BILL NUMBER:S627A

TITLE OF BILL:

An act
to amend the New York state urban development corporation act, in
relation to developing local and regional wholesale farmers' markets to
promote foods grown in New York state

PURPOSE OR GENERAL IDEA OR BILL:

To provide economic
development
financing for construction and improvements to wholesale regional
farmers' markets or food hubs that facilitate the sale and promotion
of farm products grown or produced in New York State or regionally.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Adds a new paragraph n to subdivision 1 of section 16-m of
Chapter 174 of the laws of 1968 creating the Urban Development
Corporation (UDC). Paragraph n would authorize the UDC to provide
loans, loan guarantees, interest subsidies and grants to businesses,
municipalities, IDAs, economic development corporations,
not-for-profits, business improvement districts, regional marketing
authorities, agricultural cooperatives and other entities to finance
              

construction, reconstruction, improvement, expansion, or
rehabilitation of wholesale regional farmers' markets or food hubs.
In addition, this bill was amended to add a definition of a wholesale
regional farmers' market and food hub.

JUSTIFICATION:

New York farmers produce large quantities of quality fruits,
vegetables, meats and dairy products. Currently, there is an
increasing recognition by consumers, restaurants, and chefs about the
taste, quality and freshness of these locally grown farm products.
Unfortunately, most food stores and restaurants in our larger cities
find it difficult to buy food products at wholesale directly from New
York farmers and other regional growers because of the lack of
adequate large wholesale farmers' markets or food hubs, as they are
called by the U.S. Department of Agriculture, even though there is
huge potential for sales.

Providing financing for wholesale regional markets for new
construction and renovations to meet the needs of these wholesale
customers would help the farm economy by opening up valuable food
service markets. A recent NYC Wholesale Farmers' Market study found
that "...a New York City wholesale farmers' market would expand
opportunities for mid-size and small producers of food and
agricultural products from New York and adjacent states to sell their

products directly to wholesale buyers in the city and that such a
market facility - similar to those that have operated in NYC in the
past - would also help meet the growing demand by
thousands of NYC restaurants, retail stores, institutions and other
wholesale buyers for locally-grown fresh farm products."

The economic benefits to farm regions from increased sales could lead
to increased business activity and jobs in those communities and new
jobs at the wholesale markets themselves. In addition, businesses and
consumers in urban and suburban communities would benefit from the
fresh, nutritious, quality food and meals available because of these
projects.

PRIOR LEGISLATIVE HISTORY:

2005/06 - A.8001 - Referred to Agriculture
2007/08 - A.5025 - Referred to Agriculture
2010    - S.6183 - Referred to Corporations, Authorities,
          and Commissions.
          Reported to Finance

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately, provided that the amendments
to section 16-m of section 1 of chapter 174 of the laws of 1968,
constituting the New York Urban Development Corporation Act, made by
section one of this act, shall not affect the expiration of such
section and shall be deemed to expire therewith.