NY State Senate Bill 2023-S4417

Archive: Last Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to local government
Feb 08, 2023	referred to local government

2023-S4417 (ACTIVE) - Details

See Assembly Version of this Bill:: A5018
Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Amd §119-r, Gen Muni L; amd Part PP §3, Chap 54 of 2016
Versions Introduced in 2025-2026 Legislative Session:: S4203, A1032

2023-S4417 (ACTIVE) - Summary

Updates value capture mechanisms for NYC and the MTA, including transparency requirements; makes such provisions permanent.

2023-S4417 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4417

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the general municipal law, in relation to adjusting
value capture mechanisms for New York city and the metropolitan trans-
portation authority, including transparency requirements; and to amend
part PP of chapter 54 of the laws of 2016, amending the general munici-
pal law relating to the New York transit authority and the metropolitan
transportation authority, in relation to making such value capture mech-
anisms and transparency requirements permanent

 
PURPOSE:

To enable the MTA and NYC to engage in a value capture process indefi-
nitely that entails accountability measures, and to prioritize mech-
anisms that involve the capture of new revenue generated.

 
SUMMARY OF SPECIFIC PROVISIONS:

Transit projects create value to surrounding areas, increasing nearby

property values by 30 to 40 percent, and up to 150 percent under ideal
conditions, according to the Federal Transit Administration.  The Ameri-
can Public Transit Association meanwhile estimates that every $1 spent
on transit generates $5 in economic activity.

Value capture comprises "the public recovery of a portion of increased
property and other value created as a result of public infrastructure
investment" (Transit Cooperative Research Project). Existing state law
GM 119-r authorizes cities, towns, villages and counties to adopt local
laws to authorize value capture with public transit authorities, includ-
ing with the Metropolitan Transportation Authority (MTA), in recognition
of the increase in property and land value that transportation projects
often bring to local areas. This existing law is set to sunset in 2023.

This bill amends GM 119-r to make the option of a value capture process
between New York City and the MTA permanent. The bill simultaneously
adds new accountability measures to ensure 1) proper due diligence and
transparency in establishing the increased value to surrounding areas by
any MTA project, and 2) that this process is open to the public. Final-
ly, the legislation removes the explicit mention of tax increment
financing (TIF) as a means for value capture, recognizing widespread
concerns that TIFs can extract much-needed city tax revenues and need-
lessly increase debt service and risk.

 
JUSTIFICATION:

Transit projects create value to surrounding areas, increasing nearby
property values by 30 to 40 percent, and up to 150 percent under ideal
conditions, according to the Federal Transit Administration.  The Ameri-
can Public Transit Association meanwhile estimates that every $1 spent
on transit generates $5 in economic activity.

Value capture comprises "the public recovery of a portion of increased
property and other value created as a result of public infrastructure
investment" (Transit Cooperative Research Project). Existing state law
GM 119-r authorizes cities, towns, villages and counties to adopt local
laws to authorize value capture with public transit authorities, includ-
ing with the Metropolitan Transportation Authority (MTA), in recognition
of the increase in property and land value that transportation projects
often bring to local areas. This existing law is set to sunset in 2023.

This bill amends GM 119-r to make the option of a value capture process
between New York City and the MTA permanent. The bill simultaneously
adds new accountability measures to ensure 1) proper due diligence and
transparency in establishing the increased value to surrounding areas by
any MTA project, and 2) that this process is open to the public. Final-
ly, the legislation removes the explicit mention of tax increment
financing (TIF) as a means for value capture, recognizing widespread
concerns that TIFs can extract much-needed city tax revenues and need-
lessly increase debt service and risk.

 
PRIOR LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

Anticipated fiscal benefit to the State. Fiscal implication to local
government dependent on scale and nature of value capture mechanisms
agreed to between the City and MTA.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S4417 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4417
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 8, 2023
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the general municipal  law,  in  relation  to  adjusting
   value capture mechanisms for New York city and the metropolitan trans-
   portation authority, including transparency requirements; and to amend
   part PP of chapter 54 of the laws of 2016, amending the general munic-
   ipal  law relating to the New York transit authority and the metropol-
   itan transportation  authority,  in  relation  to  making  such  value
   capture mechanisms and transparency requirements permanent
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph f of subdivision 1 of section 119-r of the gener-
 al municipal law, as amended by section 2 of part PP of  chapter  54  of
 the laws of 2016, is amended to read as follows:
   f.  The  making  of  a  contract  with the metropolitan transportation
 authority, by itself or with one or more other municipal corporations to
 assist the authority in meeting its capital  or  operating  expenses  in
 providing mass transportation services of benefit to all or part of such
 municipal corporation, including undertaking a mass transportation capi-
 tal  project  in  or  near  the  municipal corporation. Such a municipal
 corporation may, according to the terms of the contract with the author-
 ity, establish, levy and collect taxes, assessments, and/or charges  and
 may  conditionally  or  unconditionally grant or pledge a portion of its
 revenues allocated according to subdivision  e  of  this  section.  Such
 municipal  corporation may designate mass transportation capital project
 districts that a municipal corporation finds, after conducting a  public
 hearing,  will  benefit  from  an identified mass transportation capital
 project.
   (I) (1) AT LEAST TWO WEEKS PRIOR TO  CONDUCTING  SUCH  PUBLIC  HEARING
 UNDER  THIS  SUBDIVISION,  THE  MUNICIPAL  CORPORATION SHALL PRODUCE AND
 PUBLISH ON ITS WEBSITE TWO SEPARATE ANALYSES THAT INCLUDE:  (A)  REVENUE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05069-02-3

