreement.
48 2. An agency which elects to initiate the recapture of financial
49 assistance pursuant to subdivision one of this section must notify the
50 recipient of such financial assistance in writing that it is in default
51 of its financial assistance agreement and may direct the recipient of
52 financial assistance to repay up to the full amount of such financial
53 assistance received as of the date of the written notice plus interest
54 at the rate set forth in section five thousand four of the civil prac-
55 tice law and rules.
A. 1556 8
1 3. Financial assistance recaptured pursuant to this section and any
2 interest paid shall be redistributed to affected tax jurisdictions in
3 proportion to the amount of real property tax and other taxes which
4 would have been received by each affected tax jurisdiction had the
5 project not been tax exempt. Unless otherwise agreed to in writing by an
6 affected tax jurisdiction, the agency shall not retain any portion of
7 such funds as an administrative or project fee.
8 § 859-f. Wages and standards. Whenever a recipient of financial
9 assistance from an agency enters into a contract, subcontract, lease or
10 other agreement for or in connection with the construction, demolition,
11 reconstruction, rehabilitation, repair, or renovation of an assisted
12 project, the recipient of financial assistance shall pay workers engaged
13 in such work no less than the prevailing rate of wage and supplements
14 under article eight of the labor law.
15 § 9. Subdivision 1 of section 862 of the general municipal law, as
16 amended by section 1 of part J of chapter 59 of the laws of 2013, is
17 amended to read as follows:
18 (1) No [funds] financial assistance of the agency shall be used in
19 respect [of] to any project if the [completion thereof would result in]
20 project approval or provision of financial assistance contributes to the
21 removal of [an industrial or manufacturing plant of] all or part of the
22 project occupant from one area of the state to another area of the state
23 or in the abandonment of one or more [plants or] facilities of the
24 project occupant located within the state, or provides the project with
25 a competitive advantage over existing like businesses in the same indus-
26 try located in the same city, town, or village as such project,
27 provided, however, that [neither restriction] such restrictions shall
28 not apply if the agency shall determine on the basis of the application
29 before it that the project is reasonably necessary to discourage the
30 project occupant from removing such other plant or facility to a
31 location outside the state or is reasonably necessary to preserve the
32 competitive position of the project occupant in its respective industry.
33 § 10. Subdivision 4 of section 874 of the general municipal law, as
34 amended by chapter 357 of the laws of 1993, is amended to read as
35 follows:
36 (4) (a) The agency shall [establish] adopt a uniform [tax exemption]
37 financial assistance policy, [with input from] subject to the approval
38 of all affected tax jurisdictions, which shall be applicable to the
39 provision of financial assistance pursuant to section eight hundred
40 fifty-nine-a of this [chapter] title and shall provide guidelines for
41 the claiming of real property, mortgage recording, and sales tax
42 exemptions. Such guidelines shall include, but not be limited to: peri-
43 od of exemption; payments in lieu of taxes, as a percentage of
44 [exemption] taxes that would have been levied by or on behalf of
45 affected tax jurisdictions if the project was not tax exempt by reason
46 of agency involvement; types of projects for which exemptions can be
47 claimed; procedures for payments in lieu of taxes and instances in which
48 real property appraisals are to be performed as a part of an application
49 for tax exemption; in addition, agencies shall in adopting such policy
50 consider such issues as: the extent to which a project will create or
51 retain permanent, private sector jobs; the estimated value of any tax
52 exemptions to be provided; whether affected tax jurisdictions shall be
53 reimbursed by the project occupant if a project does not fulfill the
54 purposes for which an exemption was provided; the impact of a proposed
55 project on existing and proposed businesses and economic development
56 projects in the vicinity; the amount of private sector investment gener-
A. 1556 9
1 ated or likely to be generated by the proposed project; the demonstrated
2 public support for the proposed project; the likelihood of accomplishing
3 the proposed project in a timely fashion; the effect of the proposed
4 project upon the environment; the extent to which the proposed project
5 will require the provision of additional services, including, but not
6 limited to additional educational, transportation, police, emergency
7 medical or fire services; and the extent to which the proposed project
8 will provide additional sources of revenue for municipalities and school
9 districts. The adopted uniform financial assistance policy shall be
10 provided to the chief executive officer and the members of the governing
11 body of each affected tax jurisdiction and shall be made available for
12 public inspection at the agency's office and on the agency's website
13 upon its adoption.
14 (b) The agency shall [establish a procedure] adopt criteria for devi-
15 ation from the uniform [tax exemption] financial assistance policy
16 required pursuant to this subdivision, which shall be subject to the
17 approval of all affected local tax jurisdictions. The agency shall set
18 forth in writing the reasons for deviation from such policy, and shall
19 further notify the affected local taxing jurisdictions of the proposed
20 deviation from such policy and the reasons therefor not less than sixty
21 days before such deviation from the uniform tax exemption policy takes
22 effect.
