senate Bill S1244

Relates to blighted property and blighted areas; repealer

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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  • 09 / Jan / 2013
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 08 / Jan / 2014
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Summary

Establishes what is and what is not blighted property and blighted areas.

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Bill Details

See Assembly Version of this Bill:
A530
Versions:
S1244
Legislative Cycle:
2013-2014
Current Committee:
Senate Corporations, Authorities And Commissions
Law Section:
New York State Urban Development Corporation Act
Laws Affected:
Amd §§2 & 10, rpld & add §3 sub 12, UDC Act
Versions Introduced in Previous Legislative Cycles:
2011-2012: S1530, A332
2009-2010: S7268, A10460

Sponsor Memo

BILL NUMBER:S1244

TITLE OF BILL:
An act
to amend the New York state urban development corporation act, in
relation to blighted property and blighted areas; and to repeal certain
provisions of such act relating thereto

PURPOSE:
To provide an objective, measurable standard for determining
whether a property, group of properties or an area is "blighted" in
the context of the exercise of eminent domain.

SUMMARY OF PROVISIONS:

Section 1 amends Section 2 of the Urban Development Corporation Act
("UDC") to update the purpose of the UDC to include such important
public policies as consideration for the environment, comprehensive
planning and concern for those individuals and businesses displaced
by redevelopment.

Section 2 amends Section (3)(12) to repeal the existing definition of
"substandard and insanitary" and replace it with an objective
definition of blight. A property or group of properties would be
found to be blighted only if they met certain detailed criteria of
deterioration. Further, in order for an area to be found to be
blighted, 60 percent of the individual properties would have to be
found to be blighted and these properties would have to represent a
geographical majority of the redevelopment area. Finally, a
declaration of blight would expire after 10 years.

Section 3 amends Section 10 of the UDC to make the "findings" required
by the statute consistent with the new definition of blight.

Section 4 provides the effective date.

EFFECTS OF THE PRESENT LAW WHICH THIS BILL WOULD ALTER:

This bill would replace the vague definition of "substandard and
instanitary" found in the UDC with an objective definition of blight.

JUSTIFICATION:

That "private property shall not be taken for public use without just
compensation" is a right guaranteed by the New York Constitution. The
words "public use" are meant to protect property owners from the
State's power to transfer property from one private property owner to
another. Over the last decade, courts have considered the question of
whether economic development constitutes a "public use". In the most
notable of these cases, Kelo v. City of New London, the Supreme Court
allowed for the forcible transfer of property from one private owner
to another in support of economic development. This decision has
prompted legislative reform in forty three states and it is time for
New York to follow suit.


In a recent decision by the New York Court of Appeals addressing the
use of eminent domain in the context of economic development, Chief
Judge Lippman stated that "[i]t may be that the bar has now been set
too low - that what will now pass as 'blight,' as that expression has
been come to he understood and used by political appointees to public
corporations relying upon studies paid for developers, should not be
permitted to constitute a predicate for the invasion of property
rights and the razing of homes and businesses. But any such
limitation upon the sovereign power of eminent domain as it has come
to be defined in the urban renewal context is a matter for the
Legislature, not the courts." Matter of Goldstein v. New York State
Urban Dev., (2009 NY Slip op 08677) (emphasis added). I am taking
up Chief Judge Lippman's invitation to further define blight.

This bill provides objective, quantifiable standards by which to
determine whether a property or area is indeed blighted. It will
ensure that condemnors under the Urban Development Corporation Act
use consistent and predictable factors related to the public's health
and safety to evaluate the blight status of a neighborhood. The bill
requires that 60 percent of the properties within the redevelopment
area be considered blighted and that these properties cover a
majority of the geographical area of the project.

Eminent domain can be a useful and even necessary tool for urban
redevelopment, particularly for older built-out cities like those in
New York State. Its application, however, must balance the rights of
property owners with the need for economic development. This bill
provides much needed standards to be used when such rights are
balanced against the need for development.

LEGISLATIVE HISTORY:
2011-2012: Referred to Corporations, Authorities & Commissions
2009-2010: Referred to Corporations, Authorities & Commissions

FISCAL IMPLICATION:
None.

