Bill Text: NY A09489 | 2021-2022 | General Assembly | Introduced
Bill Title: Establishes an economic development grant program for the Second Avenue Subway construction project area; defines micro business.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2022-03-07 - referred to economic development [A09489 Detail]
Download: New_York-2021-A09489-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9489 IN ASSEMBLY March 7, 2022 ___________ Introduced by M. of A. GIBBS -- 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 establishing a Second Avenue Subway construction economic development grant program; and to amend the economic development law, in relation to the definition of micro business The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 1 of chapter 174 of the laws of 1968, constituting 2 the New York state urban development corporation act, is amended by 3 adding a new section 16-bb to read as follows: 4 § 16-bb. Second Avenue Subway construction economic development grant 5 program. (1) There is hereby created a Second Avenue Subway construction 6 economic development grant program for the purpose of providing finan- 7 cial and technical assistance to businesses located within the Second 8 Avenue Subway construction business zone area during periods of 9 construction. 10 (2) For the purposes of this section the following words or terms 11 shall mean as follows: 12 (a) "Small business" shall have the same meaning as defined in section 13 131 of the economic development law. 14 (b) "Qualified business" shall mean a small business or micro business 15 operating within a one hundred fifty foot radius of the business zone 16 area during a period of authorized construction, and the business has a 17 demonstrated loss. 18 (c) "Business zone area" shall mean: 19 (i) an area in which the chair of the corporation determines that 20 construction on the Second Avenue Subway project has occurred that has 21 been certified by the commissioner for the Metropolitan Transportation 22 Authority; or 23 (ii) the following areas: 24 (A) 125th Street from 5th Avenue to 3rd Avenue; 25 (B) 2nd Avenue from 129th Street to 91st Street; 26 (C) 2nd Avenue from 87th Street to 83rd Street; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03105-01-1A. 9489 2 1 (D) 2nd Avenue from 73rd Street to 69th Street; 2 (E) 2nd Avenue from 65th Street to 58th Street; 3 (F) 2nd Avenue from 45th Street to 41st Street; 4 (G) 2nd Avenue from 36th Street to 32nd Street; 5 (H) 2nd Avenue from 26th Street to 23rd Street; 6 (I) 2nd Avenue from 15th Street to 11th Street; 7 (J) 2nd Avenue from 6th Street to 4th Street; 8 (K) 2nd Avenue from 4th Street to Houston Street; 9 (L) Chrystie Street from Houston Street to Canal Street; 10 (M) Bowery from Pell Street to Worth Street; 11 (N) Worth Street from Mott Street to St. James Place; 12 (O) Water Street from Dover Street to John Street; 13 (P) Water Street from Wall Street to Coenties Slip. 14 (d) "Micro business" shall have the same meaning as in section 131-a 15 of the economic development law. 16 (e) "Period of authorized construction" shall mean those dates for 17 which the chair of the corporation determines that construction on the 18 Second Avenue Subway project has occurred for the specific portion of 19 the business zone area. 20 (f) "Demonstrated loss" means a ten percent decline in taxable income 21 in the year in which the grant is applied for compared to the business' 22 base fiscal year. 23 (g) "Base fiscal year" means the tax year immediately preceding the 24 year in which construction began in that portion of the business zone 25 area in which the business is located. 26 (h) "Endangered business" means a business that would otherwise be 27 deemed a qualified business as defined in paragraph (b) of this subdivi- 28 sion, but who can show a demonstrated loss of a thirty percent decline 29 in taxable income in any given year compared to the business' base 30 fiscal year. 31 (i) "Terminal business" means a business that would otherwise be 32 deemed a qualified business as defined in paragraph (b) of this subdivi- 33 sion, but who can show a demonstrated loss of a fifty percent decline in 34 taxable income in any given year compared to the business' base fiscal 35 year. 36 (3) Assistance, out of moneys made available for this program, shall 37 be provided to qualified businesses for the following purposes: 38 (a) capital improvements costs related to the following: 39 (i) improving signage so that pedestrians can easily see and identify 40 the business as an operating business; 41 (ii) expanding existing entryways to the business; 42 (iii) altering the existing entryways, windows, walls or structure to 43 prevent or minimize excessive noise occurring from the construction; 44 (iv) improving ventilation within the building to maintain air quality 45 within the business; 46 (v) equipment, machinery, furniture, fixtures and fittings necessary 47 to the running of a qualified business that shall be affixed to and 48 remain a part of the qualified business location within the business 49 zone area; and 50 (vi) such other capital improvements as determined by the chair of the 51 corporation. 52 (b) marketing and advertising costs. 53 (c) for endangered businesses, as determined by the chair of the 54 corporation, such as: 55 (i) payroll assistance; provided, however, any payroll assistance 56 payments made must be made to an employee who has been employed by theA. 9489 3 1 business for at least one year, does not have an ownership interest in 2 the business, and is not related, either through blood or marriage, to 3 the owner of the business; 4 (ii) rental payment assistance, whether for real property or equipment 5 and services; 6 (iii) utilities, including but not limited to electricity, phone, 7 cable, internet, and water; and 8 (iv) insurance, as determined by the chair of the corporation. 9 (d) for terminal businesses, as determined by the chair of the corpo- 10 ration, such as: 11 (i) assistance offered to qualified and endangered businesses under 12 this subdivision; and 13 (ii) professional counseling services, dissolution services, profes- 14 sional bankruptcy assistance services, and debt management services. 15 (4) The chairman shall establish rules and regulations to ensure that 16 all moneys given pursuant to this section are used for the purposes 17 specified by the applicant. If it is determined that a recipient of 18 funds used the money in a manner inconsistent with the information set 19 out in his or her application, the applicant shall be required to reim- 20 burse the corporation twice the amount given to the applicant. 