Bill Text: NY S01941 | 2023-2024 | General Assembly | Introduced
Bill Title: Defines blighted properties and areas.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-03 - REFERRED TO JUDICIARY [S01941 Detail]
Download: New_York-2023-S01941-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1941 2023-2024 Regular Sessions IN SENATE January 17, 2023 ___________ Introduced by Sen. BAILEY -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the eminent domain procedure law and the New York state urban development corporation act, in relation to defining blight; and to repeal certain provisions of the New York state urban development corporation act relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative findings and intent. The legislature hereby 2 finds and declares that eminent domain, while a meaningful tool for 3 government to move forward on important projects, has come under a great 4 deal of criticism in recent years for many alleged abuses that have 5 occurred within the state of New York. Traditionally, the right of 6 eminent domain, or the state's ability to seize private land was limited 7 for "public use". However, over the years, phrases such as "public use" 8 and "blighted" have taken on more expansive meanings. 9 Since Kelo v. City of New London, the 2005 decision in which the U.S. 10 Supreme Court approved the forcible transfer of property from one 11 private owner to another in the name of "economic development", forty- 12 three states have passed eminent domain reform legislation. New York has 13 thus far failed to take such action but continues again and again to 14 approve eminent domain condemnation for projects that benefit private 15 entities at the public's expense. A 2009 report by the Institute for 16 Justice entitled "Building Empires, Destroying Homes: Eminent Domain 17 Abuse in New York" detailed widespread eminent domain abuse throughout 18 the state. 19 Furthermore, two recent court decisions, Goldstein v. New York State 20 Urban Development Corporation and Kaur v. New York State Urban Develop- 21 ment Corporation demonstrate the need to balance the rights of property 22 owners without stifling positive economic development programs. Instead, 23 New Yorkers suffer under an inequitable system of eminent domain laws EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04471-01-3S. 1941 2 1 that greatly favors private developers partnered with public actors at 2 the expense of homeowners, businesses, and tenants. 3 The use of "blight" as a basis for condemnation is vaguely defined and 4 in need of clarification. Under the loose standards of existing law 5 practically anything can qualify as blighted. Consequently it is imper- 6 ative that the legislature enact objective criteria to ensure that 7 blight determinations are consistent, predictable, and based on factors 8 actually related to the public's health and safety. There also needs to 9 be better protections in place so that tenants and low income residents 10 are ensured that they are not excluded from the development process. 11 As Judge Catterson notes for the majority in the Kaur decision, it has 12 been well documented that the urban renewal schemes of the 1950s and 13 1960s displaced millions of people and destroyed hundreds of neighbor- 14 hoods. By and far, these programs disproportionately harmed low income 15 and minority families. Legislative reforms are needed to prevent a 16 repeat of these injustices. It is now time for New York to make the 17 necessary reforms that will ensure a fair and equitable use of our 18 eminent domain laws. 19 § 2. Section 103 of the eminent domain procedure law is amended by 20 adding five new subdivisions (H), (I), (J), (K) and (L) to read as 21 follows: 22 (H) "Blighted property" and "blighted area" mean property that is 23 declared blighted under section two hundred four-a of this chapter. 24 (I) "Slum" means property that is declared blighted under section two 25 hundred four-a of this chapter. 26 (J) "Substandard and insanitary property" means property that is 27 declared blighted under section two hundred four-a of this chapter. 28 (K) "Unfit for human habitation" means premises which have identifi- 29 able conditions that endanger the life, health and safety of the owners, 30 occupants, or the public. Conditions rendering property unfit for human 31 habitation include, but are not limited to, substantial structural 32 defects or deterioration, vermin infestation, lack of necessary utili- 33 ties, and fire hazards. 