EFFECTIVE DATE:
Immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1244

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens. PERKINS, AVELLA -- 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  blighted  property  and  blighted  areas;  and to repeal
  certain provisions of such act relating thereto

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Section 2 of section 1 of chapter 174 of the laws of 1968,
constituting  the  New York state urban development corporation act, the
ninth undesignated paragraph as added by chapter 280 of the laws of 1984
and the tenth undesignated paragraph as amended by chapter  747  of  the
laws of 2005, is amended to read as follows:
  S  2.  Statement  of  legislative  findings and purposes. It is hereby
found and declared that there exists in [urban] SOME areas of this state
a condition of substantial and persistent unemployment and  underemploy-
ment  which  causes  hardship  to  many individuals and families, wastes
vital human resources, increases the public assistance  burdens  of  the
state  and municipalities, impairs the security of family life, contrib-
utes to the growth of crime and delinquency, prevents many of our  youth
from  finishing  their  [educations] EDUCATION, impedes the economic and
physical development of municipalities and adversely affects the welfare
and prosperity of all the people of the  state.  [Many  existing  indus-
trial,  manufacturing  and commercial facilities in such urban areas are
obsolete and inefficient, dilapidated, and without adequate mass  trans-
portation  facilities  and  public services. Many of such facilities are
underutilized or in the process of being  vacated,  creating  additional
unemployment.  Technological advances and the provision of modern, effi-
cient facilities in other states will speed the obsolescence  and  aban-
donment  of existing facilities causing serious injury to the economy of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03585-01-3

S. 1244                             2

the state. Many  existing  and  planned  industrial,  manufacturing  and
commercial  facilities  are, moreover, far from or not easily accessible
to the places of residence of substantial numbers of unemployed persons.
As  a  result, problems of chronic unemployment are not being alleviated
but are aggravated. New industrial, manufacturing and commercial facili-
ties are required to attract and house new  industries  and  thereby  to
reduce  the  hazards  of  unemployment.  The  unaided efforts of private
enterprise have not met and cannot meet  the  needs  of  providing  such
facilities  due  to problems encountered in assembling suitable building
sites]
  IT IS FURTHER FOUND AND DECLARED THAT THE UNAIDED EFFORTS  OF  PRIVATE
INDUSTRIAL,  MANUFACTURING  AND  COMMERCIAL  BUSINESSES  ARE  NEGATIVELY
AFFECTED BY AGING AND INEFFICIENT FACILITIES,  DIFFICULTIES  IN  FINDING
SUITABLE  BUILDING  SITES  FOR  NEW  FACILITIES, lack of adequate public
services, the unavailability of private capital for development [in such
urban areas], and the inability of private enterprise alone  to  plan[,]
AND  finance  DEVELOPMENT  and  TO coordinate [industrial and commercial
development] SUCH DEVELOPMENT with [residential developments for persons
and families of low income and  with]  AFFORDABLE  HOUSING  DEVELOPMENT,
COMMUNITY  DEVELOPMENT PROGRAMS, public services and mass transportation
facilities.
  It is further found and declared that  there  exist  in  many  munici-
palities  within  this  state  [residential, nonresidential, commercial,
industrial or vacant areas, and combinations thereof, which are slum  or
blighted,  or  which  are  becoming  slum  or  blighted areas because of
substandard,  insanitary,  deteriorated  or  deteriorating   conditions,
including  obsolete  and dilapidated buildings and structures, defective
construction, outmoded design, lack of  proper  sanitary  facilities  or
adequate  fire  or  safety protection, excessive land coverage, insuffi-
cient light and ventilation, excessive population density, illegal  uses
and  conversions,  inadequate  maintenance,  buildings  abandoned or not
utilized in whole or substantial part, obsolete  systems  of  utilities,
poorly  or improperly designed street patterns and intersections, inade-
quate access to areas, traffic congestion hazardous to the public  safe-
ty,  lack of suitable off-street parking, inadequate loading and unload-
ing facilities, impractical street widths, sizes and shapes, blocks  and
lots  of  irregular  form,  shape  or insufficient size, width or depth,
unsuitable topography, subsoil or other  physical  conditions,  all  of]
BLIGHTED PROPERTIES AND BLIGHTED AREAS, WHICH ARE CHARACTERIZED BY PREM-
ISES  UNFIT FOR HUMAN HABITATION AND DANGEROUS TO LIFE AND PROPERTY, AND
which hamper or impede proper and economic development of such areas and
which impair or arrest the sound growth of the area, community or  muni-
cipality, and the state as a whole.
  It is further found and declared that there is a serious need through-
out the state for adequate educational, recreational, cultural and other
community  facilities, the lack of which threatens and adversely affects
the health, safety[, morals] and welfare of the people of the state.
  It is further  found  and  declared  that  there  continues  to  exist
throughout  the  state  a seriously inadequate supply of [safe and sani-
tary] ACCEPTABLE dwelling accommodations for persons and families of low
income. This condition is contrary to the public interest and  threatens
the  health,  safety, welfare, comfort and security of the people of the
state. The ordinary operations of private enterprise cannot  provide  an
adequate  supply  of  safe  and  sanitary  dwelling  accommodations  [at
rentals] which persons and families of low income can afford.

