Establishes a kitchen incubator/shared-use kitchen facility program within the urban development corporation; provides grant funding to local development corporations, municipalities, educational institutions and not-for-profit entities for the development or expansion of kitchen incubator/shared-use kitchen facilities which make available services such as food production, technical assistance, business management and marketing, distribution, storage and retailing assistance, particularly in economically distressed areas.
STATE OF NEW YORK
________________________________________________________________________
439
2011-2012 Regular Sessions
IN SENATE(Prefiled)
January 5, 2011
___________
Introduced by Sen. KRUEGER -- read twice and ordered printed, and when
printed to be committed to the Committee on Corporations, Authorities
and Commissions
AN ACT to amend chapter 174 of the laws of 1968 constituting the New
York state urban development corporation act, in relation to kitchen
incubator/shared-use kitchen facilities
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 1 of chapter 174 of the laws of 1968, constituting
2 the New York state urban development corporation act, is amended by
3 adding a new section 16-u to read as follows:
4 § 16-u. Small business kitchen incubator/shared-use kitchen program.
5 1. There is hereby established within the corporation a small business
6 kitchen incubator/shared-use kitchen program. The corporation is author-
7 ized within available appropriations in the empire state economic devel-
8 opment fund established pursuant to section 16-i of this act, to award
9 grants, on a competitive basis in response to request-for-proposals, to
10 local development corporations, municipalities, educational insti-
11 tutions, and other not-for-profit organizations for the costs involved
12 in starting or expanding a kitchen incubator/shared-use kitchen facili-
13 ty. The corporation is further authorized to contract with the commis-
14 sioner of agriculture and markets, and such commissioner is authorized
15 to contract with the corporation, to prepare and issue requests for
16 proposals, accept grant applications, recommend those applications that
17 best meet established criteria, to establish criteria and to administer
18 grants awarded under this subdivision. Such grants may be used for the
19 construction or rehabilitation of such facility, purchase of equipment,
20 training, technical assistance, and other purposes necessary for the
21 successful development or expansion of a kitchen incubator/shared-use
22 kitchen facility. Kitchen incubator/shared-use kitchen facilities shall
23 be food processing or preparation facilities that are operated by not-
24 for-profit corporations or government agencies and used primarily by
25 small and emerging businesses, including both full-time facility tenants
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00734-01-1
S. 439 2
1 and businesses that rent space on a temporary basis. They must provide
2 or make available for facility businesses: low-cost space, below current
3 market value in the area the facility serves; and support services,
4 including but not limited to, business planning, management assistance,
5 financial packaging, linkages to financing sources, and coordination
6 with other sources of training and assistance. They may provide or make
7 available for facility businesses, services such as food production or
8 processing technical assistance, marketing, distribution, purchasing,
9 storage, packing, insurance, on-site retailing or other services.
10 2. Project plans. Applicants for grants must provide a management
11 plan and a business plan for operating the kitchen incubator/shared-use
12 kitchen facility which demonstrates to the satisfaction of the corpo-
13 ration: (i) local business interest in a new or expanded facility,
14 including the food processing needs of existing and potential food busi-
15 nesses; (ii) the applicant's ability to deliver services and assistance
16 as described in subdivision one of this section, including a description
17 of how such assistance and services will be delivered; (iii) whether the
18 services provided to facility tenants will be covered by fees or
19 included in the rent, and how rentals and/or fees will be structured;
20 (iv) a policy for tenants' entrance to and exit, or graduation, from the
21 facility; and, (v) that the facility can be self-sustaining and will not
22 require long-term state operating subsidies.
23 3. Grant criteria. Grants and loans made by the corporation pursuant
24 to this section shall be subject to the following limitations:
25 a. no such grant shall exceed two hundred fifty thousand dollars per
26 year; and
27 b. preference shall be given to applicants which: (i) meet highly
28 distressed area criteria or which support empire zones established
29 pursuant to article 18-B of the general municipal law; provide a local
30 match; meet a substantial local or regional need; complement local
31 programs or provide services not readily available from units of local
32 government or the private sector; plan to provide or make available for
33 facility businesses, services, including but not limited to, food
34 production or processing technical assistance, marketing, distribution,
35 purchasing, storage, packaging, insurance, on-site retailing or other
36 services; and (ii) have developed a plan to assist businesses partic-
37 ipating in the applicant's kitchen incubator/shared-use kitchen facility
38 with purchasing New York state agricultural products, and promoting the
39 facility to regional farmers.
40 § 2. Paragraph (b) of subdivision 1 of section 16-m of section 1 of
41 chapter 174 of the laws of 1968, constituting the New York state urban
42 development corporation act, as added by section 1 of part N of chapter
43 84 of the laws of 2002, is amended to read as follows:
44 (b) Loans, loan guarantees, and grants including interest subsidy
45 grants may be provided to municipalities, industrial development agen-
46 cies, not-for-profit corporations or local development corporations for
47 the purpose of developing federal facility sites, urban industrial
48 sites, industrial parks and incubator buildings including small business
49 kitchen incubator/shared-use kitchen facilities; or to undertake prelim-
50 inary planning relating thereto;
51 § 3. This act shall take effect immediately, provided, however, that
52 the amendments to section 16-m of the urban development corporation act
53 made by section two of this act shall not affect the expiration of such
54 section and shall expire and be deemed repealed therewith.