34 (L) "Abandoned property" means: 35 (1) unoccupied property which has been tax delinquent for at least two 36 years; or 37 (2) a building: 38 (a) that is unoccupied by owner or tenant; 39 (b) that is unfit for habitation; 40 (c) that has deteriorated to the point where: 41 (I) the building is structurally unsound or poses an immediate threat 42 to life or other property; or 43 (II) the cost of rehabilitation significantly exceeds the post-rehabi- 44 litation market value; and 45 (d) the owner is unknown or the owner fails to respond within six 46 months to a violation notice from the appropriate governing body requir- 47 ing the owner to: 48 (I) rehabilitate the building to conform to minimum code habitability 49 requirements; or 50 (II) demolish the building for health and safety reasons; or 51 (3) a vacant lot on which a building has been demolished and for which 52 a municipal lien for demolition costs remains unpaid for six months. 53 § 3. Paragraph 4 of subdivision (B) of section 204 of the eminent 54 domain procedure law is amended and a new paragraph 5 is added to read 55 as follows: 56 (4) such other factors as it considers relevant[.];S. 1941 3 1 (5) the findings required pursuant to subdivision (D) of section two 2 hundred four-a of this article. 3 § 4. The eminent domain procedure law is amended by adding a new 4 section 204-a to read as follows: 5 § 204-a. Blighted properties and areas. (A) Subject to the exceptions 6 listed in paragraph two of subdivision (B) of this section, any single 7 property may be declared blighted if it meets any of the following 8 conditions: 9 (1) Any premises, which because of dilapidation, deterioration, struc- 10 tural defects, vermin infestation, health hazards, fire hazards, lack of 11 utilities, lack of facilities or equipment required by statute or munic- 12 ipal code, neglect, or lack of maintenance: 13 (a) is unfit for human habitation; 14 (b) has deteriorated to the point where: 15 (I) the building is structurally unsound or poses an immediate threat 16 to life or other property; or 17 (II) the cost of rehabilitation significantly exceeds the post-rehabi- 18 litation market value; and 19 (c) the owner fails to remedy the problem within a reasonable time 20 after receiving notice of violation by the appropriate governing body 21 requiring the owner to: 22 (I) rehabilitate the building to conform to minimum code habitability 23 requirements; or 24 (II) demolish the building for health and safety reasons. 25 (2) Any abandoned property as defined in subdivision (L) of section 26 one hundred three of this chapter. 27 (3) Property that is environmentally contaminated and that requires 28 remediation for current or future use under state or federal law, if the 29 owner fails to remedy the problem within six months of receiving notice 30 of violation from the appropriate governing body. 31 (4) A premises which, because of physical condition or use, is 32 regarded as a public nuisance at common law or has been declared a 33 public nuisance under a statute or an applicable municipal code, and the 34 owner fails to abate the nuisance within six months of receiving notice 35 of violation from the appropriate governing body. 36 (5) Any well, shaft, basement, excavation, or unsafe fence or struc- 37 ture that, because of physical condition, use or occupancy, is deemed an 38 attractive nuisance to children, and the owner fails to abate the 39 nuisance within six months after receiving notice of violation from the 40 appropriate governing body. 41 (6) Vacant property that has become overgrown with weeds, is a place 42 for the accumulation of trash and debris, or a haven for vermin, if the 43 owner fails to remedy the problem within six months after receiving 44 notice of violation by the appropriate governing body requiring the 45 owner to rehabilitate the property to conform with minimum code require- 46 ments. 47 (7) Defective or unusual conditions of title that make the free trans- 48 fer or alienation of the property impossible. 49 (8) Occupied or unoccupied property that has tax delinquencies exceed- 50 ing the value of the property. 51 (9) Property that is used for pervasive and persistent criminal activ- 52 ity. For purposes of this section, such activity shall be defined as two 53 or more convictions of any person or persons had, within a period of one 54 year, for any of the following penal law offenses arising out of conduct 55 engaged in at the property:S. 1941 4 1 (a) sale of a controlled substance described in sections 220.31, 2 220.34, 220.39, 220.41, or 220.43 of the penal law; or 3 (b) offenses related to the crime of prostitution as described in 4 article two hundred thirty of the penal law; or 5 (c) offenses related to the crime of gambling as described in article 6 two hundred twenty-five of the penal law; or 7 (d) enterprise corruption as defined in article four hundred sixty of 8 the penal law. 9 (10) Property that does not otherwise meet any of the conditions list- 10 ed in this section may not be declared blighted. 