S T A T E O F N E W Y O R K
________________________________________________________________________
1824
2009-2010 Regular Sessions
I N A S S E M B L Y
January 12, 2009
___________
Introduced by M. of A. WRIGHT, ROBINSON, COLTON, GREENE, PERALTA,
ESPAILLAT -- Multi-Sponsored by -- M. of A. CANESTRARI, DIAZ, LATIMER,
RAIA, ZEBROWSKI -- read once and referred to the Committee on Judici-
ary
AN ACT to amend the eminent domain procedure law, in relation to
requirements for seizure of private property for public use under
certain circumstances
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision (G) of section 103 of the eminent domain proce-
dure law is amended and a new subdivision (H) is added to read as
follows:
(G) (I) "Public project" means any program or project for which acqui-
sition of property may be required for a public use, benefit or purpose,
PROVIDED THAT WHERE THE PURPOSE OF SUCH PROGRAM OR PROJECT IS TO PROVIDE
ECONOMIC DEVELOPMENT THROUGH AN URBAN REDEVELOPMENT PLAN OR AN URBAN
RENEWAL PLAN IN AN AREA OF THE STATE WHICH IS NOT BLIGHTED, THE
PROVISIONS OF SECTION TWO HUNDRED NINE OF THIS CHAPTER SHALL APPLY.
(II) PUBLIC BENEFIT PROJECT SHALL ALSO INCLUDE ANY CORPORATE DEVELOPER
EITHER PUBLIC OR PRIVATE WHO ENTERS INTO A COMMUNITY BENEFITS AGREEMENT
WITH NO LESS THAN TEN COMMUNITY ORGANIZATIONS WHO: (1) IN THE LAST FIVE
YEARS PRIOR TO THE DEVELOPMENT PROJECT, WERE IN POSSESSION OF
NOT-FOR-PROFIT 501(C)(3) STATUS AS RECOGNIZED BY THE UNITED STATES
INTERNAL REVENUE SERVICE; (2) WHOSE PLACE OF BUSINESS IS WITHIN ONE
THOUSAND FEET OF THE PROPOSED DEVELOPMENT; AND (3) WHO, IN THE LAST FIVE
YEARS PRIOR TO THE DEVELOPMENT PROJECT, HAS NOT RECEIVED FROM THE
PROPOSED DEVELOPER ANY MONETARY ASSISTANCE EITHER IN THE FORM OF GRANT
MONEY OR OTHERWISE THAT EQUALS OR EXCEEDS FIVE PERCENT OF THE COMMUNITY
ORGANIZATION'S TOTAL ANNUAL OPERATING BUDGET. SUCH COMMUNITY BENEFITS
AGREEMENT SHALL BE EXECUTED NOT LESS THAN ONE YEAR PRIOR TO THE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00012-01-9
A. 1824 2
COMMENCEMENT OF ANY CONDEMNATION PROCEEDINGS AS OUTLINED IN THIS CHAP-
TER.
(III) FOR PURPOSES OF THIS SECTION, A COMMUNITY BENEFITS AGREEMENT
SHALL BE ANY CONTRACT ENTERED INTO BETWEEN THE PROPOSED DEVELOPER AND
VARIOUS COMMUNITY ORGANIZATIONS WHERE AT LEAST ONE OF THE SIGNATORY
ORGANIZATIONS NOT-FOR-PROFIT CORPORATE PURPOSES IS IN THE AREA OF
AFFORDABLE HOUSING, JOB DEVELOPMENT AND CHILD SUPPORTIVE SERVICES AND
WHERE THE AGREEMENT OUTLINES HOW THE PROPOSED DEVELOPMENT WILL BENEFIT
WORKERS AND RESIDENTS THAT WILL BE SUBSTANTIALLY AFFECTED BY THE
PROPOSED DEVELOPMENT.