S. 1244                             3

  It is hereby declared to be the policy  of  the  state  to  promote  a
vigorous  and  growing  economy,  to  prevent economic stagnation and to
encourage the creation of new job  opportunities  in  order  to  protect
against  the hazards of unemployment, reduce the level of public assist-
ance  to now indigent individuals and families, increase revenues to the
state and to its municipalities and to achieve  stable  and  diversified
local  economies. In furtherance of these goals, it is the policy of the
state to retain  existing  industries  and  to  attract  new  industries
through  the  acquisition,  construction,  FINANCING, reconstruction and
rehabilitation of industrial and  manufacturing  plants  and  commercial
facilities,  and  to  develop  sites  for  new industrial and commercial
building. It is further declared to  be  the  policy  of  the  state  to
promote the development of such plants and facilities, reasonably acces-
sible  to residential facilities, in those areas where substantial unem-
ployment or underemployment exists, to the end that the  industrial  and
commercial  development [of our urban areas] will proceed in sound fash-
ion and in coordination with development of housing, mass transportation
and public services, and that job opportunities  will  be  available  in
those areas where people lack jobs.
  IT  IS  FURTHER  FOUND  AND  DECLARED  THAT THERE IS AN URGENT NEED TO
PROTECT AND ENHANCE THE QUALITY OF THE NATURAL ENVIRONMENT, TO ENCOURAGE
THE DEVELOPMENT AND EXPANSION OF EXISTING  AND  ALTERNATIVE  SOURCES  OF
ENERGY  AND  THE  CONSERVATION  OF  ENERGY, AND TO ABATE AND PREVENT THE
GENERATION OF HAZARDOUS WASTE, TOXIC BY-PRODUCTS,  AND  OTHER  TYPES  OF
ENVIRONMENTAL POLLUTION.
  It  is  further  declared to be the policy of the state to promote the
safety, health[, morals] and welfare of the people of the state  and  to
promote  the  sound growth and development of our municipalities through
the [correction of such substandard, insanitary, blighted,  deteriorated
or  deteriorating  conditions, factors and characteristics by the clear-
ance, replanning, reconstruction, redevelopment, rehabilitation,  resto-
ration  or  conservation of such areas,] REDEVELOPMENT OF BLIGHTED AREAS
and [of areas reasonably accessible thereto] the undertaking  of  public
and  private  improvement  programs  [related  thereto],  including  the
provision of educational, recreational and cultural facilities, and  the
encouragement  of participation in these programs by private enterprise.
IN FURTHERANCE OF THESE GOALS, IT IS THE POLICY OF THE STATE  TO  ENGAGE
AND EMPOWER THE PUBLIC THROUGH EDUCATIONAL PROGRAMS, COMMUNITY OUTREACH,
AND  AN OPEN AND INCLUSIVE REDEVELOPMENT PLANNING PROCESS; TO COORDINATE
REDEVELOPMENT PROJECTS AND IMPROVEMENT PROGRAMS  WITH  LOCAL  GOVERNMENT
PLANNING  GOALS;  TO  RESPECT  COMMUNITIES' EXISTING SOCIAL AND CULTURAL
FABRIC AND TO LIMIT RESIDENTIAL AND BUSINESS DISPLACEMENT TO THE MAXIMUM
EXTENT POSSIBLE; TO REUSE  EXISTING  RESOURCES  AND  INFRASTRUCTURE  AND
RECYCLE  MATERIALS  AND  STRUCTURES;  TO ENCOURAGE ENERGY EFFICIENCY AND
SUSTAINABLE BUILDING; TO CONSERVE UNDEVELOPED LAND AND ENCOURAGE  INFILL
AND  BROWNFIELD  DEVELOPMENT; TO IMPROVE OR RESTORE NATURAL SYSTEMS SUCH
AS STREAMBEDS, DRAINAGE COURSES, WETLANDS, RIVERS, AND OTHER  ECOLOGICAL
FEATURES, AND TO ENCOURAGE THE CREATION OF PUBLICLY AVAILABLE OPEN SPAC-
ES;  TO  ENSURE THAT ENVIRONMENTAL POLLUTION DOES NOT DISPARATELY AFFECT
AREAS WITH A SUBSTANTIAL NUMBER OF MINORITY OR LOW INCOME HOUSEHOLDS; TO
INCORPORATE CULTURAL RESOURCES AND LANDSCAPES INTO  PROJECT  DESIGNS  BY
PRESERVING  AND  REHABILITATING  BUILDINGS  WITH CULTURAL, HISTORICAL OR
ARCHITECTURAL SIGNIFICANCE, ENCOURAGING ADAPTIVE REUSE AS AN ALTERNATIVE
TO DEMOLITION AND NEW CONSTRUCTION, AND ENCOURAGING COMPATIBLE DESIGN OF
NEW CONSTRUCTION; TO ENCOURAGE THE RETENTION AND CONSTRUCTION OF AFFORD-
ABLE HOUSING THROUGH INCENTIVES, LOANS, AND OTHER PROGRAMS; TO ENCOURAGE

