Reform Local Development Agencies

Section 1. Subparagraphs 2 and 3 of paragraph (d) of section 1411 of the not-for-profit corporation law are amended and a new subparagraph 2-a is added to read as follows:

(2) Notwithstanding the provisions of any general, special, or local law, charter, or ordinance to the contrary, such sale or lease [may] shall be made [without] with an appraisal, public notice, (except as provided in subparagraph (4) of this paragraph) [or] and subject to public bidding for such price or rental [and upon such terms as may be agreed upon between the county, city, town or village and said local development corporation; provided, however, that in]. In case of a lease, the term may not exceed ninety-nine years; and provided, further, that, in cities having a population of one million or more, no such sale or lease shall be made without the approval of a majority of the members of the [borough improvement board of the borough] community board or boards for the community district or districts in which such real property is located and the respective borough board, if such real property is located in two or more community districts.

(2-a) (I) The corporation shall prepare or cause to be prepared, by contract or otherwise, an economic impact statement on any action that it proposes or approves which may have a significant effect on the affected local economy and local community. The corporation shall use all practicable means to realize the policies and goals set forth in this section, and shall act and choose alternatives which, consistent

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD02862-01-7

S. 3361 2

with social, economic, environmental, labor, and other essential considerations, to the maximum extent practicable, minimize or avoid adverse economic effects, including effects revealed in the economic impact statement process. Such a statement shall include a detailed statement setting forth the following:

(A) a description of the proposed action and its economic and social setting;

(B) the economic and social impact of the proposed action, including short-term and long-term effects, especially to the affected community;

(C) any adverse economic effects which cannot be avoided should the proposal be implemented;

(D) alternatives to the proposed action;

(E) any irreversible and irretrievable commitments and social resources which would be involved in the proposed action, should it be implemented;

(F) mitigation measures proposed to minimize the economic, social, or other essential impacts; and

(G) the growth-inducing aspects of the proposed action, where applicable and significant. Such a statement shall also include copies or a summary of the substantive comments received by the corporation pursuant to clause (IV) of this subparagraph and the corporation's response to such comments. The purpose of an economic impact statement is to provide detailed information about the effect which a proposed action is likely to have on the economy, employment conditions, and social characteristics of a community, to list ways in which any adverse effects of such an action might be minimized, and to suggest alternatives to such an action so as to form the basis for a decision as to whether or not to undertake or approve such action. Such statement shall be clearly written in a concise manner capable of being read and understood by the public, shall deal with the specific, significant economic impacts which can be reasonably anticipated, and shall not contain more detail than is appropriate, considering the nature and magnitude of the proposed action and the significance of its potential impacts.

(II) The corporation may require an applicant to submit an economic report to assist the corporation in carrying out its responsibilities, including the initial determination and, (where the applicant does not prepare the economic impact statement), the preparation of an economic impact statement under this subparagraph. The corporation may request such other information from an applicant as it deems necessary for the review of economic and social impacts. Notwithstanding any use of outside resources or work, corporations shall make their own independent judgment of the scope, contents, and adequacy of an economic impact statement.

(III) (A) As early as possible in the formulation of a proposal for an action, the corporation shall make an initial determination as to whether or not an economic impact statement need be prepared for the action. With respect to actions involving the issuance to an applicant of a permit or other entitlement, the corporation shall notify the applicant in writing of its initial determination, specifying therein the basis for such determination. Notice of the initial determination, along with appropriate supporting findings on corporation actions, shall be kept on file in the main office of the corporation for public inspection. If the corporation determines that such statement is required, the corporation or the applicant, at the applicant's option, shall prepare or cause to be prepared a draft economic impact statement. If the applicant does not exercise the option to prepare such statement, the corporation shall

S. 3361 3

prepare it, cause it to be prepared, or terminate its review of the proposed action. Such statement shall describe the proposed action and reasonable alternatives to the action, and briefly discuss, on the basis of information then available, the remaining items required to be submitted by clause (I) of this subparagraph. The purpose of a draft economic statement is to relate economic and social considerations to the inception of the planning process, to inform the public and other public agencies as early as possible about proposed actions that may significantly affect the quality of the economic and social conditions, and to solicit comments which will assist the corporation in the decision making process in determining the economic and social consequences of the proposed action. The draft statement shall resemble in form and content the economic impact statement to be prepared after comments have been received and considered pursuant to clause (I) of this subparagraph; provided, however, that the length and detail of the draft economic statement will necessarily reflect the preliminary nature of the proposal and the early stage at which it is prepared;

(B) The draft statement shall be filed with the appropriate governing body of each municipality or political subdivision thereof for whose benefit such corporation is established.

