Bill Text: NY A05215 | 2023-2024 | General Assembly | Introduced
Bill Title: Relates to the purposes and powers of industrial development agencies and to improving the accountability and transparency of such agencies; makes conforming changes to the 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; relates to the purposes and powers of local development corporations and certain other not-for-profit corporations thereof.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-03 - referred to local governments [A05215 Detail]
Download: New_York-2023-A05215-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5215 2023-2024 Regular Sessions IN ASSEMBLY March 7, 2023 ___________ Introduced by M. of A. WALLACE -- read once and referred to the Commit- tee 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. Subdivisions 4 and 14 of section 854 of the general munici- 2 pal law, subdivision 4 as amended by section 5 of part X of chapter 59 3 of the laws of 2021 and subdivision 14 as added by chapter 356 of the 4 laws of 1993, are amended and a new subdivision 22 is added to read as 5 follows: 6 (4) "Project" - shall mean any land, any building or other improve- 7 ment, and all real and personal properties located within the state of 8 New York and within or outside or partially within and partially outside 9 the municipality for whose benefit the agency was created, including, 10 but not limited to, machinery, equipment and other facilities deemed 11 necessary or desirable in connection therewith, or incidental thereto, 12 whether or not now in existence or under construction, which shall be 13 suitable for manufacturing, warehousing, research, civic, commercial, 14 renewable energy or industrial purposes or other economically sound 15 purposes identified and called for to implement a state designated urban EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03695-01-3A. 5215 2 1 cultural park management plan as provided in title G of the parks, 2 recreation and historic preservation law and which may include or mean 3 an industrial pollution control facility, a recreation facility, educa- 4 tional or cultural facility, a horse racing facility, a railroad facili- 5 ty, a renewable energy project, a continuing care retirement community, 6 or a civic facility, provided, however, that, of agencies governed by 7 this article, only agencies created for the benefit of a county and the 8 agency created for the benefit for the city of New York shall provide 9 financial assistance in any respect to a continuing care retirement 10 community, or an automobile racing facility, provided, however, no agen- 11 cy shall use its funds or provide financial assistance in respect of any 12 project wholly or partially outside the municipality for whose benefit 13 the agency was created without the prior consent thereto by the govern- 14 ing body or bodies of all the other municipalities in which a part or 15 parts of the project is, or is to be, located, and such portion of the 16 project located outside such municipality for whose benefit the agency 17 was created shall be contiguous with the portion of the project inside 18 such municipality. Provided further, however, that no agency shall 19 provide financial assistance for any project where the project applicant 20 has any agreement to subsequently contract with a municipality for the 21 lease or purchase of such project or project facility. 22 (14) "Financial assistance" - shall mean the proceeds of bonds issued 23 by an agency, straight-leases, grants, loans, or exemptions from taxa- 24 tion claimed by a project occupant as a result of an agency taking 25 title, possession or control (by lease, license or otherwise) to the 26 property or equipment of such project occupant or of such project occu- 27 pant acting as an agent of an agency. 28 (22) "Civic facility" shall mean a facility to be owned or occupied by 29 a municipal corporation, a district corporation, or a not-for-profit 30 corporation organized and existing under the laws of this state or 31 authorized to conduct activities in this state; provided that such 32 facilities shall be limited to medical facilities including those 33 defined in article twenty-eight of the public health law, educational 34 facilities, recreational facilities for public use, facilities used for 35 municipal government or public safety purposes, or housing facilities 36 primarily designed to be occupied by individuals sixty years of age or 37 older. Nothing in this article shall be deemed to waive any applicable 38 requirement for an operating facility certificate, consent or other 39 approval as provided by law. 40 § 2. Subdivision 2 of section 856 of the general municipal law, as 41 amended by chapter 356 of the laws of 1993, is amended to read as 42 follows: 43 2. An agency shall be a corporate governmental agency, constituting a 44 public benefit corporation. Except as otherwise provided by special act 45 of the legislature, an agency shall consist of not less than [three] 46 five nor more than seven members who shall be appointed by the governing 47 body of each municipality and who shall serve at the pleasure of the 48 appointing authority. Such members may include representatives of local 49 government, school boards, organized labor and business. A member shall 50 continue to hold office until his successor is appointed and has quali- 51 fied. The governing body of each municipality shall designate the first 52 chairman and file with the secretary of state a certificate of appoint- 53 ment or reappointment of any member. Such members shall receive no 54 compensation for their services but shall be entitled to the necessary 55 expenses, including traveling expenses, incurred in the discharge of 56 their duties.A. 5215 3 1 § 3. Section 858 of the general municipal law, as added by chapter 2 1030 of the laws of 1969, the opening paragraph as amended by section 6 3 of part X of chapter 59 of the laws of 2021, subdivision 4 as amended by 4 chapter 747 of the laws of 2005, subdivision 7 as amended by chapter 559 5 of the laws of 2021, subdivision 8 as amended and subdivision 15 as 6 added by chapter 356 of the laws of 1993, subdivision 9 as amended by 7 chapter 444 of the laws of 1997, and subdivisions 16 and 17 as renum- 8 bered by chapter 356 of the laws of 1993, is amended to read as follows: 9 § 858. Purposes and powers of the agency. The purposes of the agency 10 shall be to promote, develop, encourage and assist in the acquiring, 11 constructing, reconstructing, improving, maintaining, equipping and 12 furnishing industrial, manufacturing, warehousing, commercial, research, 13 renewable energy and recreation facilities including industrial 14 pollution control facilities, educational or cultural facilities, civic 15 facilities, railroad facilities, horse racing facilities, automobile 16 racing facilities, renewable energy projects and continuing care retire- 17 ment communities, provided, however, that, of agencies governed by this 18 article, only agencies created for the benefit of a county and the agen- 19 cy created for the benefit of the city of New York shall be authorized 20 to provide financial assistance in any respect to a continuing care 21 retirement community, and thereby advance the job opportunities, health, 22 general prosperity and economic welfare of the people of the state of 23 New York and to improve their recreation opportunities, prosperity and 24 standard of living; and to carry out the aforesaid purposes, each agency 25 shall have the following powers: 26 (1) To sue and be sued; 27 (2) To have a seal and alter the same at pleasure; 28 (3) To acquire, hold and dispose of personal property for its corpo- 29 rate purposes; 30 (4) To acquire by purchase, grant, lease, gift, pursuant to the 31 provisions of the eminent domain procedure law, or otherwise and to use, 32 real property or rights or easements therein necessary for its corporate 33 purposes in compliance with the local zoning and planning regulations 34 and shall take into consideration regional and local comprehensive land 35 use plans and state designated heritage area management plans, and to 36 sell, convey, mortgage, lease, pledge, exchange or otherwise dispose of 37 any such property in such manner as the agency shall determine. In the 38 case of railroad facilities, however, the phrase to use real property or 39 rights or easements therein shall not be interpreted to include opera- 40 tion by the agency of rail service upon or in conjunction with such 41 facilities[.]; 42 (5) To acquire real property from a municipality as necessary for its 43 corporate purposes pursuant to section eight hundred fifty-eight-c of 44 this title; 45 (6) To make by-laws for the management and regulation of its affairs 46 and, subject to agreements with its bondholders, for the regulation of 47 the use of a project or projects[.]; 48 [(6)] (7) With the consent of the municipality, to use agents, employ- 49 ees and facilities of the municipality, paying the municipality its 50 agreed proportion of the compensation or costs; 51 [(7)] (8) To appoint officers, agents and employees, to prescribe 52 their qualifications and to fix their compensation and to pay the same 53 out of funds of the agency, provided, however, that an elected officer 54 of the municipality may not serve as a compensated officer, agent or 55 employee of the agency;A. 5215 4 1 [(8)] (9) (a) To appoint an attorney, who may be the counsel of the 2 municipality, and to fix the attorney's compensation for services which 3 shall be payable to the attorney, and to retain and employ private 4 consultants for professional and technical assistance and advice; 5 (b) An attorney acting as bond counsel for a project must file with 6 the agency a written statement in which the attorney identifies each 7 party to the transaction which such attorney represents. If bond counsel 8 provides any legal services to parties other than the agency the written 9 statement must describe the nature of legal services provided by such 10 bond counsel to all parties to the transaction, including the nature of 11 the services provided to the agency[.]; 12 [(9)] (10) To make contracts and leases, and to execute all instru- 13 ments necessary or convenient to or with any person, firm, partnership 14 or corporation, either public or private; provided, however, that any 15 extension of an existing contract, lease or other agreement entered into 16 by an agency with respect to a project shall be guided by the provisions 17 of this article; 18 [(10)] (11) To acquire, construct, reconstruct, lease, improve, main- 19 tain, equip or furnish one or more projects; 20 [(11)] (12) To accept gifts, grants, loans, or contributions from, and 21 enter into contracts or other transactions with, the United States and 22 the state or any agency of either of them, any municipality, any public 23 or private corporation or any other legal entity, and to use any such 24 gifts, grants, loans or contributions for any of its corporate purposes; 25 [(12)] (13) To provide financial assistance in the form of loans to 26 improve, maintain or equip one or more projects consistent with its 27 corporate purposes; 28 (14) To provide financial assistance in the form of grants for one or 29 more projects consistent with its corporate purposes; 30 (15) To borrow money and to issue bonds and to provide for the rights 31 of the holders thereof; 32 [(13)] (16) To grant options to renew any lease with respect to any 33 project or projects and to grant options to buy any project at such 34 price as the agency may deem desirable; 35 [(14)] (17) To designate the depositories of its money either within 36 or without the state; 37 [(15)] (18) To enter into agreements requiring payments in lieu of 38 taxes. Such agreements shall be in writing and in addition to other 39 terms shall contain: the amount due annually to each affected tax juris- 40 diction (or a formula by which the amount due can be calculated), the 41 name and address of the person, office or agency to which payment shall 42 be delivered, the date on which payment shall be made, and the date on 43 which payment shall be considered delinquent if not paid. Unless other- 44 wise agreed by the affected tax jurisdictions, any such agreement shall 45 provide that payments in lieu of taxes shall be allocated among affected 46 tax jurisdictions in proportion to the amount of real property tax and 47 other taxes which would have been received by each affected tax juris- 48 diction had the project not been tax exempt due to the status of the 49 agency involved in the project. A copy of any such agreement shall be 50 delivered to each affected tax jurisdiction within fifteen days of sign- 51 ing the agreement[. In the absence of any such written agreement,52payments in lieu of taxes made by an agency shall be allocated in the53same proportions as they had been prior to January first, nineteen54hundred ninety-three for so long as the agency's activities render a55project non-taxable by affected tax jurisdictions] and published by the 56 agency on its website;A. 5215 5 1 [(16)] (19) To establish and re-establish its fiscal year; and 2 [(17)] (20) To do all things necessary or convenient to carry out its 3 purposes and exercise the powers expressly given in this title. 