(H) "BLIGHTED AREAS" SHALL MEAN AREAS, WITH DETERIORATED OR DETERI-
ORATING STRUCTURES, A PREDOMINANCE OF DEFECTIVE OR INADEQUATE STREET
LAYOUT, FAULTY LOT LAYOUT IN RELATION TO SIZE, ADEQUACY, ACCESSIBILITY,
OR USEFULNESS, UNSANITARY OR UNSAFE CONDITIONS, DETERIORATION OF SITE OR
OTHER IMPROVEMENTS, DIVERSITY OF OWNERSHIP, TAX OR SPECIAL ASSESSMENT,
DELINQUENCY EXCEEDING THE FAIR VALUE OF THE LAND, DEFECTIVE OR UNUSUAL
CONDITIONS OF TITLE, IMPROPER SUBDIVISION OR THE EXISTENCE OF CONDITIONS
WHICH ENDANGER LIFE OR PROPERTY BY FIRE AND OTHER CAUSES, OR ANY COMBI-
NATION OF THESE FACTORS WHICH SUBSTANTIALLY IMPAIRS OR ARRESTS THE SOUND
GROWTH OF A MUNICIPALITY, RETARDS THE PROVISION OF HOUSING ACCOMMO-
DATIONS OR CONSTITUTES AN ECONOMIC OR SOCIAL LIABILITY AND IS A MENACE
TO THE PUBLIC HEALTH, SAFETY, MORALS OR WELFARE IN ITS PRESENT CONDI-
TION, WHICH CANNOT BE RECTIFIED EFFECTIVELY SOLELY THROUGH THE REGULATO-
RY USE OF POLICE POWER.
S 2. The eminent domain procedure law is amended by adding a new
section 209 to read as follows:
S 209. URBAN REDEVELOPMENT PLANS AND URBAN RENEWAL PLANS. (A) A
CONDEMNOR WHO SEEKS TO ACQUIRE PRIVATE PROPERTY THROUGH THE EXERCISE OF
EMINENT DOMAIN FOR THE PURPOSE OF IMPLEMENTING AN URBAN REDEVELOPMENT
PLAN OR AN URBAN RENEWAL PLAN IN AN AREA OF THE STATE WHICH IS NOT
BLIGHTED AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED THREE OF THIS
CHAPTER AND WHICH INVOLVES TRANSFER OR SALE OF THE PROPERTY, IN WHOLE OR
IN PART, TO A PRIVATE DEVELOPER SHALL COMPLY WITH THE PROVISIONS OF THIS
SECTION.
(1) THE DEVELOPER AND ANY SUCCESSOR OWNERS OR ASSIGNEES SHALL MAKE
AVAILABLE TO THE CONDEMNOR AND THE PUBLIC, AT THE DEVELOPER'S OWN COST,
ALL PLANS FOR THE DEVELOPMENT OF THE ACQUIRED PROPERTY INCLUDING BUT NOT
LIMITED TO THE EXPECTED OR PROJECTED PROFIT OF SAID DEVELOPMENT.
(2) WHERE THE DEVELOPMENT IN ANY ASPECT CONTAINS PROVISIONS FOR MANU-
FACTURING SPACE, THE DEVELOPER MUST AT THE DEVELOPER'S OWN COST CONDUCT
AN ENVIRONMENTAL IMPACT STATEMENT WHICH SHALL INCLUDE A CENSUS TO DETER-
MINE THE NUMBER OF WORKERS THAT MAY FACE EMPLOYMENT DISLOCATION AS A
RESULT OF THE PROPOSED DEVELOPMENT. THE DEVELOPER SHALL INCLUDE A RELO-
CATION PLAN WITHIN THE BOUNDARIES OF THE DEVELOPMENT TO ADDRESS EMPLOY-
MENT DISLOCATION.
(3) IF THE DEVELOPMENT IN ANY ASPECT CONTAINS PROVISIONS FOR RETAIL
SPACE, THE DEVELOPER MUST INITIALLY SEEK TO LEASE NOT LESS THAN FIFTEEN
PERCENT OF THE GROSS RETAIL SPACE AVAILABLE TO COMMUNITY BASED BUSI-
NESSES, WITH SPECIAL PREFERENCE GIVEN TO LOCAL BUSINESSES DISPLACED AS A
RESULT OF THE DEVELOPMENT PROJECT.
