senate Bill S3144A

Establishes a kitchen incubator/shared-use kitchen facility program within the urban development corporation

download pdf

Sponsor

Co-Sponsors

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
view actions

actions

  • 30 / Jan / 2013
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 17 / May / 2013
    • AMEND (T) AND RECOMMIT TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 17 / May / 2013
    • PRINT NUMBER 3144A
  • 08 / Jan / 2014
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Summary

Establishes a kitchen incubator/shared-use kitchen facility program within the urban development corporation; provides grant funding to local development corporations, municipalities, educational institutions and not-for-profit entities for the development or expansion of kitchen incubator/shared-use kitchen facilities which make available services such as food production, technical assistance, business management and marketing, distribution, storage and retailing assistance, particularly in economically distressed areas.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A6997
Versions:
S3144
S3144A
Legislative Cycle:
2013-2014
Current Committee:
Senate Corporations, Authorities And Commissions
Law Section:
New York State Urban Development Corporation Act
Laws Affected:
Add §16-w, amd §16-m, UDC Act
Versions Introduced in Previous Legislative Cycles:
2011-2012: S439
2009-2010: S7729A

Sponsor Memo

BILL NUMBER:S3144A

TITLE OF BILL: An act to amend the New York state urban development
corporation act, in relation to kitchen incubator/shared-use kitchen
facilities

PURPOSE OF BILL:

Provide start-up and expansion funding for not-for-profit sponsors of
small-scale food processing facilities.

SUMMARY OF SPECIFIC PROVISIONS:

Would add a new section 16-w to chapter 174 of the laws of 1968
constituting the NYS Urban Development Corporation (UDC) Act creating
a kitchen incubator/shared-use kitchen facility grant program. Section
1. Subdivision (1) establishes that the Corporation (UDC) would be
authorized to award competitive grants to local development
corporations, municipalities, educational institutions and other
not-for-profit organizations for the costs involved in starting or
expanding a kitchen incubator/shared-use kitchen facility. The
Corporation would be authorized to contract with the Commissioner of
Agriculture and Markets, to prepare and issue requests for proposals,
accept grant applications, recommend those applications that best meet
criteria, establish criteria and administer grants. Grants may be used
for construction, rehabilitation, equipment, training, technical
assistance and other approved purposes and the sponsors must provide
low-cost space and financing and business support services. Other
services, such as technical, production, distribution and sales
assistance to tenants, may be provided. Subdivision (2) requires grant
applicants to provide management plans for financial self-sufficiency,
community needs assessment, and planning for providing assistance
described in paragraph (1). Subdivision (3) grants and loans shall not
exceed $250,000 per year. Preference would be given to applicants:
from highly distressed areas or empire zones; providing a local match;
meeting a substantial local or regional need; complementing local
programs or providing services not available from local programs or
local government or the private sector; providing services, including,
but not limited to, food production or processing technical
assistance, marketing, distribution, purchasing, storage, packaging,
insurance, on-site retailing or other services; and, who have
developed a plan, to assist businesses in the facility with purchasing
NYS agricultural products and promoting the facility to regional
farmers. Section 2. Amends paragraph b of subdivision 1 of section
16-m of section 1 of chapter 174 of the laws of 1968 as added by
chapter 84 of the laws of 2002 to include kitchen incubator/shared-use
kitchen programs in the Economic Development Fund.

JUSTIFICATION:

Small businesses provide a significant portion of the jobs, and
opportunities for financial success, in our State. This is especially
true for distressed communities, rural areas, immigrant populations
and women and minorities. In the food sector of our economy many
successful enterprises have been started at home or on the farm by
individuals who may not have an advanced degree or investment income
but have created a great recipe or family dish that could be developed


into a profitable product. The growth of these types of businesses is
often dependent on affordable, available processing space, financing,
management assistance and other services that can, nurture an emerging
firm. A facility assisting the growth, of new or expanding businesses
is called an incubator. Kitchen incubators are similar to other types
of business incubators; . they provide inexpensive space, shared
services, access to financing and other support to multiple small
enterprises such as specialty food producers, farmers, street vendors,
restaurants, caterers, and food service training programs. These food
business incubators - can be built from scratch but most often are
located in buildings, such as abandoned or underused food service
facilities, that already have available food preparation space and
equipment. The goals of these "kitchen" facilities are to foster
entrepreneurship, job -development, and community revitalization. An
additional go al is improving local farm sustainability by providing
an outlet for farmers to sell, or add value themselves, to their farm
products.

