S T A T E   O F   N E W   Y O R K
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                                  2193

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 14, 2011
                               ___________

Introduced by M. of A. WRIGHT, ROBINSON, COLTON -- Multi-Sponsored by --
  M.  of  A.  CANESTRARI,  LATIMER,  RAIA,  ZEBROWSKI  --  read once and
  referred to the Committee on Judiciary

AN ACT to amend  the  eminent  domain  procedure  law,  in  relation  to
  requirements  for  seizure  of  private  property for public use under
  certain circumstances

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

  Section 1. Subdivision (G) of section 103 of the eminent domain proce-
dure  law  is  amended  and  a  new  subdivision (H) is added to read as
follows:
  (G) (I) "Public project" means any program or project for which acqui-
sition of property may be required for a public use, benefit or purpose,
PROVIDED THAT WHERE THE PURPOSE OF SUCH PROGRAM OR PROJECT IS TO PROVIDE
ECONOMIC DEVELOPMENT THROUGH AN URBAN REDEVELOPMENT  PLAN  OR  AN  URBAN
RENEWAL  PLAN  IN  AN  AREA  OF  THE  STATE  WHICH  IS NOT BLIGHTED, THE
PROVISIONS OF SECTION TWO HUNDRED NINE OF THIS CHAPTER SHALL APPLY.
  (II) PUBLIC BENEFIT PROJECT SHALL ALSO INCLUDE ANY CORPORATE DEVELOPER
EITHER PUBLIC OR PRIVATE WHO ENTERS INTO A COMMUNITY BENEFITS  AGREEMENT
WITH  NO LESS THAN TEN COMMUNITY ORGANIZATIONS WHO: (1) IN THE LAST FIVE
YEARS  PRIOR  TO  THE  DEVELOPMENT  PROJECT,  WERE  IN   POSSESSION   OF
NOT-FOR-PROFIT  501(C)(3)  STATUS  AS  RECOGNIZED  BY  THE UNITED STATES
INTERNAL REVENUE SERVICE; (2) WHOSE PLACE  OF  BUSINESS  IS  WITHIN  ONE
THOUSAND FEET OF THE PROPOSED DEVELOPMENT; AND (3) WHO, IN THE LAST FIVE
YEARS  PRIOR  TO  THE  DEVELOPMENT  PROJECT,  HAS  NOT RECEIVED FROM THE
PROPOSED DEVELOPER ANY MONETARY ASSISTANCE EITHER IN THE FORM  OF  GRANT
MONEY  OR OTHERWISE THAT EQUALS OR EXCEEDS FIVE PERCENT OF THE COMMUNITY
ORGANIZATION'S TOTAL ANNUAL OPERATING BUDGET.  SUCH  COMMUNITY  BENEFITS
AGREEMENT  SHALL  BE  EXECUTED  NOT  LESS  THAN  ONE  YEAR  PRIOR TO THE
COMMENCEMENT OF ANY CONDEMNATION PROCEEDINGS AS OUTLINED IN  THIS  CHAP-
TER.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06249-01-1
              