11 (B) Notwithstanding the provisions of subdivision (A) of this section, 12 the following exceptions shall apply: 13 (1) Property shall in no case be declared blighted if it meets one or 14 more of the following criteria: 15 (a) Vacant and unimproved property located in any rural or suburban 16 area which is not served by existing utilities. 17 (b) Property which satisfies the definition of "farm woodland", "land 18 used in agricultural production", "unique and irreplaceable agricultural 19 land", or "viable agricultural land", as those terms are defined in 20 section three hundred one of the agriculture and markets law. 21 (2) For purposes of this section, if a developer or condemnor involved 22 in a redevelopment project has caused or brought about by action or 23 inaction or maintained for more than seven years a condition listed in 24 subdivision (A) of this section within the proposed project area, that 25 condition may not be used in the determination of blight. 26 (3) For purposes of this section, if property located in an urbanized 27 area generally served by municipal infrastructure and utilities meets 28 one or more of the conditions listed in subdivision (A) of this section 29 due to failure on the part of the appropriate governing body to provide 30 necessary utility services and/or infrastructure, that condition may not 31 be used in the determination of blight. 32 (C) Multiple properties and project areas may be declared blighted if 33 they meet any of the following conditions: 34 (1) For purposes of acquiring multiple units of property by eminent 35 domain, an area may be declared generally blighted only if: 36 (a) the area is located in an urban or suburban area generally served 37 by existing utilities and infrastructure; and 38 (b) seventy-five percent of the individual parcels in the area are 39 declared blighted under subdivision (A) of this section. 40 (2) A condemnor may use eminent domain to acquire any unit of property 41 within a blighted project area. 42 (3) Properties owned by a developer or condemnor involved in a rede- 43 velopment project may be included in any blighted project area determi- 44 nation. 45 (4) For purposes of this section, a building containing multiple units 46 shall be treated as a single property. 47 (D) The following findings shall be required before a property or 48 project area may be declared blighted: 49 (1) To declare any single property blighted, the condemnor must make 50 written findings identifying the specific conditions which render the 51 property blighted under subdivision (A) of this section. 52 (2) To declare multiple properties or project areas blighted, the 53 condemnor must make written findings demonstrating that the requirements 54 of subdivision (C) of this section have been met. To demonstrate that 55 seventy-five percent of the parcels in the area are individually blight- 56 ed, each blighted parcel must be identified and the specific conditionsS. 1941 5 1 rendering it blighted under subdivision (A) of this section must be 2 identified. 3 (E) Any declaration made pursuant to subdivision (D) of this section 4 shall be valid for a period of ten years. 5 § 5. Section 2 of section 1 of chapter 174 of the laws of 1968, 6 constituting the New York state urban development corporation act, the 7 ninth undesignated paragraph as added by chapter 280 of the laws of 1984 8 and the tenth undesignated paragraph as amended by chapter 747 of the 9 laws of 2005, is amended to read as follows: 10 § 2. Statement of legislative findings and purposes. It is hereby 11 found and declared that there exists in [urban] some areas of this state 12 a condition of substantial and persistent unemployment and underemploy- 13 ment which causes hardship to many individuals and families, wastes 14 vital human resources, increases the public assistance burdens of the 15 state and municipalities, impairs the security of family life, contrib- 16 utes to the growth of crime and delinquency, prevents many of our youth 17 from finishing their educations, impedes the economic and physical 18 development of municipalities and adversely affects the welfare and 19 prosperity of all the people of the state. [Many existing industrial,20manufacturing and commercial facilities in such urban areas are obsolete21and inefficient, dilapidated, and without adequate mass transportation22facilities and public services. Many of such facilities are underuti-23lized or in the process of being vacated, creating additional unemploy-24ment. Technological advances and the provision of modern, efficient25facilities