S. 1244                             4

DEVELOPMENT THAT IS ACCESSIBLE AND INVITING TO  PEDESTRIANS,  BICYCLISTS
AND  TRANSIT  USERS,  AND  TO  DISCOURAGE DEVELOPMENT THAT IS RELIANT ON
PERSONAL  AUTOMOBILE  TRANSPORTATION;  TO  INCREASE  OPPORTUNITIES   FOR
PRIVATE  ENTERPRISE,  ESPECIALLY FOR SMALL BUSINESSES, LOCAL BUSINESSES,
AND BUSINESSES OWNED BY MINORITIES AND WOMEN,  THROUGH  PROCEDURES  THAT
ARE  FAIR, OPEN, EQUITABLE, TRANSPARENT, AND DEMONSTRATED TO BE THE BEST
CHOICE FOR THE PUBLIC INTEREST; TO  PROVIDE  SUFFICIENT  SAFEGUARDS  AND
PROTECTIONS  IN  THE EVENT THAT PRIVATE DEVELOPERS WITHDRAW FROM PARTIC-
IPATION IN A REDEVELOPMENT PROJECT OR IMPROVEMENT PROGRAM;  TO  INCREASE
EMPLOYMENT  OPPORTUNITIES  FOR  LOCAL  RESIDENTS,  ESPECIALLY LOW INCOME
RESIDENTS, AND PERSONS WITH OTHER BARRIERS TO  EMPLOYMENT,  THROUGH  JOB
TRAINING,  LOCAL  HIRING AND OTHER ASSISTANCE PROGRAMS; AND TO ENCOURAGE
THE CREATION OF QUALITY JOBS.
  It is further declared to be the policy of the state  to  promote  the
safety,  health[, morals] and welfare of the people of the state through
the provision of adequate, safe and sanitary dwelling accommodations and
facilities incidental or appurtenant thereto for persons and families of
low income.
  For these purposes, there should be created a  corporate  governmental
agency to be known as the "New York state urban development corporation"
which,  through  issuance  of  bonds and notes to the private, investing
public, by encouraging maximum participation by the  private  sector  of
the  economy,  including the sale or lease of the corporation's interest
in projects at the earliest time deemed feasible,  and  through  partic-
ipation  in  programs undertaken by the state, its agencies and subdivi-
sions, and by municipalities and the federal government, may provide  or
obtain  the  capital  resources  necessary to acquire, construct, recon-
struct, rehabilitate or improve such industrial, manufacturing,  commer-
cial,  educational,  recreational  and  cultural facilities, and housing
accommodations for persons and families of low  income,  and  facilities
incidental  or  appurtenant  thereto,  and  to carry out the [clearance,
replanning, reconstruction and rehabilitation of  such  substandard  and
insanitary] REDEVELOPMENT OF BLIGHTED areas.
  It is further declared to be the policy of New York state to encourage
the development of research and development facilities and high technol-
ogy  industrial  incubator  space  at  institutions  of higher education
located in this state and authorized to confer degrees by law or by  the
board  of  regents,  or  on lands in reasonable proximity to such insti-
tutions provided that (i) in the case of research and development facil-
ities such facilities are for the cooperative use of one  or  more  such
institutions  and  one or more business corporations, research consortia
or other industrial organizations  involved  in  research,  development,
demonstration,  or other technologically oriented industrial activities;
and (ii) in the case of high technology industrial incubator space, such
space shall be for rental to business concerns which are in their  form-
ative  stages  and  which  are  involved  in high technology activities,
including but not limited to business concerns  initiated  by  students,
employees  of  such  institution,  including  faculty  members and other
persons or firms academically associated with such institution.
  It is hereby declared that the acquisition,  construction,  FINANCING,
reconstruction,  rehabilitation or improvement of such industrial, manu-
facturing and commercial facilities, and of such  cultural,  educational
and  recreational  facilities  including  but  not limited to facilities
identified as projects and called for to implement  a  state  designated
heritage  area  management  plan  as  provided  in title G of the parks,
recreation and historic preservation law;  the  [clearance,  replanning,