 S. 4417                             2
 
 PROJECTIONS  FOR  THE  DISTRICT  BASED ON HISTORIC PROPERTY TAX DATA AND
 ANALYSIS THAT THE FAIR MARKET VALUE OF PROPERTIES WITHIN THE SUBDISTRICT
 IS EXPECTED TO INCREASE AS A RESULT OF THE  IMPROVEMENT,  BY  MORE  THAN
 WOULD  HAVE  OCCURRED IN THE ABSENCE OF SUCH IMPROVEMENT; AND (B) TRANS-
 PORTATION ENGINEERING ANALYSIS SHOWING HOW THE PUBLIC WOULD BE SERVED BY
 THE MASS TRANSPORTATION CAPITAL PROJECT IN SUCH DISTRICT OR AREA.
   (2) SUCH ANALYSES UNDER CLAUSE ONE OF THIS SUBPARAGRAPH SHALL  INCLUDE
 ACCOMPANYING DATA IN A MACHINE-READABLE, TABULAR FORMAT, AND AN EXPLANA-
 TION  OF THE METHODOLOGY AND SPECIFIC ASSUMPTIONS USED IN EACH ANALYSIS.
 THE PUBLIC SHALL HAVE THE OPPORTUNITY TO SUBMIT WRITTEN COMMENTS ON SUCH
 ANALYSES PROVIDED, AND THE MUNICIPAL CORPORATION AND/OR THE METROPOLITAN
 TRANSPORTATION AUTHORITY SHALL RESPOND TO  PUBLIC  COMMENT  RECEIVED  IN
 WRITING  AND  AT  SUCH  PUBLIC HEARING IN A REPORT THAT IS POSTED IN THE
 MUNICIPAL CORPORATION'S WEBSITE NO LATER THAN ONE MONTH AFTER SUCH HEAR-
 ING.
   (II) Upon designating [such] a  MASS  TRANSPORTATION  CAPITAL  PROJECT
 district, the municipal corporation may allocate a portion of its reven-
 ues  from the district according to terms it designs or has agreed to by
 contract. The municipal corporation may, in  allocating  and  collecting
 revenues  from  the district, make use of one or more methods to capture
 the value created by a mass transportation capital  project,  including,
 but not limited to:
   [(i)  tax  increment financing, meaning the allocation of an increment
 of property tax revenues in excess of the  amount  levied  at  the  time
 prior to planning of a mass transportation capital project;
   (ii)]  (1)  a special transportation assessment imposed upon benefited
 real property in proportion to the benefit  received  by  such  property
 from a mass transportation capital project, which shall not constitute a
 tax;
   [(iii)]  (2)  land value taxation, meaning the allocation of an incre-
 ment of tax revenues gained from levying taxes on the assessed value  of
 taxable  land  at  a  higher  rate  than the improvements, as defined in
 subdivision twelve of section one hundred two of the real  property  tax
 law; and
   [(iv)]  (3)  some combination of the above or other methods of gaining
 revenues that the municipal corporation is empowered  to  use,  provided
 that the total amount of all taxes, assessments, fees, charges, or rates
 levied  on  each  parcel or lot under this section shall be limited to a
 proportionate amount as near as possible to  the  actual  benefit  which
 each  lot  or  parcel  will  derive from the mass transportation capital
 project; and
   [(v)] (4) for purposes of this paragraph  the  term  municipal  corpo-
 ration  shall  include  only  those cities, towns, villages and counties
 described in section twelve hundred sixty-two of the public  authorities
 law.
   §  2. Section 3 of part PP of chapter 54 of the laws of 2016, amending
 the general municipal law relating to the New York transit authority and
 the metropolitan transportation authority, as amended by  section  1  of
 part J of chapter 58 of the laws of 2022, is amended to read as follows:
   § 3. This act shall take effect immediately[; provided that the amend-
 ments  to  subdivision  1  of section 119-r of the general municipal law
 made by section two of this act shall  expire  and  be  deemed  repealed
 April  1,  2023,  and provided further that such repeal shall not affect
 the validity or duration of any contract entered into before  that  date
 pursuant to paragraph f of such subdivision].
   § 3. This act shall take effect immediately.

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Senate Bill S4417

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Archive: Last Bill Status - In Senate Committee Local Government Committee

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2023-S4417 (ACTIVE) - Details

2023-S4417 (ACTIVE) - Summary

2023-S4417 (ACTIVE) - Sponsor Memo

2023-S4417 (ACTIVE) - Bill Text download pdf

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Sponsored By

Leroy Comrie

Archive: Last Bill Status - In Senate Committee Local Government Committee

Actions

2023-S4417 (ACTIVE) - Details

2023-S4417 (ACTIVE) - Summary

2023-S4417 (ACTIVE) - Sponsor Memo

2023-S4417 (ACTIVE) - Bill Text download pdf

Comments