23 § 11. Section 1953 of the public authorities law, as added by chapter
24 759 of the laws of 1967, the opening paragraph and subdivisions 9 and 13
25 as amended by chapter 907 of the laws of 1972 and subdivision 8 as
26 amended, subdivision 14 as added and subdivisions 15 and 16 as renum-
27 bered by chapter 356 of the laws of 1993, is amended to read as follows:
28 § 1953. Purpose and powers of the authority. The purposes of the
29 authority shall be to promote, develop, encourage and assist in the
30 acquiring, constructing, reconstructing, improving, maintaining, equip-
31 ping and furnishing industrial, manufacturing, warehouse, civic facili-
32 ties, and commercial research facilities including industrial pollution
33 control facilities, transportation facilities including but not limited
34 to those relating to water, highway, rail and air, in one or more areas
35 of the city, particularly but not exclusively at the site of what was
36 formerly the Troy airport including an airstrip or airport located in
37 the southern section of the city and thereby advance the job opportu-
38 nities, health, general prosperity and economic welfare of the people of
39 said city and to improve their standard of living; provided, however,
40 that the authority shall not undertake any project if the completion
41 thereof would result in the removal of an industrial or manufacturing
42 plant of the project occupant from one area of the state to another area
43 of the state or in the abandonment of one or more plants or facilities
44 of the project applicant located within the state, provided, however,
45 that neither restriction shall apply if the authority shall determine on
46 the basis of the application before it that the project is reasonably
47 necessary to discourage the project occupant from removing such other
48 plant or facility to a location outside the state or is reasonably
49 necessary to preserve the competitive position of the project occupant
50 in its respective industry. To carry out said purposes, the authority
51 shall have power:
52 1. To sue and be sued;
53 2. To have a seal and alter the same at pleasure;
54 3. To acquire, hold and dispose of personal property for its corporate
55 purpose;
A. 1556 10
1 4. To acquire by purchase, grant, lease, gift, condemnation, or other-
2 wise and to use, real property or rights or easements therein necessary
3 for its corporate purposes, and to sell, convey, mortgage, lease,
4 pledge, exchange or otherwise dispose of any such property in such
5 manner as the authority shall determine. With respect to real property
6 conveyed to it by the city, however, such power of disposition shall be
7 limited as hereinafter provided in section nineteen hundred [five]
8 fifty-five of this title;
9 5. To acquire real property within the city of Troy as necessary for
10 its corporate purposes pursuant to section eight hundred fifty-eight-c
11 of the general municipal law;
12 6. To make by-laws for the management and regulation of its affairs
13 and, subject to agreements with its bondholders, for the regulation of
14 the use of the project;
15 [6.] 7. With the consent of the city, to use agents, employees and
16 facilities of the city, paying the city its agreed proportion of the
17 compensation or costs;
18 [7.] 8. To appoint officers, agents and employees, to prescribe their
19 qualifications and to fix their compensation and to pay the same out of
20 funds of the authority, subject, however, to the provisions of the civil
21 service law as hereinafter provided in section nineteen hundred [and
22 four] fifty-four of this title;
23 [8.] 9. To appoint an attorney, who may be the corporation counsel of
24 the city, and to fix the attorney's compensation for services which
25 shall be payable to the attorney, and to retain and employ private
26 consultants for professional and technical assistance and advice;
27 provided that an attorney acting as bond counsel for a project must file
28 with the authority a written statement in which the attorney identifies
29 each party to the transaction which such attorney represents. If bond
30 counsel provides any legal services to parties other than the authority,
31 the written statement must describe the nature of legal services
32 provided by such bond counsel to all parties to the transaction, includ-
33 ing the nature of the services provided to the authority;
34 [9.] 10. To make contracts and leases upon such terms as the authority
35 shall deem appropriate, including without limitation leases which grant
36 the tenant of a project an option to renew or an option to purchase the
37 project, or both, at a fixed or otherwise predetermined price and to
38 execute all instruments necessary or convenient;
39 [10.] 11. To acquire, construct, reconstruct, lease, improve, main-
40 tain, equip or furnish one or more projects;
41 [11.] 12. To accept gifts, grants, loans or contributions from, and
42 enter into contracts or other transactions with, the United States and
43 the state or any agency of either of them, any municipality, any public
44 or private corporation or any other legal entity, and to use any such
45 gifts, grants, loans or contributions for any of its corporate purposes;
46 13. To provide financial assistance in the form of loans to improve,
47 maintain or equip one or more projects consistent with its corporate
48 purposes;
49 14. To provide financial assistance in the form of grants to one or
50 more projects consistent with its corporate purposes;
51 [12.] 15. To borrow money and to issue bonds and to provide for the
52 rights of the holders thereof;
53 [13.] 16. To designate the depositories of its money either within or
54 without the state of New York;
55 [14.] 17. To enter into agreements requiring payments in lieu of
56 taxes. Such agreements shall be in writing and in addition to other
A. 1556 11
1 terms shall contain: the amount due annually to each affected tax juris-
2 diction (or a formula by which the amount due can be calculated), the
3 name and address of the person, office or agency to which payment shall
4 be delivered, the date on which payment shall be made, and the date on
5 which payment shall be considered delinquent if not paid. Unless other-
6 wise agreed by the affected tax jurisdictions, any such agreement shall
7 provide that payments in lieu of taxes shall be allocated among affected
8 tax jurisdictions in proportion to the amount of real property tax and
9 other taxes which would have been received by each affected tax juris-
10 diction had the project not been tax exempt due to the status of the
11 authority involved in the project. A copy of any such agreement shall be
12 delivered to each affected tax jurisdiction within fifteen days of sign-
13 ing the agreement. In the absence of any such written agreement,
14 payments in lieu of taxes made by an agency shall be allocated in the
15 same proportions as they had been prior to January first, nineteen
16 hundred ninety-three for so long as the authority's activities render a
17 project non-taxable by affected tax jurisdictions.
18 [15.] 18. To establish and reestablish its fiscal year; and
19 [16.] 19. To do all things necessary or convenient to carry out its
20 purposes and exercise the powers expressly given in this title.
21 § 12. Section 1953-a of the public authorities law, as added by chap-
22 ter 356 of the laws of 1993, subdivision 1 as amended by chapter 357 of
23 the laws of 1993, is amended to read as follows:
24 § 1953-a. Additional prerequisites to the provision of financial
25 assistance. Prior to providing any financial assistance [of] totaling
26 more than one hundred thousand dollars to any project, the authority
27 must comply with the following prerequisites:
28 1. The authority must adopt a resolution describing the project and
29 type and amount of the financial assistance that the authority is
30 contemplating with respect to such project. Such assistance shall be
31 consistent with the uniform [tax exemption] financial assistance policy
32 adopted by the agency pursuant to subdivision one of section nineteen
33 hundred sixty-three-a of this [chapter] title, unless the agency has
34 followed procedures for deviation from such policy specified in subdivi-
35 sion two of such section.
36 2. The authority must hold a public hearing with respect to the
37 project and the proposed financial assistance being contemplated by the
38 authority not less than thirty days prior to executing a written agree-
39 ment to provide financial assistance. At said public hearing, inter-
40 ested parties shall be provided reasonable opportunity, both orally and
41 in writing, to present their views with respect to the project and the
42 type and amount of financial assistance to be provided. The authority
43 shall also accept written comments up to seven days after such hearing
44 is held.
45 3. The authority must give at least ten days published notice of said
46 public hearing and shall, at the same time, provide notice of such hear-
47 ing to the chief executive officer of the affected tax jurisdiction
48 within which the project is located. The notice of hearing must state
49 the time and place of the hearing, contain a general, functional
50 description of the project, describe the prospective location of the
51 project, identify the initial owner, operator or manager of the project
52 and generally describe the financial assistance contemplated by the
53 authority with respect to the project.
54 4. The authority shall maintain a complete record of the hearing,
55 including all documents and oral statements, and written statements
56 presented at or within seven days following such hearing. All members
A. 1556 12
1 shall be provided with a copy of such record at least seven days before
2 voting whether to approve financial assistance for the project. Such
3 record shall also be posted on the authority web site at the time it is
4 provided to members.