S. 1244                             5

reconstruction  and  rehabilitation  of such substandard and insanitary]
REDEVELOPMENT OF BLIGHTED areas; and the provision of adequate, safe and
sanitary housing accommodations for persons and families of  low  income
and  such  facilities  as  may  be incidental or appurtenant thereto are
public uses and public purposes for which public money may be loaned and
private property may be acquired and tax exemption granted, and that the
powers and duties of the New York state urban development corporation as
hereinafter prescribed are necessary  and  proper  for  the  purpose  of
achieving the ends here recited.
  S  2.  Subdivision  12 of section 3 of section 1 of chapter 174 of the
laws of 1968, constituting the New York state urban  development  corpo-
ration  act,  is  REPEALED  and a new subdivision 12 is added to read as
follows:
  (12) "BLIGHTED  PROPERTY  OR  BLIGHTED  AREA."  BLIGHTED  PROPERTY  OR
BLIGHTED  AREA  MEANS  PROPERTY THAT IS DECLARED BLIGHTED.  (A) A SINGLE
PROPERTY MAY BE DECLARED BLIGHTED IF  IT  MEETS  ANY  OF  THE  FOLLOWING
CONDITIONS:
  1. IS UNFIT FOR HUMAN HABITATION. THIS MEANS A PREMISE WHICH HAS IDEN-
TIFIABLE  CONDITIONS  THAT  ENDANGER  THE LIFE, HEALTH AND SAFETY OF THE
OWNERS, OCCUPANTS, OR THE  PUBLIC.  CONDITIONS  RENDERING  THE  PROPERTY
UNFIT  FOR HUMAN HABITATION INCLUDE, BUT ARE NOT LIMITED TO, SUBSTANTIAL
STRUCTURAL DEFECTS, DILAPIDATION OR DETERIORATIONS, VERMIN  INFESTATION,
LACK OF NECESSARY UTILITIES AND FIRE HAZARDS.
  2. HAS DETERIORATED TO THE POINT WHERE SUCH PREMISES:
  (A)  IS  STRUCTURALLY  UNSOUND OR POSES AN IMMEDIATE THREAT TO LIFE OR
OTHER PROPERTY, OR
  (B) THE COST OF REHABILITATION SIGNIFICANTLY EXCEEDS THE  POST-REHABI-
LITATION MARKET VALUE; AND
  3.  THE  OWNER  FAILS  TO REMEDY THE PROBLEMS WITHIN A REASONABLE TIME
AFTER RECEIVING NOTICE OF VIOLATION BY THE  APPROPRIATE  GOVERNING  BODY
REQUIRING THE OWNER TO:
  (A)  REHABILITATE THE BUILDING TO CONFORM TO MINIMUM CODE HABITABILITY
REQUIREMENTS; OR
  (B) DEMOLISH THE BUILDING FOR HEALTH AND SAFETY REASONS.
  4. IS AN ABANDONED PROPERTY. ABANDONED PROPERTY MEANS:
  (A) UNOCCUPIED PROPERTY WHICH HAS BEEN TAX DELINQUENT FOR AT LEAST TWO
YEARS; OR
  (B) A BUILDING THAT:
  (I) IS UNOCCUPIED BY THE OWNER OR TENANTS; AND
  (II) IS UNFIT FOR HUMAN HABITATION; AND
  (III) HAS DETERIORATED TO THE POINT WHERE:
  A. THE BUILDING IS STRUCTURALLY UNSOUND OR POSES AN  IMMEDIATE  THREAT
TO LIFE OR OTHER PROPERTY; OR
  B. THE COST OF REHABILITATION SIGNIFICANTLY EXCEEDS THE POST-REHABILI-
TATION MARKET VALUE; AND
  C.  THE  OWNER  IS  UNKNOWN  OR  THE OWNER FAILS TO RESPOND WITHIN SIX
MONTHS TO A VIOLATION NOTICE FROM THE APPROPRIATE GOVERNING BODY REQUIR-
ING THE OWNER TO:
  (1) REHABILITATE THE  BUILDING  TO  CONFORM  TO  MINIMUM  HABITABILITY
REQUIREMENTS; OR
  (2) DEMOLISH THE BUILDING FOR HEALTH AND SAFETY REASONS.
  5.  A VACANT LOT ON WHICH A BUILDING HAS BEEN DEMOLISHED AND FOR WHICH
A MUNICIPAL LIEN FOR DEMOLITION COSTS REMAINS UNPAID FOR SIX MONTHS.
  6. IS ENVIRONMENTALLY CONTAMINATED REQUIRING REMEDIATION  FOR  CURRENT
OR  FUTURE  USE UNDER STATE OR FEDERAL LAW, IF THE OWNER FAILS TO ESTAB-
LISH A PLAN TO REMEDY THE PROBLEM WITHIN SIX MONTHS OF RECEIVING  NOTICE

