Establishes what is and what is not blighted property and blighted areas.
TITLE OF BILL: An act to amend the New York state urban development corporation act, in relation to blighted property and blighted areas; and to repeal certain provisions of such act relating thereto
PURPOSE: To provide an objective, measurable standard for determining whether a property, group of properties or an area is "blighted" in the context of the exercise of eminent domain.
SUMMARY OF PROVISIONS:
Section 1 amends Section 2 of the Urban Development Corporation Act ("UDC") to update the purpose of the UDC to include such important public policies as consideration for the environment, comprehensive planning and concern for those individuals and businesses displaced by redevelopment.
Section 2 amends Section (3)(12) to repeal the existing definition of "substandard and insanitary" and replace it with an objective definition of blight. A property or group of properties would be found to be blighted only if they met certain detailed criteria of deterioration. Further, in order for an area to be found to be blighted, 60 percent of the individual properties would have to be found to be blighted and these properties would have to represent a geographical majority of the redevelopment area. Finally, a declaration of blight would expire after 10 years.
Section 3 amends Section 10 of the UDC to make the "findings" required by the statute consistent with the new definition of blight.
Section 4 provides the effective date.
EFFECTS OF THE PRESENT LAW WHICH THIS BILL WOULD ALTER:
This bill would replace the vague definition of "substandard and instanitary" found in the UDC with an objective definition of blight.
That "private property shall not be taken for public use without just compensation" is a right guaranteed by the New York Constitution. The words "public use" are meant to protect property owners from the State's power to transfer property from one private property owner to another. Over the last decade, courts have considered the question of whether economic development constitutes a "public use". In the most notable of these cases, Kelo v. City of New London, the Supreme Court allowed for the forcible transfer of property from one private owner to another in support of economic development. This decision has prompted legislative reform in forty three states and it is time for New York to follow suit.
In a recent decision by the New York Court of Appeals addressing the use of eminent domain in the context of economic development, Chief Judge Lippman stated that "[i]t may be that the bar has now been set too low - that what will now pass as 'blight,' as that expression has been come to he understood and used by political appointees to public corporations relying upon studies paid for developers, should not be permitted to constitute a predicate for the invasion of property rights and the razing of homes and businesses. But any such limitation upon the sovereign power of eminent domain as it has come to be defined in the urban renewal context is a matter for the Legislature, not the courts." Matter of Goldstein v. New York State Urban Dev., (2009 NY Slip op 08677) (emphasis added). I am taking up Chief Judge Lippman's invitation to further define blight.
This bill provides objective, quantifiable standards by which to determine whether a property or area is indeed blighted. It will ensure that condemnors under the Urban Development Corporation Act use consistent and predictable factors related to the public's health and safety to evaluate the blight status of a neighborhood. The bill requires that 60 percent of the properties within the redevelopment area be considered blighted and that these properties cover a majority of the geographical area of the project.
Eminent domain can be a useful and even necessary tool for urban redevelopment, particularly for older built-out cities like those in New York State. Its application, however, must balance the rights of property owners with the need for economic development. This bill provides much needed standards to be used when such rights are balanced against the need for development.
