BILL NUMBER:S7329

TITLE OF BILL:  An act to amend the economic development law, in
relation to extending the date of the application and approval process
for the economic transformation and facility redevelopment program

PURPOSE:  To honor the State's commitment to help local communities
affected by the 2011 closure of correctional facilities and juvenile
justice facilities by allowing a meaningful opportunity to utilize the
tax credit program which offers incentives for job creation and local
investment.

SUMMARY OF PROVISIONS:  Amends Section 402(1) of the Economic
Development Law to extend the deadline by which a business entity must
apply for tax credits for locations within an Economic Transformation
Area for a recently closed correctional facility or juvenile justice
facility. The current deadline of January 1, 2015 would be extended to
January 1, 2018.

JUSTIFICATION:  In 2011, several correctional facilities and juvenile
justice facilities throughout the state were closed. As part of the
2011 State Budget, the Governor and Legislature agreed to measures to
try to ameliorate the impact of the closures and promote economic
development in these vulnerable communities.

Part V of Chapter 61 of the Laws of 2011 added Article 18 to the
              

Economic Development Law, entitled the Economic Transformation and
Facility Redevelopment Program. This legislation offered tax benefits
for the redevelopment of the closed facilities and the economic
transformation of the surrounding communities.

However, the 2011 law set a deadline by which new businesses which
locate within a designated economic transformation area must apply for
participation in the tax credit program. The deadline is the later of
three years after the facility's closure or January 1, 2015.

Unfortunately, given economic conditions and delays in converting
facilities, it is taking longer than anticipated in some communities
to begin the redevelopment process. For example, one county is
planning to convert a closed juvenile justice facility into a
technology park and business incubator. However, it took until January
2014 before the property was legally transferred from the State to the
county. Only then could the county begin to undertake the necessary
infrastructure work to convert the site into a business park. Because
of these delays, the tax credit program will be on the verge of
expiring by the time the community is ready to start marketing the
site.

These communities were promised assistance to help them recover from
the loss of state facilities and needed local jobs. It is important to
provide these communities with a realistic and meaningful opportunity
to actually utilize these programs. This bill would extend the period
of time in which eligible businesses may apply for tax credits.

FISCAL IMPLICATIONS: This bill simply extends the availability of the
tax credit program, and does not change any of the other parameters of
the program. The State has spent far less than anticipated over the


past few years because of the delays and under-utilization of the
program.

EFFECTIVE DATE: Immediately