5 § 13. The public authorities law is amended by adding four new
6 sections 1953-b, 1953-c, 1953-d and 1953-e to read as follows:
7 § 1953-b. Project application and approval criteria. 1. The project
8 applicant shall submit an application, developed by the authority, for
9 approval of a proposed project and financial assistance. The authority
10 shall adopt project application review and approval criteria that shall
11 be applied to all project applications under consideration for approval
12 and financial assistance. The decision to approve or not approve finan-
13 cial assistance shall be based on, but not limited to, consideration of
14 the following criteria:
15 (a) Strategic objectives. Consideration is to be given to the purpose
16 of the project, such as the nature of the planned business activity, the
17 extent to which the planned business activity is unrepresented or under-
18 represented in the community, and whether the project involves a busi-
19 ness interested in relocating from outside the state of New York.
20 (b) Job creation. A decision to fund a project shall be based on the
21 number of jobs to be created or retained by the proposed project, the
22 range of projected salaries and benefits associated with jobs to be
23 created, and the benchmarks and timeframes to be used by the project to
24 determine whether it is meeting projected job creation and retention
25 goals.
26 (c) The financial viability of the project. Approval for funding shall
27 consider the extent to which the viability and success of the project is
28 dependent on financial assistance from the authority. The authority
29 shall also consider the amount and type of financial assistance being
30 requested, the amount and type of private financing required, the amount
31 and type of capital investment to be provided by the project applicant,
32 and any prior financial assistance provided to the project or to the
33 project applicant.
34 (d) Economic benefits. Funding decisions shall consider the potential
35 economic and financial impact of the project on existing businesses in
36 the area, on the affected tax jurisdictions, and on the local labor
37 market.
38 (e) Legal issues. Consideration shall be given to the project appli-
39 cant's record of compliance with applicable laws and regulations.
40 2. The project application review and approval criteria shall be
41 reviewed and approved annually at a regular meeting of the authority and
42 made available to the public on the authority's web site.
43 3. The authority shall provide the director of the authorities budget
44 office with an electronic copy of the application and project review and
45 approval criteria within thirty days of their adoption or revision.
46 4. The authority shall retain a written record of the evaluation of
47 each project application to document its decision to provide or deny
48 financial assistance.
49 § 1953-c. Financial assistance agreement. 1. The authority shall enter
50 into a written agreement with the project applicant prior to providing
51 financial assistance. The agreement shall include the following informa-
52 tion:
53 (a) a description of the amount and type of financial assistance to be
54 provided by the authority, including a description and the value of
55 property conveyed at less than fair market value;
A. 1556 13
1 (b) a description of the amount of financing to be provided by the
2 project applicant, including the amount and type of capital investment
3 to be provided;
4 (c) the purpose of the project;
5 (d) the amount, types, sources and commitments of any private financ-
6 ing;
7 (e) the projected number of new full-time and part-time positions
8 expected to be created over the period of financial assistance, and an
9 estimated schedule by year of when those positions will be created;
10 (f) the number and types of full-time and part-time jobs to be
11 retained, and the number of filled positions at the project as of the
12 date the agreement is executed;
13 (g) the types and value of other forms of financial assistance
14 provided to the project or requested by the project applicant from other
15 state or local government agencies or authorities; and
16 (h) the penalties to be imposed on the project applicant if the terms
17 of the agreement are not met.
18 2. The length of a financial assistance agreement shall be limited to
19 no more than five years; provided however that the agreement may be
20 renewed for up to five additional years if the authority determines that
21 the project applicant has acted in good faith to meet the terms and
22 conditions of the agreement. In no event may financial assistance in the
23 form of a loan or exemption from taxation be provided to a project for
24 more than ten years.
25 3. The financial assistance agreement shall be made available to the
26 public on the web site of the authority.
27 4. The authority shall adopt a methodology to evaluate the conformance
28 of each assisted project to the terms and conditions of the financial
29 assistance agreement. This methodology shall be made available to the
30 public on the authority's web site.
31 § 1953-d. Recapture of certain financial assistance. 1. The authority,
32 pursuant to the terms and conditions of its financial assistance agree-
33 ment, may recapture financial assistance to a project from the proceeds
34 of bonds issued by the authority, mortgage recording tax exemptions, or
35 local sales or compensating use tax exemptions if (a) the project
36 violates state or federal tax law, labor law, environmental protection
37 law, or contract law, or any state or federal rule or regulation imple-
38 menting such law, as determined by a court of competent jurisdiction or
39 administrative tribunal, provided that such court or tribunal concludes
40 that the violation would cause material harm to the economy or quality
41 of life of the community; or (b) all or part of the project's business
42 activity or workforce is moved to a location outside the community
43 served by the authority and by doing so violates the terms and condi-
44 tions of its financial assistance agreement.
45 2. An authority which elects to initiate the recapture of financial
46 assistance pursuant to subdivision one of section eight hundred fifty-
47 nine-e of the general municipal law must notify the recipient of such
48 financial assistance in writing that it is in default of its financial
49 assistance agreement and may direct the recipient of financial assist-
50 ance to repay up to the full amount of such financial assistance
51 received as of the date of the written notice plus interest at the rate
52 set forth in section five thousand four of the civil practice law and
53 rules.
54 3. Financial assistance recaptured pursuant to this section and any
55 interest paid shall be redistributed to affected tax jurisdictions in
56 proportion to the amount of real property tax and other taxes which
A. 1556 14
1 would have been received by each affected tax jurisdiction had the
2 project not been tax exempt. Unless otherwise agreed to in writing by an
3 affected tax jurisdiction, the authority shall not retain any portion of
4 such funds as an administrative or project fee.
5 § 1953-e. Wages and standards. Whenever a recipient of financial
6 assistance from the authority enters into a contract, subcontract, lease
7 or other agreement for or in connection with the construction, demoli-
8 tion, reconstruction, rehabilitation, repair, or renovation of an
9 assisted project, the recipient of financial assistance shall pay work-
10 ers engaged in such work no less than the prevailing rate of wage and
11 supplements under article eight of the labor law.