A. 2193                             2

  (III)  FOR  PURPOSES  OF  THIS SECTION, A COMMUNITY BENEFITS AGREEMENT
SHALL BE ANY CONTRACT ENTERED INTO BETWEEN THE  PROPOSED  DEVELOPER  AND
VARIOUS  COMMUNITY  ORGANIZATIONS  WHERE  AT  LEAST ONE OF THE SIGNATORY
ORGANIZATIONS NOT-FOR-PROFIT  CORPORATE  PURPOSES  IS  IN  THE  AREA  OF
AFFORDABLE  HOUSING,  JOB  DEVELOPMENT AND CHILD SUPPORTIVE SERVICES AND
WHERE THE AGREEMENT OUTLINES HOW THE PROPOSED DEVELOPMENT  WILL  BENEFIT
WORKERS  AND  RESIDENTS  THAT  WILL  BE  SUBSTANTIALLY  AFFECTED  BY THE
PROPOSED DEVELOPMENT.
  (H) "BLIGHTED AREAS" SHALL MEAN AREAS, WITH  DETERIORATED  OR  DETERI-
ORATING  STRUCTURES,  A  PREDOMINANCE  OF DEFECTIVE OR INADEQUATE STREET
LAYOUT, FAULTY LOT LAYOUT IN RELATION TO SIZE, ADEQUACY,  ACCESSIBILITY,
OR USEFULNESS, UNSANITARY OR UNSAFE CONDITIONS, DETERIORATION OF SITE OR
OTHER  IMPROVEMENTS,  DIVERSITY OF OWNERSHIP, TAX OR SPECIAL ASSESSMENT,
DELINQUENCY EXCEEDING THE FAIR VALUE OF THE LAND, DEFECTIVE  OR  UNUSUAL
CONDITIONS OF TITLE, IMPROPER SUBDIVISION OR THE EXISTENCE OF CONDITIONS
WHICH  ENDANGER LIFE OR PROPERTY BY FIRE AND OTHER CAUSES, OR ANY COMBI-
NATION OF THESE FACTORS WHICH SUBSTANTIALLY IMPAIRS OR ARRESTS THE SOUND
GROWTH OF A MUNICIPALITY, RETARDS  THE  PROVISION  OF  HOUSING  ACCOMMO-
DATIONS  OR  CONSTITUTES AN ECONOMIC OR SOCIAL LIABILITY AND IS A MENACE
TO THE PUBLIC HEALTH, SAFETY, MORALS OR WELFARE IN  ITS  PRESENT  CONDI-
TION, WHICH CANNOT BE RECTIFIED EFFECTIVELY SOLELY THROUGH THE REGULATO-
RY USE OF POLICE POWER.
  S  2.  The  eminent  domain  procedure  law is amended by adding a new
section 209 to read as follows:
  S 209. URBAN REDEVELOPMENT  PLANS  AND  URBAN  RENEWAL  PLANS.  (A)  A
CONDEMNOR  WHO SEEKS TO ACQUIRE PRIVATE PROPERTY THROUGH THE EXERCISE OF
EMINENT DOMAIN FOR THE PURPOSE OF IMPLEMENTING  AN  URBAN  REDEVELOPMENT
PLAN  OR  AN  URBAN  RENEWAL  PLAN  IN AN AREA OF THE STATE WHICH IS NOT
BLIGHTED AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED  THREE  OF  THIS
CHAPTER AND WHICH INVOLVES TRANSFER OR SALE OF THE PROPERTY, IN WHOLE OR
IN PART, TO A PRIVATE DEVELOPER SHALL COMPLY WITH THE PROVISIONS OF THIS
SECTION.
  (1)  THE  DEVELOPER  AND  ANY SUCCESSOR OWNERS OR ASSIGNEES SHALL MAKE
AVAILABLE TO THE CONDEMNOR AND THE PUBLIC, AT THE DEVELOPER'S OWN  COST,
ALL PLANS FOR THE DEVELOPMENT OF THE ACQUIRED PROPERTY INCLUDING BUT NOT
LIMITED TO THE EXPECTED OR PROJECTED PROFIT OF SAID DEVELOPMENT.
  (2)  WHERE THE DEVELOPMENT IN ANY ASPECT CONTAINS PROVISIONS FOR MANU-
FACTURING SPACE, THE DEVELOPER MUST AT THE DEVELOPER'S OWN COST  CONDUCT
AN ENVIRONMENTAL IMPACT STATEMENT WHICH SHALL INCLUDE A CENSUS TO DETER-
MINE  THE  NUMBER  OF  WORKERS THAT MAY FACE EMPLOYMENT DISLOCATION AS A
RESULT OF THE PROPOSED DEVELOPMENT. THE DEVELOPER SHALL INCLUDE A  RELO-
CATION  PLAN WITHIN THE BOUNDARIES OF THE DEVELOPMENT TO ADDRESS EMPLOY-
MENT DISLOCATION.
  (3) IF THE DEVELOPMENT IN ANY ASPECT CONTAINS  PROVISIONS  FOR  RETAIL
SPACE,  THE DEVELOPER MUST INITIALLY SEEK TO LEASE NOT LESS THAN FIFTEEN
PERCENT OF THE GROSS RETAIL SPACE AVAILABLE  TO  COMMUNITY  BASED  BUSI-
NESSES, WITH SPECIAL PREFERENCE GIVEN TO LOCAL BUSINESSES DISPLACED AS A
RESULT OF THE DEVELOPMENT PROJECT.
  (4)  THE  DEVELOPMENT PLAN WHICH IS MADE AVAILABLE TO THE PUBLIC SHALL
INDICATE HOW THE DEVELOPMENT  WILL  PROVIDE  THE  COMMUNITY  IMMEDIATELY
AFFECTED  BY  THE  PROJECT  WITH  A MANDATORY NET INCREASE OF EMPLOYMENT
CONSISTENT WITH THE GOALS OF THE DEVELOPMENT PROJECT.   IF THE  DEVELOP-
MENT PROJECT FAILS TO PRODUCE A NET INCREASE IN EMPLOYMENT THE DEVELOPER
SHALL  PLACE  TEN  PERCENT  OF THE ANNUAL PROFIT FROM THE PROJECT INTO A
WORK FORCE DEVELOPMENT FUND TO BE ESTABLISHED BY THE DEPARTMENT OF LABOR
FOR A PERIOD OF NOT LESS THAN FIVE YEARS.