(4) THE DEVELOPMENT PLAN WHICH IS MADE AVAILABLE TO THE PUBLIC SHALL
INDICATE HOW THE DEVELOPMENT WILL PROVIDE THE COMMUNITY IMMEDIATELY
AFFECTED BY THE PROJECT WITH A MANDATORY NET INCREASE OF EMPLOYMENT
CONSISTENT WITH THE GOALS OF THE DEVELOPMENT PROJECT. IF THE DEVELOP-
MENT PROJECT FAILS TO PRODUCE A NET INCREASE IN EMPLOYMENT THE DEVELOPER
SHALL PLACE TEN PERCENT OF THE ANNUAL PROFIT FROM THE PROJECT INTO A
A. 1824 3
WORK FORCE DEVELOPMENT FUND TO BE ESTABLISHED BY THE DEPARTMENT OF LABOR
FOR A PERIOD OF NOT LESS THAN FIVE YEARS.
(B) THE CONDEMNOR SHALL PROVIDE FAIR MARKET VALUE COMPENSATION TO ALL
HOMEOWNERS AND COMMERCIAL OWNERS AFFECTED BY EMINENT DOMAIN ACQUISITION
FOR THE PURPOSES OF URBAN REDEVELOPMENT OR URBAN RENEWAL. IN ADDITION,
THE STATE SHALL REQUIRE NOT LESS THAN FIFTEEN PERCENT OF THE ANNUAL
PROFIT FROM SUCH DEVELOPMENT BE PLACED IN A DESIGNATED ACCOUNT ESTAB-
LISHED BY THE STATE COMPTROLLER, TO BE DISPERSED AT THE DISCRETION OF
THE COMPTROLLER FOR A PERIOD OF TEN YEARS TO A CLASS OF HOMEOWNERS AND A
CLASS OF COMMERCIAL OWNERS. FOR A PERIOD OF TEN YEARS THE DEVELOPMENT
COMPANY AND THEIR SUCCESSORS MUST PROVIDE THE STATE WITH A COPY OF THE
SAME ANNUAL REPORT THE COMPANY PROVIDES TO THEIR SHAREHOLDERS TO DETER-
MINE THEIR ANNUAL PROFIT FOR PURPOSES OF DISPERSING THE SAME TO THE
FORMER OWNERS.
(C) THE DEVELOPER (AND ANY SUCCESSOR OWNER OR LESSEE OF ANY BUILDING
IN THE DEVELOPMENT) SHALL ACCOMMODATE ALL RESIDENTIAL TENANTS AFFECTED
BY THE DEVELOPMENT PLAN. THE DEVELOPER SHALL PROVIDE ALL RESIDENTIAL
TENANTS CURRENTLY AND LEGALLY OCCUPYING A LEGAL RESIDENTIAL DWELLING
UNIT AS THEIR PRIMARY RESIDENCE WITHIN THE AFFECTED AREA WHO ARE IN GOOD
STANDING UNDER THE TERMS OF A VALID WRITTEN LEASE AGREEMENT, WHICH IS IN
FULL FORCE AND EFFECT, AT SUCH TIME AS THEIR PREMISES ARE SCHEDULED TO
BE IMPACTED BY CONSTRUCTION OF THE DEVELOPMENT, AND WHO HAVE RESIDED IN
SUCH A RESIDENCE FOR AT LEAST ONE YEAR PRIOR TO THE DATE OF THE WRITTEN
PROPOSAL SUBMITTED BY THE DEVELOPER, WITH "REASONABLY COMPARABLE LIVING
SPACE" IN A NEW UNIT WITHIN THE DEVELOPMENT, AT THEIR CURRENT RENT AND A
REASONABLE RELOCATION ALLOWANCE. FOR THE PURPOSES OF THIS SUBDIVISION
"REASONABLY COMPARABLE LIVING SPACE" SHALL MEAN AN APARTMENT WITH
APPROXIMATELY THE SAME SQUARE FOOTAGE AND NUMBER OF BEDROOMS AS SUCH
TENANT'S EXISTING UNIT WHICH IS ON A FLOOR THAT IS NO LOWER THAN THE
FLOOR OF SUCH EXISTING UNIT. IF A REASONABLY COMPARABLE SPACE AT THE
SAME RENT IS NOT AVAILABLE, THE DEVELOPER SHALL PAY THE DIFFERENCE IN
RENT FOR A REASONABLY COMPARABLE LIVING SPACE OUTSIDE OF THE DEVELOPMENT
PROJECT AREA, WHICH WILL TO THE EXTENT REASONABLY PRACTICABLE BE IN A
NEIGHBORING COMMUNITY (OR SUCH OTHER COMMUNITY ACCEPTABLE TO THE
DISPLACED PERSONS AND THE DEVELOPER) UNTIL SUCH TIME AS A UNIT (IF THE
DEVELOPMENT PLAN IS DISTINCTLY ALL OR PART RESIDENTIAL) IS MADE AVAIL-
ABLE IN THE DEVELOPMENT ON THEN COMPARABLE RENTAL TERMS (GIVING EFFECT
TO STANDARD COST OF LIVING INCREASES OR RENT STABILIZATION/CONTROL
INCREASES, AS APPLICABLE) AND A REASONABLE RELOCATION ALLOWANCE FOR THE
INITIAL MOVE AND SUBSEQUENT MOVE INTO THE DEVELOPMENT.