12 § 14. Section 1963-a of the public authorities law, as amended by
13 chapter 357 of the laws of 1993, is amended to read as follows:
14 § 1963-a. Uniform [tax exemption] financial assistance policy. 1. The
15 authority shall [establish] adopt a uniform [tax exemption] financial
16 assistance policy, [with input from] subject to the approval of affected
17 local taxing jurisdictions, which shall be applicable to provisions of
18 financial assistance pursuant to section nineteen hundred fifty-three-a
19 of this [chapter] title and shall provide guidelines for the claiming of
20 real property, mortgage recording, and sales tax exemptions. Such guide-
21 lines shall include, but not be limited to: period of exemption;
22 payments in lieu of taxes as a percentage of [exemption] taxes that
23 would have been levied by or on behalf of affected tax jurisdictions if
24 the project was not exempt by reason of authority involvement; types of
25 projects for which exemptions can be claimed; procedures for payments in
26 lieu of taxes and instances in which real property appraisals are to be
27 performed as a part of an application for tax exemption; in addition,
28 the authority in adopting such policy shall consider such issues as: the
29 extent to which a project will create or retain permanent, private
30 sector jobs; the estimated value of any tax exemption to be provided;
31 whether affected tax jurisdictions should be reimbursed by the project
32 occupant if a project does not fulfill the purposes for which an
33 exemption was provided; the impact of a proposed project on existing and
34 proposed businesses and economic development projects in the vicinity;
35 the amount of private sector investment generated or likely to be gener-
36 ated by the proposed project; the demonstrated public support for the
37 proposed project; the likelihood of accomplishing the proposed project
38 in a timely fashion; the effect of the proposed project upon the envi-
39 ronment; the extent to which the proposed project will require the
40 provision of additional services, including, but not limited to addi-
41 tional educational, transportation, police, emergency medical or fire
42 services; and the extent to which the proposed project will provide
43 additional sources [or] of revenue for municipalities and school
44 districts. The adopted uniform financial assistance policy shall be
45 provided to the chief executive officer and members of the governing
46 body of each affected tax jurisdiction and shall be made available for
47 public inspection at the authority's office and on the authority's
48 website upon its adoption.
49 2. The authority shall [establish a procedure] adopt criteria for
50 deviation from the uniform [tax exemption] financial assistance policy
51 required pursuant to this section which shall be subject to the approval
52 of affected local tax jurisdictions. The authority shall set forth in
53 writing the reasons for deviation from such policy, and shall further
54 notify the affected tax jurisdictions of the proposed deviation from
55 such policy and the reasons therefor not less than sixty days before
56 such deviation from the uniform tax exemption policy takes effect.
A. 1556 15
1 § 15. Section 2306 of the public authorities law, as added by chapter
2 915 of the laws of 1969, the opening paragraph and an undesignated para-
3 graph as amended by chapter 304 of the laws of 2013, subdivision 9 as
4 amended by chapter 556 of the laws of 1973 and subdivision 8 as amended,
5 subdivision 14 as added and subdivisions 15 and 16 as renumbered by
6 chapter 356 of the laws of 1993, is amended to read as follows:
7 § 2306. Purpose and powers of the authority. The purposes of the
8 authority shall be to promote, develop, encourage and assist in the
9 acquiring, constructing, reconstructing, improving, maintaining, equip-
10 ping and furnishing industrial, manufacturing, warehouse, civic facili-
11 ties, commercial and research facilities and facilities for use by a
12 federal agency or a medical facility including industrial pollution
13 control facilities, which may include transportation facilities includ-
14 ing but not limited to those relating to water, highway, rail and air,
15 in one or more areas of the city, and thereby advance the job opportu-
16 nities, health, general prosperity and economic welfare of the people of
17 said city and to improve their medical care and standard of living;
18 provided, however, that the authority shall not undertake any project if
19 the completion thereof would result in the removal of an industrial or
20 manufacturing plant of the project occupant from one area of the state
21 to another area of the state or in abandonment of one or more plants or
22 facilities of the project applicant located within the state, provided,
23 however, that neither restriction shall apply if the authority shall
24 determine on the basis of the application before it that the project is
25 reasonably necessary to discourage the project occupant from removing
26 such other plant or facility to a location outside the state or is
27 reasonably necessary to preserve the competitive position of the project
28 occupant in its respective industry. Except as otherwise provided for in
29 this section, no financial assistance of the authority shall be provided
30 in respect of any project where facilities or property that are primari-
31 ly used in making retail sales to customers who personally visit such
32 facilities constitute more than one-third of the total project cost. For
33 the purposes of this article, "retail sales" shall mean: (i) sales by a
34 registered vendor under article twenty-eight of the tax law primarily
35 engaged in the retail sale of tangible personal property, as defined in
36 subparagraph (i) of paragraph four of subdivision (b) of section eleven
37 hundred one of the tax law; or (ii) sales of a service to such custom-
38 ers. Except, however, that tourism destination projects shall not be
39 prohibited by this paragraph. For the purpose of this paragraph, "tour-
40 ism destination" shall mean a location or facility which is likely to
41 attract a significant number of visitors from outside the economic
42 development region as established by section two hundred thirty of the
43 economic development law, in which the project is located.