LEGISLATIVE HISTORY: 2011-2012: Referred to Corporations, Authorities & Commissions 2009-2010: Referred to Corporations, Authorities & Commissions
FISCAL IMPLICATION: None.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 1244 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sens. PERKINS, AVELLA -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions AN ACT to amend the New York state urban development corporation act, in relation to blighted property and blighted areas; and to repeal certain provisions of such act relating thereto 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 New York state urban development corporation act, the ninth undesignated paragraph as added by chapter 280 of the laws of 1984 and the tenth undesignated paragraph as amended by chapter 747 of the laws of 2005, is amended to read as follows: S 2. Statement of legislative findings and purposes. It is hereby found and declared that there exists in
[urban]SOME areas of this state a condition of substantial and persistent unemployment and underemploy- ment which causes hardship to many individuals and families, wastes vital human resources, increases the public assistance burdens of the state and municipalities, impairs the security of family life, contrib- utes to the growth of crime and delinquency, prevents many of our youth from finishing their [educations]EDUCATION, impedes the economic and physical development of municipalities and adversely affects the welfare and prosperity of all the people of the state. [Many existing indus- trial, manufacturing and commercial facilities in such urban areas are obsolete and inefficient, dilapidated, and without adequate mass trans- portation facilities and public services. Many of such facilities are underutilized or in the process of being vacated, creating additional unemployment. Technological advances and the provision of modern, effi- cient facilities in other states will speed the obsolescence and aban- donment of existing facilities causing serious injury to the economy ofIT IS FURTHER FOUND AND DECLARED THAT THE UNAIDED EFFORTS OF PRIVATE INDUSTRIAL, MANUFACTURING AND COMMERCIAL BUSINESSES ARE NEGATIVELY AFFECTED BY AGING AND INEFFICIENT FACILITIES, DIFFICULTIES IN FINDING SUITABLE BUILDING SITES FOR NEW FACILITIES, lack of adequate public services, the unavailability of private capital for developmentEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03585-01-3 S. 1244 2
the state. Many existing and planned industrial, manufacturing and commercial facilities are, moreover, far from or not easily accessible to the places of residence of substantial numbers of unemployed persons. As a result, problems of chronic unemployment are not being alleviated but are aggravated. New industrial, manufacturing and commercial facili- ties are required to attract and house new industries and thereby to reduce the hazards of unemployment. The unaided efforts of private enterprise have not met and cannot meet the needs of providing such facilities due to problems encountered in assembling suitable building sites]
[in such urban areas], and the inability of private enterprise alone to plan [,]AND finance DEVELOPMENT and TO coordinate [industrial and commercial development]SUCH DEVELOPMENT with [residential developments for persons and families of low income and with]AFFORDABLE HOUSING DEVELOPMENT, COMMUNITY DEVELOPMENT PROGRAMS, public services and mass transportation facilities. It is further found and declared that there exist in many munici- palities within this state [residential, nonresidential, commercial, industrial or vacant areas, and combinations thereof, which are slum or blighted, or which are becoming slum or blighted areas because of substandard, insanitary, deteriorated or deteriorating conditions, including obsolete and dilapidated buildings and structures, defective construction, outmoded design, lack of proper sanitary facilities or adequate fire or safety protection, excessive land coverage, insuffi- cient light and ventilation, excessive population density, illegal uses and