This bill would provide seed funding for communities to establish
facilities that provide opportunities for all segments of our society
to become food business owners. New business owners create jobs fox
the surrounding area. The facility could also participate in workforce
training and development. The proposed funding for these facilities
would be targeted and carefully allocated. Program sponsors would be
required to develop a facility that is based on a sound plan that
analyzes community needs, and ensures fiscal responsibility. The
State's economic development efforts currently focus financial
assistance to large companies, however, major food processors have
virtually disappeared from New York. Creating a program for
small-scale food businesses will help reverse this trend, benefiting
local economies, workers and farmers.

SUMMARY OF AMENDMENTS:

Would authorize the Commissioner of Agriculture and Markets to
contract to administer the grant program. Removes reference to
licensing of facilities. Removes reference to applicants developing
plans with Agriculture and Markets. Removes limit on grants per
application.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Subject to state appropriations.

REGULATION IMPACT:

State regulations establishing grant application-requirements may be
needed.

EFFECTIVE DATE:

Immediately.

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

                                 3144--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 30, 2013
                               ___________

Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and   Commissions  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the New York state urban development corporation act, in
  relation to kitchen incubator/shared-use kitchen facilities

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

  Section  1. Section 1 of chapter 174 of the laws of 1968, constituting
the New York state urban development  corporation  act,  is  amended  by
adding a new section 16-w to read as follows:
  S  16-W.  SMALL BUSINESS KITCHEN INCUBATOR/SHARED-USE KITCHEN PROGRAM.
1. THERE IS HEREBY ESTABLISHED WITHIN THE CORPORATION A  SMALL  BUSINESS
KITCHEN INCUBATOR/SHARED-USE KITCHEN PROGRAM. THE CORPORATION IS AUTHOR-
IZED WITHIN AVAILABLE APPROPRIATIONS IN THE EMPIRE STATE ECONOMIC DEVEL-
OPMENT  FUND  ESTABLISHED PURSUANT TO SECTION 16-I OF THIS ACT, TO AWARD
GRANTS, ON A COMPETITIVE BASIS IN RESPONSE TO REQUEST-FOR-PROPOSALS,  TO
LOCAL   DEVELOPMENT  CORPORATIONS,  MUNICIPALITIES,  EDUCATIONAL  INSTI-
TUTIONS, AND OTHER NOT-FOR-PROFIT ORGANIZATIONS FOR THE  COSTS  INVOLVED
IN  STARTING OR EXPANDING A KITCHEN INCUBATOR/SHARED-USE KITCHEN FACILI-
TY.  THE CORPORATION IS FURTHER AUTHORIZED TO CONTRACT WITH THE  COMMIS-
SIONER  OF  AGRICULTURE AND MARKETS, AND SUCH COMMISSIONER IS AUTHORIZED
TO CONTRACT WITH THE CORPORATION, TO  PREPARE  AND  ISSUE  REQUESTS  FOR
PROPOSALS,  ACCEPT GRANT APPLICATIONS, RECOMMEND THOSE APPLICATIONS THAT
BEST MEET ESTABLISHED CRITERIA, TO ESTABLISH CRITERIA AND TO  ADMINISTER
GRANTS  AWARDED UNDER THIS SUBDIVISION.  SUCH GRANTS MAY BE USED FOR THE
CONSTRUCTION OR REHABILITATION OF SUCH FACILITY, PURCHASE OF  EQUIPMENT,
TRAINING,  TECHNICAL  ASSISTANCE,  AND  OTHER PURPOSES NECESSARY FOR THE
SUCCESSFUL DEVELOPMENT OR EXPANSION OF  A  KITCHEN  INCUBATOR/SHARED-USE
KITCHEN  FACILITY. KITCHEN INCUBATOR/SHARED-USE KITCHEN FACILITIES SHALL
BE FOOD PROCESSING  OR  PREPARATION  FACILITIES  THAT  ARE  OPERATED  BY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01853-02-3