44 Notwithstanding the provisions of this section to the contrary, such
45 financial assistance may, however, be provided to a project where facil-
46 ities or property that are primarily used in making retail sales of
47 goods or services to customers who personally visit such facilities to
48 obtain such goods or services constitute more than one-third of the
49 total project cost, where: (i) the predominant purpose of the project
50 would be to make available goods or services which would not, but for
51 the project, be reasonably accessible to the residents of the city of
52 Auburn because of a lack of reasonably accessible retail trade facili-
53 ties offering such goods or services; or (ii) the project is located in
54 a highly distressed area. With respect to projects authorized pursuant
55 to this paragraph no project shall be approved unless the authority
56 shall find after the public hearing required by section twenty-three
A. 1556 16
1 hundred seven of this title that undertaking the project will serve the
2 public purposes of this article by preserving permanent, private sector
3 jobs or increasing the overall number of permanent, private sector jobs
4 in the state. Where the authority makes such a finding, prior to provid-
5 ing financial assistance to the project by the authority, the chief
6 executive officer of the city of Auburn shall confirm the proposed
7 action of the authority. To carry out said purpose, the authority shall
8 have power:
9 1. To sue and be sued;
10 2. To have a seal and alter the same at pleasure;
11 3. To acquire, hold and dispose of personal property for its corporate
12 purpose;
13 4. To acquire by purchase, grant, lease, gift, condemnation, or other-
14 wise and to use, real property or rights or easements therein necessary
15 for its corporate purposes, and to sell, convey, mortgage, lease,
16 pledge, exchange or otherwise dispose of any such property in such
17 manner as the authority shall determine. With respect to real property
18 conveyed to it by the city, however, such power of disposition shall be
19 limited as hereinafter provided in section twenty-three hundred ten of
20 this title;
21 5. To acquire real property within the city of Auburn as necessary for
22 its corporate purposes pursuant to section eight hundred fifty-eight-c
23 of the general municipal law;
24 6. To make by-laws for the management and regulation of its affairs
25 and, subject to agreements with its bondholders, for the regulation of
26 the use of the project[.];
27 [6.] 7. With the consent of the city, to use agents, employees and
28 facilities of the city, paying the city its agreed proportion of the
29 compensation or costs[.];
30 [7.] 8. To appoint officers, agents and employees, to prescribe their
31 qualifications and to fix their compensation and to pay the same out of
32 funds of the authority, subject, however, to the provisions of the civil
33 service law hereinafter provided in section twenty-three hundred eight
34 of this title;
35 [8.] 9. To retain and employ financial advisors, engineers, archi-
36 tects, attorneys and other consultants for professional and technical
37 assistance and advice; that an attorney acting as bond counsel for a
38 project must file with the authority a written statement in which the
39 attorney identifies each party to the transaction which such attorney
40 represents. If bond counsel provides any legal services to the parties
41 other than the authority, the written statement must describe the nature
42 of legal services provided by such bond counsel to all parties to the
43 transaction, including the nature of the services provided to the
44 authority;
45 [9.] 10. To make contracts and leases upon such terms as the authority
46 shall deem appropriate, including without limitation leases which grant
47 the tenant of a project an option to renew or an option to purchase the
48 project, or both, at a fixed or otherwise predetermined price, and to
49 execute all instruments necessary or convenient;
50 [10.] 11. To acquire, construct, reconstruct, lease, improve, main-
51 tain, equip or furnish one or more projects;
52 [11.] 12. To accept gifts, grants, loans or contributions from, and
53 enter into contracts or other transactions with, the United States and
54 the state or any agency of either of them, any municipality, any public
55 or private corporation or any other legal entity, and to use any such
56 gifts, grants, loans or contributions for any of its corporate purposes;
A. 1556 17
1 13. To provide financial assistance in the form of loans to improve,
2 maintain or equip one or more projects consistent with its corporate
3 purposes;
4 14. To provide financial assistance in the form of grants for one or
5 more projects consistent with its corporate purposes;
6 [12.] 15. To borrow money and to issue bonds and to provide for the
7 rights of the holders thereof;
8 [13.] 16. To designate the depositories of its money in the city of
9 Auburn[.];
10 [14.] 17. To enter into agreements requiring payments in lieu of
11 taxes. Such agreements shall be in writing and in addition to other
12 terms shall contain: the amount due annually to each affected tax juris-
13 diction (or a formula by which the amount due can be calculated), the
14 name and address of the person, office or agency to which payment shall
15 be delivered, the date on which the payment shall be made, and the date
16 on which payment shall be considered delinquent if not paid. Unless
17 otherwise agreed by the affected tax jurisdictions, any such agreement
18 shall provide that payments in lieu of taxes shall be allocated among
19 affected tax jurisdictions in proportion to the amount of real property
20 tax and other taxes which would have been received by each affected tax
21 jurisdiction had the project not been tax exempt due to the status of
22 the agency involved in the project. A copy of any such agreement shall
23 be delivered to each tax affected jurisdiction within fifteen days of
24 signing the agreement. In the absence of any such written agreement,
25 payments in lieu of taxes shall be allocated in the same proportions as
26 they had been prior to January first, nineteen hundred ninety-three for
27 so long as the authority's activities render a project non-taxable by
28 affected tax jurisdictions[.];
29 [15.] 18. To establish and reestablish its fiscal year; and
30 [16.] 19. To do all things necessary or convenient to carry out its
31 purposes and exercise the powers expressly given in this title.
32 § 16. Section 2307 of the public authorities law, as added by chapter
33 356 of the laws of 1993, subdivision 1 as amended by chapter 357 of the
34 laws of 1993, is amended to read as follows:
35 § 2307. Additional prerequisites to the provision of financial assist-
36 ance. Prior to providing any financial assistance [of] totaling more
37 than one hundred thousand dollars to any project, the authority must
38 comply with the following prerequisites:
39 1. The authority must adopt a resolution describing the project and
40 type and amount of the financial assistance that the authority is
41 contemplating with respect to such project. Such assistance shall be
42 consistent with the uniform [tax exemption] financial assistance policy
43 adopted by the agency pursuant to subdivision one of section twenty-
44 three hundred fifteen of this chapter, unless the agency has followed
45 procedures for deviation from such policy specified in subdivision two
46 of such section.
47 2. The authority must hold a public hearing with respect to the
48 project and the proposed financial assistance being contemplated by the
49 authority not less than thirty days prior to executing a written agree-
50 ment to provide financial assistance. At said public hearing, inter-
51 ested parties shall be provided reasonable opportunity, both orally and
52 in writing, to present their views with respect to the project and the
53 type and amount of financial assistance to be provided. The authority
54 shall also accept written comments up to seven days after such hearing
55 is held.
A. 1556 18
1 3. The authority must give at least ten days published notice of said
2 public hearing and shall, at the same time, provide notice of such hear-
3 ing to the chief executive officer of each affected tax [jurisidiction]
4 jurisdiction within which the project is located. The notice of hearing
5 must state the time and place of the hearing, contain a general, func-
6 tional description of the project, describe the prospective location of
7 the project, identify the initial owner, operator or manager of the
8 project and generally describe the financial assistance contemplated by
9 the authority with respect to the project.
10 4. The authority shall maintain a complete record of the hearing,
11 including all documents and oral statements, and written statements
12 presented at or within seven days following such hearing. All members
13 shall be provided with a copy of such record at least seven days before
14 deciding whether to approve financial assistance for the project. Such
15 record shall also be posted on the authority web site at the time it is
16 provided to members.
17 § 17. The public authorities law is amended by adding four new
18 sections 2307-a, 2307-b, 2307-c and 2307-d to read as follows:
19 § 2307-a. Project application and approval criteria. 1. The project
20 applicant shall submit an application, developed by the authority, for
21 approval of a proposed project and financial assistance. The authority
22 shall adopt project application review and approval criteria that shall
23 be applied to all project applications under consideration for approval
24 and financial assistance. The decision to approve or not approve finan-
25 cial assistance shall be based on, but not limited to, consideration of
26 the following criteria:
27 (a) Strategic objectives. Consideration is to be given to the purpose
28 of the project, such as the nature of the planned business activity, the
29 extent to which the planned business activity is unrepresented or under-
30 represented in the community, and whether the project involves a busi-
31 ness interested in relocating from outside the state of New York.