4 § 3-a. Subdivision 15 of section 858 of the general municipal law, as 5 amended by chapter 708 of the laws of 2022, is amended to read as 6 follows: 7 [(15)] (18) To enter into agreements requiring payments in lieu of 8 taxes. Such agreements shall be in writing and in addition to other 9 terms shall contain: the amount due annually to each affected tax juris- 10 diction (or a formula by which the amount due can be calculated), the 11 name and address of the person, office or agency to which payment shall 12 be delivered, the date on which payment shall be made, and the date on 13 which payment shall be considered delinquent if not paid. Unless other- 14 wise agreed by the affected tax jurisdictions, any such agreement shall 15 provide that payments in lieu of taxes shall be allocated among affected 16 tax jurisdictions in proportion to the amount of real property tax and 17 other taxes which would have been received by each affected tax juris- 18 diction had the project not been tax exempt due to the status of the 19 agency involved in the project. A copy of any such agreement shall be 20 delivered to each affected tax jurisdiction within fifteen days of sign- 21 ing the agreement[. In the absence of any such written agreement,22payments in lieu of taxes made by an agency shall be allocated in the23same proportions as they had been prior to January first, nineteen24hundred ninety-three for so long as the agency's activities render a25project non-taxable by affected tax jurisdictions] and published by the 26 agency on its website. A notification of the expiration of such agree- 27 ment shall be delivered to the affected tax jurisdiction two years prior 28 to the expiration of such agreement and immediately upon early termi- 29 nation of an agreement[;]. 30 § 4. The general municipal law is amended by adding a new section 31 858-c to read as follows: 32 § 858-c. Purchase or lease of real property owned by a county, city, 33 town or village. 1. The local legislative body of a county, city, town 34 or village may by resolution determine that specifically described real 35 property owned by the county, city, town or village is not required for 36 use by such county, city, town or village and authorize the county, 37 city, town or village to sell or lease such real property to an agency; 38 provided, however, that title to such land be not declared inalienable 39 as a forest preserve or a parkland. 40 2. Notwithstanding the provisions of any general, special or local 41 law, charter or ordinance to the contrary, such sale or lease may be 42 made without appraisal, public notice (except as provided in subdivision 43 four of this section), or public bidding for such price or rental and 44 upon such terms as may be agreed upon between the county, city, town or 45 village and said agency; provided, however, that in the case of a lease 46 the term may not exceed ninety-nine years and provided, further, that in 47 cities having a population of one million or more, no such sale or lease 48 shall be made without the approval of a majority of the members of the 49 borough board of the borough in which such real property is located. 50 3. Before any sale or lease to an agency shall be authorized, a public 51 hearing shall be held by the local legislative body or borough board to 52 consider the proposed sale or lease. 53 4. Notice of such hearing shall be published at least ten days before 54 the date set for the hearing in such publication and in such manner as 55 may be designated by the local legislative body or borough board. Such 56 notice shall include a description of the real property proposed to beA. 5215 6 1 sold or leased; a statement of the estimated fair market value of the 2 real property proposed to be sold or leased; the value of the financial 3 consideration to be received by the county, city, town or village from 4 such sale or lease of the real property; and a statement of the intended 5 use or disposition of such real property by the agency. 6 § 5. Subdivision 3 of section 859 of the general municipal law is 7 REPEALED. 8 § 6. The opening paragraph and subdivisions 1 and 2 of section 859-a 9 of the general municipal law, as added by chapter 356 of the laws of 10 1993, are amended and a new subdivision 3-a is added to read as follows: 11 Prior to providing any financial assistance [of] totaling more than 12 one hundred thousand dollars to any project, the agency must comply with 13 the following prerequisites: 14 1. The agency must adopt a resolution describing the project and the 15 type and amount of financial assistance that the agency is contemplating 16 with respect to such project. Such assistance shall be consistent with 17 the uniform [tax exemption] financial assistance policy adopted by the 18 agency pursuant to subdivision four of section eight hundred seventy- 19 four of this [chapter] title, unless the agency has followed the proce- 20 dures for deviation from such policy specified in paragraph (b) of such 21 subdivision. 22 2. The agency must hold a public hearing with respect to the project 23 and the proposed financial assistance being contemplated by the agency 24 not less than thirty days prior to executing a written agreement to 25 provide financial assistance. Said public hearing shall be held in [a] 26 each city, town or village where the project to receive financial 27 assistance is located or proposes to locate. At said public hearing, 28 interested parties shall be provided reasonable opportunity, both orally 29 and in writing, to present their views with respect to the project and 30 the type and amount of financial assistance to be provided. The agency 31 shall also accept written comments up to seven days after such hearing 32 is held. 33 3-a. The agency shall maintain a complete record of the hearing, 34 including all documents, oral statements, and written statements 35 presented at or within seven days following the hearing. All members 36 shall be provided with a copy of such record at least seven days before 37 voting whether to approve financial assistance for the project. Such 38 record shall also be posted on the agency website at the time it is 39 provided to members. 40 § 7. The general municipal law is amended by adding four new sections 41 859-d, 859-e, 859-f and 859-g to read as follows: 42 § 859-d. Project application and approval criteria. 1. The project 43 applicant shall submit an application, developed by the agency, for 44 approval of a proposed project and financial assistance. The agency 45 shall adopt project application review and approval criteria that shall 46 be applied to all project applications under consideration for approval 47 and financial assistance. The decision to approve or not approve finan- 48 cial assistance shall be based on, but not limited to, consideration of 49 the following criteria: 50 (a) Strategic objectives. Consideration is to be given to the purpose 51 of the project, such as the nature of the planned business activity, the 52 extent to which the planned business activity is unrepresented or under- 53 represented in the community, and whether the project involves a busi- 54 ness interested in relocating from outside the state of New York. 55 (b) Job creation. A decision to fund a project shall be based on the 56 number of jobs to be created or retained by the proposed project, theA. 5215 7 1 range of projected salaries and benefits associated with jobs to be 2 created, and the benchmarks and timeframes to be used by the project to 3 determine whether it is meeting projected job creation and retention 4 goals. 5 (c) The financial viability of the project. Approval for funding must 6 consider the extent to which the viability and success of the project is 7 dependent on financial assistance from the agency. The agency shall also 8 consider the amount and type of financial assistance being requested, 9 the amount and type of private financing required, the amount and type 10 of capital investment to be provided by the project applicant, and any 11 prior financial assistance provided to the project or to the project 12 applicant. 13 (d) Economic benefits. Funding decisions shall consider the potential 14 economic and financial impact of the project on existing businesses in 15 the area, on the affected tax jurisdictions, and on the local labor 16 market. 17 (e) Legal issues. Consideration shall be given to the project appli- 18 cant's record of compliance with applicable laws and regulations. 19 2. The project application review and approval criteria shall be 20 reviewed and approved annually at a regular meeting of the agency and 21 made available to the public on the agency's website. 22 3. The agency shall provide the director of the authorities budget 23 office with an electronic copy of the application and project review and 24 approval criteria within thirty days of their adoption or revision. 25 4. The agency shall retain a written record of the evaluation of each 26 project application to document its decision to provide or deny finan- 27 cial assistance. 28 § 859-e. Financial assistance agreement. 1. The agency shall enter 29 into a written agreement with the project applicant prior to providing 30 financial assistance. The agreement shall include the following informa- 31 tion: 32 (a) a description of the amount and type of financial assistance to be 33 provided by the agency, including a description and the value of proper- 34 ty conveyed at less than fair market value; 35 (b) a description of the amount of financing to be provided by the 36 project applicant, including the amount and type of capital investment 37 to be provided; 38 (c) the purpose of the project; 39 (d) the amount, types, sources and commitments of any private financ- 40 ing; 41 (e) the projected number of new full-time and part-time positions 42 expected to be created over the period of financial assistance, and an 43 estimated schedule by year of when those positions will be created; 44 (f) the number and types of full-time and part-time jobs to be 45 retained, and the number of filled positions at the project as of the 46 date the agreement is executed; 47 (g) the types and value of other forms of financial assistance 48 provided to the project or requested by the project applicant from other 49 state or local government agencies or authorities; and 50 (h) the penalties to be imposed on the project applicant if the terms 51 of the agreement are not met. 52 2. The length of a financial assistance agreement shall be limited to 53 no more than five years; provided however that the agreement may be 54 renewed for up to five additional years if the agency determines that 55 the project applicant has acted in good faith to meet the terms and 56 conditions of the agreement. In no event may financial assistance in theA. 5215 8 1 form of a loan or exemption from taxation be provided to a project for 2 more than ten years. 