Bill Text: NY S03908 | 2019-2020 | General Assembly | Introduced

Bill Title: Establishes an economic development grant program for the Second Avenue Subway construction project area; defines micro business.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-02-21 - REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS [S03908 Detail]

Download: New_York-2019-S03908-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                    IN SENATE
                                    February 21, 2019
        Introduced  by  Sen. SERRANO -- read twice and ordered printed, and when
          printed to be committed to the Committee on Corporations,  Authorities
          and Commissions
        AN ACT to amend the New York state urban development corporation act, in
          relation  to establishing a Second Avenue Subway construction economic
          development grant program; and to amend the economic development  law,
          in relation to the definition of micro business
          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. Second Avenue Subway construction economic development  grant
     5  program. (1) There is hereby created a Second Avenue Subway construction
     6  economic  development  grant program for the purpose of providing finan-
     7  cial and technical assistance to businesses located  within  the  Second
     8  Avenue   Subway  construction  business  zone  area  during  periods  of
     9  construction.
    10    (2) For the purposes of this section  the  following  words  or  terms
    11  shall mean as follows:
    12    (a) "Small business" shall have the same meaning as defined in section
    13  131 of the economic development law.
    14    (b) "Qualified business" shall mean a small business or micro business
    15  operating  within  a  one hundred fifty foot radius of the business zone
    16  area during a period of authorized construction, and the business has  a
    17  demonstrated loss.
    18    (c) "Business zone area" shall mean:
    19    (i)  an  area  in  which  the chair of the corporation determines that
    20  construction on the Second Avenue Subway project has occurred  that  has
    21  been  certified  by the commissioner for the Metropolitan Transportation
    22  Authority; or
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 3908                             2
     1    (ii) the following areas:
     2    (A) 125th Street from 5th Avenue to 3rd Avenue;
     3    (B) 2nd Avenue from 129th Street to 91st Street;
     4    (C) 2nd Avenue from 87th Street to 83rd Street;
     5    (D) 2nd Avenue from 73rd Street to 69th Street;
     6    (E) 2nd Avenue from 65th Street to 58th Street;
     7    (F) 2nd Avenue from 45th Street to 41st Street;
     8    (G) 2nd Avenue from 36th Street to 32nd Street;
     9    (H) 2nd Avenue from 26th Street to 23rd Street;
    10    (I) 2nd Avenue from 15th Street to 11th Street;
    11    (J) 2nd Avenue from 6th Street to 4th Street;
    12    (K) 2nd Avenue from 4th Street to Houston Street;
    13    (L) Chrystie Street from Houston Street to Canal Street;
    14    (M) Bowery from Pell Street to Worth Street;
    15    (N) Worth Street from Mott Street to St. James Place;
    16    (O) Water Street from Dover Street to John Street;
    17    (P) Water Street from Wall Street to Coenties Slip.
    18    (d)  "Micro  business" shall have the same meaning as in section 131-a
    19  of the economic development law.
    20    (e) "Period of authorized construction" shall  mean  those  dates  for
    21  which  the  chair of the corporation determines that construction on the
    22  Second Avenue Subway project has occurred for the  specific  portion  of
    23  the business zone area.
    24    (f)  "Demonstrated loss" means a ten percent decline in taxable income
    25  in the year in which the grant is applied for compared to the  business'
    26  base fiscal year.
    27    (g)  "Base  fiscal  year" means the tax year immediately preceding the
    28  year in which construction began in that portion of  the  business  zone
    29  area in which the business is located.
    30    (h)  "Endangered  business"  means  a business that would otherwise be
    31  deemed a qualified business as defined in paragraph (b) of this subdivi-
    32  sion, but who can show a demonstrated loss of a thirty  percent  decline
    33  in  taxable  income  in  any  given  year compared to the business' base
    34  fiscal year.
    35    (i) "Terminal business" means  a  business  that  would  otherwise  be
    36  deemed a qualified business as defined in paragraph (b) of this subdivi-
    37  sion, but who can show a demonstrated loss of a fifty percent decline in
    38  taxable  income  in any given year compared to the business' base fiscal
    39  year.
    40    (3) Assistance, out of moneys made available for this  program,  shall
    41  be provided to qualified businesses for the following purposes:
    42    (a) capital improvements costs related to the following:
    43    (i)  improving signage so that pedestrians can easily see and identify
    44  the business as an operating business;
    45    (ii) expanding existing entryways to the business;
    46    (iii) altering the existing entryways, windows, walls or structure  to
    47  prevent or minimize excessive noise occurring from the construction;
    48    (iv) improving ventilation within the building to maintain air quality
    49  within the business;
    50    (v)  equipment,  machinery, furniture, fixtures and fittings necessary
    51  to the running of a qualified business that  shall  be  affixed  to  and
    52  remain  a  part  of  the qualified business location within the business
    53  zone area; and
    54    (vi) such other capital improvements as determined by the chair of the
    55  corporation.
    56    (b) marketing and advertising costs.