32 (b) Job creation. A decision to fund a project shall be based on the
33 number of jobs to be created or retained by the proposed project, the
34 range of projected salaries and benefits associated with jobs to be
35 created, and the benchmarks and timeframes to be used by the project to
36 determine whether it is meeting projected job creation and retention
37 goals.
38 (c) The financial viability of the project. Approval for funding shall
39 consider the extent to which the viability and success of the project is
40 dependent on financial assistance from the authority. The authority
41 shall also consider the amount and type of financial assistance being
42 requested, the amount and type of private financing required, the amount
43 and type of capital investment to be provided by the project applicant,
44 and any prior financial assistance provided to the project or to the
45 project applicant.
46 (d) Economic benefits. Funding decisions shall consider the potential
47 economic and financial impact of the project on existing businesses in
48 the area, on the affected tax jurisdictions, and on the local labor
49 market.
50 (e) Legal issues. Consideration shall be given to the project appli-
51 cant's record of compliance with applicable laws and regulations.
52 2. The project application review and approval criteria shall be
53 reviewed and approved annually at a regular meeting of the authority and
54 made available to the public on the authority's web site.
A. 1556 19
1 3. The authority shall provide the director of the authorities budget
2 office with an electronic copy of the application and project review and
3 approval criteria within thirty days of their adoption or revision.
4 4. The authority shall retain a written record of the evaluation of
5 each project application to document its decision to provide or deny
6 financial assistance.
7 § 2307-b. Financial assistance agreement. 1. The authority shall enter
8 into a written agreement with the project applicant prior to providing
9 financial assistance. The agreement shall include the following informa-
10 tion:
11 (a) a description of the amount and type of financial assistance to be
12 provided by the authority, including a description and the value of
13 property conveyed at less than fair market value;
14 (b) a description of the amount of financing to be provided by the
15 project applicant, including the amount and type of capital investment
16 to be provided;
17 (c) the purpose of the project;
18 (d) the amount, types, sources and commitments of any private financ-
19 ing;
20 (e) the projected number of new full-time and part-time positions
21 expected to be created over the period of financial assistance, and an
22 estimated schedule by year of when those positions will be created;
23 (f) the number and types of full-time and part-time jobs to be
24 retained, and the number of filled positions at the project as of the
25 date the agreement is executed;
26 (g) the types and value of other forms of financial assistance
27 provided to the project or requested by the project applicant from other
28 state or local government agencies or authorities; and
29 (h) the penalties to be imposed on the project applicant if the terms
30 of the agreement are not met.
31 2-a. The length of a financial assistance agreement shall be limited
32 to no more than five years; provided however that the agreement may be
33 renewed for up to five additional years if the authority determines that
34 the project applicant has acted in good faith to meet the terms and
35 conditions of the agreement. In no event may financial assistance in the
36 form of a loan or exemption from taxation be provided to a project for
37 more than ten years.
38 3. The financial assistance agreement shall be made available to the
39 public on the web site of the authority.
40 4. The authority shall adopt a methodology to evaluate the conformance
41 of each assisted project to the terms and conditions of the financial
42 assistance agreement. This methodology shall be made available to the
43 public on the authority's web site.
44 § 2307-c. Recapture of certain financial assistance. 1. The authority,
45 pursuant to the terms and conditions of its financial assistance agree-
46 ment, may recapture financial assistance to a project from the proceeds
47 of bonds issued by the authority, mortgage recording tax exemptions, or
48 local sales or compensating use tax exemptions if (a) the project
49 violates state or federal tax law, labor law, environmental protection
50 law, or contract law, or any state or federal rule or regulation imple-
51 menting such law, as determined by a court of competent jurisdiction or
52 administrative tribunal, provided that such court or tribunal concludes
53 that the violation would cause material harm to the economy or quality
54 of life of the community; or (b) all or part of the project's business
55 activity or workforce is moved to a location outside the community
A. 1556 20
1 served by the authority and by doing so violates the terms and condi-
2 tions of its financial assistance agreement.
3 2. An authority which elects to initiate the recapture of financial
4 assistance pursuant to subdivision one of section eight hundred fifty-
5 nine-e of the general municipal law must notify the recipient of such
6 financial assistance in writing that it is in default of its financial
7 assistance agreement and may direct the recipient of financial assist-
8 ance to repay up to the full amount of such financial assistance
9 received as of the date of the written notice plus interest at the rate
10 set forth in section five thousand four of the civil practice law and
11 rules.
12 3. Financial assistance recaptured pursuant to this section and any
13 interest paid shall be redistributed to affected tax jurisdictions in
14 proportion to the amount of real property tax and other taxes which
15 would have been received by each affected tax jurisdiction had the
16 project not been tax exempt. Unless otherwise agreed to in writing by an
17 affected tax jurisdiction, the authority shall not retain any portion of
18 such funds as an administrative or project fee.
19 § 2307-d. Wages and standards. Whenever a recipient of financial
20 assistance from the authority enters into a contract, subcontract, lease
21 or other agreement for or in connection with the construction, demoli-
22 tion, reconstruction, rehabilitation, repair, or renovation of an
23 assisted project, the recipient of financial assistance shall pay work-
24 ers engaged in such work no less than the prevailing rate of wage and
25 supplements under article eight of the labor law.
26 § 18. Section 2315 of the public authorities law, as amended by chap-
27 ter 357 of the laws of 1993, is amended to read as follows:
28 § 2315. Uniform [tax exemption] financial assistance policy. 1. The
29 authority shall [establish] adopt a uniform [tax exemption] financial
30 assistance policy, [with input from] subject to the approval of affected
31 local taxing jurisdictions, which shall be applicable to provisions of
32 financial assistance pursuant to section twenty-three hundred seven of
33 this [chapter] title and shall provide guidelines for the claiming of
34 real property, mortgage recording, and sales tax exemptions. Such guide-
35 lines shall include, but not be limited to: period of exemption;
36 payments in lieu of taxes as a percentage of [exemption] taxes that
37 would have been levied by or on behalf of affected tax jurisdictions if
38 the project was not exempt by reason of authority involvement; types of
39 projects for which exemptions may be claimed; procedures for payments in
40 lieu of taxes and instances in which real property appraisals are to be
41 performed as a part of an application for tax exemption; in addition,
42 the authority in adopting such policy shall consider such issues as: the
43 extent to which a project will create or retain permanent, private
44 sector jobs; the estimated value of any tax exemption to be provided;
45 whether affected tax jurisdictions should be reimbursed by the project
46 occupant if a project does not fulfill the purposes for which an
47 exemption was provided; the impact of a proposed project on existing and
48 proposed businesses and economic development projects in the vicinity;
49 the amount of private sector investment generated or likely to be gener-
50 ated by the proposed project; the demonstrated public support for the
51 proposed project; the likelihood of accomplishing the proposed project
52 in a timely fashion; the effect of the proposed project upon the envi-
53 ronment; the extent to which the proposed project will require the
54 provision of additional services, including, but not limited to addi-
55 tional educational, transportation, police, emergency medical or fire
56 services; and the [extend] extent to which the proposed project will
A. 1556 21
1 provide additional sources of revenue for municipalities and school
2 districts. The adopted uniform financial assistance policy shall be
3 provided to the chief executive officer and members of the governing
4 body of each affected tax jurisdiction and shall be made available for
5 public inspection at the authority's office and on the authority's
6 website upon its adoption.