3 3. The financial assistance agreement shall be made available to the 4 public on the website of the agency. 5 4. The agency shall adopt a methodology to evaluate the conformance of 6 each assisted project to the terms and conditions of the financial 7 assistance agreement. This methodology shall be made available to the 8 public on the agency's website. 9 § 859-f. Recapture of certain financial assistance. 1. The agency, 10 pursuant to the terms and conditions of its financial assistance agree- 11 ment, may recapture financial assistance to a project from real property 12 tax exemptions, mortgage recording tax exemptions, or local sales or 13 compensating use tax exemptions if (a) the project violates state or 14 federal tax law, labor law, environmental protection law, or contract 15 law, or any state or federal rule or regulation implementing such law, 16 as determined by a court of competent jurisdiction or administrative 17 tribunal, provided that such court or tribunal concludes that the 18 violation would cause material harm to the economy or quality of life of 19 the community; or (b) all or part of the project's business activity or 20 workforce is moved to a location outside the community served by the 21 agency and by doing so violates the terms and conditions of its finan- 22 cial assistance agreement. 23 2. An agency which elects to initiate the recapture of financial 24 assistance pursuant to subdivision one of this section must notify the 25 recipient of such financial assistance in writing that it is in default 26 of its financial assistance agreement and may direct the recipient of 27 financial assistance to repay up to the full amount of such financial 28 assistance received as of the date of the written notice plus interest 29 at the rate set forth in section five thousand four of the civil prac- 30 tice law and rules. 31 3. Financial assistance recaptured pursuant to this section and any 32 interest paid shall be redistributed to affected tax jurisdictions in 33 proportion to the amount of real property tax and other taxes which 34 would have been received by each affected tax jurisdiction had the 35 project not been tax exempt. Unless otherwise agreed to in writing by an 36 affected tax jurisdiction, the agency shall not retain any portion of 37 such funds as an administrative or project fee. 38 § 859-g. Wages and standards. Whenever a recipient of financial 39 assistance from an agency enters into a contract, subcontract, lease or 40 other agreement for or in connection with the construction, demolition, 41 reconstruction, rehabilitation, repair, or renovation of an assisted 42 project, the recipient of financial assistance shall pay workers engaged 43 in such work no less than the prevailing rate of wage and supplements 44 under article eight of the labor law. 45 § 8. Subdivision 1 of section 862 of the general municipal law, as 46 amended by section 1 of part J of chapter 59 of the laws of 2013, is 47 amended to read as follows: 48 (1) (a) No [funds] financial assistance of the agency shall be used in 49 respect [of] to any project if the [completion thereof would result in] 50 project approval or provision of financial assistance contributes to the 51 removal of [an industrial or manufacturing plant of] all or part of the 52 project occupant from one area of the state to another area of the state 53 or in the abandonment of one or more [plants or] facilities of the 54 project occupant located within the state, or provides the project with 55 a competitive advantage over existing like businesses in the same indus- 56 try located in the same city, town, or village as such project,A. 5215 9 1 provided, however, that [neither restriction] such restrictions shall 2 not apply if the agency shall determine on the basis of the application 3 before it that the project is reasonably necessary to discourage the 4 project occupant from removing such other plant or facility to a 5 location outside the state or is reasonably necessary to preserve the 6 competitive position of the project occupant in its respective industry. 7 (b) For the purposes of this subdivision, "competitive advantage" 8 shall include trade secrets that are submitted to an agency by a commer- 9 cial enterprise or derived from information obtained from a commercial 10 enterprise and which if disclosed would cause substantial injury to the 11 competitive position of the subject enterprise. Other factors to be 12 considered in determining whether a trade secret exists include: 13 (i) the extent to which the information is known outside the business; 14 (ii) the extent to which the information is known by a business' 15 employees and others involved in the business; 16 (iii) the extent of measures taken by a business to guard the secrecy 17 of the information; 18 (iv) the value of the information to a business and to its compet- 19 itors; 20 (v) the amount of effort or money expended by a business in developing 21 the information; and, 22 (vi) the ease or difficulty with which the information could be prop- 23 erly acquired or duplicated by others. If there has been a voluntary 24 disclosure by the plaintiff, or if the facts pertaining to the matter 25 are a subject of general knowledge in the trade, then any property right 26 has evaporated. 27 § 9. Subdivision 4 of section 874 of the general municipal law, as 28 amended by chapter 357 of the laws of 1993, paragraph (a) as amended by 29 chapter 386 of the laws of 2019, and paragraph (b) as amended by chapter 30 766 of the laws of 2022, is amended to read as follows: 31 (4) (a) The agency shall [establish] adopt a uniform [tax exemption] 32 financial assistance policy, [with input from] subject to the approval 33 of all affected tax jurisdictions, which shall be applicable to the 34 provision of financial assistance pursuant to section eight hundred 35 fifty-nine-a of this [chapter] title and shall provide guidelines for 36 the claiming of real property, mortgage recording, and sales tax 37 exemptions. Such guidelines shall include, but not be limited to: peri- 38 od of exemption; payments in lieu of taxes, as a percentage of 39 [exemption] taxes that would have been levied by or on behalf of 40 affected tax jurisdictions if the project was not tax exempt by reason 41 of agency involvement; types of projects for which exemptions can be 42 claimed; procedures for payments in lieu of taxes and instances in which 43 real property appraisals are to be performed as a part of an application 44 for tax exemption; in addition, agencies shall in adopting such policy 45 consider such issues as: the extent to which a project will create or 46 retain permanent, private sector jobs; the estimated value of any tax 47 exemptions to be provided; whether affected tax jurisdictions shall be 48 reimbursed by the project occupant if a project does not fulfill the 49 purposes for which an exemption was provided; the impact of a proposed 50 project on existing and proposed businesses and economic development 51 projects in the vicinity; the amount of private sector investment gener- 52 ated or likely to be generated by the proposed project; the demonstrated 53 public support for the proposed project; the likelihood of accomplishing 54 the proposed project in a timely fashion; the effect of the proposed 55 project upon the environment; the extent to which the project will 56 utilize, to the fullest extent practicable and economically feasible,A. 5215 10 1 resource conservation, energy efficiency, green technologies, and alter- 2 native and renewable energy measures; the extent to which the proposed 3 project will require the provision of additional services, including, 4 but not limited to additional educational, transportation, police, emer- 5 gency medical or fire services; and the extent to which the proposed 6 project will provide additional sources of revenue for municipalities 7 and school districts. The adopted uniform financial assistance policy 8 shall be provided to the chief executive officer and the members of the 9 governing body of each affected tax jurisdiction and shall be made 10 available for public inspection at the agency's office and on the agen- 11 cy's website upon its adoption. 12 (b) The agency shall [establish a procedure] adopt criteria for devi- 13 ation from the uniform [tax exemption] financial assistance policy 14 required pursuant to this subdivision, which shall be subject to the 15 approval of all affected local tax jurisdictions. The agency shall set 16 forth in writing the reasons for deviation from such policy, and shall 17 further notify by certified mail, return receipt requested, the affected 18 local taxing jurisdictions of the proposed deviation from such policy 19 and the reasons therefor not less than sixty days before such deviation 20 from the uniform financial assistance policy takes effect. When the 21 affected local taxing jurisdiction is a school district, the agency 22 shall notify by certified mail, return receipt requested, the school 23 board and district superintendent of each affected school district. 24 § 10. Section 1953 of the public authorities law, as added by chapter 25 759 of the laws of 1967, the opening paragraph, second undesignated 26 paragraph, and subdivisions 4 and 7 as amended by chapter 579 of the 27 laws of 2021, subdivision 8 as amended, subdivision 14 as added and 28 subdivisions 15 and 16 as renumbered by chapter 356 of the laws of 1993, 29 and subdivisions 9 and 13 as amended by chapter 907 of the laws of 1972, 30 is amended to read as follows: 31 § 1953. Purpose and powers of the authority. 32 The purposes of the authority shall be to promote, develop, encourage 33 and assist in the acquiring, constructing, reconstructing, improving, 34 maintaining, equipping and furnishing industrial, manufacturing, ware- 35 house, civic facilities, commercial and research facilities including 36 industrial pollution control facilities, transportation facilities 37 including but not limited to those relating to water, highway, rail and 38 air, in one or more areas of the city, particularly but not exclusively 39 at the site of what was formerly the Troy airport including an airstrip 40 or airport located in the southern section of the city and thereby 41 advance the job opportunities, health, general prosperity and economic 42 welfare of the people of said city and to improve their standard of 43 living; provided, however, that the authority shall not undertake any 44 project if the completion thereof would result in the removal of an 45 industrial or manufacturing plant of the project occupant from one area 46 of the state to another area of the state or in the abandonment of one 47 or more plants or facilities of the project applicant located within the 48 state, provided, however, that neither restriction shall apply if the 49 authority shall determine on the basis of the application before it that 50 the project is reasonably necessary to discourage the project occupant 51 from removing such other plant or facility to a location outside the 52 state or is reasonably necessary to preserve the competitive position of 53 the project occupant in its respective industry. Except as otherwise 54 provided for in this section, no financial assistance of the authority 55 shall be provided in respect of any project where facilities or property 56 that are primarily used in making retail sales to customers whoA. 5215 11 1 personally visit such facilities constitute more than one-third of the 2 total project cost. For the purposes of this article, "retail sales" 3 shall mean: (i) sales by a registered vendor under article twenty-eight 4 of the tax law primarily engaged in the retail sale of tangible personal 5 property, as defined in subparagraph (i) of paragraph four of subdivi- 6 sion (b) of section eleven hundred one of the tax law; or (ii) sales of 7 a service to such customers. Except, however, that tourism destination 8 projects shall not be prohibited by this paragraph. For the purpose of 9 this paragraph, "tourism destination" shall mean a location or facility 10 which is likely to attract a significant number of visitors from outside 11 the economic development region as established by section two hundred 12 thirty of the economic development law in which the project is located. 