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

                                  5058

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 10, 2009
                               ___________

Introduced by M. of A. BRENNAN, MILLMAN -- read once and referred to the
  Committee on Economic Development, Job Creation, Commerce and Industry

AN ACT to amend the urban development corporation act, the private hous-
  ing finance law, the public authorities law, the general municipal law
  and  the eminent domain procedure law, in relation to addressing envi-
  ronmental and community concerns regarding the  Atlantic  Yards  arena
  and redevelopment project

  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 urban development corporation act is amended by adding
a new eleventh undesignated paragraph to read as follows:
  THE LEGISLATURE HEREBY FINDS AND DECLARES THAT THE DEVELOPMENT OF  THE
ATLANTIC  YARDS AND ITS IMMEDIATE SURROUNDING AREA IN BROOKLYN IS IN THE
PUBLIC INTEREST. SUCH DEVELOPMENT MAY INCLUDE A COMBINATION OF A  SPORTS
ARENA,  SUBSTANTIAL  NEW  HOUSING, INCLUDING HOUSING FOR PERSONS OF LOW-
AND MIDDLE-INCOME, AS PROVIDED IN SECTION 608-B OF THE  PRIVATE  HOUSING
FINANCE  LAW,  RETAIL  AND COMMERCIAL DEVELOPMENT, AND PUBLIC SPACE. THE
LEGISLATURE FINDS THAT IT IS  NECESSARY  TO  BALANCE  ENVIRONMENTAL  AND
COMMUNITY CONCERNS REGARDING THE SIZE, SCOPE, AND DENSITY OF THE PROJECT
WITH  THE  BENEFITS  OF  THE  PROJECT; AND FURTHER FINDS IT NECESSARY TO
ASSURE AN ENHANCED DUE PROCESS FOR OWNERS AND  TENANTS  IN  THE  PROJECT
AREA SUBJECT TO EMINENT DOMAIN AND DISPLACEMENT.
  S  2.  Section  1  of chapter 174 of the laws of 1968 constituting the
urban development corporation act is amended by  adding  a  new  section
16-t to read as follows:
  S  16-T.  THE  ATLANTIC  YARDS ARENA AND REDEVELOPMENT PROJECT. 1. THE
"ATLANTIC YARDS ARENA AND REDEVELOPMENT PROJECT" REFERS TO AN  APPLICANT
WHO  SIGNED  A MEMORANDUM OF UNDERSTANDING WITH THE NEW YORK STATE URBAN
DEVELOPMENT CORPORATION  DOING  BUSINESS  AS  EMPIRE  STATE  DEVELOPMENT
CORPORATION,  THE CITY OF NEW YORK AND THE NEW YORK CITY ECONOMIC DEVEL-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07382-01-9
              