7 2. The authority shall [establish a procedure] adopt criteria for
8 deviation from the uniform [tax exemption] financial assistance policy
9 required pursuant to this section which shall be subject to the approval
10 of affected local tax jurisdictions. The authority shall set forth in
11 writing the reasons for deviation from such policy, and shall further
12 notify the affected local taxing jurisdictions of the proposed deviation
13 from such policy and the reasons therefor not less than sixty days
14 before such deviation from the uniform tax exemption policy shall take
15 effect.
16 § 19. Subdivision 1 of section 2976 of the public authorities law, as
17 amended by section 1 of part C of chapter 19 of the laws of 2010, is
18 amended to read as follows:
19 1. Notwithstanding any other law to the contrary, public benefit
20 corporations (which for purposes of this section shall include indus-
21 trial development agencies created pursuant to title one of article
22 eighteen-A of the general municipal law or any other provision of law
23 and the New York city housing development corporation created pursuant
24 to article twelve of the private housing finance law) which issue bonds,
25 notes or other obligations and not-for-profit corporations that issue
26 bonds on behalf of the state or a political subdivision thereof shall
27 pay to the state a bond issuance charge upon the issuance of such bonds
28 in an amount determined pursuant to subdivision two of this section.
29 Such charge shall be paid to the state department of taxation and
30 finance, upon forms prescribed therefor, no later than fifteen days from
31 the end of the month within which such bonds are issued.
32 § 20. The not-for-profit corporation law is amended by adding a new
33 section 206 to read as follows:
34 § 206. Financial assistance agreement.
35 1. A corporation, including a local development corporation, deter-
36 mined to be a local authority pursuant to subdivision two of section two
37 and paragraph (j) of subdivision one of section six of the public
38 authorities law that provides financial assistance to a project in the
39 form of a grant, loan, exemption from taxation, or contribution for the
40 public purpose of relieving or reducing unemployment, promoting and
41 marketing job opportunities, or supporting the formation, relocation,
42 expansion, or retention of business shall enter into a written agreement
43 with the project applicant prior to providing financial assistance.
44 2. The agreement shall include the following information:
45 (a) a description of the amount and type of financial assistance to be
46 provided by the corporation, including a description and the value of
47 property conveyed at less than fair market value;
48 (b) a description of the amount of financing to be provided by the
49 project applicant, including the amount and type of capital investment
50 to be provided;
51 (c) the purpose of the project;
52 (d) the amount, types, sources and commitments of any private financ-
53 ing;
54 (e) the projected number of new full-time and part-time positions
55 expected to be created over the period of financial assistance, and an
56 estimated schedule by year of when those positions will be created;
A. 1556 22
1 (f) the number and types of full-time and part-time jobs to be
2 retained, and the number of filled positions at the project as of the
3 date the agreement is executed;
4 (g) the types and value of other forms of financial assistance
5 provided to the project or requested by the project applicant from other
6 state or local government agencies or authorities; and
7 (h) the penalties to be imposed on the project applicant if the terms
8 of the agreement are not met.
9 3. The length of a financial assistance agreement shall be limited to
10 no more than five years; provided however that the agreement may be
11 renewed for up to five additional years if the corporation determines
12 that the project applicant has acted in good faith to meet the terms and
13 conditions of the agreement. In no event may financial assistance in the
14 form of a loan or exemption from taxation be provided to a project for
15 more than ten years.
16 4. The financial assistance agreement shall be made available to the
17 public on the web site of the corporation.
18 5. The corporation shall adopt a methodology to evaluate the conform-
19 ance of each assisted project to the terms and conditions of the finan-
20 cial assistance agreement. This methodology shall be made available to
21 the public on the corporation's web site.
22 6. (a) The corporation, pursuant to the terms and conditions of its
23 financial assistance agreement, may recapture financial assistance to a
24 project from grants, loans, real property tax exemptions, mortgage
25 recording tax exemptions, or local sales or compensating use tax
26 exemptions if (i) the project violates state or federal tax law, labor
27 law, environmental protection law, or contract law, or any state or
28 federal rule or regulation implementing such law, as determined by a
29 court of competent jurisdiction or administrative tribunal, provided
30 that such court or tribunal concludes that the violation would cause
31 material harm to the economy or quality of life of the community; or
32 (ii) all or part of the project's business activity or workforce is
33 moved to a location outside the community served by the corporation and
34 by doing so violates the terms and conditions of its financial assist-
35 ance agreement.
36 (b) A corporation which elects to initiate the recapture of financial
37 assistance pursuant to subdivision one of this section must notify the
38 recipient of such financial assistance in writing that it is in default
39 of its financial assistance agreement and may direct the recipient of
40 financial assistance to repay up to the full amount of such financial
41 assistance received as of the date of the written notice plus interest
42 at the rate set forth in section five thousand four of the civil prac-
43 tice law and rules.
44 (c) Financial assistance recaptured pursuant to this section and any
45 interest paid shall be redistributed to affected tax jurisdictions in
46 proportion to the amount of real property tax and other taxes which
47 would have been received by each affected tax jurisdiction had the
48 project not been tax exempt. Unless otherwise agreed to in writing by an
49 affected tax jurisdiction, the corporation shall not retain any portion
50 of such funds as an administrative or project fee.
51 7. Wages and standards. Whenever a recipient of financial assistance
52 from the corporation enters into a contract, subcontract, lease or other
53 agreement for or in connection with the construction, demolition, recon-
54 struction, rehabilitation, repair, or renovation of an assisted project,
55 the recipient of financial assistance shall pay workers engaged in such
A. 1556 23
1 work no less than the prevailing rate of wage and supplements under
2 article eight of the labor law.