13 Notwithstanding the provisions of this section to the contrary, such 14 financial assistance may, however, be provided to a project where facil- 15 ities or property that are primarily used in making retail sales of 16 goods or services to customers who personally visit such facilities to 17 obtain such goods or services constitute more than one-third of the 18 total project cost, where: (i) the predominant purpose of the project 19 would be to make available goods or services which would not, but for 20 the project, be reasonably accessible to the residents of the city of 21 Troy because of a lack of reasonably accessible retail trade facilities 22 offering such goods or services; or (ii) the project is located in a 23 highly distressed area. With respect to projects authorized pursuant to 24 this paragraph no project shall be approved unless the authority shall 25 find after the public hearing required by section twenty-three hundred 26 seven of this chapter that undertaking the project will serve the public 27 purposes of this article by preserving permanent, private sector jobs or 28 increasing the overall number of permanent, private sector jobs in the 29 state. Where the authority makes such a finding, prior to providing 30 financial assistance to the project by the authority, the chief execu- 31 tive officer of the city of Troy shall confirm the proposed action of 32 the authority. To carry out said purposes, the authority shall have 33 power: 34 1. To sue and be sued; 35 2. To have a seal and alter the same at pleasure; 36 3. To acquire, hold and dispose of personal property for its corporate 37 purpose; 38 4. To acquire by purchase, grant, lease, gift, condemnation, or other- 39 wise and to use, real property or rights or easements therein necessary 40 for its corporate purposes, and to sell, convey, mortgage, lease, 41 pledge, exchange or otherwise dispose of any such property in such 42 manner as the authority shall determine. With respect to real property 43 conveyed to it by the city, however, such power of disposition shall be 44 limited as hereinafter provided in section nineteen hundred fifty-five 45 of this title; 46 5. To acquire real property within the city of Troy as necessary for 47 its corporate purposes pursuant to section eight hundred fifty-eight-c 48 of the general municipal law; 49 6. To make by-laws for the management and regulation of its affairs 50 and, subject to agreements with its bondholders, for the regulation of 51 the use of the project; 52 [6.] 7. With the consent of the city, to use agents, employees and 53 facilities of the city, paying the city its agreed proportion of the 54 compensation or costs; 55 [7.] 8. To appoint officers, agents and employees, to prescribe their 56 qualifications and to fix their compensation and to pay the same out ofA. 5215 12 1 funds of the authority, subject, however, to the provisions of the civil 2 service law as hereinafter provided in section nineteen hundred fifty- 3 four of this title; 4 [8.] 9. To appoint an attorney, who may be the corporation counsel of 5 the city, and to fix the attorney's compensation for services which 6 shall be payable to the attorney, and to retain and employ private 7 consultants for professional and technical assistance and advice; 8 provided that an attorney acting as bond counsel for a project must file 9 with the authority a written statement in which the attorney identifies 10 each party to the transaction which such attorney represents. If bond 11 counsel provides any legal services to parties other than the authority, 12 the written statement must describe the nature of legal services 13 provided by such bond counsel to all parties to the transaction, includ- 14 ing the nature of the services provided to the authority; 15 [9.] 10. To make contracts and leases upon such terms as the authority 16 shall deem appropriate, including without limitation leases which grant 17 the tenant of a project an option to renew or an option to purchase the 18 project, or both, at a fixed or otherwise predetermined price and to 19 execute all instruments necessary or convenient; 20 [10.] 11. To acquire, construct, reconstruct, lease, improve, main- 21 tain, equip or furnish one or more projects; 22 [11.] 12. To accept gifts, grants, loans or contributions from, and 23 enter into contracts or other transactions with, the United States and 24 the state or any agency of either of them, any municipality, any public 25 or private corporation or any other legal entity, and to use any such 26 gifts, grants, loans or contributions for any of its corporate purposes; 27 [12.] 13. To provide financial assistance in the form of loans to 28 improve, maintain or equip one or more projects consistent with its 29 corporate purposes; 30 14. To provide financial assistance in the form of grants to one or 31 more projects consistent with its corporate purposes; 32 15. To borrow money and to issue bonds and to provide for the rights 33 of the holders thereof; 34 [13.] 16. To designate the depositories of its money either within or 35 without the state of New York; 36 [14.] 17. To enter into agreements requiring payments in lieu of 37 taxes. Such agreements shall be in writing and in addition to other 38 terms shall contain: the amount due annually to each affected tax juris- 39 diction (or a formula by which the amount due can be calculated), the 40 name and address of the person, office or agency to which payment shall 41 be delivered, the date on which payment shall be made, and the date on 42 which payment shall be considered delinquent if not paid. Unless other- 43 wise agreed by the affected tax jurisdictions, any such agreement shall 44 provide that payments in lieu of taxes shall be allocated among affected 45 tax jurisdictions in proportion to the amount of real property tax and 46 other taxes which would have been received by each affected tax juris- 47 diction had the project not been tax exempt due to the status of the 48 authority involved in the project. A copy of any such agreement shall be 49 delivered to each affected tax jurisdiction within fifteen days of sign- 50 ing the agreement. In the absence of any such written agreement, 51 payments in lieu of taxes made by an agency shall be allocated in the 52 same proportions as they had been prior to January first, nineteen 53 hundred ninety-three for so long as the authority's activities render a 54 project non-taxable by affected tax jurisdictions. 55 [15.] 18. To establish and reestablish its fiscal year; andA. 5215 13 1 [16.] 19. To do all things necessary or convenient to carry out its 2 purposes and exercise the powers expressly given in this title. 3 § 10-a. Subdivision 14 of section 1953 of the public authorities law, 4 as amended by chapter 708 of the law of 2022, is amended to read as 5 follows: 6 [14.] 17. To enter into agreements requiring payments in lieu of 7 taxes. Such agreements shall be in writing and in addition to other 8 terms shall contain: the amount due annually to each affected tax juris- 9 diction (or a formula by which the amount due can be calculated), the 10 name and address of the person, office or agency to which payment shall 11 be delivered, the date on which payment shall be made, and the date on 12 which payment shall be considered delinquent if not paid. Unless other- 13 wise agreed by the affected tax jurisdictions, any such agreement shall 14 provide that payments in lieu of taxes shall be allocated among affected 15 tax jurisdictions in proportion to the amount of real property tax and 16 other taxes which would have been received by each affected tax juris- 17 diction had the project not been tax exempt due to the status of the 18 authority involved in the project. A copy of any such agreement shall be 19 delivered to each affected tax jurisdiction within fifteen days of sign- 20 ing the agreement. In the absence of any such written agreement, 21 payments in lieu of taxes made by an agency shall be allocated in the 22 same proportions as they had been prior to January first, nineteen 23 hundred ninety-three for so long as the authority's activities render a 24 project non-taxable by affected tax jurisdictions. A notification of the 25 expiration of such agreement shall be delivered to the affected tax 26 jurisdiction two years prior to the expiration of such agreement and 27 immediately upon early termination of an agreement; 28 § 11. Section 1953-a of the public authorities law, as added by chap- 29 ter 356 of the laws of 1993, subdivision 1 as amended by chapter 357 of 30 the laws of 1993, and subdivision 1-a as added by chapter 766 of the 31 laws of 2022, is amended to read as follows: 32 § 1953-a. Additional prerequisites to the provision of financial 33 assistance. Prior to providing any financial assistance [of] totaling 34 more than one hundred thousand dollars to any project, the authority 35 must comply with the following prerequisites: 36 1. The authority must adopt a resolution describing the project and 37 type and amount of the financial assistance that the authority is 38 contemplating with respect to such project. Such assistance shall be 39 consistent with the uniform [tax exemption] financial assistance policy 40 adopted by the agency pursuant to subdivision one of section nineteen 41 hundred sixty-three-a of this [chapter] title, unless the agency has 42 followed procedures for deviation from such policy specified in subdivi- 43 sion two of such section. 44 1-a. The authority shall deliver a copy of the resolution adopted 45 pursuant to subdivision one of this section by certified mail, return 46 receipt requested, to the chief executive officer of each affected tax 47 jurisdiction. When the affected tax jurisdiction is a school district, 48 the authority shall deliver a copy of such resolution by certified mail, 49 return receipt requested, to the school board and district superinten- 50 dent of each affected school district. 51 2. The authority must hold a public hearing with respect to the 52 project and the proposed financial assistance being contemplated by the 53 authority not less than thirty days prior to executing a written agree- 54 ment to provide financial assistance. At said public hearing, inter- 55 ested parties shall be provided reasonable opportunity, both orally and 56 in writing, to present their views with respect to the project and theA. 5215 14 1 type and amount of financial assistance to be provided. The authority 2 shall also accept written comments up to seven days after such hearing 3 is held. 4 3. The authority must give at least ten days published notice of said 5 public hearing and shall, at the same time, provide notice of such hear- 6 ing to the chief executive officer of the affected tax jurisdiction 7 within which the project is located. The notice of hearing must state 8 the time and place of the hearing, contain a general, functional 9 description of the project, describe the prospective location of the 10 project, identify the initial owner, operator or manager of the project 11 and generally describe the financial assistance contemplated by the 12 authority with respect to the project. 13 4. The authority shall maintain a complete record of the hearing, 14 including all documents and oral statements, and written statements 15 presented at or within seven days following such hearing. All members 16 shall be provided with a copy of such record at least seven days before 17 voting whether to approve financial assistance for the project. Such 18 record shall also be posted on the authority website at the time it is 19 provided to members. 