Bill Text: NY A04114 | 2021-2022 | General Assembly | Introduced
Bill Title: Establishes infrastructure financing districts; provides for electoral mechanism for such establishment; sets conditions on authorized projects within such districts.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2021-12-10 - enacting clause stricken [A04114 Detail]
Download: New_York-2021-A04114-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4114 2021-2022 Regular Sessions IN ASSEMBLY February 1, 2021 ___________ Introduced by M. of A. RODRIGUEZ, BICHOTTE HERMELYN -- read once and referred to the Committee on Ways and Means AN ACT to amend the economic development law, in relation to establish- ing infrastructure financing districts The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The economic development law is amended by adding a new 2 article 23 to read as follows: 3 ARTICLE 23 4 INFRASTRUCTURE FINANCING DISTRICTS 5 Section 450. Definitions. 6 451. Revenue usage. 7 452. Permitted projects. 8 453. Additional facilities or services. 9 454. District designation challenges. 10 455. District establishment. 11 456. Infrastructure plan. 12 457. Public hearing. 13 458. Taxation. 14 459. Bond issuance. 15 § 450. Definitions. For the purposes of this article, the following 16 terms shall have the following meanings: 17 1. "Affected taxing entity" means any governmental taxing agency which 18 levied or had levied on its behalf a property tax on all or a portion of 19 the property located in the proposed district in the fiscal year prior 20 to the designation of such district. 21 2. "District" means an infrastructure financing district. 22 3. "Infrastructure financing district" means a legally constituted 23 governmental entity established pursuant to this article for the sole 24 purpose of financing public facilities. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03134-01-1A. 4114 2 1 4. "Landowner" or "owner of land" means any person shown as the owner 2 of land on the last equalized assessment roll or otherwise known to be 3 the owner of the land by a municipality. The municipality has no obli- 4 gation to obtain other information as to the ownership of land, and its 5 determination of ownership shall be final and conclusive for the 6 purposes of this article. A public agency is not a landowner or owner of 7 land for purposes of this article, unless the public agency owns all of 8 the land to be included within the proposed district. 9 § 451. Revenue usage. 1. The revenues available pursuant to this 10 article may be used directly for work allowed pursuant to section four 11 hundred fifty-two of this article, may be accumulated for a period not 12 to exceed five years to provide a fund for that work, may be pledged to 13 pay the principal of, and interest on, bonds issued pursuant to this 14 article, or may be pledged to pay the principal of, and interest on, 15 bonds the proceeds of which will be used entirely for allowable purposes 16 of the district. The revenues of the district may also be committed to 17 paying for any completed public facility acquired pursuant to section 18 four hundred fifty-two of this article over a period of time, including 19 the payment of a rate of interest not to exceed the bond buyer index 20 rate on the day that the agreement to repay is entered into by the city 21 or county. 22 2. A municipality may enter into an agreement with any affected taxing 23 entity providing for the construction of, or assistance in, financing 24 public facilities. 25 § 452. Permitted projects. 1. A district may finance (a) the purchase, 26 construction, expansion, improvement, seismic retrofit, or rehabili- 27 tation of any real or other tangible property with an estimated useful 28 life of fifteen years or longer which satisfies the requirements of 29 subdivision two of this section, (b) may finance planning and design 30 work which is directly related to the purchase, construction, expansion, 31 or rehabilitation of that property, and (c) the costs described in 32 subdivision three of section four hundred fifty-eight of this article. A 33 district may only finance the purchase of facilities for which 34 construction has been completed, as determined by the municipality. The 35 facilities need not be physically located within the boundaries of the 36 district. A district may not finance routine maintenance, repair work, 37 or the costs of ongoing operation or providing services of any kind. 38 2. The district shall finance only public capital facilities of commu- 39 nitywide significance, which provide significant benefits to an area 40 larger than the area of the district, including, but not limited to, all 41 of the following: 42 (a) Highways, interchanges, ramps and bridges, arterial streets, park- 43 ing facilities, and transit facilities. 44 (b) Sewage treatment and water reclamation plants and interceptor 45 pipes. 46 (c) Facilities for the collection and treatment of water for urban 47 uses. 48 (d) Flood control levees and dams, retention basins, and drainage 49 channels. 50 (e) Child care facilities. 51 (f) Libraries. 52 (g) Parks, recreational facilities, and open space. 53 (h) Facilities for the transfer and disposal of solid waste, including 54 transfer stations and vehicles.A. 4114 3 1 3. In addition to the projects authorized herein, any infrastructure 2 financing district may finance public capital facilities or projects 3 that include broadband. 4 For purposes of this section, "broadband" means communications network 5 facilities that enable high-speed internet access. 6 § 453. Additional facilities or services. 