S. 3144--A                          2

NOT-FOR-PROFIT CORPORATIONS OR GOVERNMENT AGENCIES AND USED PRIMARILY BY
SMALL AND EMERGING BUSINESSES, INCLUDING BOTH FULL-TIME FACILITY TENANTS
AND  BUSINESSES THAT RENT SPACE ON A TEMPORARY BASIS.  THEY MUST PROVIDE
OR MAKE AVAILABLE FOR FACILITY BUSINESSES: LOW-COST SPACE, BELOW CURRENT
MARKET  VALUE  IN  THE  AREA  THE FACILITY SERVES; AND SUPPORT SERVICES,
INCLUDING BUT NOT LIMITED TO, BUSINESS PLANNING, MANAGEMENT  ASSISTANCE,
FINANCIAL  PACKAGING,  LINKAGES  TO  FINANCING SOURCES, AND COORDINATION
WITH OTHER SOURCES OF TRAINING AND ASSISTANCE.  THEY MAY PROVIDE OR MAKE
AVAILABLE FOR FACILITY BUSINESSES, SERVICES SUCH AS FOOD  PRODUCTION  OR
PROCESSING  TECHNICAL  ASSISTANCE,  MARKETING, DISTRIBUTION, PURCHASING,
STORAGE, PACKING, INSURANCE, ON-SITE RETAILING OR OTHER SERVICES.
  2. PROJECT PLANS.   APPLICANTS FOR GRANTS MUST  PROVIDE  A  MANAGEMENT
PLAN  AND A BUSINESS PLAN FOR OPERATING THE KITCHEN INCUBATOR/SHARED-USE
KITCHEN FACILITY WHICH DEMONSTRATES TO THE SATISFACTION  OF  THE  CORPO-
RATION:  (I)  LOCAL  BUSINESS  INTEREST  IN  A NEW OR EXPANDED FACILITY,
INCLUDING THE FOOD PROCESSING NEEDS OF EXISTING AND POTENTIAL FOOD BUSI-
NESSES; (II) THE APPLICANT'S ABILITY TO DELIVER SERVICES AND  ASSISTANCE
AS DESCRIBED IN SUBDIVISION ONE OF THIS SECTION, INCLUDING A DESCRIPTION
OF HOW SUCH ASSISTANCE AND SERVICES WILL BE DELIVERED; (III) WHETHER THE
SERVICES  PROVIDED  TO  FACILITY  TENANTS  WILL  BE  COVERED  BY FEES OR
INCLUDED IN THE RENT, AND HOW RENTALS AND/OR FEES  WILL  BE  STRUCTURED;
(IV) A POLICY FOR TENANTS' ENTRANCE TO AND EXIT, OR GRADUATION, FROM THE
FACILITY; AND, (V) THAT THE FACILITY CAN BE SELF-SUSTAINING AND WILL NOT
REQUIRE LONG-TERM STATE OPERATING SUBSIDIES.
  3.  GRANT  CRITERIA. GRANTS AND LOANS MADE BY THE CORPORATION PURSUANT
TO THIS SECTION SHALL BE SUBJECT TO THE FOLLOWING LIMITATIONS:
  A. NO SUCH GRANT SHALL EXCEED TWO HUNDRED FIFTY THOUSAND  DOLLARS  PER
YEAR; AND
  B.  PREFERENCE  SHALL  BE  GIVEN  TO APPLICANTS WHICH: (I) MEET HIGHLY
DISTRESSED AREA CRITERIA; PROVIDE A  LOCAL  MATCH;  MEET  A  SUBSTANTIAL
LOCAL  OR  REGIONAL  NEED; COMPLEMENT LOCAL PROGRAMS OR PROVIDE SERVICES
NOT READILY AVAILABLE FROM UNITS OF  LOCAL  GOVERNMENT  OR  THE  PRIVATE
SECTOR;  PLAN  TO  PROVIDE  OR  MAKE  AVAILABLE FOR FACILITY BUSINESSES,
SERVICES, INCLUDING BUT NOT LIMITED TO, FOOD  PRODUCTION  OR  PROCESSING
TECHNICAL  ASSISTANCE,  MARKETING,  DISTRIBUTION,  PURCHASING,  STORAGE,
PACKAGING, INSURANCE, ON-SITE RETAILING OR OTHER SERVICES; AND (II) HAVE
DEVELOPED A PLAN TO ASSIST BUSINESSES PARTICIPATING IN  THE  APPLICANT'S
KITCHEN  INCUBATOR/SHARED-USE  KITCHEN FACILITY WITH PURCHASING NEW YORK
STATE AGRICULTURAL PRODUCTS, AND  PROMOTING  THE  FACILITY  TO  REGIONAL
FARMERS.
  S  2.  Paragraph  (b) of subdivision 1 of section 16-m of section 1 of
chapter 174 of the laws of 1968, constituting the New York  state  urban
development  corporation act, as added by section 1 of part N of chapter
84 of the laws of 2002, is amended to read as follows:
  (b) Loans, loan guarantees,  and  grants  including  interest  subsidy
grants  may  be provided to municipalities, industrial development agen-
cies, not-for-profit corporations or local development corporations  for
the  purpose  of  developing  federal  facility  sites, urban industrial
sites, industrial parks and incubator buildings INCLUDING SMALL BUSINESS
KITCHEN INCUBATOR/SHARED-USE KITCHEN FACILITIES; or to undertake prelim-
inary planning relating thereto;
  S 3. This act shall take effect immediately, provided,  however,  that
the  amendments to section 16-m of the urban development corporation act
made by section two of this act shall not affect the expiration of  such
section and shall expire and be deemed repealed therewith.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.