A. 5058                             2

OPMENT CORPORATION ON FEBRUARY 18, 2005 AND SHALL  INCLUDE  AN  AREA  OF
APPROXIMATELY  TWENTY-TWO  ACRES  ROUGHLY BOUNDED BY FLATBUSH AND FOURTH
AVENUES TO THE WEST, VANDERBILT AVENUE TO THE EAST, ATLANTIC  AVENUE  TO
THE  NORTH,  AND  DEAN STREET TO THE SOUTH. THE AFFECTED PARCELS INCLUDE
THE ENTIRETY OF TAX BLOCKS 1118, 1119, 1120, 1121, 1127,  1129  AND  TAX
BLOCK 1128, LOTS 1, 2, 4, 85, 86, 87, 88 AND 89 IN THE BOROUGH OF BROOK-
LYN AS WELL AS ANY PARCELS IDENTIFIED IN THE ENVIRONMENTAL IMPACT STATE-
MENT NOT LISTED. THE PROJECT MAY INCLUDE A RESIDENTIAL PROJECT, LAND USE
IMPROVEMENT  PROJECT,  CIVIC  PROJECT,  SMALL  AND MEDIUM-SIZED BUSINESS
ASSISTANCE PROJECT OR ECONOMIC DEVELOPMENT PROJECT AS DEFINED IN SECTION
THREE OF THIS ACT. THIS ATLANTIC YARDS ARENA AND  REDEVELOPMENT  PROJECT
SHALL  NOT  EXCEED  A  TOTAL OF FIVE MILLION SIX HUNDRED THOUSAND SQUARE
FEET.
  2. THE ATLANTIC YARDS ARENA AND REDEVELOPMENT PROJECT MODIFIED GENERAL
PROJECT PLAN, AS ADOPTED BY THE BOARD OF THE  URBAN  DEVELOPMENT  CORPO-
RATION,  DOING  BUSINESS  AS THE EMPIRE STATE DEVELOPMENT CORPORATION ON
DECEMBER 8, 2006, SHALL BE AMENDED TO LIMIT THE PROJECT  TO  A  SIZE  NO
GREATER  THAN  FIVE  MILLION SIX HUNDRED FIFTY THOUSAND SQUARE FEET. THE
PROJECT SHALL CONSIST OF A MINIMUM OF FOUR THOUSAND TWO HUNDRED RESIDEN-
TIAL HOUSING UNITS, AND A MINIMUM OF TWO THOUSAND TWO HUNDRED SUCH UNITS
SHALL BE AFFORDABLE HOUSING UNITS AS PROVIDED IN SECTION  608-B  OF  THE
PRIVATE HOUSING FINANCE LAW.
  S  3.  The  private  housing  finance  law  is amended by adding a new
section 608-b to read as follows:
  S 608-B. ATLANTIC YARDS ARENA AND REDEVELOPMENT PROJECT: SUBSIDY.   1.
NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE COMMISSIONER IS HERE-
BY DIRECTED TO ENTER INTO A HOUSING ASSISTANCE PAYMENT CONTRACT WITH THE
ATLANTIC  YARDS  ARENA  AND  REDEVELOPMENT PROJECT, TO PROVIDE AN ANNUAL
SUBSIDY OF TWELVE MILLION SIX HUNDRED THOUSAND DOLLARS PER  YEAR  FOR  A
MINIMUM  OF  TWO THOUSAND TWO HUNDRED UNITS OF AFFORDABLE HOUSING, UP TO
FIFTEEN MILLION FOUR HUNDRED THOUSAND DOLLARS PER YEAR FOR A MAXIMUM  OF
TWENTY-TWO  HUNDRED  UNITS  OF  AFFORDABLE  HOUSING PLUS ADJUSTMENTS FOR
ANNUAL INFLATION BASED ON THE CONSUMER PRICE  INDEX,  FOR  A  PERIOD  OF
THIRTY  YEARS,  RENTED  TO  HOUSEHOLDS OF UP TO BUT NOT EXCEEDING NINETY
THOUSAND DOLLARS IN INCOME PER YEAR, IN ACCORDANCE  WITH  THE  FOLLOWING
TABLE:

TENANT HOUSEHOLD    PERCENTAGE OF RENT
ANNUAL INCOME ($)   SUBSIDIZED (%)

30,000 OR LESS      70
30,001-45,000       70-55
45,001-60,000       55-40
60,001-75,000       40-25
75,001-90,000       25-10
90,001 OR GREATER   NO SUBSIDY

  2.  THE  HOUSING UNITS TO BE SUBSIDIZED PURSUANT TO THIS SECTION SHALL
BE MADE AVAILABLE AND RENTED TO HOUSEHOLDS IN A MANNER THAT, AS  CLOSELY
AS  IS PRACTICABLE, DISTRIBUTES SUCH HOUSING UNITS EVENLY TO EACH OF THE
INCOME BRACKETS SET FORTH IN THIS SECTION.  THE SPONSOR SHALL DEVELOP  A
PLAN  THAT PROVIDES FOR THREE HUNDRED UNITS OF THESE HOUSING UNITS TO BE
SOLD AS CONDOMINIUMS AND TO BE MADE AVAILABLE AND SOLD TO HOUSEHOLDS  IN
A  MANNER  THAT,  AS  CLOSELY  AS IS PRACTICABLE, DISTRIBUTES SUCH UNITS
EVENLY TO EACH OF THE INCOME BRACKETS AS SET FORTH IN THE PROJECT PLAN.