1. A district may finance 7 only the facilities or services authorized in this article to the extent 8 that the facilities or services are in addition to those provided in the 9 territory of the district before the district was created. The addi- 10 tional facilities or services may not supplant facilities or services 11 already available within that territory when the district was created 12 but may supplement those facilities and services as needed to serve new 13 developments. 14 2. A district may include areas that are not contiguous. 15 3. Any debt or obligation of a district shall be subordinate to all 16 prior enforceable obligations. 17 § 454. District designation challenges. Any action or proceeding to 18 attack, review, set aside, void, or annul the creation of a district, 19 adoption of an infrastructure financing plan, including a division of 20 taxes thereunder, the validity of bond issuance or an election pursuant 21 to this article shall be commenced within thirty days after the enact- 22 ment of the ordinance creating the district. 23 § 455. District establishment. A municipality may designate one or 24 more proposed infrastructure financing districts pursuant to this arti- 25 cle. Proceedings for the establishment of a district shall be instituted 26 by the adoption of a resolution of intention to establish the proposed 27 district and shall do all of the following: 28 1. State that an infrastructure financing district is proposed to be 29 established under the terms of this article and describe the boundaries 30 of the proposed district, which may be accomplished by reference to a 31 map on file in the office of the clerk of the city or county that is 32 proposing to establish the district. 33 2. State the type of public facilities proposed to be financed by the 34 district. The district may only finance public facilities authorized by 35 section four hundred fifty-two of this article. 36 3. State that incremental property tax revenue from the city or county 37 and some or all affected taxing entities within the district may be used 38 to finance these public facilities. 39 4. Fix a time and place for a public hearing on the proposal. 40 5. The municipality shall direct the clerk to mail a copy of the 41 resolution of intention to create the district to each owner of land 42 within the district and to each affected taxing entity. 43 6. After adopting the resolution pursuant to this section, the munici- 44 pality shall designate the appropriate municipal official to prepare an 45 infrastructure plan pursuant to section four hundred fifty-six of this 46 article. 47 § 456. Infrastructure plan. After receipt of a copy of the resolution 48 of intention to establish a district, the official designated pursuant 49 to subdivision six of section four hundred fifty-five of this article 50 shall prepare a proposed infrastructure financing plan. The infrastruc- 51 ture financing plan shall be consistent with the general plan of the 52 city or county within which the district is located and shall include 53 all of the following: 54 1. A map and legal description of the proposed district, which may 55 include all or a portion of the district designated by the municipality 56 in its resolution of intention.A. 4114 4 1 2. A description of the public facilities required to serve the devel- 2 opment proposed in the area of the district including those to be 3 provided by the private sector, those to be provided by governmental 4 entities without assistance under this article, those public improve- 5 ments and facilities to be financed with assistance from the proposed 6 district, and those to be provided jointly. The description shall 7 include the proposed location, timing, and costs of the public improve- 8 ments and facilities. 9 3. A finding that the public facilities are of communitywide signif- 10 icance and provide significant benefits to an area larger than the area 11 of the district. 12 4. A financing section, which shall contain all of the following 13 information: 14 (a) A specification of the maximum portion of the incremental tax 15 revenue of the city or county and of each affected taxing entity 16 proposed to be committed to the district for each year during which the 17 district will receive incremental tax revenue. The portion need not be 18 the same for all affected taxing entities. The portion may change over 19 time. 20 (b) A projection of the amount of tax revenues expected to be received 21 by the district in each year during which the district will receive tax 22 revenues, including an estimate of the amount of tax revenues attribut- 23 able to each affected tax entity for each year. 24 (c) A plan for financing the public facilities to be assisted by the 25 district, including a detailed description of any intention to incur 26 debt. 27 (d) A limit on the total number of dollars of taxes which may be allo- 28 cated to the district pursuant to the plan. 29 (e) A date on which the district will cease to exist, by which time 30 all tax allocations to the district will end. The date shall not be more 31 than thirty years from the date on which the ordinance forming the 32 district is adopted. 33 (f) An analysis of the costs to the city or county of providing facil- 34 ities and services to the area of the district while the area is being 35 developed and after the area is developed. The plan shall also include 36 an analysis of the tax, fee, charge, and other revenues expected to be 37 received by the city or county as a result of expected development in 38 the area of the district. 39 (g) An analysis of the projected fiscal impact on the district and the 40 associated development upon each affected taxing entity. 41 (h) A plan for financing any potential costs that may be incurred by 42 reimbursing a developer of a project that is located entirely within the 43 boundaries of that district. 