conversions, inadequate maintenance, buildings abandoned or not utilized in whole or substantial part, obsolete systems of utilities, poorly or improperly designed street patterns and intersections, inade- quate access to areas, traffic congestion hazardous to the public safe- ty, lack of suitable off-street parking, inadequate loading and unload- ing facilities, impractical street widths, sizes and shapes, blocks and lots of irregular form, shape or insufficient size, width or depth, unsuitable topography, subsoil or other physical conditions, all of]BLIGHTED PROPERTIES AND BLIGHTED AREAS, WHICH ARE CHARACTERIZED BY PREM- ISES UNFIT FOR HUMAN HABITATION AND DANGEROUS TO LIFE AND PROPERTY, AND which hamper or impede proper and economic development of such areas and which impair or arrest the sound growth of the area, community or muni- cipality, and the state as a whole. It is further found and declared that there is a serious need through- out the state for adequate educational, recreational, cultural and other community facilities, the lack of which threatens and adversely affects the health, safety [, morals]and welfare of the people of the state. It is further found and declared that there continues to exist throughout the state a seriously inadequate supply of [safe and sani- tary]ACCEPTABLE dwelling accommodations for persons and families of low income. This condition is contrary to the public interest and threatens the health, safety, welfare, comfort and security of the people of the state. The ordinary operations of private enterprise cannot provide an adequate supply of safe and sanitary dwelling accommodations [at rentals]which persons and families of low income can afford.S. 1244 3
It is hereby declared to be the policy of the state to promote a vigorous and growing economy, to prevent economic stagnation and to encourage the creation of new job opportunities in order to protect against the hazards of unemployment, reduce the level of public assist- ance to now indigent individuals and families, increase revenues to the state and to its municipalities and to achieve stable and diversified local economies. In furtherance of these goals, it is the policy of the state to retain existing industries and to attract new industries through the acquisition, construction, FINANCING, reconstruction and rehabilitation of industrial and manufacturing plants and commercial facilities, and to develop sites for new industrial and commercial building. It is further declared to be the policy of the state to promote the development of such plants and facilities, reasonably acces- sible to residential facilities, in those areas where substantial unem- ployment or underemployment exists, to the end that the industrial and commercial development
[of our urban areas]will proceed in sound fash- ion and in coordination with development of housing, mass transportation and public services, and that job opportunities will be available in those areas where people lack jobs. IT IS FURTHER FOUND AND DECLARED THAT THERE IS AN URGENT NEED TO PROTECT AND ENHANCE THE QUALITY OF THE NATURAL ENVIRONMENT, TO ENCOURAGE THE DEVELOPMENT AND EXPANSION OF EXISTING AND ALTERNATIVE SOURCES OF ENERGY AND THE CONSERVATION OF ENERGY, AND TO ABATE AND PREVENT THE GENERATION OF HAZARDOUS WASTE, TOXIC BY-PRODUCTS, AND OTHER TYPES OF ENVIRONMENTAL POLLUTION. It is further declared to be the policy of the state to promote the safety, health [, morals]and welfare of the people of the state and to promote the sound growth and development of our municipalities through the [correction of such substandard, insanitary, blighted, deteriorated or deteriorating conditions, factors and characteristics by the clear- ance, replanning, reconstruction, redevelopment, rehabilitation, resto- ration or conservation of such areas,]REDEVELOPMENT OF BLIGHTED AREAS and [of areas reasonably accessible thereto]the undertaking of public and private improvement programs [related thereto], including the provision of educational, recreational and cultural facilities, and the encouragement