A. 5058                             3

  S 4. Paragraph a of subdivision  6  of  section  2897  of  the  public
authorities law, as added by chapter 766 of the laws of 2005, is amended
to read as follows:
  a.  All  disposals  or  contracts for disposal of property of a public
authority made or authorized by the contracting officer  shall  be  made
after  publicly  advertising  for bids except as provided in [paragraph]
PARAGRAPHS c AND C-1 of this subdivision.
  S 5. Subdivision 6 of section 2897 of the public  authorities  law  is
amended by adding a new paragraph c-1 to read as follows:
  C-1.  THE LEGISLATURE FINDS AND DECLARES IT TO BE IN THE PUBLIC INTER-
EST FOR THE APPLICANT TO PROCEED WITH THE ATLANTIC YARDS ARENA AND REDE-
VELOPMENT PROJECT. IN CONSIDERATION  OF  SUCH  AND  NOTWITHSTANDING  ANY
OTHER  PROVISION  OF  LAW  TO  THE  CONTRARY, THE APPLICANT SHALL NOT BE
RESPONSIBLE FOR THE FOLLOWING:
  (I) PAYMENT FOR THE DEVELOPMENT RIGHTS TO THE ATLANTIC YARDS; AND
  (II) REIMBURSEMENT FOR ONGOING PLATFORM MAINTENANCE.
  THE APPLICANT SHALL INDEMNIFY THE METROPOLITAN TRANSPORTATION AUTHORI-
TY FOR REMEDIATION COSTS ASSOCIATED WITH ENVIRONMENTAL CONDITIONS ON THE
PROPERTY COMMONLY KNOWN AS THE VANDERBILT YARD.
  S 6. The general municipal law is amended  by  adding  a  new  section
507-a to read as follows:
  S 507-A. ATLANTIC YARDS ARENA AND REDEVELOPMENT PROJECT; ACCOMMODATION
TO  TENANTS.  1. FOR PURPOSES OF THIS SECTION, THE TERMS "DEVELOPER" AND
"DEVELOPMENT PROJECT" SHALL MEAN THE DEVELOPER AND  DEVELOPMENT  PROJECT
IN  THE  ATLANTIC  YARDS ARENA AND REDEVELOPMENT PROJECT AS SET FORTH IN
SECTION SIXTEEN-T OF SECTION ONE OF THE  URBAN  DEVELOPMENT  CORPORATION
ACT.
  2. THE DEVELOPER (AND ANY SUCCESSOR OWNER OR LESSEE OF ANY BUILDING IN
THE  DEVELOPMENT)  SHALL ACCOMMODATE ALL RESIDENTIAL TENANTS AFFECTED BY
THE DEVELOPMENT PROJECT. THE DEVELOPER  SHALL  PROVIDE  ALL  RESIDENTIAL
TENANTS  CURRENTLY  AND  LEGALLY  OCCUPYING A LEGAL RESIDENTIAL DWELLING
UNIT AS THEIR PRIMARY RESIDENCE WITHIN THE AFFECTED AREA WHO ARE IN GOOD
STANDING UNDER THE TERMS OF A VALID WRITTEN LEASE AGREEMENT, WHICH IS IN
FULL FORCE AND EFFECT, AT SUCH TIME AS THEIR PREMISES ARE  SCHEDULED  TO
BE  IMPACTED  BY  CONSTRUCTION  OF THE DEVELOPMENT PROJECT, AND WHO HAVE
RESIDED IN SUCH A RESIDENCE FOR AT LEAST ONE YEAR PRIOR TO THE  DATE  OF
THE WRITTEN PROPOSAL SUBMITTED BY THE DEVELOPER, WITH "REASONABLY COMPA-
RABLE  LIVING  SPACE"  IN  A NEW UNIT WITHIN THE DEVELOPMENT PROJECT, AT
THEIR CURRENT RENT  AND  A  REASONABLE  RELOCATION  ALLOWANCE.  FOR  THE
PURPOSES  OF THIS SUBDIVISION "REASONABLY COMPARABLE LIVING SPACE" SHALL
MEAN AN APARTMENT WITH APPROXIMATELY THE SAME SQUARE FOOTAGE AND  NUMBER
OF  BEDROOMS  AS SUCH TENANT'S EXISTING UNIT WHICH IS ON A FLOOR THAT IS
NO LOWER THAN THE FLOOR OF SUCH EXISTING UNIT. IF A REASONABLY  COMPARA-
BLE SPACE AT THE SAME RENT IS NOT AVAILABLE, THE DEVELOPER SHALL PAY THE
DIFFERENCE  IN  RENT FOR A REASONABLY COMPARABLE LIVING SPACE OUTSIDE OF
THE DEVELOPMENT PROJECT AREA, WHICH WILL TO THE EXTENT REASONABLY  PRAC-
TICABLE  BE IN A NEIGHBORING COMMUNITY (OR SUCH OTHER COMMUNITY ACCEPTA-
BLE TO THE DISPLACED PERSONS AND THE DEVELOPER) UNTIL  SUCH  TIME  AS  A
UNIT  (IF THE DEVELOPMENT PROJECT IS DISTINCTLY ALL OR PART RESIDENTIAL)
IS MADE AVAILABLE IN THE DEVELOPMENT PROJECT ON THEN  COMPARABLE  RENTAL
TERMS  (GIVING  EFFECT  TO  STANDARD  COST  OF  LIVING INCREASES OR RENT
STABILIZATION/CONTROL INCREASES, AS APPLICABLE) AND A  REASONABLE  RELO-
CATION  ALLOWANCE  FOR  THE  INITIAL  MOVE  AND SUBSEQUENT MOVE INTO THE
DEVELOPMENT.
  S 7. The eminent domain procedure law  is  amended  by  adding  a  new
section 209 to read as follows:

A. 5058                             4

  S 209. ATLANTIC YARDS ARENA AND REDEVELOPMENT PROJECT; COMPENSATION TO
OWNERS.  1. FOR PURPOSES OF THIS SECTION, THE TERM "DEVELOPMENT PROJECT"
SHALL MEAN THE DEVELOPMENT PROJECT IN THE ATLANTIC YARDS ARENA AND REDE-
VELOPMENT PROJECT AS SET FORTH IN SECTION SIXTEEN-T OF  SECTION  ONE  OF
THE URBAN DEVELOPMENT CORPORATION ACT.
  2.  IN  ADDITION  TO  ANY  RIGHTS AFFORDED CONDEMNEES PURSUANT TO THIS
CHAPTER, THE CONDEMNOR SHALL PROVIDE AT LEAST ONE HUNDRED FIFTY  PERCENT
OF THE FAIR MARKET VALUE COMPENSATION TO ALL PROPERTY OWNERS AFFECTED BY
EMINENT  DOMAIN ACQUISITION FOR THE PURPOSE OF IMPLEMENTING THE DEVELOP-
MENT PROJECT. SUCH CONDEMNOR SHALL ALSO PAY TO SUCH OWNERS, THE COST  OF
EXPENSES INCURRED IN RELOCATING TO A NEW RESIDENCE.
  S   8.   Failure  to  develop  housing.  The  sponsor  shall  commence
construction and develop residential housing units, including affordable
housing units, pursuant to the terms and conditions of chapter 15 of the
laws of 2008 of the state of New  York.  If  within  two  years  of  the
completion of the arena, the sponsor has failed to commence construction
on  residential  apartment  buildings  containing at least eight hundred
units, of which no less than  fifty  percent  of  such  units  shall  be
affordable  housing  as  defined by section 608-b of the private housing
finance law, the Empire State Development Corporation shall withdraw the
designation of the Forest City Ratner Corporation as the sponsor of  the
remainder of the redevelopment site. The Empire State Development Corpo-
ration  shall  issue a request for proposals for completion of the rede-
velopment project which shall include construction  of  the  residential
housing  units  pursuant  to  the provisions of subdivision 2 of section
16-t of section 1 of the urban development  corporation  act,  including
the offer of a housing payment assistance contract or contracts. As such
contract  or  contracts are executed, the Forest City Ratner Corporation
shall reimburse the state of New York for the  amounts  paid  under  the
contract,  and  the Empire State Development Corporation shall amend the
project plan to require such reimbursement as a condition  of  continued
approval of the plan.
  S 9. This act shall take effect immediately.