S T A T E   O F   N E W   Y O R K
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                                    550
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2017
                                ___________
 
 Introduced by M. of A. ROSENTHAL, BARRETT, SANTABARBARA -- read once and
   referred to the Committee on Economic Development
 
 AN ACT to amend the New York state urban development corporation act, in
   relation  to  the planning and development of urban and regional farm-
   ers' markets facilities

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  16-n  of section 1 of chapter 174 of the laws of
 1968, constituting the New York state urban development corporation act,
 as added by chapter 428 of the  laws  of  2006,  is  renumbered  section
 16-aa.
   §  2.  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-bb to read as follows:
   § 16-BB. URBAN AND REGIONAL FARMERS' MARKETS  FACILITIES  CONSTRUCTION
 PROGRAM. 1.  DEFINITIONS. FOR PURPOSES OF THIS SECTION:
   (A)  "URBAN  OR  REGIONAL  FARMERS' MARKET CONSTRUCTION PROJECT" SHALL
 MEAN A PROJECT FOR THE ESTABLISHMENT, EXPANSION  AND  DEVELOPMENT  OF  A
 YEAR-ROUND  URBAN OR REGIONAL FARMERS' MARKET PRIMARILY LEASING SPACE TO
 FARMERS, FARMER/PROCESSORS AND CRAFT BUSINESSES FROM WITHIN  THE  REGION
 OF THE GREENMARKET TO SELL DIRECTLY TO CUSTOMERS.
   (B) "NOT-FOR-PROFIT CORPORATION" SHALL MEAN AGRICULTURAL COOPERATIVES,
 REGIONAL  MARKET AUTHORITIES, CORPORATION BUSINESS IMPROVEMENT DISTRICTS
 AND REGIONAL AND COMMUNITY DEVELOPMENT ORGANIZATIONS ORGANIZED UNDER THE
 PROVISIONS OF THE NOT-FOR-PROFIT CORPORATION  LAW  OR  OTHER  STATE  LAW
 PROVIDING FOR NONPROFIT CORPORATIONS.
   (C) "HIGHLY DISTRESSED" SHALL HAVE THE SAME MEANING AS PROVIDED FOR IN
 SECTION SIXTEEN-D OF THIS ACT.
   (D)  "ECONOMICALLY  DISTRESSED  AREAS"  SHALL HAVE THE SAME MEANING AS
 PROVIDED FOR IN SECTION SIXTEEN-D OF THIS ACT.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04937-01-7
              

