Bill Text: NY A08292 | 2017-2018 | General Assembly | Amended

Bill Title: Establishes a kitchen incubator/shared-use kitchen facility program within the urban development corporation; provides grant funding to local development corporations, municipalities, educational institutions and not-for-profit entities for the development or expansion of kitchen incubator/shared-use kitchen facilities which make available services such as food production, technical assistance, business management and marketing, distribution, storage and retailing assistance, particularly in economically distressed areas.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Vetoed) 2018-12-21 - tabled [A08292 Detail]

Download: New_York-2017-A08292-Amended.html

                STATE OF NEW YORK
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                      June 6, 2017
        Introduced  by  M.  of  A.  SEAWRIGHT  --  read once and referred to the
          Committee on Economic Development -- recommitted to the  Committee  on
          Economic  Development  in  accordance  with Assembly Rule 3, sec. 2 --
          committee discharged, bill amended, ordered reprinted as  amended  and
          recommitted to said committee
        AN ACT to amend the New York state urban development corporation act, in
          relation to kitchen incubator/shared-use kitchen facilities
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 1 of chapter 174 of the laws of 1968,  constituting
     2  the  New  York  state  urban  development corporation act, is amended by
     3  adding a new section 16-bb to read as follows:
     4    § 16-bb. Small business kitchen incubator/shared-use kitchen  program.
     5  1.  There  is hereby established within the corporation a small business
     6  kitchen incubator/shared-use kitchen program. The corporation is author-
     7  ized within available appropriations in the empire state economic devel-
     8  opment fund established pursuant to section sixteen-i of  this  act,  to
     9  award  grants,  on a competitive basis in response to request-for-propo-
    10  sals, to local  development  corporations,  municipalities,  educational
    11  institutions,  and  other  not-for-profit  organizations  for  the costs
    12  involved in starting or expanding a kitchen incubator/shared-use kitchen
    13  facility.  The corporation is further authorized to  contract  with  the
    14  commissioner  of  agriculture  and  markets,  and  such  commissioner is
    15  authorized to contract  with  the  corporation,  to  prepare  and  issue
    16  requests  for  proposals,  accept  grant  applications,  recommend those
    17  applications that best meet established criteria, to establish  criteria
    18  and  to  administer  grants awarded under this subdivision.  Such grants
    19  may be used for the construction or  rehabilitation  of  such  facility,
    20  purchase   of  equipment,  training,  technical  assistance,  and  other
    21  purposes necessary for the successful  development  or  expansion  of  a
    22  kitchen incubator/shared-use kitchen facility. Kitchen incubator/shared-
    23  use  kitchen  facilities shall be food processing or preparation facili-
    24  ties that are operated  by  not-for-profit  corporations  or  government
    25  agencies  and used primarily by small and emerging businesses, including
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 8292--A                          2
     1  both full-time facility tenants and businesses  that  rent  space  on  a
     2  temporary basis.  They must provide or make available for facility busi-
     3  nesses:  low-cost  space,  below  current  market  value in the area the
     4  facility  serves;  and  support  services, including but not limited to,
     5  business planning, management assistance, financial packaging,  linkages
     6  to  financing  sources,  and coordination with other sources of training
     7  and assistance.  They may provide or make available for  facility  busi-
     8  nesses, services such as food production or processing technical assist-
     9  ance,  marketing, distribution, purchasing, storage, packing, insurance,
    10  on-site retailing or other services.
    11    2. Project plans.   Applicants for grants must  provide  a  management
    12  plan  and a business plan for operating the kitchen incubator/shared-use
    13  kitchen facility which demonstrates to the satisfaction  of  the  corpo-
    14  ration:  (i)  local  business  interest  in  a new or expanded facility,
    15  including the food processing needs of existing and potential food busi-
    16  nesses; (ii) the applicant's ability to deliver services and  assistance
    17  as described in subdivision one of this section, including a description
    18  of how such assistance and services will be delivered; (iii) whether the
    19  services  provided  to  facility  tenants  will  be  covered  by fees or
    20  included in the rent, and how rentals and/or fees  will  be  structured;
    21  (iv) a policy for tenants' entrance to and exit, or graduation, from the
    22  facility; and, (v) that the facility can be self-sustaining and will not
    23  require long-term state operating subsidies.
    24    3.  Grant  criteria. Grants and loans made by the corporation pursuant
    25  to this section shall be subject to the following limitations:
    26    a. no such grant shall exceed two hundred fifty thousand  dollars  per
    27  year; and
    28    b.  preference  shall  be  given  to applicants which: (i) meet highly
    29  distressed area criteria; provide a  local  match;  meet  a  substantial
    30  local  or  regional  need; complement local programs or provide services
    31  not readily available from units of  local  government  or  the  private
    32  sector;  plan  to  provide  or  make  available for facility businesses,
    33  services, including but not limited to, food  production  or  processing
    34  technical  assistance,  marketing,  distribution,  purchasing,  storage,
    35  packaging, insurance, on-site retailing or other services; and (ii) have
    36  developed a plan to assist businesses participating in  the  applicant's
    37  kitchen  incubator/shared-use  kitchen facility with purchasing New York
    38  state agricultural products, and  promoting  the  facility  to  regional
    39  farmers.
    40    §  2.  Paragraph  (b) of subdivision 1 of section 16-m of section 1 of
    41  chapter 174 of the laws of 1968, constituting the New York  state  urban
    42  development  corporation act, as added by section 1 of part N of chapter
    43  84 of the laws of 2002, is amended to read as follows:
    44    (b) Loans, loan guarantees,  and  grants  including  interest  subsidy
    45  grants  may  be provided to municipalities, industrial development agen-
    46  cies, not-for-profit corporations or local development corporations  for
    47  the  purpose  of  developing  federal  facility  sites, urban industrial
    48  sites, industrial parks and incubator buildings including small business
    49  kitchen incubator/shared-use kitchen facilities; or to undertake prelim-
    50  inary planning relating thereto;
    51    § 3. This act shall take effect immediately, provided,  however,  that
    52  the  amendments to section 16-m of the urban development corporation act
    53  made by section two of this act shall not affect the expiration of  such
    54  section and shall expire and be deemed repealed therewith.