Establishes the self-sufficiency program within the New York state urban development corporation act

(a) defines certain terms for purposes of the bill, including an "eligible project", "Eligible project" is defined to include any new equipment, improvements or structures, including new construction, alteration or improvement to existing structures which, (1) is projected to cost a minimum of $20 million; (2) is projected to create, in one or more phases, at least 300 new FTE jobs at the project site; and (3) meet one or more of the following criteria: (a) is constructed to achieve "gold" or higher LEED certification under the Green Building Rating System is developed by the United States Green Building Council, or (b) constructed to achieve "3 globes" or higher certification under the Green Globes Rating System developed by the Green Building Initiative or (c) will utilize technology-enabled design construction and operation including, but not limited to universal design principles. Jobs created in a phase, the construction of which is in progress at the time of the application, shall count towards the job creation number. UDC/ESDC is to give preference to those eligible projects which (1) are located in an economically distressed region or municipality or (2) are located, in whole or in part, on a brownfield site as defined in the Environmental Conservation Law.

(b) authorizes UDC/ESDC to undertake and finance an eligible project, which includes taking jurisdiction, supervision and control of the project, and that such project shall be exempt from all taxation as a result.

(c) authorizes UDC/ESDC to accept applications and approve applications within 30 days of receipt if the application demonstrates that the application meets the standard of an eligible project and will advance the economic well-being of the State. The section also requires the applicant to pay a $1000 application fee and a closing fee of 1% of the amount financed. In connection with the financing, this section also requires the project sponsor to pay a one-time Marketing Development Fee equal to 3% of the project costs to ESDC to market New York and the Self-Sufficiency Program nationally and worldwide, including the funding of an ombudsman program within the corporation for the purpose of administering the program expeditiously.

(d) requires ESDC to enter into a payment-in-lieu of taxes agreement (PILOT) agreement with the project sponsor. Such PILOT agreement may have a duration of up to 40 years. All PILOT payments are to be used to pay project costs unless an agreement is concluded to make payment to affected municipalities and school districts. If the sponsor agrees to make the following payments as part of a PILOT agreement with UDC/ESDC, then such agreement shall be deemed approved by the municipalities:

(i) Base Payment: equal to the real property taxes paid to taxing entities in the calendar year immediately preceding the year of the effective date of the PILOT Agreement, increased by 4% each year. The Base Payment is payable to the taxing entities in the same proportion as existing real property taxes on the site are paid.

(ii) School District Contribution: one-time payment at closing of the financing transaction equal to 3% of project costs, payable to the school district or districts in which the project is sited.

(iii) Host Community Benefit: financing transaction equal to municipalities.

one-time payment at closing of the 3% of project costs, payable to the host

The PILOT payment also includes the Marketing Development Fee as well as the Project Payment; the latter will be used by the project sponsor to payor provide for the payment of project costs, including, among others and without limitation, costs of fixtures, furniture and equipment, refinancing of outstanding debt, and debt service on PILOT-backed bonds, which can be issued by UDC/ESDC but not exclusively.

(e) authorizes UDC/ESDC to issue bonds or notes backed by Project Payments.

(f) describes the process for local review and approval of the project application, which includes a 45-day notice and comment period for local governments including school districts. Local governments may approve or disapprove the application. Approval by the affected municipality with zoning power means that for purposes of the local zoning law, such use is a permissible use, subject only to site plan approval (if such site plan approval is applicable to the project). Upon disapproval, the project sponsor may (1) notify UDC/ESDC of its intent to amend its application to change the project location to another municipality or (2) withdraw the eligible project from further consideration. Approval of the application by UDC/ESDC and the local governments is exempt from the State Environmental Quality Review Act (SEQRA) process, but the approvals do not give the project sponsor the right to build the project. The overall project will be subject to the requirements of SEQRA.

(g) provides for UDC/ESDC to take lead agency status for purposes of the State Environmental Quality Review Act (SEQRA) if the project sponsor so requests.

(h) requires UDC/ESDC to exercise the full extent of its powers to facilitate and expedite the design, planning and construction of an eligible project, including the creation of an ombudsman within the corporation (to be funded by the Marketing Development Fee) to facilitate the implementation and marketing of the Self-Sufficiency Program.

(i) requires a third-party evaluation of the Self-Sufficiency Program to be submitted to the Governor and Legislature by December 31, 2012.

Section 2 of the bill provides, in addition to immediate effect, that applications for the program will sunset on November 26, 2019.

Justification

The continued stagnation and decline in the State economy has so far proven resistant to repeated attempts to reverse it, and the need for the economic stimulus provided by large-scale economic development projects is vital given current events. The history of the State is marked by trans formative public-private endeavors which harnessed the creativity, skill and vision of the State's residents to improve their economic condition, such as the Erie Canal. The Self-Sufficiency Program creates a comprehensive one-stop program which finances large-scale economic development projects of statewide significance, expedites access to credit markets and streamlines local approvals, while at the same time making local governments whole for existing tax revenues and incentivizing their participation in future economic development, all at no cost to state or local taxpayers.

Legislative history

Similar to A.11747 of 2007-2008.

Fiscal implications

To be determined.

Effective date

On the same day and manner as a chapter of the laws of 2009.