20 § 12. The public authorities law is amended by adding four new 21 sections 1953-b, 1953-c, 1953-d and 1953-e to read as follows: 22 § 1953-b. Project application and approval criteria. 1. The project 23 applicant shall submit an application, developed by the authority, for 24 approval of a proposed project and financial assistance. The authority 25 shall adopt project application review and approval criteria that shall 26 be applied to all project applications under consideration for approval 27 and financial assistance. The decision to approve or not approve finan- 28 cial assistance shall be based on, but not limited to, consideration of 29 the following criteria: 30 (a) Strategic objectives. Consideration is to be given to the purpose 31 of the project, such as the nature of the planned business activity, the 32 extent to which the planned business activity is unrepresented or under- 33 represented in the community, and whether the project involves a busi- 34 ness interested in relocating from outside the state of New York. 35 (b) Job creation. A decision to fund a project shall be based on the 36 number of jobs to be created or retained by the proposed project, the 37 range of projected salaries and benefits associated with jobs to be 38 created, and the benchmarks and timeframes to be used by the project to 39 determine whether it is meeting projected job creation and retention 40 goals. 41 (c) The financial viability of the project. Approval for funding shall 42 consider the extent to which the viability and success of the project is 43 dependent on financial assistance from the authority. The authority 44 shall also consider the amount and type of financial assistance being 45 requested, the amount and type of private financing required, the amount 46 and type of capital investment to be provided by the project applicant, 47 and any prior financial assistance provided to the project or to the 48 project applicant. 49 (d) Economic benefits. Funding decisions shall consider the potential 50 economic and financial impact of the project on existing businesses in 51 the area, on the affected tax jurisdictions, and on the local labor 52 market. 53 (e) Legal issues. Consideration shall be given to the project appli- 54 cant's record of compliance with applicable laws and regulations.A. 5215 15 1 2. The project application review and approval criteria shall be 2 reviewed and approved annually at a regular meeting of the authority and 3 made available to the public on the authority's website. 4 3. The authority shall provide the director of the authorities budget 5 office with an electronic copy of the application and project review and 6 approval criteria within thirty days of their adoption or revision. 7 4. The authority shall retain a written record of the evaluation of 8 each project application to document its decision to provide or deny 9 financial assistance. 10 § 1953-c. Financial assistance agreement. 1. The authority shall enter 11 into a written agreement with the project applicant prior to providing 12 financial assistance. The agreement shall include the following informa- 13 tion: 14 (a) a description of the amount and type of financial assistance to be 15 provided by the authority, including a description and the value of 16 property conveyed at less than fair market value; 17 (b) a description of the amount of financing to be provided by the 18 project applicant, including the amount and type of capital investment 19 to be provided; 20 (c) the purpose of the project; 21 (d) the amount, types, sources and commitments of any private financ- 22 ing; 23 (e) the projected number of new full-time and part-time positions 24 expected to be created over the period of financial assistance, and an 25 estimated schedule by year of when those positions will be created; 26 (f) the number and types of full-time and part-time jobs to be 27 retained, and the number of filled positions at the project as of the 28 date the agreement is executed; 29 (g) the types and value of other forms of financial assistance 30 provided to the project or requested by the project applicant from other 31 state or local government agencies or authorities; and 32 (h) the penalties to be imposed on the project applicant if the terms 33 of the agreement are not met. 34 2. The length of a financial assistance agreement shall be limited to 35 no more than five years; provided however that the agreement may be 36 renewed for up to five additional years if the authority determines that 37 the project applicant has acted in good faith to meet the terms and 38 conditions of the agreement. In no event may financial assistance in the 39 form of a loan or exemption from taxation be provided to a project for 40 more than ten years. 41 3. The financial assistance agreement shall be made available to the 42 public on the website of the authority. 43 4. The authority shall adopt a methodology to evaluate the conformance 44 of each assisted project to the terms and conditions of the financial 45 assistance agreement. This methodology shall be made available to the 46 public on the authority's website. 47 § 1953-d. Recapture of certain financial assistance. 1. The authority, 48 pursuant to the terms and conditions of its financial assistance agree- 49 ment, may recapture financial assistance to a project from the proceeds 50 of bonds issued by the authority, mortgage recording tax exemptions, or 51 local sales or compensating use tax exemptions if (a) the project 52 violates state or federal tax law, labor law, environmental protection 53 law, or contract law, or any state or federal rule or regulation imple- 54 menting such law, as determined by a court of competent jurisdiction or 55 administrative tribunal, provided that such court or tribunal concludes 56 that the violation would cause material harm to the economy or qualityA. 5215 16 1 of life of the community; or (b) all or part of the project's business 2 activity or workforce is moved to a location outside the community 3 served by the authority and by doing so violates the terms and condi- 4 tions of its financial assistance agreement. 5 2. An authority which elects to initiate the recapture of financial 6 assistance pursuant to subdivision one of section eight hundred fifty- 7 nine-f of the general municipal law must notify the recipient of such 8 financial assistance in writing that it is in default of its financial 9 assistance agreement and may direct the recipient of financial assist- 10 ance to repay up to the full amount of such financial assistance 11 received as of the date of the written notice plus interest at the rate 12 set forth in section five thousand four of the civil practice law and 13 rules. 14 3. Financial assistance recaptured pursuant to this section and any 15 interest paid shall be redistributed to affected tax jurisdictions in 16 proportion to the amount of real property tax and other taxes which 17 would have been received by each affected tax jurisdiction had the 18 project not been tax exempt. Unless otherwise agreed to in writing by an 19 affected tax jurisdiction, the authority shall not retain any portion of 20 such funds as an administrative or project fee. 21 § 1953-e. Wages and standards. Whenever a recipient of financial 22 assistance from the authority enters into a contract, subcontract, lease 23 or other agreement for or in connection with the construction, demoli- 24 tion, reconstruction, rehabilitation, repair, or renovation of an 25 assisted project, the recipient of financial assistance shall pay work- 26 ers engaged in such work no less than the prevailing rate of wage and 27 supplements under article eight of the labor law. 28 § 13. Section 1963-a of the public authorities law, as amended by 29 chapter 357 of the laws of 1993, subdivision 1 as amended by chapter 386 30 of the laws of 2019, and subdivision 2 as amended by chapter 766 of the 31 laws of 2022, is amended to read as follows: 32 § 1963-a. Uniform [tax exemption] financial assistance policy. 1. The 33 authority shall [establish] adopt a uniform [tax exemption] financial 34 assistance policy, [with input from] subject to the approval of affected 35 local taxing jurisdictions, which shall be applicable to provisions of 36 financial assistance pursuant to section nineteen hundred fifty-three-a 37 of this title and shall provide guidelines for the claiming of real 38 property, mortgage recording, and sales tax exemptions. Such guidelines 39 shall include, but not be limited to: period of exemption; payments in 40 lieu of taxes as a percentage of [exemption] taxes that would have been 41 levied by or on behalf of affected tax jurisdictions if the project was 42 not exempt by reason of authority involvement; types of projects for 43 which exemptions can be claimed; procedures for payments in lieu of 44 taxes and instances in which real property appraisals are to be 45 performed as a part of an application for tax exemption; in addition, 46 the authority in adopting such policy shall consider such issues as: the 47 extent to which a project will create or retain permanent, private 48 sector jobs; the estimated value of any tax exemption to be provided; 49 whether affected tax jurisdictions should be reimbursed by the project 50 occupant if a project does not fulfill the purposes for which an 51 exemption was provided; the impact of a proposed project on existing and 52 proposed businesses and economic development projects in the vicinity; 53 the amount of private sector investment generated or likely to be gener- 54 ated by the proposed project; the demonstrated public support for the 55 proposed project; the likelihood of accomplishing the proposed project 56 in a timely fashion; the effect of the proposed project upon the envi-A. 5215 17 1 ronment; the extent to which the project will utilize, to the fullest 2 extent practicable and economically feasible, resource conservation, 3 energy efficiency, green technologies, and alternative and renewable 4 energy measures; the extent to which the proposed project will require 5 the provision of additional services, including, but not limited to 6 additional educational, transportation, police, emergency medical or 7 fire services; and the extent to which the proposed project will provide 8 additional sources [or] of revenue for municipalities and school 9 districts. The adopted uniform financial assistance policy shall be 10 provided to the chief executive officer and members of the governing 11 body of each affected tax jurisdiction and shall be made available for 12 public inspection at the authority's office and on the authority's 13 website upon its adoption. 14 2. The authority shall [establish a procedure] adopt criteria for 15 deviation from the uniform [tax exemption] financial assistance policy 16 required pursuant to this section. The authority shall set forth in 17 writing the reasons for deviation from such policy, and shall further 18 notify by certified mail, return receipt requested, the affected tax 19 jurisdictions of the proposed deviation from such policy and the reasons 20 therefor not less than sixty days before such deviation from the uniform 21 financial assistance policy takes effect. When the affected tax juris- 22 diction is a school district, the authority shall notify by certified 23 mail, return receipt requested, the school board and district super- 24 intendent of each affected school district. 