in other states will speed the obsolescence and abandonment26of existing facilities causing serious injury to the economy of the27state. Many existing and planned industrial, manufacturing and commer-28cial facilities are, moreover, far from or not easily accessible to the29places of residence of substantial numbers of unemployed persons. As a30result, problems of chronic unemployment are not being alleviated but31are aggravated. New industrial, manufacturing and commercial facilities32are required to attract and house new industries and thereby to reduce33the hazards of unemployment. The unaided efforts of private enterprise34have not met and cannot meet the needs of providing such facilities due35to problems encountered in assembling suitable building sites] 36 It is further found and declared that the unaided efforts of private 37 industrial, manufacturing and commercial businesses are negatively 38 affected by aging and inefficient facilities, difficulties in finding 39 suitable building sites for new facilities, lack of adequate public 40 services, the unavailability of private capital for development [in such41urban areas], and the inability of private enterprise alone to plan[,] 42 and finance development and to coordinate [industrial and commercial43development] such development with [residential developments for persons44and families of low income and with] affordable housing development, 45 community development programs, public services and mass transportation 46 facilities. 47 It is further found and declared that there exist in many munici- 48 palities within this state [residential, nonresidential, commercial,49industrial or vacant areas, and combinations thereof, which are slum or50blighted, or which are becoming slum or blighted areas because of51substandard, insanitary, deteriorated or deteriorating conditions,52including obsolete and dilapidated buildings and structures, defective53construction, outmoded design, lack of proper sanitary facilities or54adequate fire or safety protection, excessive land coverage, insuffi-55cient light and ventilation, excessive population density, illegal uses56and conversions, inadequate maintenance, buildings abandoned or notS. 1941 6 1utilized in whole or substantial part, obsolete systems of utilities,2poorly or improperly designed street patterns and intersections, inade-3quate access to areas, traffic congestion hazardous to the public safe-4ty, lack of suitable off-street parking, inadequate loading and unload-5ing facilities, impractical street widths, sizes and shapes, blocks and6lots of irregular form, shape or insufficient size, width or depth,7unsuitable topography, subsoil or other physical conditions, all of] 8 blighted properties and blighted areas, which are characterized by prem- 9 ises unfit for human habitation and dangerous to life and property, and 10 which hamper or impede proper and economic development of such areas and 11 which impair or arrest the sound growth of the area, community or muni- 12 cipality, and the state as a whole. 13 It is further found and declared that there is a serious need through- 14 out the state for adequate educational, recreational, cultural and other 15 community facilities, the lack of which threatens and adversely affects 16 the health, safety[, morals] and welfare of the people of the state. 17 It is further found and declared that there continues to exist 18 throughout the state a seriously inadequate supply of [safe and sani-19tary] decent dwelling accommodations for persons and families of low 20 income. This condition is contrary to the public interest and threatens 21 the health, safety, welfare, comfort and security of the people of the 22 state. The ordinary operations of private enterprise cannot provide an 23 adequate supply of safe and sanitary dwelling accommodations [at24rentals] which persons and families of low income can afford. 25 It is further found and declared that there is an urgent need to 26 protect and enhance the quality of the natural environment, to encourage 27 the development and expansion of existing and alternative sources of 28 energy and the conservation of energy, and to abate and prevent the 29 generation of hazardous waste, toxic by-products, and other types of 30 environmental pollution. 