of participation in these programs by private enterprise. IN FURTHERANCE OF THESE GOALS, IT IS THE POLICY OF THE STATE TO ENGAGE AND EMPOWER THE PUBLIC THROUGH EDUCATIONAL PROGRAMS, COMMUNITY OUTREACH, AND AN OPEN AND INCLUSIVE REDEVELOPMENT PLANNING PROCESS; TO COORDINATE REDEVELOPMENT PROJECTS AND IMPROVEMENT PROGRAMS WITH LOCAL GOVERNMENT PLANNING GOALS; TO RESPECT COMMUNITIES' EXISTING SOCIAL AND CULTURAL FABRIC AND TO LIMIT RESIDENTIAL AND BUSINESS DISPLACEMENT TO THE MAXIMUM EXTENT POSSIBLE; TO REUSE EXISTING RESOURCES AND INFRASTRUCTURE AND RECYCLE MATERIALS AND STRUCTURES; TO ENCOURAGE ENERGY EFFICIENCY AND SUSTAINABLE BUILDING; TO CONSERVE UNDEVELOPED LAND AND ENCOURAGE INFILL AND BROWNFIELD DEVELOPMENT; TO IMPROVE OR RESTORE NATURAL SYSTEMS SUCH AS STREAMBEDS, DRAINAGE COURSES, WETLANDS, RIVERS, AND OTHER ECOLOGICAL FEATURES, AND TO ENCOURAGE THE CREATION OF PUBLICLY AVAILABLE OPEN SPAC- ES; TO ENSURE THAT ENVIRONMENTAL POLLUTION DOES NOT DISPARATELY AFFECT AREAS WITH A SUBSTANTIAL NUMBER OF MINORITY OR LOW INCOME HOUSEHOLDS; TO INCORPORATE CULTURAL RESOURCES AND LANDSCAPES INTO PROJECT DESIGNS BY PRESERVING AND REHABILITATING BUILDINGS WITH CULTURAL, HISTORICAL OR ARCHITECTURAL SIGNIFICANCE, ENCOURAGING ADAPTIVE REUSE AS AN ALTERNATIVE TO DEMOLITION AND NEW CONSTRUCTION, AND ENCOURAGING COMPATIBLE DESIGN OF NEW CONSTRUCTION; TO ENCOURAGE THE RETENTION AND CONSTRUCTION OF AFFORD- ABLE HOUSING THROUGH INCENTIVES, LOANS, AND OTHER PROGRAMS; TO ENCOURAGES. 1244 4
DEVELOPMENT THAT IS ACCESSIBLE AND INVITING TO PEDESTRIANS, BICYCLISTS AND TRANSIT USERS, AND TO DISCOURAGE DEVELOPMENT THAT IS RELIANT ON PERSONAL AUTOMOBILE TRANSPORTATION; TO INCREASE OPPORTUNITIES FOR PRIVATE ENTERPRISE, ESPECIALLY FOR SMALL BUSINESSES, LOCAL BUSINESSES, AND BUSINESSES OWNED BY MINORITIES AND WOMEN, THROUGH PROCEDURES THAT ARE FAIR, OPEN, EQUITABLE, TRANSPARENT, AND DEMONSTRATED TO BE THE BEST CHOICE FOR THE PUBLIC INTEREST; TO PROVIDE SUFFICIENT SAFEGUARDS AND PROTECTIONS IN THE EVENT THAT PRIVATE DEVELOPERS WITHDRAW FROM PARTIC- IPATION IN A REDEVELOPMENT PROJECT OR IMPROVEMENT PROGRAM; TO INCREASE EMPLOYMENT OPPORTUNITIES FOR LOCAL RESIDENTS, ESPECIALLY LOW INCOME RESIDENTS, AND PERSONS WITH OTHER BARRIERS TO EMPLOYMENT, THROUGH JOB TRAINING, LOCAL HIRING AND OTHER ASSISTANCE PROGRAMS; AND TO ENCOURAGE THE CREATION OF QUALITY JOBS. It is further declared to be the policy of the state to promote the safety, health
[, morals]and welfare of the people of the state through the provision of adequate, safe and sanitary dwelling accommodations and facilities incidental or appurtenant thereto for persons and families of low income. For these purposes, there should be created a corporate governmental agency to be known as the "New York state urban development corporation" which, through issuance of bonds and notes to the private, investing public, by encouraging maximum participation by the private sector of the economy, including the sale or lease of the corporation's interest in projects at the earliest time deemed feasible, and through partic- ipation in programs undertaken by the state, its agencies and subdivi- sions, and by municipalities and the federal government, may provide or obtain the capital resources necessary to acquire, construct, recon- struct, rehabilitate or improve such industrial, manufacturing, commer- cial, educational, recreational and cultural facilities, and housing accommodations for persons and families of low income, and facilities incidental or appurtenant thereto, and to carry out the [clearance, replanning, reconstruction and rehabilitation of such substandard and insanitary]REDEVELOPMENT OF BLIGHTED areas. It is further declared to be the policy of New York state to encourage the development of research and development facilities and high technol- ogy industrial incubator space at institutions of higher education located in this state and authorized to confer degrees by law or by the board of regents, or on lands in reasonable proximity to such insti- tutions provided that (i) in the case of research and