 A. 550                              2
 
   2. THE CORPORATION SHALL, FROM APPROPRIATIONS MADE AVAILABLE  FOR  THE
 PURPOSE,  ESTABLISH  AN  URBAN  AND REGIONAL FARMERS' MARKETS FACILITIES
 CONSTRUCTION PROGRAM WHICH SHALL OFFER CONSTRUCTION GRANTS  PURSUANT  TO
 PARAGRAPHS  (A)  AND  (B) OF SUBDIVISION 3 OF THIS SECTION AND REVOLVING
 LOANS AND LOAN GUARANTEES PURSUANT TO PARAGRAPHS (C) AND (D) OF SUBDIVI-
 SION 3 OF THIS SECTION.
   3.  TO  THE  EXTENT  THAT  MONIES  ARE  APPROPRIATED FOR THE URBAN AND
 REGIONAL FARMERS' MARKETS FACILITIES CONSTRUCTION  PROGRAM,  THE  CORPO-
 RATION  SHALL  PROVIDE  FINANCING  FOR URBAN OR REGIONAL FARMERS' MARKET
 FACILITIES CONSTRUCTION PROJECTS FOR THE  ESTABLISHMENT,  EXPANSION  AND
 DEVELOPMENT  OF URBAN AND REGIONAL FARMERS' MARKETS FACILITIES WHICH ARE
 INTENDED TO SERVE THE NEEDS OF THE REGIONAL AGRICULTURAL  COMMUNITY  AND
 THE  COMMUNITY  REVITALIZATION  OF  THE  HOST  CITY. THE CORPORATION, IN
 CONSULTATION WITH THE DEPARTMENT OF ECONOMIC DEVELOPMENT, SHALL  DEVELOP
 A  JOINT REQUEST FOR APPLICATIONS WITH THE DEPARTMENT OF AGRICULTURE AND
 MARKETS' COMMENTS ON SOLICITING POTENTIAL APPLICANTS SEEKING  ASSISTANCE
 FOR  THE  DEVELOPMENT OF URBAN AND REGIONAL FARMERS' MARKETS FACILITIES.
 AN APPLICANT MUST BE A NOT-FOR-PROFIT CORPORATION, MUNICIPAL CORPORATION
 OR PUBLIC BENEFIT CORPORATION.   IN DETERMINING  AWARD  RECIPIENTS,  THE
 CORPORATION SHALL CONSIDER, AMONG OTHER FACTORS, THE DEPARTMENT OF AGRI-
 CULTURE  AND MARKETS' COMMENTS ON THE APPLICATIONS. SUCH FINANCING SHALL
 CONSIST OF GRANTS, REVOLVING LOANS AND LOAN GUARANTEES  FOR  THE  ESTAB-
 LISHMENT,  EXPANSION,  AND  DEVELOPMENT  OF  URBAN AND REGIONAL FARMERS'
 MARKETS FACILITIES.
   (A) GRANTS SHALL  BE  USED  FOR  GENERAL  PROJECT  DEVELOPMENT  COSTS,
 INCLUDING, BUT NOT LIMITED TO:
   (I)  THE  ACQUISITION, DESIGN, CONSTRUCTION, IMPROVEMENT OR RENOVATION
 OF THE SITE; AND
   (II) THE PURCHASE OF NECESSARY EQUIPMENT.
   (B) FOR THE PURPOSES OF  THIS  SUBDIVISION  GRANTS  SHALL  NOT  EXCEED
 EIGHTY  PERCENT  OF THE TOTAL PROJECT COST IN HIGHLY DISTRESSED COMMUNI-
 TIES; SHALL NOT EXCEED SEVENTY PERCENT OF  THE  TOTAL  PROJECT  COST  IN
 ECONOMICALLY DISTRESSED AREAS; AND SHALL NOT EXCEED SIXTY PERCENT OF THE
 TOTAL PROJECT COST IN NON-ECONOMICALLY DISTRESSED AREAS.
   (C) URBAN AND REGIONAL FARMERS' MARKET FACILITY CONSTRUCTION REVOLVING
 LOAN  AND LOAN GUARANTEES. THE CORPORATION SHALL PROVIDE REVOLVING LOANS
 AND LOAN GUARANTEES  FOR  THE  ESTABLISHMENT  BY  NOT-FOR-PROFIT  CORPO-
 RATIONS,  MUNICIPAL CORPORATIONS OR PUBLIC BENEFIT CORPORATIONS OF URBAN
 AND REGIONAL FARMERS' MARKET FACILITIES. SUCH REVOLVING LOANS  AND  LOAN
 GUARANTEES  SHALL  BE FOR CONSTRUCTION COSTS, INCLUDING, BUT NOT LIMITED
 TO THE DESIGN, CONSTRUCTION, IMPROVEMENT OR RENOVATION AND  MAY  INCLUDE
 INTERIM FINANCING.
   (D) URBAN AND REGIONAL FARMERS' MARKET FACILITY CONSTRUCTION REVOLVING
 LOAN  AND LOAN GUARANTEE FUND. FOR THE PURPOSES OF THIS SUBDIVISION, THE
 CORPORATION SHALL ESTABLISH AN URBAN AND REGIONAL FARMERS' MARKET FACIL-
 ITY CONSTRUCTION REVOLVING LOAN AND LOAN  GUARANTEE  FUND  ACCOUNT.  THE
 CORPORATION  SHALL  DETERMINE THE TERMS AND INTEREST RATES OF SUCH LOANS
 TO NOT-FOR-PROFIT CORPORATIONS, MUNICIPAL CORPORATIONS OR PUBLIC BENEFIT
 CORPORATIONS, EXCEPT THAT NO LOAN SHALL EXCEED  EIGHTY  PERCENT  OF  THE
 TOTAL  PROJECT COST IN HIGHLY DISTRESSED COMMUNITIES; SEVENTY PERCENT OF
 THE TOTAL PROJECT COST  IN  ECONOMICALLY  DISTRESSED  AREAS;  AND  SIXTY
 PERCENT  OF THE TOTAL PROJECT COST IN NON-ECONOMICALLY DISTRESSED AREAS.
 IN INSTANCES WHERE AN OTHERWISE QUALIFIED APPLICANT LACKS  EQUITY  IN  A
 PROJECT,  EQUITY  PARTICIPATION  MAY  INCLUDE ANY COMMITMENT FOR GRANTS.
 PAYMENTS CONSISTING OF THE REPAYMENT OF THE PRINCIPAL AMOUNT OF THE LOAN
 AND INTEREST SHALL BE DEPOSITED BY THE CORPORATION INTO  THE  URBAN  AND

 A. 550                              3
 
 REGIONAL  FARMERS'  MARKET  FACILITY  CONSTRUCTION  REVOLVING  LOAN FUND
 ACCOUNT FROM WHICH THE LOAN WAS MADE.
   4.  FINANCING  FOR  URBAN  AND  REGIONAL  FARMERS'  MARKETS FACILITIES
 CONSTRUCTION PROJECTS AUTHORIZED PURSUANT  TO  THIS  SUBDIVISION,  SHALL
 ONLY  BE  MADE  UPON A DETERMINATION BY THE CORPORATION, IN CONSULTATION
 WITH THE DEPARTMENT OF ECONOMIC DEVELOPMENT, AND THE DEPARTMENT OF AGRI-
 CULTURE AND MARKETS THAT SUCH A FACILITY WILL IMPROVE  THE  AGRICULTURAL
 AND  URBAN  ECONOMIES.  SUCH REVOLVING LOANS, LOAN GUARANTEES AND GRANTS
 SHALL ONLY BE MADE FOR FACILITIES WHERE THERE  ARE  INADEQUATE  AGRICUL-
 TURAL  DIRECT  MARKETING  FACILITIES. SUCH CENTERS SHALL DEMONSTRATE THE
 POTENTIAL TO OBTAIN, FROM APPROPRIATE GOVERNMENTAL AGENCIES, ALL  NECES-
 SARY  APPROVALS,  LICENSES,  AND  OTHER SUPPORTS REQUIRED TO OPERATE THE
 FACILITY.
   § 3. This act shall take effect immediately.