31 It is hereby declared to be the policy of the state to promote a 32 vigorous and growing economy, to prevent economic stagnation and to 33 encourage the creation of new job opportunities in order to protect 34 against the hazards of unemployment, reduce the level of public assist- 35 ance to now indigent individuals and families, increase revenues to the 36 state and to its municipalities and to achieve stable and diversified 37 local economies. In furtherance of these goals, it is the policy of the 38 state to retain existing industries and to attract new industries 39 through the acquisition, construction, financing, reconstruction and 40 rehabilitation of industrial and manufacturing plants and commercial 41 facilities, and to develop sites for new industrial and commercial 42 building. It is further declared to be the policy of the state to 43 promote the development of such plants and facilities, reasonably acces- 44 sible to residential facilities, in those areas where substantial unem- 45 ployment or underemployment exists, to the end that the industrial and 46 commercial development [of our urban areas] will proceed in sound fash- 47 ion and in coordination with development of housing, mass transportation 48 and public services, and that job opportunities will be available in 49 those areas where people lack jobs. 50 It is further declared to be the policy of the state to promote the 51 safety, health[, morals] and welfare of the people of the state and to 52 promote the sound growth and development of our municipalities through 53 the [correction of such substandard, insanitary, blighted, deteriorated54or deteriorating conditions, factors and characteristics by the clear-55ance, replanning, reconstruction, redevelopment, rehabilitation, resto-56ration or conservation of such areas,] redevelopment of blighted areasS. 1941 7 1 and [of areas reasonably accessible thereto] the undertaking of public 2 and private improvement programs [related thereto], including the 3 provision of educational, recreational and cultural facilities, and the 4 encouragement of participation in these programs by private enterprise. 5 In furtherance of these goals, it is the policy of the state to engage 6 and empower the public through educational programs, community outreach, 7 and an open and inclusive redevelopment planning process; to coordinate 8 redevelopment projects and improvement programs with local government 9 planning goals; to respect communities' existing social and cultural 10 fabric and to limit residential and business displacement to maximum 11 extent possible; to reuse existing resources and infrastructure and 12 recycle materials and structures; to encourage energy efficiency and 13 sustainable building; to conserve undeveloped land and encourage infill 14 and brownfield development; to improve or restore natural systems such 15 as streambeds, drainage courses, wetlands, rivers, and other ecological 16 features, and to encourage the creation of publicly available open spac- 17 es; to ensure that environmental pollution does not disparately affect 18 areas with a substantial number of minority or low income households; to 19 incorporate cultural resources and landscapes into project designs by 20 preserving and rehabilitating buildings with cultural, historical or 21 architectural significance, encouraging adaptive reuse as an alternative 22 to demolition and new construction, and encouraging compatible design of 23 new construction; to encourage the retention and construction of afford- 24 able housing through incentives, loans, and other programs; to encourage 25 development that is accessible and inviting to pedestrians, bicyclists 26 and transit users, and to discourage development that is reliant on 27 personal automobile transportation; to increase opportunities for 28 private enterprise, especially for small businesses, local businesses, 29 and businesses owned by minorities and women, through procedures that 30 are fair, open, equitable, transparent, and demonstrated to be the best 31 choice for the public interest; to provide sufficient guarantees and 32 protections in the event that private developers withdraw from partic- 33 ipation in a redevelopment project or improvement program; to increase 34 employment opportunities for local residents, especially low income 35 residents, homeless persons, single parents, formerly incarcerated indi- 36 viduals, and persons with other barriers to employment, through job 37 training, local hiring and other assistance programs; and to encourage 38 the creation of quality jobs that provide a living wage, adequate health 39 benefits, and opportunities for advancement. 40 It is further declared to be the policy of the state to promote the 41 safety, health[, morals] and welfare of the people of the state through 42 the provision of adequate, safe and sanitary dwelling accommodations and 43 facilities incidental or appurtenant thereto for persons and families of 44 low income. 