A. 2193                             3

  (B) THE CONDEMNOR SHALL PROVIDE FAIR MARKET VALUE COMPENSATION TO  ALL
HOMEOWNERS  AND COMMERCIAL OWNERS AFFECTED BY EMINENT DOMAIN ACQUISITION
FOR THE PURPOSES OF URBAN REDEVELOPMENT OR URBAN RENEWAL.  IN  ADDITION,
THE  STATE  SHALL  REQUIRE  NOT  LESS THAN FIFTEEN PERCENT OF THE ANNUAL
PROFIT  FROM  SUCH  DEVELOPMENT BE PLACED IN A DESIGNATED ACCOUNT ESTAB-
LISHED BY THE STATE COMPTROLLER, TO BE DISPERSED AT  THE  DISCRETION  OF
THE COMPTROLLER FOR A PERIOD OF TEN YEARS TO A CLASS OF HOMEOWNERS AND A
CLASS  OF  COMMERCIAL OWNERS.  FOR A PERIOD OF TEN YEARS THE DEVELOPMENT
COMPANY AND THEIR SUCCESSORS MUST PROVIDE THE STATE WITH A COPY  OF  THE
SAME  ANNUAL REPORT THE COMPANY PROVIDES TO THEIR SHAREHOLDERS TO DETER-
MINE THEIR ANNUAL PROFIT FOR PURPOSES OF  DISPERSING  THE  SAME  TO  THE
FORMER OWNERS.
  (C)  THE  DEVELOPER (AND ANY SUCCESSOR OWNER OR LESSEE OF ANY BUILDING
IN THE DEVELOPMENT) SHALL ACCOMMODATE ALL RESIDENTIAL  TENANTS  AFFECTED
BY  THE  DEVELOPMENT PLAN.   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, 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 COMPARABLE  LIVING
SPACE" IN A NEW UNIT WITHIN THE DEVELOPMENT, 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 COMPARABLE 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 PRACTICABLE BE IN A
NEIGHBORING  COMMUNITY  (OR  SUCH  OTHER  COMMUNITY  ACCEPTABLE  TO  THE
DISPLACED  PERSONS  AND THE DEVELOPER) UNTIL SUCH TIME AS A UNIT (IF THE
DEVELOPMENT PLAN IS DISTINCTLY ALL OR PART RESIDENTIAL) IS  MADE  AVAIL-
ABLE  IN  THE DEVELOPMENT ON THEN COMPARABLE RENTAL TERMS (GIVING EFFECT
TO STANDARD COST  OF  LIVING  INCREASES  OR  RENT  STABILIZATION/CONTROL
INCREASES,  AS APPLICABLE) AND A REASONABLE RELOCATION ALLOWANCE FOR THE
INITIAL MOVE AND SUBSEQUENT MOVE INTO THE DEVELOPMENT.
  (D) (1) PRIOR TO THE  DEMOLITION  OF  ANY  RESIDENTIAL  OR  COMMERCIAL
BUILDING BY THE DEVELOPER, THE DEVELOPER SHALL PLACE NOT LESS THAN TWEN-
TY PERCENT OF THE TOTAL COST OF THE CONSTRUCTION OF THE DEVELOPMENT IN A
NEIGHBORHOOD  PRESERVATION  SECURITY  DEPOSIT ACCOUNT, WHICH SHALL BE AN
INTEREST BEARING ESCROW ACCOUNT TO BE HELD AT  A  LOCAL  COMMUNITY  BANK
WHOSE  HEADQUARTERS OR PRINCIPAL PLACE OF BUSINESS IS WITHIN A TWO THOU-
SAND FOOT RADIUS OF SUCH DEVELOPMENT PROJECT. SUCH BANK SHALL BE  DESIG-
NATED  BY  THE  COMPTROLLER TO ENSURE THE COMPLETION OF SUCH DEVELOPMENT
PROJECT.  THE INTEREST EARNED BY THE ESCROW ACCOUNT SHALL  BE  DISPERSED
EQUALLY  TO ANY COMMUNITY DEVELOPMENT CORPORATIONS AND/OR LOCAL DEVELOP-
MENT CORPORATIONS WHOSE CORPORATE GOALS ARE CONSISTENT WITH NEIGHBORHOOD
PRESERVATION, WHICH HAVE 501(C)(3) STATUS AS RECOGNIZED  BY  THE  UNITED
STATES INTERNAL REVENUE SERVICE WHOSE HEADQUARTERS OR PRINCIPAL PLACE OF
BUSINESS  IS  LOCATED WITHIN A TWO THOUSAND FOOT RADIUS OF SUCH DEVELOP-
MENT PROJECT. SUCH FUNDS SHALL BE RETURNED  TO  THE  DEVELOPER,  WITHOUT
PENALTY, UPON COMPLETION OF THE PROPOSED DEVELOPMENT.
  (2)  IF  THE  DEVELOPER  CANCELS  OR FAILS TO COMPLETE THE DEVELOPMENT
PROJECT, THE DEVELOPER SHALL FORFEIT THE NEIGHBORHOOD PRESERVATION SECU-

A. 2193                             4

RITY DEPOSIT ACCOUNT AND THE COMPTROLLER SHALL DIRECT SUCH FUNDS,  WITH-
OUT  PENALTY, TO BE PAID TO THE NEW YORK STATE DIVISION OF COMMUNITY AND
HOUSING RENEWAL WHICH SHALL DISPERSE SUCH FUNDS AT ITS DISCRETION  TO  A
SPECIFIC   COMMUNITY  BASED  ORGANIZATION,  WHOSE  CORPORATE  GOALS  ARE
CONSISTENT WITH NEIGHBORHOOD PRESERVATION, WHICH  IS  IN  POSSESSION  OF
501(C)(3)  STATUS  AS  RECOGNIZED  BY THE UNITED STATES INTERNAL REVENUE
SERVICE.
  S 3. This act shall take effect immediately.