25 § 14. Section 2306 of the public authorities law, as added by chapter 26 915 of the laws of 1969, the opening paragraph and an undesignated para- 27 graph as amended by chapter 304 of the laws of 2013, subdivision 8 as 28 amended, subdivision 14 as added and subdivisions 15 and 16 as renum- 29 bered by chapter 356 of the laws of 1993, and subdivision 9 as amended 30 by chapter 556 of the laws of 1973, is amended to read as follows: 31 § 2306. Purpose and powers of the authority. The purposes of the 32 authority shall be to promote, develop, encourage and assist in the 33 acquiring, constructing, reconstructing, improving, maintaining, equip- 34 ping and furnishing industrial, manufacturing, warehouse, civic facili- 35 ties, commercial and research facilities and facilities for use by a 36 federal agency or a medical facility including industrial pollution 37 control facilities, which may include transportation facilities includ- 38 ing but not limited to those relating to water, highway, rail and air, 39 in one or more areas of the city, and thereby advance the job opportu- 40 nities, health, general prosperity and economic welfare of the people of 41 said city and to improve their medical care and standard of living; 42 provided, however, that the authority shall not undertake any project if 43 the completion thereof would result in the removal of an industrial or 44 manufacturing plant of the project occupant from one area of the state 45 to another area of the state or in abandonment of one or more plants or 46 facilities of the project applicant located within the state, provided, 47 however, that neither restriction shall apply if the authority shall 48 determine on the basis of the application before it that the project is 49 reasonably necessary to discourage the project occupant from removing 50 such other plant or facility to a location outside the state or is 51 reasonably necessary to preserve the competitive position of the project 52 occupant in its respective industry. Except as otherwise provided for in 53 this section, no financial assistance of the authority shall be provided 54 in respect of any project where facilities or property that are primari- 55 ly used in making retail sales to customers who personally visit such 56 facilities constitute more than one-third of the total project cost. ForA. 5215 18 1 the purposes of this article, "retail sales" shall mean: (i) sales by a 2 registered vendor under article twenty-eight of the tax law primarily 3 engaged in the retail sale of tangible personal property, as defined in 4 subparagraph (i) of paragraph four of subdivision (b) of section eleven 5 hundred one of the tax law; or (ii) sales of a service to such custom- 6 ers. Except, however, that tourism destination projects shall not be 7 prohibited by this paragraph. For the purpose of this paragraph, "tour- 8 ism destination" shall mean a location or facility which is likely to 9 attract a significant number of visitors from outside the economic 10 development region as established by section two hundred thirty of the 11 economic development law, in which the project is located. 12 Notwithstanding the provisions of this section to the contrary, such 13 financial assistance may, however, be provided to a project where facil- 14 ities or property that are primarily used in making retail sales of 15 goods or services to customers who personally visit such facilities to 16 obtain such goods or services constitute more than one-third of the 17 total project cost, where: (i) the predominant purpose of the project 18 would be to make available goods or services which would not, but for 19 the project, be reasonably accessible to the residents of the city of 20 Auburn because of a lack of reasonably accessible retail trade facili- 21 ties offering such goods or services; or (ii) the project is located in 22 a highly distressed area. With respect to projects authorized pursuant 23 to this paragraph no project shall be approved unless the authority 24 shall find after the public hearing required by section twenty-three 25 hundred seven of this title that undertaking the project will serve the 26 public purposes of this article by preserving permanent, private sector 27 jobs or increasing the overall number of permanent, private sector jobs 28 in the state. Where the authority makes such a finding, prior to provid- 29 ing financial assistance to the project by the authority, the chief 30 executive officer of the city of Auburn shall confirm the proposed 31 action of the authority. To carry out said purpose, the authority shall 32 have power: 33 1. To sue and be sued; 34 2. To have a seal and alter the same at pleasure; 35 3. To acquire, hold and dispose of personal property for its corporate 36 purpose; 37 4. To acquire by purchase, grant, lease, gift, condemnation, or other- 38 wise and to use, real property or rights or easements therein necessary 39 for its corporate purposes, and to sell, convey, mortgage, lease, 40 pledge, exchange or otherwise dispose of any such property in such 41 manner as the authority shall determine. With respect to real property 42 conveyed to it by the city, however, such power of disposition shall be 43 limited as hereinafter provided in section twenty-three hundred ten of 44 this title; 45 5. To acquire real property within the city of Auburn as necessary for 46 its corporate purposes pursuant to section eight hundred fifty-eight-c 47 of the general municipal law; 48 6. To make by-laws for the management and regulation of its affairs 49 and, subject to agreements with its bondholders, for the regulation of 50 the use of the project[.]; 51 [6.] 7. With the consent of the city, to use agents, employees and 52 facilities of the city, paying the city its agreed proportion of the 53 compensation or costs[.]; 54 [7.] 8. To appoint officers, agents and employees, to prescribe their 55 qualifications and to fix their compensation and to pay the same out of 56 funds of the authority, subject, however, to the provisions of the civilA. 5215 19 1 service law hereinafter provided in section twenty-three hundred eight 2 of this title; 3 [8.] 9. To retain and employ financial advisors, engineers, archi- 4 tects, attorneys and other consultants for professional and technical 5 assistance and advice; that an attorney acting as bond counsel for a 6 project must file with the authority a written statement in which the 7 attorney identifies each party to the transaction which such attorney 8 represents. If bond counsel provides any legal services to the parties 9 other than the authority, the written statement must describe the nature 10 of legal services provided by such bond counsel to all parties to the 11 transaction, including the nature of the services provided to the 12 authority; 13 [9.] 10. To make contracts and leases upon such terms as the authority 14 shall deem appropriate, including without limitation leases which grant 15 the tenant of a project an option to renew or an option to purchase the 16 project, or both, at a fixed or otherwise predetermined price, and to 17 execute all instruments necessary or convenient; 18 [10.] 11. To acquire, construct, reconstruct, lease, improve, main- 19 tain, equip or furnish one or more projects; 20 [11.] 12. To accept gifts, grants, loans or contributions from, and 21 enter into contracts or other transactions with, the United States and 22 the state or any agency of either of them, any municipality, any public 23 or private corporation or any other legal entity, and to use any such 24 gifts, grants, loans or contributions for any of its corporate purposes; 25 [12.] 13. To provide financial assistance in the form of loans to 26 improve, maintain or equip one or more projects consistent with its 27 corporate purposes; 28 14. To provide financial assistance in the form of grants for one or 29 more projects consistent with its corporate purposes; 30 15. To borrow money and to issue bonds and to provide for the rights 31 of the holders thereof; 32 [13.] 16. To designate the depositories of its money in the city of 33 Auburn[.]; 34 [14.] 17. To enter into agreements requiring payments in lieu of 35 taxes. Such agreements shall be in writing and in addition to other 36 terms shall contain: the amount due annually to each affected tax juris- 37 diction (or a formula by which the amount due can be calculated), the 38 name and address of the person, office or agency to which payment shall 39 be delivered, the date on which the payment shall be made, and the date 40 on which payment shall be considered delinquent if not paid. Unless 41 otherwise agreed by the affected tax jurisdictions, any such agreement 42 shall provide that payments in lieu of taxes shall be allocated among 43 affected tax jurisdictions in proportion to the amount of real property 44 tax and other taxes which would have been received by each affected tax 45 jurisdiction had the project not been tax exempt due to the status of 46 the agency involved in the project. A copy of any such agreement shall 47 be delivered to each tax affected jurisdiction within fifteen days of 48 signing the agreement. In the absence of any such written agreement, 49 payments in lieu of taxes shall be allocated in the same proportions as 50 they had been prior to January first, nineteen hundred ninety-three for 51 so long as the authority's activities render a project non-taxable by 52 affected tax jurisdictions[.]; 53 [15.] 18. To establish and reestablish its fiscal year; and 54 [16.] 19. To do all things necessary or convenient to carry out its 55 purposes and exercise the powers expressly given in this title.A. 5215 20 1 § 14-a. Subdivision 14 of section 2306 of the public authorities law, 2 as amended by chapter 708 of the laws of 2022, is amended to read as 3 follows: 4 [14.] 17. To enter into agreements requiring payments in lieu of 5 taxes. Such agreements shall be in writing and in addition to other 6 terms shall contain: the amount due annually to each affected tax juris- 7 diction (or a formula by which the amount due can be calculated), the 8 name and address of the person, office or agency to which payment shall 9 be delivered, the date on which the payment shall be made, and the date 10 on which payment shall be considered delinquent if not paid. Unless 11 otherwise agreed by the affected tax jurisdictions, any such agreement 12 shall provide that payments in lieu of taxes shall be allocated among 13 affected tax jurisdictions in proportion to the amount of real property 14 tax and other taxes which would have been received by each affected tax 15 jurisdiction had the project not been tax exempt due to the status of 16 the agency involved in the project. A copy of any such agreement shall 17 be delivered to each tax affected jurisdiction within fifteen days of 18 signing the agreement. In the absence of any such written agreement, 19 payments in lieu of taxes shall be allocated in the same proportions as 20 they had been prior to January first, nineteen hundred ninety-three for 21 so long as the authority's activities render a project non-taxable by 22 affected tax jurisdictions. A notification of the expiration of such 23 agreement shall be delivered to the affected tax jurisdiction two years 24 prior to the expiration of such agreement and immediately upon early 25 termination of an agreement; 26 § 15. Section 2307 of the public authorities law, as added by chapter 27 356 of the laws of 1993, subdivision 1 as amended by chapter 357 of the 28 laws of 1993, and subdivision 1-a as added by chapter 766 of the laws of 29 2022, is amended to read as follows: 30 § 2307. Additional prerequisites to the provision of financial assist- 31 ance. Prior to providing any financial assistance [of] totaling more 32 than one hundred thousand dollars to any project, the authority must 33 comply with the following prerequisites: 34 1. The authority must adopt a resolution describing the project and 35 type and amount of the financial assistance that the authority is 36 contemplating with respect to such project. Such assistance shall be 37 consistent with the uniform [tax exemption] financial assistance policy 38 adopted by the agency pursuant to subdivision one of section twenty- 39 three hundred fifteen of this chapter, unless the agency has followed 40 procedures for deviation from such policy specified in subdivision two 41 of such section. 