45 For these purposes, there should be created a corporate governmental 46 agency to be known as the "New York state urban development corporation" 47 which, through issuance of bonds and notes to the private, investing 48 public, by encouraging maximum participation by the private sector of 49 the economy, including the sale or lease of the corporation's interest 50 in projects at the earliest time deemed feasible, and through partic- 51 ipation in programs undertaken by the state, its agencies and subdivi- 52 sions, and by municipalities and the federal government, may provide or 53 obtain the capital resources necessary to acquire, construct, recon- 54 struct, rehabilitate or improve such industrial, manufacturing, commer- 55 cial, educational, recreational and cultural facilities, and housing 56 accommodations for persons and families of low income, and facilitiesS. 1941 8 1 incidental or appurtenant thereto, and to carry out the [clearance,2replanning, reconstruction and rehabilitation of such substandard and3insanitary] redevelopment of blighted areas. 4 It is further declared to be the policy of New York state to encourage 5 the development of research and development facilities and high technol- 6 ogy industrial incubator space at institutions of higher education 7 located in this state and authorized to confer degrees by law or by the 8 board of regents, or on lands in reasonable proximity to such insti- 9 tutions provided that (i) in the case of research and development facil- 10 ities such facilities are for the cooperative use of one or more such 11 institutions and one or more business corporations, research consortia 12 or other industrial organizations involved in research, development, 13 demonstration, or other technologically oriented industrial activities; 14 and (ii) in the case of high technology industrial incubator space, such 15 space shall be for rental to business concerns which are in their form- 16 ative stages and which are involved in high technology activities, 17 including but not limited to business concerns initiated by students, 18 employees of such institution, including faculty members and other 19 persons or firms academically associated with such institution. 20 It is hereby declared that the acquisition, construction, financing, 21 reconstruction, rehabilitation or improvement of such industrial, manu- 22 facturing and commercial facilities, and of such cultural, educational 23 and recreational facilities including but not limited to facilities 24 identified as projects and called for to implement a state designated 25 heritage area management plan as provided in title G of the parks, 26 recreation and historic preservation law; the [clearance, replanning,27reconstruction and rehabilitation of such substandard and insanitary] 28 redevelopment of blighted areas; and the provision of adequate, safe and 29 sanitary housing accommodations for persons and families of low income 30 and such facilities as may be incidental or appurtenant thereto are 31 public uses and public purposes for which public money may be loaned and 32 private property may be acquired and tax exemption granted, and that the 33 powers and duties of the New York state urban development corporation as 34 hereinafter prescribed are necessary and proper for the purpose of 35 achieving the ends here recited. 36 § 6. Section 3 of section 1 of chapter 174 of the laws of 1968, 37 constituting the New York state urban development corporation act, is 38 amended by adding two new subdivisions 31 and 32 to read as follows: 39 (31) "Blighted property" and "blighted area". Property that is 40 declared blighted under section 204-a of the eminent domain procedure 41 law. 42 (32) "Slum". Property that is declared blighted under section 204-a of 43 the eminent domain procedure law. 44 § 7. Subdivision 12 of section 3 of section 1 of chapter 174 of the 45 laws of 1968, constituting the New York state urban development corpo- 46 ration act, is REPEALED and a new subdivision 12 is added to read as 47 follows: 48 (12) "Substandard and insanitary property". Property that is declared 49 blighted under section 204-a of the eminent domain procedure law. 50 § 8. Subdivision 7 of section 5 of section 1 of chapter 174 of the 51 laws of 1968, constituting the New York state urban development corpo- 52 ration act, is amended to read as follows: 53 (7) To acquire or contract to acquire from any person, firm, corpo- 54 ration, municipality, federal or state agency, by grant, purchase, 55 condemnation or otherwise, leaseholds, real, personal or mixed property 56 or any interest therein, subject to the limitations in section 204-a ofS. 1941 9 1 the eminent domain procedure law; to own, hold, clear, improve and reha- 2 bilitate, and to sell, assign, exchange, transfer, convey, lease, mort- 3 gage, or otherwise dispose