Bill Text: NY S03362 | 2017-2018 | General Assembly | Amended


Bill Title: Establishes a kitchen incubator/shared-use kitchen facility program within the urban development corporation; provides grant funding to local development corporations, municipalities, educational institutions and not-for-profit entities for the development or expansion of kitchen incubator/shared-use kitchen facilities which make available services such as food production, technical assistance, business management and marketing, distribution, storage and retailing assistance, particularly in economically distressed areas.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2018-06-20 - SUBSTITUTED BY A8292A [S03362 Detail]

Download: New_York-2017-S03362-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         3362--A
                               2017-2018 Regular Sessions
                    IN SENATE
                                    January 23, 2017
                                       ___________
        Introduced by Sens. KRUEGER, HAMILTON, MONTGOMERY, SERRANO -- read twice
          and ordered printed, and when printed to be committed to the Committee
          on  Corporations,  Authorities  and  Commissions -- recommitted to the
          Committee on Corporations, Authorities and Commissions  in  accordance
          with  Senate  Rule  6,  sec.  8 -- committee discharged, bill amended,
          ordered reprinted as amended and recommitted to said committee
        AN ACT to amend the New York state urban development corporation act, in
          relation to kitchen incubator/shared-use kitchen facilities
          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. Small business kitchen incubator/shared-use kitchen program.
     5  1. There is hereby established within the corporation a  small  business
     6  kitchen incubator/shared-use kitchen program. The corporation is author-
     7  ized within available appropriations in the empire state economic devel-
     8  opment  fund  established  pursuant to section sixteen-i of this act, to
     9  award grants, on a competitive basis in response  to  request-for-propo-
    10  sals,  to  local  development  corporations, municipalities, educational
    11  institutions, and  other  not-for-profit  organizations  for  the  costs
    12  involved in starting or expanding a kitchen incubator/shared-use kitchen
    13  facility.    The  corporation is further authorized to contract with the
    14  commissioner of  agriculture  and  markets,  and  such  commissioner  is
    15  authorized  to  contract  with  the  corporation,  to  prepare and issue
    16  requests for  proposals,  accept  grant  applications,  recommend  those
    17  applications  that best meet established criteria, to establish criteria
    18  and to administer grants awarded under this subdivision.    Such  grants
    19  may  be  used  for  the construction or rehabilitation of such facility,
    20  purchase  of  equipment,  training,  technical  assistance,  and   other
    21  purposes  necessary  for  the  successful  development or expansion of a
    22  kitchen incubator/shared-use kitchen facility. Kitchen incubator/shared-
    23  use kitchen facilities shall be food processing or  preparation  facili-
    24  ties  that  are  operated  by  not-for-profit corporations or government
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06262-03-8

        S. 3362--A                          2
     1  agencies and used primarily by small and emerging businesses,  including
     2  both  full-time  facility  tenants  and  businesses that rent space on a
     3  temporary basis.  They must provide or make available for facility busi-
     4  nesses:  low-cost  space,  below  current  market  value in the area the
     5  facility serves; and support services, including  but  not  limited  to,
     6  business  planning, management assistance, financial packaging, linkages
     7  to financing sources, and coordination with other  sources  of  training
     8  and  assistance.   They may provide or make available for facility busi-
     9  nesses, services such as food production or processing technical assist-
    10  ance, marketing, distribution, purchasing, storage, packing,  insurance,
    11  on-site retailing or other services.
    12    2.  Project  plans.    Applicants for grants must provide a management
    13  plan and a business plan for operating the kitchen  incubator/shared-use
    14  kitchen  facility  which  demonstrates to the satisfaction of the corpo-
    15  ration: (i) local business interest  in  a  new  or  expanded  facility,
    16  including the food processing needs of existing and potential food busi-
    17  nesses;  (ii) the applicant's ability to deliver services and assistance
    18  as described in subdivision one of this section, including a description
    19  of how such assistance and services will be delivered; (iii) whether the
    20  services provided to  facility  tenants  will  be  covered  by  fees  or
    21  included  in  the  rent, and how rentals and/or fees will be structured;
    22  (iv) a policy for tenants' entrance to and exit, or graduation, from the
    23  facility; and, (v) that the facility can be self-sustaining and will not
    24  require long-term state operating subsidies.
    25    3. Grant criteria. Grants and loans made by the  corporation  pursuant
    26  to this section shall be subject to the following limitations:
    27    a.  no  such grant shall exceed two hundred fifty thousand dollars per
    28  year; and
    29    b. preference shall be given to  applicants  which:  (i)  meet  highly
    30  distressed  area  criteria;  provide  a  local match; meet a substantial
    31  local or regional need; complement local programs  or  provide  services
    32  not  readily  available  from  units  of local government or the private
    33  sector; plan to provide  or  make  available  for  facility  businesses,
    34  services,  including  but  not limited to, food production or processing
    35  technical  assistance,  marketing,  distribution,  purchasing,  storage,
    36  packaging, insurance, on-site retailing or other services; and (ii) have
    37  developed  a  plan to assist businesses participating in the applicant's
    38  kitchen incubator/shared-use kitchen facility with purchasing  New  York
    39  state  agricultural  products,  and  promoting  the facility to regional
    40  farmers.
    41    § 2. Paragraph (b) of subdivision 1 of section 16-m of  section  1  of
    42  chapter  174  of the laws of 1968, constituting the New York state urban
    43  development corporation act, as added by section 1 of part N of  chapter
    44  84 of the laws of 2002, is amended to read as follows:
    45    (b)  Loans,  loan  guarantees,  and  grants including interest subsidy
    46  grants may be provided to municipalities, industrial  development  agen-
    47  cies,  not-for-profit corporations or local development corporations for
    48  the purpose of  developing  federal  facility  sites,  urban  industrial
    49  sites, industrial parks and incubator buildings including small business
    50  kitchen incubator/shared-use kitchen facilities; or to undertake prelim-
    51  inary planning relating thereto;
    52    §  3.  This act shall take effect immediately, provided, however, that
    53  the amendments to section 16-m of the urban development corporation  act
    54  made  by section two of this act shall not affect the expiration of such
    55  section and shall expire and be deemed repealed therewith.
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