        S. 3908                             3
     1    (c) for endangered businesses, as  determined  by  the  chair  of  the
     2  corporation, such as:
     3    (i)  payroll  assistance;  provided,  however,  any payroll assistance
     4  payments made must be made to an employee who has been employed  by  the
     5  business  for  at least one year, does not have an ownership interest in
     6  the business, and is not related, either through blood or  marriage,  to
     7  the owner of the business;
     8    (ii) rental payment assistance, whether for real property or equipment
     9  and services;
    10    (iii)  utilities,  including  but  not  limited to electricity, phone,
    11  cable, internet, and water; and
    12    (iv) insurance, as determined by the chair of the corporation.
    13    (d) for terminal businesses, as determined by the chair of the  corpo-
    14  ration, such as:
    15    (i)  assistance  offered  to qualified and endangered businesses under
    16  this subdivision; and
    17    (ii) professional counseling services, dissolution  services,  profes-
    18  sional bankruptcy assistance services, and debt management services.
    19    (4)  The chairman shall establish rules and regulations to ensure that
    20  all moneys given pursuant to this section  are  used  for  the  purposes
    21  specified  by  the  applicant.  If  it is determined that a recipient of
    22  funds used the money in a manner inconsistent with the  information  set
    23  out  in his or her application, the applicant shall be required to reim-
    24  burse the corporation twice the amount given to the applicant.
    25    (5) The corporation shall also:
    26    (a) (i) Establish a  comprehensive  technical  assistance  program  in
    27  cooperation  with the department of economic development to assist small
    28  and micro  businesses  through  third  party  service  providers,  which
    29  assistance shall include, but not be limited to:
    30    (A)  technical  assistance  with applications for obtaining funds from
    31  public and private financing sources;
    32    (B) technical assistance in the development of a working capital budg-
    33  et;
    34    (C) referrals to other providers of technical assistance to small  and
    35  micro  businesses,  where  appropriate,  including  the  entrepreneurial
    36  assistance program established pursuant to article  9  of  the  economic
    37  development law; and
    38    (D) technical assistance through education programs.
    39    (ii)  Technical  assistance  may  be provided through direct corporate
    40  support, or through grants to or contracts  with  service  providers  or
    41  governmental entities.
    42    (b)  establish programs to assist small and micro businesses in devel-
    43  oping workplace policies, including but not limited  to  the  design  of
    44  employee  benefit  and  assistance  programs  and  developing child care
    45  programs.
    46    (c) provide grants to business improvement districts,  local  develop-
    47  ment  corporations,  other not-for-profit economic development organiza-
    48  tions, and municipalities for tourism, marketing, promotion, information
    49  activities and commercial revitalization activities in the business zone
    50  area, such activities may include, but are not limited to, joint  print,
    51  mailed  and  internet advertisements, marketing campaigns and redevelop-
    52  ment work in connection with the design and implementation of a plan for
    53  facade and other improvements throughout the business zone area.    Such
    54  grants  may  include  monies  available  for  individual property owners
    55  and/or tenants who agree to improve their property in accordance with an
    56  overall design plan, provided  that,  such  individual  property  owners