of or encumber the same; 4 § 9. Section 10 of section 1 of chapter 174 of the laws of 1968, 5 constituting the New York state urban development corporation act, 6 subdivision (d) as amended by chapter 847 of the laws of 1971, subdivi- 7 sions (e) and (f) as added and subdivisions (g) and (h) as relettered by 8 chapter 839 of the laws of 1987, is amended to read as follows: 9 § 10. Findings of the corporation. Notwithstanding any other provision 10 of this act, the corporation shall not be empowered to undertake the 11 acquisition, construction, reconstruction, rehabilitation or improvement 12 of a project unless the corporation finds: 13 (a) in the case of a residential project: 14 (1) That there exists, in the area in which the project is to be 15 located, or in an area reasonably accessible to such area, a need for 16 [safe and sanitary] decent housing accommodations for persons or fami- 17 lies of low income, which the operations of private enterprise cannot 18 provide; 19 (2) That the project has been approved as a project of a housing 20 company pursuant to the provisions of the private housing finance law. 21 (b) in the case of an industrial project: 22 (1) That the area in which the project is to be located is a 23 [substandard or insanitary area, or is in danger of becoming a substand-24ard or insanitary area] blighted area, as that term is defined in subdi- 25 vision (H) of section 103 of the eminent domain procedure law, wherein 26 there exists a condition of substantial and persistent unemployment or 27 underemployment; 28 (2) That the acquisition or construction and operation of such project 29 will prevent, eliminate or reduce unemployment or underemployment in 30 such area; 31 (3) That such project shall consist of a building or buildings which 32 are suitable for manufacturing, warehousing or research or other indus- 33 trial, business or commercial purposes[.]; 34 (4) That adequate provision has been, or will be made for the payment 35 of the cost of the acquisition, construction, operation, maintenance and 36 upkeep of such project[.]; 37 (5) That the acquisition and construction, proposed leasing, operation 38 and use of such project will aid in the development, growth and prosper- 39 ity of the state and the area in which such project is located; 40 (6) That the plans and specifications assure adequate light, air, 41 sanitation and fire protection. 42 (c) in the case of a land use improvement project: 43 (1) That the area in which the project is to be located is a 44 [substandard or insanitary area, or is in danger of becoming a substand-45ard or insanitary area and tends to impair or arrest the sound growth46and development of the municipality] blighted area, as that term is 47 defined in subdivision (H) of section 103 of the eminent domain proce- 48 dure law; 49 (2) That the project consists of a plan or undertaking for the clear- 50 ance, replanning, reconstruction and rehabilitation of such area and for 51 recreational and other facilities incidental or appurtenant thereto; 52 (3) That the plan or undertaking affords maximum opportunity for 53 participation by private enterprise, consistent with the sound needs of 54 the municipality as a whole. 55 (d) in the case of a civic project:S. 1941 10 1 (1) That the area in which the project is to be located is a blighted 2 area, as that term is defined in subdivision (H) of section 103 of the 3 eminent domain procedure law, wherein there exists [in the area in which4the project is to be located,] a need for the educational, cultural, 5 recreational, community, municipal, public service or other civic facil- 6 ity to be included in the project; 7 (2) That the project shall consist of a building or buildings or other 8 facilities which are suitable for educational, cultural, recreational, 9 community, municipal, public service or other civic purposes; 10 (3) That such project will be leased to or owned by the state or an 11 agency or instrumentality thereof, a municipality or an agency or 12 instrumentality thereof, a public corporation, or any other entity which 13 is carrying out a community, municipal, public service or other civic 14 purpose, and that adequate provision has been, or will be, made for the 15 payment of the cost of acquisition, construction, operation, maintenance 16 and upkeep of the project; 17 (4) That the plans and specifications assure or will assure adequate 18 light, air, sanitation and fire protection. 