Establishes an economic grant program for the Second Avenue Subway construction project area

2 Co-sponsors

• Liz Krueger
• Bill Perkins

Title of bill

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

Purpose or general idea of bill

To provide financial and technical assistance to businesses located along the route of the Second Avenue Subway construction in Manhattan during the construction process.

Summary of specific provisions

SECTION 1 ADDS A NEW SECTION 15-P TO SECTION 1 OF CHAPTER 174 OF THE NEW YORK STATE URBAN DEVELOPMENT CORPORATION ACT CREATING THE SECOND AVENUE SUBWAY CONSTRUCTION ECONOMIC DEVELOPMENT GRANT PROGRAM AND DEFINES TERMS. FINANCIAL ASSISTANCE UNDER THIS PROGRAM MAY BE PROVIDED FOR CAPITAL IMPROVEMENTS; MARKETING AND ADVERTISING COSTS; AND, FOR ENDANGERED AND TERMINAL BUSINESSES, PAYROLL, RENT, UTILITIES, INSURANCE AND COUNSELING ASSISTANCE. THIS LEGISLATION WILL ALSO ESTABLISH A TECHNICAL ASSISTANCE PROGRAM TO ASSIST SMALL AND MICRO BUSINESSES THROUGH THIRD-PARTY SERVICE PROVIDERS. GRANTS WILL BE AWARDED THROUGH AN APPLICATION PROCEDURE.

SECTION 2 ADDS A NEW SECTION 131-A TO THE ECONOMIC DEVELOPMENT LAW BY DEFINING A MICRO BUSINESS AS ONE WHICH IS RESIDENT IN THIS STATE, INDEPENDENTLY OWNED AND OPERATED AND EMPLOYS 10 OR FEWER PEOPLE ON A FULL-TIME BASIS.

SECTION 3 CONTAINS THE EFFECTIVE DATE.

Justification

The East Side of Manhattan is currently undergoing one of the most significant construction projects in decades -- the creation of the long-awaited Second Avenue subway. The construction has begun and will eventually run through parts of eight Assembly Districts. While the Second Avenue Subway will eventually bring much needed transportation improvements to the East Side, it is currently having a substantially negative effect on local businesses. Some establishments in the heart of the initial construction area have lost 20 or 30 percent of business, and others have closed permanently. This bill would create a Second Avenue Subway construction economic development grant program for the purpose of providing financial and technical assistance to small and micro businesses located within the area where construction is taking place. Assistance would be provided for projects such capital improvements, marketing and advertising, as well as emergency funds for endangered businesses. Thus, any grants from this program would be funneled right back into the New York City economy.

Prior legislative history

2008: A.10594/S.8154 Passed Assembly & Senate: Vetoed by Governor.

Fiscal implications

To be determined, depending on the money authorized for the program by the appropriate agencies.

Effective date

Immediately.