development facil- ities such facilities are for the cooperative use of one or more such institutions and one or more business corporations, research consortia or other industrial organizations involved in research, development, demonstration, or other technologically oriented industrial activities; and (ii) in the case of high technology industrial incubator space, such space shall be for rental to business concerns which are in their form- ative stages and which are involved in high technology activities, including but not limited to business concerns initiated by students, employees of such institution, including faculty members and other persons or firms academically associated with such institution. It is hereby declared that the acquisition, construction, FINANCING, reconstruction, rehabilitation or improvement of such industrial, manu- facturing and commercial facilities, and of such cultural, educational and recreational facilities including but not limited to facilities identified as projects and called for to implement a state designated heritage area management plan as provided in title G of the parks, recreation and historic preservation law; the [clearance, replanning,REDEVELOPMENT OF BLIGHTED areas; and the provision of adequate, safe and sanitary housing accommodations for persons and families of low income and such facilities as may be incidental or appurtenant thereto are public uses and public purposes for which public money may be loaned and private property may be acquired and tax exemption granted, and that the powers and duties of the New York state urban development corporation as hereinafter prescribed are necessary and proper for the purpose of achieving the ends here recited. S 2. Subdivision 12 of section 3 of section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corpo- ration act, is REPEALED and a new subdivision 12 is added to read as follows: (12) "BLIGHTED PROPERTY OR BLIGHTED AREA." BLIGHTED PROPERTY OR BLIGHTED AREA MEANS PROPERTY THAT IS DECLARED BLIGHTED. (A) A SINGLE PROPERTY MAY BE DECLARED BLIGHTED IF IT MEETS ANY OF THE FOLLOWING CONDITIONS: 1. IS UNFIT FOR HUMAN HABITATION. THIS MEANS A PREMISE WHICH HAS IDEN- TIFIABLE CONDITIONS THAT ENDANGER THE LIFE, HEALTH AND SAFETY OF THE OWNERS, OCCUPANTS, OR THE PUBLIC. CONDITIONS RENDERING THE PROPERTY UNFIT FOR HUMAN HABITATION INCLUDE, BUT ARE NOT LIMITED TO, SUBSTANTIAL STRUCTURAL DEFECTS, DILAPIDATION OR DETERIORATIONS, VERMIN INFESTATION, LACK OF NECESSARY UTILITIES AND FIRE HAZARDS. 2. HAS DETERIORATED TO THE POINT WHERE SUCH PREMISES: (A) IS STRUCTURALLY UNSOUND OR POSES AN IMMEDIATE THREAT TO LIFE OR OTHER PROPERTY, OR (B) THE COST OF REHABILITATION SIGNIFICANTLY EXCEEDS THE POST-REHABI- LITATION MARKET VALUE; AND 3. THE OWNER FAILS TO REMEDY THE PROBLEMS WITHIN A REASONABLE TIME AFTER RECEIVING NOTICE OF VIOLATION BY THE APPROPRIATE GOVERNING BODY REQUIRING THE OWNER TO: (A) REHABILITATE THE BUILDING TO CONFORM TO MINIMUM CODE HABITABILITY REQUIREMENTS; OR (B) DEMOLISH THE BUILDING FOR HEALTH AND SAFETY REASONS. 4. IS AN ABANDONED PROPERTY. ABANDONED PROPERTY MEANS: (A) UNOCCUPIED PROPERTY WHICH HAS BEEN TAX DELINQUENT FOR AT LEAST TWO YEARS; OR (B) A BUILDING THAT: (I) IS UNOCCUPIED BY THE OWNER OR TENANTS; AND (II) IS UNFIT FOR HUMAN HABITATION; AND (III) HAS DETERIORATED TO THE POINT WHERE: A. THE BUILDING IS STRUCTURALLY UNSOUND OR POSES AN IMMEDIATE THREAT TO LIFE OR OTHER PROPERTY; OR B. THE COST OF REHABILITATION SIGNIFICANTLY EXCEEDS THE POST-REHABILI- TATION MARKET VALUE; AND C. THE OWNER IS UNKNOWN OR THE OWNER FAILS TO RESPOND WITHIN SIX MONTHS TO A VIOLATION NOTICE FROM THE APPROPRIATE GOVERNING BODY REQUIR- ING THE OWNER TO: (1) REHABILITATE THE BUILDING TO CONFORM TO MINIMUM HABITABILITY REQUIREMENTS; OR (2) DEMOLISH THE BUILDING FOR HEALTH AND SAFETY REASONS. 5. A VACANT LOT ON WHICH A BUILDING HAS BEEN DEMOLISHED AND FOR WHICH A MUNICIPAL LIEN FOR DEMOLITION COSTS REMAINS UNPAID FOR SIX MONTHS. 6. IS ENVIRONMENTALLY CONTAMINATED REQUIRING REMEDIATION FOR CURRENT OR FUTURE USE UNDER STATE OR FEDERAL LAW, IF THE OWNER FAILS TO ESTAB- LISH A PLAN TO REMEDY THE PROBLEM WITHIN SIX MONTHS OF RECEIVING NOTICES. 1244 5