19 (e) in the case of an industrial effectiveness project: 20 (1) That a feasibility study or productivity assessment exists demon- 21 strating the potential for future profitability of the firm requesting 22 financial assistance and such study or assessment has been reviewed and 23 approved by the commissioner of economic development; 24 (2) That for loans to implement a corporate restructuring or turn- 25 around plan, the management of the industrial firm requesting assistance 26 is capable and the firm has a sound business development plan that 27 includes measures to ensure labor and management cooperation and to 28 effect changes required to continue as a successful business; 29 (3) That the requested financial assistance is not available from 30 other public or private financing sources; and 31 (4) That the area in which the project is to be located is a 32 [substandard or insanitary area, or is in danger of becoming a substand-33ard or insanitary area] blighted area, as that term is defined in subdi- 34 vision (H) of section 103 of the eminent domain procedure law, wherein 35 there exists a condition of substantial and persistent unemployment or 36 underemployment. 37 (f) in the case of a small and medium-sized business assistance 38 project: 39 (1) That the area in which the project will be located is a [substand-40ard or insanitary area, or is in danger of becoming a substandard or41insanitary area] blighted area, as that term is defined in subdivision 42 (H) of section 103 of the eminent domain procedure law, wherein there 43 exists a condition of substantial and persistent unemployment or under- 44 employment; 45 (2) That the project demonstrates market, management and financial 46 feasibility and has a clear likelihood of success; 47 (3) That the [industrial] firm provides at least a ten percent equity 48 contribution and such contribution is not derived from other govern- 49 mental sources; 50 (4) That the requested financial assistance is not available from 51 other public or private financing sources on terms compatible with the 52 successful completion of the project; 53 (5) That the project will not result in the relocation of any [indus-54trial] firm from one municipality within the state to another munici- 55 pality, or in the abandonment of one or more of the firms' plants or 56 facilities located within the state, except under one of the followingS. 1941 11 1 conditions: (i) when [an industrial] a firm is relocating within a muni- 2 cipality with a population of at least one million where the governing 3 body of such municipality approves such relocation; [or] (ii) the corpo- 4 ration notifies each municipality from which such [industrial] firm will 5 be relocated and each municipality agrees to such relocation; or (iii) 6 the corporation shall determine on the basis of the application before 7 it that the project is reasonably necessary to discourage the firm from 8 relocating to a location outside the state and to preserve the compet- 9 itive position of the firm within its respective industry; and 10 (6) That the project is not for the purpose of refinancing any portion 11 of the total project cost or other existing loans or debts of the 12 project sponsor or owner. 13 (g) in the case of all projects, that [there is a feasible method for14the relocation of families and individuals displaced from the project15area into decent, safe and sanitary dwellings] the displacement of resi- 16 dents and businesses is limited to the maximum extent possible, and that 17 all displaced residents and businesses will be afforded adequate compen- 18 sation and/or assistance to be relocated to substantially comparable 19 properties, which are or will be [provided] located in the project area 20 or in [other areas] an area reasonably proximate to the project area and 21 not generally less desirable in regard to public utilities and public 22 and commercial facilities, at substantially comparable rents or prices 23 [within the financial means of such families or individuals], and 24 reasonably accessible to their places of dwelling and/or employment. 25 [Insofar as is feasible, the] The corporation shall offer substantially 26 comparable housing accommodations to [such families and individuals] 27 displaced residents in [residential] projects [of the corporation] that 28 include a residential component, and insofar as is feasible, the corpo- 29 ration shall offer substantially comparable industrial or commercial 30 accommodations to displaced businesses in projects that include an 31 industrial or commercial component. The corporation may render to busi- 32 ness and commercial tenants and [to families or other persons] displaced 33 [from the project area,] residents any other such assistance as it may 34 deem [necessary to enable them to relocate] appropriate. 35 (h) in the case of all projects, the corporation shall state the basis 36 for its findings. 37 § 10. This act shall take effect immediately.