44 § 457. Public hearing. 1. The municipality shall conduct a public 45 hearing prior to adopting the proposed infrastructure financing plan. 46 The public hearing shall be called no sooner than sixty days after the 47 plan has been sent to each affected taxing entity. In addition to the 48 notice given to landowners and affected taxing entities, notice of the 49 public hearing shall be given by publication not less than once a week 50 for four successive weeks in a newspaper of general circulation 51 published in the city or county in which the proposed district is 52 located. The notice shall state that the district will be used to 53 finance public works, briefly describe the public works, briefly 54 describe the proposed financial arrangements, including the proposed 55 commitment of incremental tax revenue, describe the boundaries of the 56 proposed district and state the day, hour, and place when and where anyA. 4114 5 1 persons having any objections to the proposed infrastructure financing 2 plan, or the regularity of any of the prior proceedings, may appear 3 before the municipality and object to the adoption of the proposed plan 4 by the municipality. 5 2. At the hour set in the required notices, the municipality shall 6 proceed to hear and pass upon all written and oral objections. The hear- 7 ing may be continued from time to time. The municipality shall consider 8 the recommendations, if any, of affected taxing entities, and all 9 evidence and testimony for and against the adoption of the plan. The 10 municipality may modify the plan by eliminating or reducing the size and 11 cost of proposed public works, by reducing the amount of proposed debt, 12 or by reducing the portion, amount, or duration of incremental tax 13 revenues to be committed to the district. 14 3. Nothing in this section shall be construed to prevent the munici- 15 pality from amending its infrastructure financing plan and adopting a 16 resolution proposing formation of the infrastructure financing district 17 without allocation of the tax revenues of any affected taxing entity 18 which has not approved the infrastructure financing plan by resolution 19 of the governing body of the affected taxing entity. 20 4. At the conclusion of the hearing, the municipality may adopt a 21 resolution proposing adoption of the infrastructure financing plan, as 22 modified, and formation of the infrastructure financing district, or it 23 may abandon the proceedings. If the municipality adopts a resolution 24 proposing formation of the district, it shall then submit the proposal 25 to create the district to the qualified electors of the proposed 26 district in the next general election or in a special election to be 27 held, notwithstanding any other requirement at least ninety days, but 28 not more than one hundred eighty days, following the adoption of the 29 resolution of formation. The municipality shall provide the resolution 30 of formation, a certified map of sufficient scale and clarity to show 31 the boundaries of the district, and a sufficient description to allow 32 the election official to determine the boundaries of the district to the 33 official conducting the election within three business days after the 34 adoption of the resolution of formation. The assessor's parcel numbers 35 for the land within the district shall be included if it is a landowner 36 election or the district does not conform to an existing district's 37 boundaries and if requested by the official conducting the election. If 38 the election is to be held less than one hundred twenty-five days 39 following the adoption of the resolution of formation, the concurrence 40 of the election official conducting the election shall be required. 41 However, any time limit specified by this section or requirement 42 pertaining to the conduct of the election may be waived with the unani- 43 mous consent of the qualified electors of the proposed district and the 44 concurrence of the election official conducting the election. 45 5. After the canvass of returns of any election pursuant to this 46 section, the municipality may, by ordinance, adopt the infrastructure 47 financing plan and create the district with full force and effect of 48 law, if fifty-five percent of the votes upon the question of creating 49 the district are in favor of crating the district. 50 6. After the canvass of returns of any election conducted pursuant to 51 this section, the municipality shall take no further action with respect 52 to the proposed infrastructure financing district for one year from the 53 date of the election if the question of creating the district fails to 54 receive approval by fifty-five percent of the votes cast upon the ques- 55 tion.A. 4114 6 1 § 458. Taxation. Any infrastructure financing plan may contain a 2 provision that taxes, if any, levied upon taxable property in the area 3 included within the infrastructure financing district each year by or 4 for the benefit of the state of New York, or any affected taxing entity 5 after the effective date of the ordinance adopted pursuant to subdivi- 6 sion five of section four hundred fifty-seven of this article to create 7 the district, shall be divided as follows: 8 1. That portion of the taxes which would be produced by the rate upon 9 which the tax is levied each year by or for each of the affected taxing 10 entities upon the total sum of the assessed value of the taxable proper- 11 ty in the district as shown upon the assessment roll used in connection 12 with the taxation of the property by the affected taxing entity, last 13 equalized prior to the effective date of the ordinance adopted pursuant 14 to subdivision five of section four hundred fifty-seven of this article 15 to create the district, shall be