21 (5) The corporation shall also: 22 (a) (i) Establish a comprehensive technical assistance program in 23 cooperation with the department of economic development to assist small 24 and micro businesses through third party service providers, which 25 assistance shall include, but not be limited to: 26 (A) technical assistance with applications for obtaining funds from 27 public and private financing sources; 28 (B) technical assistance in the development of a working capital budg- 29 et; 30 (C) referrals to other providers of technical assistance to small and 31 micro businesses, where appropriate, including the entrepreneurial 32 assistance program established pursuant to article 9 of the economic 33 development law; and 34 (D) technical assistance through education programs. 35 (ii) Technical assistance may be provided through direct corporate 36 support, or through grants to or contracts with service providers or 37 governmental entities. 38 (b) establish programs to assist small and micro businesses in devel- 39 oping workplace policies, including but not limited to the design of 40 employee benefit and assistance programs and developing child care 41 programs. 42 (c) provide grants to business improvement districts, local develop- 43 ment corporations, other not-for-profit economic development organiza- 44 tions, and municipalities for tourism, marketing, promotion, information 45 activities and commercial revitalization activities in the business zone 46 area, such activities may include, but are not limited to, joint print, 47 mailed and internet advertisements, marketing campaigns and redevelop- 48 ment work in connection with the design and implementation of a plan for 49 facade and other improvements throughout the business zone area. Such 50 grants may include monies available for individual property owners 51 and/or tenants who agree to improve their property in accordance with an 52 overall design plan, provided that, such individual property owners 53 and/or tenants shall be required to match at least fifty percent of the 54 amount of any grant awarded to them. 55 (d) provide grants to small and micro businesses to offset costs asso- 56 ciated with the start-up of new business enterprises provided that theA. 9489 4 1 space in which the business is going to be located has been vacant for 2 at least one year, the business owner has entered into a lease for at 3 least two years and the landlord or business owner shall be required to 4 match at least half the amount of any grant awarded to them. Such 5 grants may be used to provide technical assistance in development and 6 execution of business plans, including the formation of, acquisition of, 7 management of, or diversification of a small or micro business. 8 (6)(a) The corporation shall, within available appropriations, award 9 grants or enter into contracts for services pursuant to this section to 10 small and micro businesses, through direct applications accepted at the 11 discretion of the corporation. For the purposes of this subdivision the 12 corporation shall enter into annual contracts for services or award 13 grants in an amount equal to fifty percent of the total project costs to 14 qualified businesses. 15 (b) The corporation shall enter into no more than one contract or make 16 more than one grant per year per applicant under this subdivision with 17 any qualified business regardless of the number of projects for which an 18 applicant has applied and for which funding has been approved. In the 19 case of applications for multiple projects to be conducted by a single 20 applicant, the corporation may, at its discretion, provide a grant or 21 enter into a single contract for services with the applicant for some or 22 all of the projects for which an applicant has applied. 23 (c) Not-for-profit corporations, business improvement districts and 24 community development organizations shall be eligible to apply for 25 support under this subdivision to operate a program or programs of busi- 26 ness and economic development services to stabilize, retain or revital- 27 ize existing qualified businesses, and to assist small, micro, and rein- 28 vesting businesses, including, but not limited to assistance to 29 individual businesses in such project areas as: 30 (i) business planning, management assistance and counseling, and 31 financial packaging assistance to small and micro businesses, including 32 the establishment of neighborhood-based business service centers 33 designed to deliver comprehensive technical assistance to new and small 34 businesses in specific communities and neighborhoods; 35 (ii) programs to assist small and micro businesses in the business 36 zone area to identify new business opportunities, plan for new enter- 37 prise development, and manage economic development projects; 38 (iii) innovative programs of public and private cooperation to foster 39 new enterprise development and small and micro business growth; 40 (iv) programs to assist new enterprises and small and micro businesses 41 to identify and access public and private sources of equity, working 42 capital and other types of financing; and 43 (v) programs that improve the ability of small and micro businesses to 44 access state job training programs. 45 (7) Any applicant, who is awarded a grant pursuant to this section 46 where the moneys of such grant are to be used for the construction, 47 demolition, reconstruction, excavation, rehabilitation, repair, reno- 48 vation or alteration of a facility or an improvement to property shall 49 require that the work covered by such contract shall be deemed "public 50 work" and subject to and performed in accordance with articles 8 and 9 51 of the labor law. 52 (8) An applicant who receives a grant pursuant to this section shall 53 ensure and shall sign a written declaration prior to receiving any funds 54 stating that all provisions of the labor law, specifically including the 55 minimum wage provisions of article 19 of the labor law, are adhered to 56 by the business receiving the grant.A. 9489 5 1 § 2. The economic development law is amended by adding a new section 2 131-a to read as follows: 3 § 131-a. Definition of a micro business. For the purposes of this 4 chapter, a micro business shall be deemed to be one which is resident in 5 this state, independently owned and operated, not dominant in its field 6 and employs ten or less persons on a full-time basis. 7 § 3. This act shall take effect immediately.