(IV) (A) After the filing of a draft economic impact statement, the corporation shall determine whether or not to conduct a public hearing on the economic impact of the proposed action. Such public hearing shall be held in a city, town or village where the project is proposed to be located or, in cities having a population of one million or more, in the community district or districts in which such project is proposed to be located or in the respective borough, if such project is proposed to be located in two or more community districts. The corporation must give at least thirty days' published notice of such public hearing and shall, at the same time, provide notice of such hearing to the chief executive officer of each affected tax jurisdiction within which the project is proposed to be located. The notice of hearing must state the time and place of the hearing, contain a general, functional description of the project, describe the prospective location of the project, identify the initial owner, operator, or manager of the project, generally describe the financial assistance contemplated by the corporation with respect to the project, and provide an opportunity for the public to review the project application, which shall include an analysis of the costs and benefits of the proposed project. The notice of hearing must be published in the state register and the website of the corporation.

(B) If the corporation determines to hold such a hearing, it shall commence the hearing within sixty days of the filing and, unless the proposed action is withdrawn from consideration, shall prepare the economic impact statement within forty-five days after the close of the hearing, except as otherwise provided. The need for such a hearing shall be determined in accordance with procedures adopted by the corporation. If no hearing is held, the corporation shall prepare and make available the economic impact statement within sixty days after the filing of the draft, except as otherwise provided.

(C) Notwithstanding the specified time periods established by this subparagraph, a corporation shall vary the times so established in this clause for preparation, review, and public hearings to coordinate the economic and social review process with other procedures relating to review and approval or disapproval of an action. An application or authorization for an action upon which a draft economic impact statement is determined to be required shall not be complete until such draft

S. 3361 4

statement has been filed and accepted by the corporation as satisfactory with respect to scope, content, and adequacy for purposes of this subparagraph. Commencing upon such acceptance, the economic impact statement process shall run concurrently with other procedures relating to the review and approval of the action, so long as reasonable time is provided for preparation, review, and public hearings with respect to the draft economic impact statement.

(V) To the extent possible, the economic impact statement prepared pursuant to clause (I) of this subparagraph, together with the comments of public agencies and members of the public, shall be filed with the governing body of each municipality or political subdivision thereof for whose benefit such corporation is established and made available to the public prior to acting on the proposal which is the subject of the economic impact statement.

(VI) A corporation may charge a fee to an applicant to recover the costs incurred in preparing or causing to be prepared or reviewing a draft economic impact statement or an economic impact statement on the action which the applicant requests from the corporation; provided, however, that an applicant may not be charged a separate fee for both the preparation and review of such statements. The technical services of the corporation may be made available on a fee basis reflecting the costs thereof to a requesting applicant, which fee or fees may appropriately be charged by the corporation to the applicant under rules and regulations, which the corporation shall issue for such purpose.

(VII) When a corporation decides to carry out or approve an action which has been the subject of an economic impact statement, it shall make an explicit finding that the requirements of this subparagraph have been met and that, consistent with social, economic, and other essential consideration, to the maximum extent practicable, adverse economic, social, and community effects revealed in the economic impact statement process will be minimized or avoided.

(3) Before any sale or lease to a local development corporation incorporated or reincorporated under this article shall be authorized, a public hearing shall be held by the local legislative body, or [by the board of estimate], in cities having a population of one million or more, by the community board or boards or the respective borough board, as the case may be, to consider the proposed sale or lease only after the completion of the economic impact statement required by subparagraph two-a of this paragraph. A public hearing may only be convened if twothirds of the board members are present. If not, such public hearing shall not be convened and shall be rescheduled, subject to the same quorum requirements.

§ 2. Paragraph (i) of section 1411 of the not-for-profit corporation law is relettered paragraph (j) and a new paragraph (i) is added to read as follows:

(i) Municipal input.

(1) Board members or employees of a local development corporation must not be or have, within the past five years, been: (A) an employee or an owner of a firm that is a paid advisor or consultant of the local development corporation, including a present or former independent auditor of the local development corporation; (B) employed by a significant supplier of the local development corporation; (C) employed by and had a five percent or greater ownership interest in a supplier where sales to the local development corporation represent more than one percent of the sales of the supplier or more than one percent of the purchases of the local development corporation; (D) a "political party chairman" as such

S. 3361 5

term is defined in paragraph (k) of subdivision one of section seventythree of the public officers law; or (E) a lobbyist registered under a state or local law covering any jurisdiction served in whole or in part by the local development corporation. In addition, at least one-third of all members shall be representative of local government, organized labor, or the engineering, business, or environmental communities.