(D) (1) PRIOR TO THE DEMOLITION OF ANY RESIDENTIAL OR COMMERCIAL
BUILDING BY THE DEVELOPER, THE DEVELOPER SHALL PLACE NOT LESS THAN TWEN-
TY PERCENT OF THE TOTAL COST OF THE CONSTRUCTION OF THE DEVELOPMENT IN A
NEIGHBORHOOD PRESERVATION SECURITY DEPOSIT ACCOUNT, WHICH SHALL BE AN
INTEREST BEARING ESCROW ACCOUNT TO BE HELD AT A LOCAL COMMUNITY BANK
WHOSE HEADQUARTERS OR PRINCIPAL PLACE OF BUSINESS IS WITHIN A TWO THOU-
SAND FOOT RADIUS OF SUCH DEVELOPMENT PROJECT. SUCH BANK SHALL BE DESIG-
NATED BY THE COMPTROLLER TO ENSURE THE COMPLETION OF SUCH DEVELOPMENT
PROJECT. THE INTEREST EARNED BY THE ESCROW ACCOUNT SHALL BE DISPERSED
EQUALLY TO ANY COMMUNITY DEVELOPMENT CORPORATIONS AND/OR LOCAL DEVELOP-
MENT CORPORATIONS WHOSE CORPORATE GOALS ARE CONSISTENT WITH NEIGHBORHOOD
PRESERVATION, WHICH HAVE 501(C)(3) STATUS AS RECOGNIZED BY THE UNITED
STATES INTERNAL REVENUE SERVICE WHOSE HEADQUARTERS OR PRINCIPAL PLACE OF
BUSINESS IS LOCATED WITHIN A TWO THOUSAND FOOT RADIUS OF SUCH DEVELOP-
MENT PROJECT. SUCH FUNDS SHALL BE RETURNED TO THE DEVELOPER, WITHOUT
PENALTY, UPON COMPLETION OF THE PROPOSED DEVELOPMENT.
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(2) IF THE DEVELOPER CANCELS OR FAILS TO COMPLETE THE DEVELOPMENT
PROJECT, THE DEVELOPER SHALL FORFEIT THE NEIGHBORHOOD PRESERVATION SECU-
RITY DEPOSIT ACCOUNT AND THE COMPTROLLER SHALL DIRECT SUCH FUNDS, WITH-
OUT PENALTY, TO BE PAID TO THE NEW YORK STATE DIVISION OF COMMUNITY AND
HOUSING RENEWAL WHICH SHALL DISPERSE SUCH FUNDS AT ITS DISCRETION TO A
SPECIFIC COMMUNITY BASED ORGANIZATION, WHOSE CORPORATE GOALS ARE
CONSISTENT WITH NEIGHBORHOOD PRESERVATION, WHICH IS IN POSSESSION OF
501(C)(3) STATUS AS RECOGNIZED BY THE UNITED STATES INTERNAL REVENUE
SERVICE.
S 3. This act shall take effect immediately.