42 1-a. The authority shall deliver a copy of the resolution adopted 43 pursuant to subdivision one of this section by certified mail, return 44 receipt requested, to the chief executive officer of each affected tax 45 jurisdiction. When the affected tax jurisdiction is a school district, 46 the authority shall deliver a copy of such resolution by certified mail, 47 return receipt requested, to the school board and district superinten- 48 dent of each affected school district. 49 2. The authority must hold a public hearing with respect to the 50 project and the proposed financial assistance being contemplated by the 51 authority not less than thirty days prior to executing a written agree- 52 ment to provide financial assistance. At said public hearing, inter- 53 ested parties shall be provided reasonable opportunity, both orally and 54 in writing, to present their views with respect to the project and the 55 type and amount of financial assistance to be provided. The authorityA. 5215 21 1 shall also accept written comments up to seven days after such hearing 2 is held. 3 3. The authority must give at least ten days published notice of said 4 public hearing and shall, at the same time, provide notice of such hear- 5 ing to the chief executive officer of each affected tax [jurisidiction] 6 jurisdiction within which the project is located. The notice of hearing 7 must state the time and place of the hearing, contain a general, func- 8 tional description of the project, describe the prospective location of 9 the project, identify the initial owner, operator or manager of the 10 project and generally describe the financial assistance contemplated by 11 the authority with respect to the project. 12 4. The authority shall maintain a complete record of the hearing, 13 including all documents and oral statements, and written statements 14 presented at or within seven days following such hearing. All members 15 shall be provided with a copy of such record at least seven days before 16 deciding whether to approve financial assistance for the project. Such 17 record shall also be posted on the authority's website at the time it is 18 provided to members. 19 § 16. The public authorities law is amended by adding four new 20 sections 2307-a, 2307-b, 2307-c and 2307-d to read as follows: 21 § 2307-a. Project application and approval criteria. 1. The project 22 applicant shall submit an application, developed by the authority, for 23 approval of a proposed project and financial assistance. The authority 24 shall adopt project application review and approval criteria that shall 25 be applied to all project applications under consideration for approval 26 and financial assistance. The decision to approve or not approve finan- 27 cial assistance shall be based on, but not limited to, consideration of 28 the following criteria: 29 (a) Strategic objectives. Consideration is to be given to the purpose 30 of the project, such as the nature of the planned business activity, the 31 extent to which the planned business activity is unrepresented or under- 32 represented in the community, and whether the project involves a busi- 33 ness interested in relocating from outside the state of New York. 34 (b) Job creation. A decision to fund a project shall be based on the 35 number of jobs to be created or retained by the proposed project, the 36 range of projected salaries and benefits associated with jobs to be 37 created, and the benchmarks and timeframes to be used by the project to 38 determine whether it is meeting projected job creation and retention 39 goals. 40 (c) The financial viability of the project. Approval for funding shall 41 consider the extent to which the viability and success of the project is 42 dependent on financial assistance from the authority. The authority 43 shall also consider the amount and type of financial assistance being 44 requested, the amount and type of private financing required, the amount 45 and type of capital investment to be provided by the project applicant, 46 and any prior financial assistance provided to the project or to the 47 project applicant. 48 (d) Economic benefits. Funding decisions shall consider the potential 49 economic and financial impact of the project on existing businesses in 50 the area, on the affected tax jurisdictions, and on the local labor 51 market. 52 (e) Legal issues. Consideration shall be given to the project appli- 53 cant's record of compliance with applicable laws and regulations. 54 2. The project application review and approval criteria shall be 55 reviewed and approved annually at a regular meeting of the authority and 56 made available to the public on the authority's website.A. 5215 22 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. The length of a financial assistance agreement shall be limited to 32 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 website 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 website. 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 communityA. 5215 23 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 § 17. Section 2315 of the public authorities law, as amended by chap- 27 ter 357 of the laws of 1993, subdivision 1 as amended by chapter 386 of 28 the laws of 2019, and subdivision 2 as amended by chapter 766 of the 29 laws of 2022, is amended to read as follows: 30 § 2315. Uniform [tax exemption] financial assistance policy. 1. The 31 authority shall [establish] adopt a uniform [tax exemption] financial 32 assistance policy, [with input from] subject to the approval of affected 33 local taxing jurisdictions, which shall be applicable to provisions of 34 financial assistance pursuant to section twenty-three hundred seven of 35 this title and shall provide guidelines for the claiming of real proper- 36 ty, mortgage recording, and sales tax exemptions. Such guidelines shall 37 include, but not be limited to: period of exemption; payments in lieu of 38 taxes as a percentage of [exemption] taxes that would have been levied 39 by or on behalf of affected tax jurisdictions if the project was not 40 exempt by reason of authority involvement; types of projects for which 41 exemptions may be claimed; procedures for payments in lieu of taxes and 42 instances in which real property appraisals are to be performed as a 43 part of an application for tax exemption; in addition, the authority in 44 adopting such policy shall consider such issues as: the extent to which 45 a project will create or retain permanent, private sector jobs; the 46 estimated value of any tax exemption to be provided; whether affected 47 tax jurisdictions should be reimbursed by the project occupant if a 48 project does not fulfill the purposes for which an exemption was 49 provided; the impact of a proposed project on existing and proposed 50 businesses and economic development projects in the vicinity; the amount 51 of private sector investment generated or likely to be generated by the 52 proposed project; the demonstrated public support for the proposed 53 project; the likelihood of accomplishing the proposed project in a time- 54 ly fashion; the effect of the proposed project upon the environment; the 55 extent to which the project will utilize, to the fullest extent practi- 56 cable and economically feasible, resource conservation, energy efficien-A. 5215 24 1 cy, green technologies, and alternative and renewable energy measures; 2 the extent to which the proposed project will require the provision of 3 additional services, including, but not limited to additional educa- 4 tional, transportation, police, emergency medical or fire services; and 5 the extent to which the proposed project will provide additional sources 6 of revenue for municipalities and school districts. The adopted uniform 7 financial assistance policy shall be provided to the chief executive 8 officer and members of the governing body of each affected tax jurisdic- 9 tion and shall be made available for public inspection at the authori- 10 ty's office and on the authority's website upon its adoption. 11 2. The authority shall [establish a procedure] adopt criteria for 12 deviation from the uniform [tax exemption] financial assistance policy 13 required pursuant to this section which shall be subject to the approval 14 of affected local tax jurisdictions. The authority shall set forth in 15 writing the reasons for deviation from such policy, and shall further 16 notify by certified mail, return receipt requested, the affected local 17 taxing jurisdictions of the proposed deviation from such policy and the 18 reasons therefor not less than sixty days before such deviation from the 19 uniform financial assistance policy shall take effect. When the affected 20 tax jurisdiction is a school district, the authority shall notify by 21 certified mail, return receipt requested, the school board and district 22 superintendent of each affected school district. 23 § 18. Subdivision 1 of section 2976 of the public authorities law, as 24 amended by section 1 of part C of chapter 19 of the laws of 2010, is 25 amended to read as follows: 26 1. Notwithstanding any other law to the contrary, public benefit 27 corporations (which for purposes of this section shall include indus- 28 trial development agencies created pursuant to title one of article 29 eighteen-A of the general municipal law or any other provision of law 30 and the New York city housing development corporation created pursuant 31 to article twelve of the private housing finance law) which issue bonds, 32 notes or other obligations and not-for-profit corporations that issue 33 bonds on behalf of the state or a political subdivision thereof shall 34 pay to the state a bond issuance charge upon the issuance of such bonds 35 in an amount determined pursuant to subdivision two of this section. 36 Such charge shall be paid to the state department of taxation and 37 finance, upon forms prescribed therefor, no later than fifteen days from 38 the end of the month within which such bonds are issued. 39 § 19. The not-for-profit corporation law is amended by adding a new 40 section 206 to read as follows: 41 § 206. Financial assistance agreement. 42 1. A corporation, including a local development corporation, deter- 43 mined to be a local authority pursuant to subdivision two of section two 44 and paragraph (j) of subdivision one of section six of the public 45 authorities law that provides financial assistance to a project in the 46 form of a grant, loan, exemption from taxation, or contribution for the 47 public purpose of relieving or reducing unemployment, promoting and 48 marketing job opportunities, or supporting the formation, relocation, 49 expansion, or retention of business shall enter into a written agreement 50 with the project applicant prior to providing financial assistance. 51 2. The agreement shall include the following information: 52 (a) a description of the amount and type of financial assistance to be 53 provided by the corporation, including a description and the value of 54 property conveyed at less than fair market value;A. 5215 25 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 3. 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 corporation determines 21 that 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 4. The financial assistance agreement shall be made available to the 26 public on the website of the corporation. 27 5. The corporation shall adopt a methodology to evaluate the conform- 28 ance of each assisted project to the terms and conditions of the finan- 29 cial assistance agreement. This methodology shall be made available to 30 the public on the corporation's website. 