S. 1244                             6

OF  VIOLATION FROM THE APPROPRIATE GOVERNING BODY AND HAS TAKEN STEPS TO
REMEDY THE VIOLATION.
  7. BECAUSE OF CONDITION OR USE, IS REGARDED AS A PUBLIC NUISANCE OR AN
ATTRACTIVE NUISANCE AT COMMON LAW OR HAS BEEN DECLARED A PUBLIC NUISANCE
OR  AN  ATTRACTIVE  NUISANCE  UNDER  A NEW YORK STATUTE OR AN APPLICABLE
MUNICIPAL CODE, AND THE OWNER FAILS TO ABATE  THE  NUISANCE  WITHIN  SIX
MONTHS  OF  RECEIVING NOTICE OF VIOLATION FROM THE APPROPRIATE GOVERNING
BODY.
  8. DEFECTIVE OR UNUSUAL CONDITIONS OF TITLE THAT MAKE THE FREE  TRANS-
FER OR ALIENATION OF THE PROPERTY IMPOSSIBLE.
  9.  THAT  HAS  TAX  DELINQUENCIES  EXCEEDING THE VALUE OF THE PROPERTY
WHERE THE PROPERTY IS OCCUPIED OR UNOCCUPIED.
  (B) PROPERTY SHALL IN NO CASE BE DECLARED BLIGHTED IF IT MEETS  EITHER
OF THE FOLLOWING CRITERIA:
  1.  VACANT  AND  UNIMPROVED  PROPERTY LOCATED IN ANY RURAL OR SUBURBAN
AREA WHICH IS NOT SERVED BY EXISTING UTILITIES.
  2. PROPERTY WHICH SATISFIES THE DEFINITION OF "FARM  WOODLAND",  "LAND
USED IN AGRICULTURAL PRODUCTION", "UNIQUE AND IRREPLACEABLE AGRICULTURAL
LAND",  OR  "VIABLE  AGRICULTURAL  LAND",  AS THOSE TERMS ARE DEFINED IN
SECTION THREE HUNDRED ONE OF THE AGRICULTURE AND MARKETS LAW.
  (C) FOR PURPOSES OF THIS SUBDIVISION, A BUILDING  CONTAINING  MULTIPLE
UNITS SHALL BE TREATED AS A SINGLE PROPERTY.
  (D)  FOR  PURPOSES  OF ACQUIRING MULTIPLE UNITS OF PROPERTY BY EMINENT
DOMAIN, AN AREA MAY BE DECLARED BLIGHTED ONLY IF:
  1. AN AREA IS LOCATED IN AN URBAN OR SUBURBAN AREA GENERALLY SERVED BY
UTILITIES AND INFRASTRUCTURE; AND
  2. SIXTY PERCENT OF THE INDIVIDUAL PARCELS IN THE  AREA  ARE  DECLARED
BLIGHTED UNDER PARAGRAPH (A) OF THIS SUBDIVISION AND REPRESENT A MAJORI-
TY OF THE GEOGRAPHICAL AREA OF THE PROJECT.
  (E) A CONDEMNOR MAY USE EMINENT DOMAIN TO ACQUIRE ANY UNIT OF PROPERTY
WITHIN A BLIGHTED PROJECT AREA.
  (F)  PROPERTIES  OWNED BY A DEVELOPER OR CONDEMNOR INVOLVED IN A REDE-
VELOPMENT PROJECT MAY BE INCLUDED IN ANY BLIGHTED PROJECT AREA  DETERMI-
NATION.
  (G)  FOR  PURPOSES  OF  THIS  SUBDIVISION IF A DEVELOPER, CONDEMNOR OR
AGENCY INVOLVED IN A REDEVELOPMENT PROJECT HAS CAUSED OR  BROUGHT  ABOUT
BY  ACTION  OR INACTION OR MAINTAINED FOR MORE THAN SEVEN YEARS A CONDI-
TION LISTED IN SUBPARAGRAPH ONE OF PARAGRAPH  (A)  OF  THIS  SUBDIVISION
WITHIN  THE PROPOSED PROJECT AREA, THAT CONDITION MAY NOT BE USED IN THE
DETERMINATION OF BLIGHT.
  (H) FOR PURPOSES OF THIS SUBDIVISION, IF PROPERTY LOCATED IN AN URBAN-
IZED AREA GENERALLY SERVED BY  MUNICIPAL  INFRASTRUCTURE  AND  UTILITIES
MEETS  ONE OR MORE OF THE CONDITIONS LISTED IN SUBPARAGRAPH ONE OF PARA-
GRAPH (A) OF THIS SUBDIVISION DUE TO FAILURE ON THE PART OF  THE  APPRO-
PRIATE  GOVERNING  BODY  TO  PROVIDE  NECESSARY  UTILITY SERVICES AND/OR
INFRASTRUCTURE, THAT CONDITION MAY NOT BE USED IN THE  DETERMINATION  OF
BLIGHT.
  (I)  ANY  DECLARATION MADE PURSUANT TO THIS SUBDIVISION SHALL BE VALID
FOR A PERIOD OF UP TO TEN YEARS.
  S 3. Section 10 of section 1 of chapter  174  of  the  laws  of  1968,
constituting  the  New  York  state  urban  development corporation act,
subdivision (d) as amended by chapter 847 of the laws of 1971,  subdivi-
sions (e) and (f) as added and subdivisions (g) and (h) as relettered by
chapter 839 of the laws of 1987, is amended to read as follows:
  S 10. Findings of the corporation. Notwithstanding any other provision
of  this  act,  the  corporation shall not be empowered to undertake the