allocated to, and when collected shall 16 be paid to, the respective affected taxing entities as taxes by or for 17 the affected taxing entities on all other property are paid. 18 2. That portion of the levied taxes each year specified in the adopted 19 infrastructure financing plan for the city or county and each affected 20 taxing entity in excess of the amount specified in subdivision one of 21 this section shall be allocated to, and when collected shall be paid 22 into a special fund of, the district for all lawful purposes of the 23 district. Unless and until the total assessed valuation of the taxable 24 property in a district exceeds the total assessed value of the taxable 25 property in the district as shown by the last equalized assessment roll 26 referred to in subdivision one of this section, all of the taxes levied 27 and collected upon the taxable property in the district shall be paid to 28 the respective affected taxing entities. When the district ceases to 29 exist pursuant to the adopted infrastructure financing plan, all moneys 30 thereafter received from taxes upon the taxable property in the district 31 shall be paid to the respective affected taxing entities as taxes on all 32 other property are paid. 33 3. All costs incurred by a county in connection with the division of 34 taxes pursuant to this section for a district shall be paid by that 35 district. 36 § 459. Bond issuance. 1. A municipality may, by majority vote, initi- 37 ate proceedings to issue bonds pursuant to this article by adopting a 38 resolution stating its intent to issue the bonds. Such resolution shall 39 contain all of the following information: 40 (a) A description of the facilities to be financed with the proceeds 41 of the proposed bond issued. 42 (b) The estimated cost of the facilities, the estimated cost of 43 preparing and issuing the bonds, and the principal amount of the 44 proposed bond issuance. 45 (c) The maximum interest rate and discount on the proposed bond issu- 46 ance. 47 (d) The date of the election on the proposed bond issuance and the 48 manner of holding the election. 49 (e) A determination of the amount of tax revenue available or esti- 50 mated to be available, for the payment of the principal of, and interest 51 on, the bonds. 52 (f) A finding that the amount necessary to pay the principal of, and 53 interest on, the proposed bond issuance will be less than, or equal to, 54 the amount determined pursuant to subdivision five of this section. 55 2. Such resolution shall be published once a day for at least seven 56 successive days in a newspaper published in the city or county at leastA. 4114 7 1 six days a week, or at least once a week for two successive weeks in a 2 newspaper published in the city or county less than six days a week. 3 If there are no newspapers meeting these criteria, the resolution 4 shall be posted in three public places within the territory of the 5 district for two succeeding weeks. 6 3. The municipality shall submit the proposal to issue the bonds to 7 the voters who reside within the district. The election shall be 8 conducted in the same manner as the election to create the district 9 pursuant to section four hundred fifty-seven of this article and the two 10 elections may be consolidated. 11 4. (a) The bonds may be issued if fifty-five percent of the voters 12 voting on the proposition vote in favor of issuing the bonds. 13 (b) If the voters approve the issuance of the bonds as provided by 14 paragraph (a), the municipality shall proceed with the issuance of the 15 bonds by adopting a resolution which shall provide for all of the 16 following: 17 (i) The issuance of the bonds in one or more series. 18 (ii) The principal amount of the bonds, which shall be consistent with 19 the amount specified in paragraph (b) of subdivision one of this 20 section. 21 (iii) The date the bonds will bear. 22 (iv) The date of maturity of the bonds. 23 (v) The denomination of the bonds. 24 (vi) The form of the bonds. 25 (vii) The manner of execution of the bonds. 26 (viii) The medium of payment in which the bonds are payable. 27 (ix) The place or manner of payment and any requirements for registra- 28 tion of the bonds. 29 (x) The terms of call or redemption, with or without premium. 30 5. If any proposition submitted to the voters pursuant to this article 31 is defeated by the voters, the municipality shall not submit, or cause 32 to be submitted, a similar proposition to the voters for at least one 33 year after the first election. 34 6. The municipality may, by majority vote, provide for refunding of 35 bonds issued pursuant to this article. However, refunding bonds shall 36 not be issued if the total net interest cost to maturity on the refund- 37 ing bonds plus the principal amount of the refunding bonds exceeds the 38 total net interest cost to maturity on the bonds to be refunded. The 39 municipality may not extend the time to maturity of the bonds. 40 7. The municipality or any person executing the bonds shall not be 41 personally liable on the bonds by reason of their issuance. The bonds 42 and other obligations of a district issued pursuant to this article are 43 not a debt of the city, county, or state or of any of its political 44 subdivisions, other than the district, and none of those entities, other 45 than the district, shall be liable on the bonds and the bonds or obli- 46 gations shall be payable exclusively from funds or properties of the 47 district. The bonds shall contain a statement to this effect on their 48 face. The bonds do not constitute an indebtedness within the meaning of 49 any constitutional or statutory debt limitation. 50 § 2. This act shall take effect on the one hundred eightieth day after 51 it shall have become a law.