        S. 3908                             4
     1  and/or  tenants shall be required to match at least fifty percent of the
     2  amount of any grant awarded to them.
     3    (d) provide grants to small and micro businesses to offset costs asso-
     4  ciated  with  the start-up of new business enterprises provided that the
     5  space in which the business is going to be located has been  vacant  for
     6  at  least  one  year, the business owner has entered into a lease for at
     7  least two years and the landlord or business owner shall be required  to
     8  match  at  least  half  the  amount  of any grant awarded to them.  Such
     9  grants may be used to provide technical assistance  in  development  and
    10  execution of business plans, including the formation of, acquisition of,
    11  management of, or diversification of a small or micro business.
    12    (6)(a)  The  corporation shall, within available appropriations, award
    13  grants or enter into contracts for services pursuant to this section  to
    14  small  and micro businesses, through direct applications accepted at the
    15  discretion of the corporation. For the purposes of this subdivision  the
    16  corporation  shall  enter  into  annual  contracts for services or award
    17  grants in an amount equal to fifty percent of the total project costs to
    18  qualified businesses.
    19    (b) The corporation shall enter into no more than one contract or make
    20  more than one grant per year per applicant under this  subdivision  with
    21  any qualified business regardless of the number of projects for which an
    22  applicant  has  applied  and for which funding has been approved. In the
    23  case of applications for multiple projects to be conducted by  a  single
    24  applicant,  the  corporation  may, at its discretion, provide a grant or
    25  enter into a single contract for services with the applicant for some or
    26  all of the projects for which an applicant has applied.
    27    (c) Not-for-profit corporations, business  improvement  districts  and
    28  community  development  organizations  shall  be  eligible  to apply for
    29  support under this subdivision to operate a program or programs of busi-
    30  ness and economic development services to stabilize, retain or  revital-
    31  ize existing qualified businesses, and to assist small, micro, and rein-
    32  vesting   businesses,  including,  but  not  limited  to  assistance  to
    33  individual businesses in such project areas as:
    34    (i) business  planning,  management  assistance  and  counseling,  and
    35  financial  packaging assistance to small and micro businesses, including
    36  the  establishment  of  neighborhood-based  business   service   centers
    37  designed  to deliver comprehensive technical assistance to new and small
    38  businesses in specific communities and neighborhoods;
    39    (ii) programs to assist small and micro  businesses  in  the  business
    40  zone  area  to  identify new business opportunities, plan for new enter-
    41  prise development, and manage economic development projects;
    42    (iii) innovative programs of public and private cooperation to  foster
    43  new enterprise development and small and micro business growth;
    44    (iv) programs to assist new enterprises and small and micro businesses
    45  to  identify  and  access  public and private sources of equity, working
    46  capital and other types of financing; and
    47    (v) programs that improve the ability of small and micro businesses to
    48  access state job training programs.
    49    (7) Any applicant, who is awarded a grant  pursuant  to  this  section
    50  where  the  moneys  of  such  grant are to be used for the construction,
    51  demolition, reconstruction, excavation,  rehabilitation,  repair,  reno-
    52  vation  or  alteration of a facility or an improvement to property shall
    53  require that the work covered by such contract shall be  deemed  "public
    54  work"  and  subject to and performed in accordance with articles 8 and 9
    55  of the labor law.

        S. 3908                             5
     1    (8) An applicant who receives a grant pursuant to this  section  shall
     2  ensure and shall sign a written declaration prior to receiving any funds
     3  stating that all provisions of the labor law, specifically including the
     4  minimum  wage  provisions of article 19 of the labor law, are adhered to
     5  by the business receiving the grant.
     6    §  2.  The economic development law is amended by adding a new section
     7  131-a to read as follows:
     8    § 131-a. Definition of a micro business.  For  the  purposes  of  this
     9  chapter, a micro business shall be deemed to be one which is resident in
    10  this  state, independently owned and operated, not dominant in its field
    11  and employs ten or less persons on a full-time basis.
    12    § 3. This act shall take effect immediately.