S. 1244                             7

acquisition, construction, reconstruction, rehabilitation or improvement
of a project unless the corporation finds:
  (a) in the case of a residential project:
  (1)  That  there  exists,  in  the  area in which the project is to be
located, or in an area reasonably accessible to such area,  a  need  for
safe  and sanitary housing accommodations for persons or families of low
income, which the operations of private enterprise cannot provide;
  (2) That the project has been approved  as  a  project  of  a  housing
company pursuant to the provisions of the private housing finance law.
  (b) in the case of an industrial project:
  (1)  That  the  area  in  which  the  project  is  to be located is [a
substandard or insanitary area, or is in danger of becoming a  substand-
ard or insanitary area, wherein] FOUND TO BE BLIGHTED AND there exists a
condition of substantial and persistent unemployment or underemployment;
  (2) That the acquisition or construction and operation of such project
will  prevent,  eliminate  or  reduce unemployment or underemployment in
such area;
  (3) That such project shall consist of a building or  buildings  which
are  suitable for manufacturing, warehousing or research or other indus-
trial, business or commercial purposes[.];
  (4) That adequate provision has been, or will be made for the  payment
of the cost of the acquisition, construction, operation, maintenance and
upkeep of such project[.];
  (5) That the acquisition and construction, proposed leasing, operation
and use of such project will aid in the development, growth and prosper-
ity of the state and the area in which such project is located;
  (6)  That  the  plans  and  specifications assure adequate light, air,
sanitation and fire protection.
  (c) in the case of a land use improvement project:
  (1) That the area in  which  the  project  is  to  be  located  is  [a
substandard  or insanitary area, or is in danger of becoming a substand-
ard or insanitary area] FOUND TO BE BLIGHTED  and  tends  to  impair  or
arrest the sound growth and development of the municipality;
  (2)  That the project consists of a plan or undertaking for the clear-
ance, replanning, reconstruction and rehabilitation of such area and for
recreational and other facilities incidental or appurtenant thereto;
  (3) That the plan  or  undertaking  affords  maximum  opportunity  for
participation  by private enterprise, consistent with the sound needs of
the municipality as a whole.
  (d) in the case of a civic project:
  (1) That THE AREA IN WHICH THE PROJECT IS TO BE LOCATED IS A  BLIGHTED
AREA  WHEREIN  there  exists  [in the area in which the project is to be
located,] a need for the educational, cultural, recreational, community,
municipal, public service or other civic facility to be included in  the
project;
  (2) That the project shall consist of a building or buildings or other
facilities  which  are suitable for educational, cultural, recreational,
community, municipal, public service or other civic purposes;
  (3) That such project will be leased to or owned by the  state  or  an
agency  or  instrumentality  thereof,  a  municipality  or  an agency or
instrumentality thereof, a public corporation, or any other entity which
is carrying out a community, municipal, public service  or  other  civic
purpose,  and that adequate provision has been, or will be, made for the
payment of the cost of acquisition, construction, operation, maintenance
and upkeep of the project;