3 § 21. Paragraphs (a), (b) and (d) of section 1411 of the not-for-pro-
4 fit corporation law, paragraph (a) as amended by chapter 847 of the laws
5 of 1970 and paragraph (b) as amended by chapter 549 of the laws of 2013,
6 are amended to read as follows:
7 (a) Purposes.
8 This section shall provide an additional and alternate method of
9 incorporation or reincorporation of not-for-profit corporations for any
10 of the purposes set forth in this paragraph [and shall not be deemed to
11 alter, impair or diminish the purposes, rights, powers or privileges of
12 any corporation heretofore or hereafter incorporated under this section
13 or under the stock or business corporation laws]. Corporations may be
14 incorporated or reincorporated under this section as not-for-profit
15 local development corporations operated for the exclusively charitable
16 or public purposes of relieving and reducing unemployment, promoting and
17 providing for additional and maximum employment, bettering and maintain-
18 ing job opportunities, instructing or training individuals to improve or
19 develop their capabilities for such jobs, carrying on scientific
20 research for the purpose of aiding a community or geographical area by
21 attracting new industry to the community or area or by encouraging the
22 development of, or retention of, an industry in the community or area[,
23 and lessening the burdens of government and acting in the public inter-
24 est, and any]. Any one or more counties, cities, towns or villages of
25 the state, or any combination thereof, or the New York job development
26 authority in exercising its power under the public authorities law to
27 encourage the organization of local development corporations, may cause
28 such corporations to be incorporated by public officers or private indi-
29 viduals or reincorporated upon compliance with the requirements of this
30 section, and it is hereby found, determined and declared that in carry-
31 ing out said purposes and in exercising the powers conferred by para-
32 graph (b) such corporations will be acting in the public interest and
33 performing an essential governmental function.
34 (b) Type of corporation.
35 A local development corporation [is] incorporated for one or more of
36 the purposes described in paragraph (a) of this section shall be a char-
37 itable corporation under this chapter.
38 (d) Purchase or lease of real property owned by a county, city, town
39 or village.
40 (1) The local legislative body of a county, city, town or village or,
41 if there is a board of estimate in a city, then the board of estimate,
42 may by resolution determine that specifically described real property
43 owned by the county, city, town or village is not required for use by
44 such county, city, town or village and authorize the county, city, town
45 or village to sell or lease such real property to a local development
46 corporation incorporated or reincorporated under this article; provided,
47 however, that title to such land be not declared inalienable as a forest
48 preserve or a parkland.
49 (2) Notwithstanding the provisions of any general, special or local
50 law, charter or ordinance to the contrary, no such sale or lease may be
51 made without appraisal, public notice, (except as provided in subpara-
52 graph (4)) or public bidding [for such price or rental and upon such
53 terms as may be agreed upon between the county, city, town or village
54 and said local development corporation]; provided, however, that in case
55 of a lease the term may not exceed ninety-nine years and provided,
56 further, that in cities having a population of one million or more, no
A. 1556 24
1 such sale or lease shall be made without the approval of a majority of
2 the members of the borough [improvement] board of the borough in which
3 such real property is located.
4 (3) Before any sale or lease to a local development corporation incor-
5 porated or reincorporated under this article shall be authorized, a
6 public hearing shall be held by the local legislative body[, or by the
7 board of estimate, as the case may be,] to consider the proposed sale or
8 lease.
9 (4) Notice of such hearing shall be published at least ten days before
10 the date set for the hearing in such publication and in such manner as
11 may be designated by the local legislative body[, or the board of esti-
12 mate as the case may be]. Such notice shall include a description of the
13 real property proposed to be sold or leased; a statement of the esti-
14 mated fair market value of the real property proposed to be sold or
15 leased; the value of the financial consideration to be received by the
16 county, city, town or village from such sale or lease of the real prop-
17 erty; and a statement of the intended use or disposition of such real
18 property by the local development corporation.
19 (5) A local development corporation, incorporated or reincorporated
20 under this section, which purchases or leases real property from a coun-
21 ty, city, town or village, shall not, without the written approval of
22 the county, city, town or village, use such real property for any
23 purpose except the purposes set forth in the certificate of incorpo-
24 ration or reincorporation of said local development corporation. In the
25 event such real property is used in violation of the restrictions of
26 this paragraph, the attorney-general may bring an action or special
27 proceeding to enjoin the unauthorized use.
28 § 22. Paragraphs (e), (f), (g), (h), and (i) of section 1411 of the
29 not-for-profit corporation law are relettered paragraphs (f), (g), (h),
30 (i), and (j) and a new paragraph (e) is added to read as follows:
31 (e) Contracts with municipalities.
32 Any contract or other agreement between a local development corpo-
33 ration and a municipality or state authority or local authority for one
34 or more of the purposes described in paragraph (a) of this section
35 shall: (i) cause the local development corporation to be defined as a
36 local authority pursuant to subdivision two of section two of the public
37 authorities law; (ii) provide for the municipality or state authority or
38 local authority to receive fair and adequate consideration for the
39 services provided by the local development corporation; (iii) be subject
40 to the requirements of article five-A of the general municipal law; and
41 (iv) have a term not to exceed ten years, subject to one or more
42 renewals for a term not to exceed ten years upon the mutual consent of
43 the parties; provided however that a contract with a municipality shall
44 not be used to finance the municipality's operations or to acquire or
45 improve an asset for use of the municipality.
46 § 23. Paragraph (j) of section 1411 of the not-for-profit corporation
47 law, as relettered by section twenty-two of this act, is amended to read
48 as follows:
49 (j) Effect of section.
50 Corporations incorporated or reincorporated under this section shall
51 be organized and operated exclusively for the purposes set forth in
52 paragraph (a), shall have, in addition to the powers otherwise conferred
53 by law, the powers conferred by paragraph (c) of this section and shall
54 be subject to all the restrictions and limitations imposed by [paragraph
55 (e) and paragraph (g)] paragraphs (c), (d), (e), (h) and (i) of this
56 section. In so far as the provisions of this section are inconsistent
A. 1556 25
1 with the provisions of any other law, general or special, the provisions
2 of this section shall be controlling as to corporations incorporated or
3 reincorporated hereunder.
4 § 24. Federal preemption and severability. The provisions of each
5 section of this act shall be deemed severable, and the declaration by a
6 court of competent jurisdiction that any part thereof is preempted or
7 otherwise invalid shall not affect the remaining parts thereof.
8 § 25. This act shall take effect on the thirtieth day after it shall
9 have become a law, or January 1, 2016, whichever shall come first;
10 provided, however, that section sixteen of this act shall apply to bonds
11 issued or re-issued on or after the effective date of this act.
