Relates to the Gloversville public library

Summary of provisions

Section 1 of the bill sets forth the policy and purposes of this act. It finds that enabling the use of historic rehabilitation tax credits, new markets tax credits, and other tax incentives to assist in financing the rehabilitation of the Gloversville Public Library is for a public and governmental purpose and is in the public interest.

Section 2 of the bill allows the restructuring of the Gloversville Public Library in order to ensure that it may participate in the historic rehabilitation tax credit program and the New Markets Tax Credit program.

Paragraph (a) of Section 2: In order to accomplish the use of the tax credits, the Library will need to transfer ownership of its property to two new education corporations. First, the Library must transfer its building to an education corporation, chartered or incorporated by the Regents, that can both incur debt (which the Library cannot, as a public library) and create the taxable subsidiary business corporations needed to make use of the historic tax credits. Thus, the proposed legislation authorizes the transfer of ownership of the Gloversville Public Library's building to an education corporation created for the purpose of preserving this historic property and facilitating the expansion of free library services in Gloversville.

Paragraph (b) of Section 2: To comply with IRS guidance and regulations, the Library will need to transfer its collection and furnishings to a new free association library created to serve Gloversville during the tax credit period. The proposed legislation authorizes the transfer of the Library's collection and furnishings to a free association library to be chartered and registered by the Board of Regents to provide free library services to the residents of Gloversville.

Paragraph (c) of Section 2: The current library is structured as a school district public library, and Gloversville voters have approved taxes for library purposes that are currently levied and collected by the Enlarged City School District of Gloversville and paid over to the Gloversville Public Library to support its provision of library services to Gloversville residents. During the period in which those library services will be provided by the new free association library,

the tax levy should support the free association library's operations rather than the operations of the Gloversville Public Library, to ensure against double taxation. Section 2(c) of the proposed legislation authorizes the voters of Gloversville to direct that the taxes raised for library purposes be paid over to the free association library, rather than to the Gloversville Public Library, during the period in which the free association library is providing the library services.

Section 3 of the bill declares that all of the purposes referred to herein are in the public interest and for the benefit of the residents of the Enlarged City School District of the City of Gloversville and are hereby declared to be public purposes for which monies and other assets of the Gloversville Public Library may be used or expended.

Section 4 of the bill provides that employees of the free association library which is being created shall retain their existing membership in the state and local employees retirement system. This provision is consistent with existing law, which permits the State Comptroller to allow employees of association libraries to participate in the Retirement System. Employees of multiple other free association libraries currently participate in the Retirement System.

Justification

The Gloversville Public Library is seeking to adaptively re-use and transform its 16,000 square foot Carnegie Library into a modern, 19,000 square foot 21st Century Learning Center. Built in 1904 and on the National Register since 1976, the building is both iconic and structurally sound: it is suitable for continuing its vital programs and services to the nearly 20,000 residents of the Enlarged City School District of Gloversville. It is, however, badly in need of a thorough renovation Among other limitations, the building lacks accessibility and has an antiquated heating system (the boiler dates from 1904), as well as antiquated cooling, electrical and water systems.

By renovating and rehabilitating its historic building, the Library will be able to improve accessibility, expand services and programs, and better serve patrons of the Library It will be able to provide both traditional services such as children's and family reading programs, a circulating and reference collection, and a place to read and study, as well as new information services by functioning as the community's technology and remote learning hub, workforce and small business development center The Library will be a place for all residents of this low-income community to come together and learn about the issues that are important to them. As such, the transformation of the Library is a critical component of the revitalization of the community as a whole, particularly Gloversville's downtown core.

The Library is hoping to use historic tax credits to leverage significant private investment in the project. This would avoid placing an additional tax burden on taxpayers of the Enlarged City School District of Gloversville, who support the Library's operating budget through their taxes. As the owner of the historic property, the Library can qualify for historic tax credits in an amount equal to 40%

of the amount expended in historic rehabilitation of the property The Library would then assign the tax credits for use by an investor, in return for an investment that would be used as additional funding for the project. The Library has the potential for raising nearly $2 million in private investment using state and federal historic tax credits as an incentive for such investment.

New Markets Tax Credits and historic rehabilitation tax credits have been used frequently in new York by both private and nonprofit entities. These projects have played a crucial role in encouraging development and redeveloping communities,.This bill would enable the Gloversville Public Library to participate in these programs, undertake needed improvements, and help revitalize the downtown area.

Finally, the bill ensures that employees of the Gloversville Public Library will not be negatively affected by providing that these employees will be able to continue their participation in the New York State Employee Retirement System notwithstanding their change of employer during the tax credit period.

Legislative history

New bill.

Fiscal implications

None to the State.

Effective date

Immediately.