S. 1244                             8

  (4) That the plans and specifications assure or will  assure  adequate
light, air, sanitation and fire protection.
  (e) in the case of an industrial effectiveness project:
  (1)  That a feasibility study or productivity assessment exists demon-
strating the potential for future profitability of the  firm  requesting
financial  assistance and such study or assessment has been reviewed and
approved by the commissioner of economic development;
  (2) That for loans to implement a  corporate  restructuring  or  turn-
around plan, the management of the industrial firm requesting assistance
is  capable  and  the  firm  has  a sound business development plan that
includes measures to ensure labor  and  management  cooperation  and  to
effect changes required to continue as a successful business;
  (3)  That  the  requested  financial  assistance is not available from
other public or private financing sources; and
  (4) That the area in  which  the  project  is  to  be  located  is  [a
substandard  or insanitary area, or is in danger of becoming a substand-
ard or insanitary area, wherein] FOUND TO BE BLIGHTED AND there exists a
condition of substantial and persistent unemployment or underemployment.
  (f) in the case  of  a  small  and  medium-sized  business  assistance
project:
  (1) That the area in which the project will be located is [a substand-
ard  or  insanitary  area,  or is in danger of becoming a substandard or
insanitary area, wherein] FOUND TO BE BLIGHTED AND there exists a condi-
tion of substantial and persistent unemployment or underemployment;
  (2) That the project demonstrates  market,  management  and  financial
feasibility and has a clear likelihood of success;
  (3)  That the [industrial] firm provides at least a ten percent equity
contribution and such contribution is not  derived  from  other  govern-
mental sources;
  (4)  That  the  requested  financial  assistance is not available from
other public or private financing sources on terms compatible  with  the
successful completion of the project;
  (5)  That the project will not result in the relocation of any [indus-
trial] firm from one municipality within the state  to  another  munici-
pality,  OR  IN  THE  ABANDONMENT OF ONE OR MORE OF THE FIRMS' PLANTS OR
FACILITIES LOCATED WITHIN THE AREA, except under one  of  the  following
conditions: (i) when [an industrial] A firm is relocating within a muni-
cipality  with  a population of at least one million where the governing
body of such municipality approves such relocation; [or] (ii) the corpo-
ration notifies each municipality from which such [industrial] firm will
be relocated and each municipality agrees to such relocation;  OR  (III)
THE  CORPORATION  SHALL DETERMINE ON THE BASIS OF THE APPLICATION BEFORE
IT THAT THE PROJECT IS REASONABLY NECESSARY TO DISCOURAGE THE FIRM  FROM
RELOCATING  TO  A LOCATION OUTSIDE THE STATE AND TO PRESERVE THE COMPET-
ITIVE POSITION OF THE FIRM WITHIN ITS RESPECTIVE INDUSTRY; and
  (6) That the project is not for the purpose of refinancing any portion
of the total project cost or  other  existing  loans  or  debts  of  the
project sponsor or owner.
  (g)  in the case of all projects, that [there is a feasible method for
the relocation of families and individuals displaced  from  the  project
area into decent, safe and sanitary dwellings] THE DISPLACEMENT OF RESI-
DENTS AND BUSINESSES IS LIMITED TO THE MAXIMUM EXTENT POSSIBLE, AND THAT
ALL DISPLACED RESIDENTS AND BUSINESSES WILL BE AFFORDED ADEQUATE COMPEN-
SATION  AND/OR  ASSISTANCE  TO  BE RELOCATED TO SUBSTANTIALLY COMPARABLE
PROPERTIES, which are or will be [provided] LOCATED in the project  area
or in [other areas] AN AREA REASONABLY PROXIMATE TO THE PROJECT AREA AND

S. 1244                             9

not  generally  less  desirable in regard to public utilities and public
and commercial facilities, at SUBSTANTIALLY COMPARABLE rents  or  prices
[within  the  financial  means  of  such  families  or individuals], and
reasonably  accessible  to  their  places of DWELLING AND/OR employment.
[Insofar as is feasible, the] THE corporation shall offer  SUBSTANTIALLY
COMPARABLE  housing  accommodations  to  [such families and individuals]
DISPLACED RESIDENTS in [residential] projects [of the corporation]  THAT
INCLUDE  A RESIDENTIAL COMPONENT, AND INSOFAR AS IS FEASIBLE, THE CORPO-
RATION SHALL ASSIST IN FINDING SUBSTANTIALLY  COMPARABLE  INDUSTRIAL  OR
COMMERCIAL  ACCOMMODATIONS  TO  DISPLACED  BUSINESSES  IN  PROJECTS THAT
INCLUDE AN INDUSTRIAL  OR  COMMERCIAL  COMPONENT.  The  corporation  may
render  to  business  and  commercial  tenants and [to families or other
persons] displaced [from the project area,]  RESIDENTS  ANY  OTHER  such
assistance  as it may deem [necessary to enable them to relocate] APPRO-
PRIATE.
  (h) in the case of all projects,  the  corporation  shall  [state  the
basis for its findings.]:
  (1)  IN THE CASE OF A SINGLE PROPERTY, MAKE WRITTEN FINDINGS IDENTIFY-
ING THE SPECIFIC CONDITIONS WHICH RENDER  THE  PROPERTY  BLIGHTED  UNDER
SUBDIVISION TWELVE OF SECTION THREE OF THIS ACT;
  (2)  IN THE CASE OF MULTIPLE PROPERTIES OR PROJECT AREAS, MAKE WRITTEN
FINDINGS DEMONSTRATING THAT THE REQUIREMENTS OF  SUBDIVISION  TWELVE  OF
SECTION  THREE  OF  THIS ACT HAVE BEEN MET. IN ORDER TO DEMONSTRATE THAT
SIXTY PERCENT OF THE PROPERTIES IN THE AREA  ARE  INDIVIDUALLY  BLIGHTED
AND  COMPRISE  A  MAJORITY OF THE GEOGRAPHICAL AREA OF THE PROJECT, EACH
BLIGHTED PROPERTY MUST BE IDENTIFIED AND THE SPECIFIC CONDITIONS RENDER-
ING IT BLIGHTED UNDER SUBDIVISION TWELVE OF SECTION THREE  OF  THIS  ACT
MUST BE IDENTIFIED.
  S 4. This act shall take effect immediately.

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