reconstruction and rehabilitation of such substandard and insanitary]S. 1244 6
OF VIOLATION FROM THE APPROPRIATE GOVERNING BODY AND HAS TAKEN STEPS TO REMEDY THE VIOLATION. 7. BECAUSE OF CONDITION OR USE, IS REGARDED AS A PUBLIC NUISANCE OR AN ATTRACTIVE NUISANCE AT COMMON LAW OR HAS BEEN DECLARED A PUBLIC NUISANCE OR AN ATTRACTIVE NUISANCE UNDER A NEW YORK STATUTE OR AN APPLICABLE MUNICIPAL CODE, AND THE OWNER FAILS TO ABATE THE NUISANCE WITHIN SIX MONTHS OF RECEIVING NOTICE OF VIOLATION FROM THE APPROPRIATE GOVERNING BODY. 8. DEFECTIVE OR UNUSUAL CONDITIONS OF TITLE THAT MAKE THE FREE TRANS- FER OR ALIENATION OF THE PROPERTY IMPOSSIBLE. 9. THAT HAS TAX DELINQUENCIES EXCEEDING THE VALUE OF THE PROPERTY WHERE THE PROPERTY IS OCCUPIED OR UNOCCUPIED. (B) PROPERTY SHALL IN NO CASE BE DECLARED BLIGHTED IF IT MEETS EITHER OF THE FOLLOWING CRITERIA: 1. VACANT AND UNIMPROVED PROPERTY LOCATED IN ANY RURAL OR SUBURBAN AREA WHICH IS NOT SERVED BY EXISTING UTILITIES. 2. PROPERTY WHICH SATISFIES THE DEFINITION OF "FARM WOODLAND", "LAND USED IN AGRICULTURAL PRODUCTION", "UNIQUE AND IRREPLACEABLE AGRICULTURAL LAND", OR "VIABLE AGRICULTURAL LAND", AS THOSE TERMS ARE DEFINED IN SECTION THREE HUNDRED ONE OF THE AGRICULTURE AND MARKETS LAW. (C) FOR PURPOSES OF THIS SUBDIVISION, A BUILDING CONTAINING MULTIPLE UNITS SHALL BE TREATED AS A SINGLE PROPERTY. (D) FOR PURPOSES OF ACQUIRING MULTIPLE UNITS OF PROPERTY BY EMINENT DOMAIN, AN AREA MAY BE DECLARED BLIGHTED ONLY IF: 1. AN AREA IS LOCATED IN AN URBAN OR SUBURBAN AREA GENERALLY SERVED BY UTILITIES AND INFRASTRUCTURE; AND 2. SIXTY PERCENT OF THE INDIVIDUAL PARCELS IN THE AREA ARE DECLARED BLIGHTED UNDER PARAGRAPH (A) OF THIS SUBDIVISION AND REPRESENT A MAJORI- TY OF THE GEOGRAPHICAL AREA OF THE PROJECT. (E) A CONDEMNOR MAY USE EMINENT DOMAIN TO ACQUIRE ANY UNIT OF PROPERTY WITHIN A BLIGHTED PROJECT AREA. (F) PROPERTIES OWNED BY A DEVELOPER OR CONDEMNOR INVOLVED IN A REDE- VELOPMENT PROJECT MAY BE INCLUDED IN ANY BLIGHTED PROJECT AREA DETERMI- NATION. (G) FOR PURPOSES OF THIS SUBDIVISION IF A DEVELOPER, CONDEMNOR OR AGENCY INVOLVED IN A REDEVELOPMENT PROJECT HAS CAUSED OR BROUGHT ABOUT BY ACTION OR INACTION OR MAINTAINED FOR MORE THAN SEVEN YEARS A CONDI- TION LISTED IN SUBPARAGRAPH ONE OF PARAGRAPH (A) OF THIS SUBDIVISION WITHIN THE PROPOSED PROJECT AREA, THAT CONDITION MAY NOT BE USED IN THE DETERMINATION OF BLIGHT. (H) FOR PURPOSES OF THIS SUBDIVISION, IF PROPERTY LOCATED IN AN URBAN- IZED AREA GENERALLY SERVED BY MUNICIPAL INFRASTRUCTURE AND UTILITIES MEETS ONE OR MORE OF THE CONDITIONS LISTED IN SUBPARAGRAPH ONE OF PARA- GRAPH (A) OF THIS SUBDIVISION DUE TO FAILURE ON THE PART OF THE APPRO- PRIATE GOVERNING BODY TO PROVIDE NECESSARY UTILITY SERVICES AND/OR INFRASTRUCTURE, THAT CONDITION MAY NOT BE USED IN THE DETERMINATION OF BLIGHT. (I) ANY DECLARATION MADE PURSUANT TO THIS SUBDIVISION SHALL BE VALID FOR A PERIOD OF UP TO TEN YEARS. S 3. Section 10 of section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, subdivision (d) as amended by chapter 847 of the laws of 1971, subdivi- sions (e) and (f) as added and subdivisions (g) and (h) as relettered by chapter 839 of the laws of 1987, is amended to read as follows: S 10. Findings of the corporation. Notwithstanding any other provision of this act, the corporation shall not be empowered to undertake theS. 1244 7
acquisition, construction, reconstruction, rehabilitation or improvement of a project unless the corporation finds: (a) in the case of a residential project: (1) That there exists, in the area in which the project is to be located, or in an area reasonably accessible to such area, a need for safe and sanitary housing accommodations for persons or families of low income, which the operations of private enterprise cannot provide; (2) That the project has been approved as a project of a housing company pursuant to the provisions of the private housing finance law. (b) in the case of an industrial project: (1) That the area in which the project is to be located is