31 6. (a) The corporation, pursuant to the terms and conditions of its 32 financial assistance agreement, may recapture financial assistance to a 33 project from grants, loans, real property tax exemptions, mortgage 34 recording tax exemptions, or local sales or compensating use tax 35 exemptions if (i) the project violates state or federal tax law, labor 36 law, environmental protection law, or contract law, or any state or 37 federal rule or regulation implementing such law, as determined by a 38 court of competent jurisdiction or administrative tribunal, provided 39 that such court or tribunal concludes that the violation would cause 40 material harm to the economy or quality of life of the community; or 41 (ii) all or part of the project's business activity or workforce is 42 moved to a location outside the community served by the corporation and 43 by doing so violates the terms and conditions of its financial assist- 44 ance agreement. 45 (b) A corporation which elects to initiate the recapture of financial 46 assistance pursuant to subdivision one of this section must notify the 47 recipient of such financial assistance in writing that it is in default 48 of its financial assistance agreement and may direct the recipient of 49 financial assistance to repay up to the full amount of such financial 50 assistance received as of the date of the written notice plus interest 51 at the rate set forth in section five thousand four of the civil prac- 52 tice law and rules. 53 (c) Financial assistance recaptured pursuant to this section and any 54 interest paid shall be redistributed to affected tax jurisdictions in 55 proportion to the amount of real property tax and other taxes which 56 would have been received by each affected tax jurisdiction had theA. 5215 26 1 project not been tax exempt. Unless otherwise agreed to in writing by an 2 affected tax jurisdiction, the corporation shall not retain any portion 3 of such funds as an administrative or project fee. 4 7. Wages and standards. Whenever a recipient of financial assistance 5 from the corporation enters into a contract, subcontract, lease or other 6 agreement for or in connection with the construction, demolition, recon- 7 struction, rehabilitation, repair, or renovation of an assisted project, 8 the recipient of financial assistance shall pay workers engaged in such 9 work no less than the prevailing rate of wage and supplements under 10 article eight of the labor law. 11 8. For the purposes of this section, "project" shall mean any land, 12 any building or other improvement, and all real and personal properties 13 located within the state of New York and within or outside or partially 14 within and partially outside the municipality for whose benefit the 15 agency was created, including, but not limited to, machinery, equipment 16 and other facilities deemed necessary or desirable in connection there- 17 with, or incidental thereto, whether or not now in existence or under 18 construction, which shall be suitable for manufacturing, warehousing, 19 research, commercial or industrial purposes or other economically sound 20 purposes identified and called for to implement a state designated urban 21 cultural park management plan as provided in title G of the parks, 22 recreation and historic preservation law and which may include or mean 23 an industrial pollution control facility, a recreation facility, educa- 24 tional or cultural facility, a horse racing facility, a railroad facili- 25 ty or an automobile racing facility, provided, however, that no agency 26 shall use its funds or provide financial assistance in respect of any 27 project wholly or partially outside the municipality for whose benefit 28 the agency was created without the prior consent thereto by the govern- 29 ing body or bodies of all the other municipalities in which a part or 30 parts of the project is, or is to be, located, and such portion of the 31 project located outside such municipality for whose benefit the agency 32 was created shall be contiguous with the portion of the project inside 33 such municipality. 34 § 20. Paragraphs (a), (b) and (d) of section 1411 of the not-for-pro- 35 fit corporation law, paragraph (a) as amended by chapter 847 of the laws 36 of 1970 and paragraph (b) as amended by chapter 549 of the laws of 2013, 37 are amended to read as follows: 38 (a) Purposes. 39 This section shall provide an additional and alternate method of 40 incorporation or reincorporation of not-for-profit corporations for any 41 of the purposes set forth in this paragraph [and shall not be deemed to42alter, impair or diminish the purposes, rights, powers or privileges of43any corporation heretofore or hereafter incorporated under this section44or under the stock or business corporation laws]. Corporations may be 45 incorporated or reincorporated under this section as not-for-profit 46 local development corporations operated for the exclusively charitable 47 or public purposes of relieving and reducing unemployment, promoting and 48 providing for additional and maximum employment, bettering and maintain- 49 ing job opportunities, instructing or training individuals to improve or 50 develop their capabilities for such jobs, carrying on scientific 51 research for the purpose of aiding a community or geographical area by 52 attracting new industry to the community or area or by encouraging the 53 development of, or retention of, an industry in the community or area[,54and lessening the burdens of government and acting in the public inter-55est, and any]. Any one or more counties, cities, towns or villages of 56 the state, or any combination thereof, or the New York job developmentA. 5215 27 1 authority in exercising its power under the public authorities law to 2 encourage the organization of local development corporations, may cause 3 such corporations to be incorporated by public officers or private indi- 4 viduals or reincorporated upon compliance with the requirements of this 5 section, and it is hereby found, determined and declared that in carry- 6 ing out said purposes and in exercising the powers conferred by para- 7 graph (b) of this section such corporations will be acting in the public 8 interest and performing an essential governmental function. 9 (b) Type of corporation. 10 A local development corporation [is] incorporated for one or more of 11 the purposes described in paragraph (a) of this section shall be a char- 12 itable corporation under this chapter. 13 (d) Purchase or lease of real property owned by a county, city, town 14 or village. 15 (1) The local legislative body of a county, city, town or village or, 16 if there is a board of estimate in a city, then the board of estimate, 17 may by resolution determine that specifically described real property 18 owned by the county, city, town or village is not required for use by 19 such county, city, town or village and authorize the county, city, town 20 or village to sell or lease such real property to a local development 21 corporation incorporated or reincorporated under this article; provided, 22 however, that title to such land be not declared inalienable as a forest 23 preserve or a parkland. 24 (2) Notwithstanding the provisions of any general, special or local 25 law, charter or ordinance to the contrary, no such sale or lease may be 26 made without appraisal, public notice, (except as provided in subpara- 27 graph (4)) or public bidding [for such price or rental and upon such28terms as may be agreed upon between the county, city, town or village29and said local development corporation]; provided, however, that in case 30 of a lease the term may not exceed ninety-nine years and provided, 31 further, that in cities having a population of one million or more, no 32 such sale or lease shall be made without the approval of a majority of 33 the members of the borough [improvement] board of the borough in which 34 such real property is located. 35 (3) Before any sale or lease to a local development corporation incor- 36 porated or reincorporated under this article shall be authorized, a 37 public hearing shall be held by the local legislative body[, or by the38board of estimate, as the case may be,] to consider the proposed sale or 39 lease. 40 (4) Notice of such hearing shall be published at least ten days before 41 the date set for the hearing in such publication and in such manner as 42 may be designated by the local legislative body[, or the board of esti-43mate as the case may be]. Such notice shall include a description of the 44 real property proposed to be sold or leased; a statement of the esti- 45 mated fair market value of the real property proposed to be sold or 46 leased; the value of the financial consideration to be received by the 47 county, city, town or village from such sale or lease of the real prop- 48 erty; and a statement of the intended use or disposition of such real 49 property by the local development corporation. 50 (5) A local development corporation, incorporated or reincorporated 51 under this section, which purchases or leases real property from a coun- 52 ty, city, town or village, shall not, without the written approval of 53 the county, city, town or village, use such real property for any 54 purpose except the purposes set forth in the certificate of incorpo- 55 ration or reincorporation of said local development corporation. In the 56 event such real property is used in violation of the restrictions ofA. 5215 28 1 this paragraph, the attorney-general may bring an action or special 2 proceeding to enjoin the unauthorized use. 3 § 21. Paragraphs (e), (f), (g), (h), and (i) of section 1411 of the 4 not-for-profit corporation law are relettered paragraphs (f), (g), (h), 5 (i), and (j) and a new paragraph (e) is added to read as follows: 6 (e) Contracts with municipalities. 7 Any contract or other agreement between a local development corpo- 8 ration and a municipality or state authority or local authority for one 9 or more of the purposes described in paragraph (a) of this section 10 shall: (i) cause the local development corporation to be defined as a 11 local authority pursuant to subdivision two of section two of the public 12 authorities law; (ii) provide for the municipality or state authority or 13 local authority to receive fair and adequate consideration for the 14 services provided by the local development corporation; (iii) be subject 15 to the requirements of article five-A of the general municipal law; and 16 (iv) have a term not to exceed ten years, subject to one or more 17 renewals for a term not to exceed ten years upon the mutual consent of 18 the parties; provided however that a contract with a municipality shall 19 not be used to finance the municipality's operations or to acquire or 20 improve an asset for use of the municipality. 21 § 22. Paragraph (j) of section 1411 of the not-for-profit corporation 22 law, as relettered by section twenty-one of this act, is amended to read 23 as follows: 24 (j) Effect of section. 25 Corporations incorporated or reincorporated under this section shall 26 be organized and operated exclusively for the purposes set forth in 27 paragraph (a), shall have, in addition to the powers otherwise conferred 28 by law, the powers conferred by paragraph (c) of this section and shall 29 be subject to all the restrictions and limitations imposed by [paragraph30(e) and paragraph (g)] paragraphs (c), (d), (e), (h) and (i) of this 31 section. In so far as the provisions of this section are inconsistent 32 with the provisions of any other law, general or special, the provisions 33 of this section shall be controlling as to corporations incorporated or 34 reincorporated hereunder. 35 § 23. Federal preemption and severability. The provisions of each 36 section of this act shall be deemed severable, and the declaration by a 37 court of competent jurisdiction that any part thereof is preempted or 38 otherwise invalid shall not affect the remaining parts thereof. 39 § 24. This act shall take effect on the thirtieth day after it shall 40 have become a law, or January 1, 2024, whichever shall come first; 41 provided, however, that section fifteen of this act shall apply to bonds 42 issued or re-issued on or after the effective date of this act; 43 provided, however, sections 3-a, 10-a and 14-a of this act shall take 44 effect on the same date and in the same manner as chapter 708 of the 45 laws of 2022, takes effect.