[a substandard or insanitary area, or is in danger of becoming a substand- ard or insanitary area, wherein]FOUND TO BE BLIGHTED AND there exists a condition of substantial and persistent unemployment or underemployment; (2) That the acquisition or construction and operation of such project will prevent, eliminate or reduce unemployment or underemployment in such area; (3) That such project shall consist of a building or buildings which are suitable for manufacturing, warehousing or research or other indus- trial, business or commercial purposes [.]; (4) That adequate provision has been, or will be made for the payment of the cost of the acquisition, construction, operation, maintenance and upkeep of such project [.]; (5) That the acquisition and construction, proposed leasing, operation and use of such project will aid in the development, growth and prosper- ity of the state and the area in which such project is located; (6) That the plans and specifications assure adequate light, air, sanitation and fire protection. (c) in the case of a land use improvement project: (1) That the area in which the project is to be located is [a substandard or insanitary area, or is in danger of becoming a substand- ard or insanitary area]FOUND TO BE BLIGHTED and tends to impair or arrest the sound growth and development of the municipality; (2) That the project consists of a plan or undertaking for the clear- ance, replanning, reconstruction and rehabilitation of such area and for recreational and other facilities incidental or appurtenant thereto; (3) That the plan or undertaking affords maximum opportunity for participation by private enterprise, consistent with the sound needs of the municipality as a whole. (d) in the case of a civic project: (1) That THE AREA IN WHICH THE PROJECT IS TO BE LOCATED IS A BLIGHTED AREA WHEREIN there exists [in the area in which the project is to be located,]a need for the educational, cultural, recreational, community, municipal, public service or other civic facility to be included in the project; (2) That the project shall consist of a building or buildings or other facilities which are suitable for educational, cultural, recreational, community, municipal, public service or other civic purposes; (3) That such project will be leased to or owned by the state or an agency or instrumentality thereof, a municipality or an agency or instrumentality thereof, a public corporation, or any other entity which is carrying out a community, municipal, public service or other civic purpose, and that adequate provision has been, or will be, made for the payment of the cost of acquisition, construction, operation, maintenance and upkeep of the project;S. 1244 8
(4) That the plans and specifications assure or will assure adequate light, air, sanitation and fire protection. (e) in the case of an industrial effectiveness project: (1) That a feasibility study or productivity assessment exists demon- strating the potential for future profitability of the firm requesting financial assistance and such study or assessment has been reviewed and approved by the commissioner of economic development; (2) That for loans to implement a corporate restructuring or turn- around plan, the management of the industrial firm requesting assistance is capable and the firm has a sound business development plan that includes measures to ensure labor and management cooperation and to effect changes required to continue as a successful business; (3) That the requested financial assistance is not available from other public or private financing sources; and (4) That the area in which the project is to be located is
[a substandard or insanitary area, or is in danger of becoming a substand- ard or insanitary area, wherein]FOUND TO BE BLIGHTED AND there exists a condition of substantial and persistent unemployment or underemployment. (f) in the case of a small and medium-sized business assistance project: (1) That the area in which the project will be located is [a substand- ard or insanitary area, or is in danger of becoming a substandard or insanitary area, wherein]FOUND TO BE BLIGHTED AND there exists a condi- tion of substantial and persistent unemployment or underemployment; (2) That the project demonstrates market, management and financial feasibility and has a clear likelihood of success; (3) That the [industrial]firm provides at least a ten percent equity contribution and such contribution is not derived from other govern- mental sources; (4) That the requested financial assistance is not available from other public or private financing sources on terms compatible with the successful completion of the project; (5) That the project will not result in the relocation of any [indus- trial]firm from one municipality within the state to another munici- pality, OR IN THE ABANDONMENT OF ONE OR MORE OF THE FIRMS' PLANTS OR FACILITIES LOCATED WITHIN THE AREA, except under one of the following conditions: (i) when [an industrial]A firm is relocating within a muni- cipality with a population of at least one million where the governing body of such municipality approves such relocation; [or](ii) the corpo- ration notifies each municipality from which such [industrial]firm will be relocated and each municipality agrees to such relocation; OR (III) THE CORPORATION SHALL DETERMINE ON THE BASIS OF THE APPLICATION BEFORE IT THAT THE PROJECT IS REASONABLY NECESSARY TO DISCOURAGE THE FIRM FROM RELOCATING TO A LOCATION OUTSIDE THE STATE AND TO PRESERVE THE COMPET- ITIVE POSITION OF THE FIRM WITHIN ITS RESPECTIVE INDUSTRY; and (6) That the project is not for the purpose of refinancing any portion of the total project cost or other existing loans or debts of the project sponsor or owner. (g) in the case of all projects, that [there is a feasible method for the relocation of families and individuals displaced from the project area into decent, safe and sanitary dwellings]THE DISPLACEMENT OF RESI- DENTS AND BUSINESSES IS LIMITED TO THE MAXIMUM EXTENT POSSIBLE, AND THAT ALL DISPLACED RESIDENTS AND BUSINESSES WILL BE AFFORDED ADEQUATE COMPEN- SATION AND/OR ASSISTANCE TO BE RELOCATED TO SUBSTANTIALLY COMPARABLE PROPERTIES, which are or will be [provided]LOCATED in the project area or in [other areas]AN AREA REASONABLY PROXIMATE TO THE PROJECT AREA ANDS. 1244 9
not generally less desirable in regard to public utilities and public and commercial facilities, at SUBSTANTIALLY COMPARABLE rents or prices
[within the financial means of such families or individuals], and reasonably accessible to their places of DWELLING AND/OR employment. [Insofar as is feasible, the]THE corporation shall offer SUBSTANTIALLY COMPARABLE housing accommodations to [such families and individuals]DISPLACED RESIDENTS in [residential]projects [of the corporation]THAT INCLUDE A RESIDENTIAL COMPONENT, AND INSOFAR AS IS FEASIBLE, THE CORPO- RATION SHALL ASSIST IN FINDING SUBSTANTIALLY COMPARABLE INDUSTRIAL OR COMMERCIAL ACCOMMODATIONS TO DISPLACED BUSINESSES IN PROJECTS THAT INCLUDE AN INDUSTRIAL OR COMMERCIAL COMPONENT. The corporation may render to business and commercial tenants and [to families or other persons]displaced [from the project area,]RESIDENTS ANY OTHER such assistance as it may deem [necessary to enable them to relocate]APPRO- PRIATE. (h) in the case of all projects, the corporation shall [state the basis for its findings.]: (1) IN THE CASE OF A SINGLE PROPERTY, MAKE WRITTEN FINDINGS IDENTIFY- ING THE SPECIFIC CONDITIONS WHICH RENDER THE PROPERTY BLIGHTED UNDER SUBDIVISION TWELVE OF SECTION THREE OF THIS ACT; (2) IN THE CASE OF MULTIPLE PROPERTIES OR PROJECT AREAS, MAKE WRITTEN FINDINGS DEMONSTRATING THAT THE REQUIREMENTS OF SUBDIVISION TWELVE OF SECTION THREE OF THIS ACT HAVE BEEN MET. IN ORDER TO DEMONSTRATE THAT SIXTY PERCENT OF THE PROPERTIES IN THE AREA ARE INDIVIDUALLY BLIGHTED AND COMPRISE A MAJORITY OF THE GEOGRAPHICAL AREA OF THE PROJECT, EACH BLIGHTED PROPERTY MUST BE IDENTIFIED AND THE SPECIFIC CONDITIONS RENDER- ING IT BLIGHTED UNDER SUBDIVISION TWELVE OF SECTION THREE OF THIS ACT MUST BE IDENTIFIED. S 4. This act shall take effect immediately.