S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   174

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  Sen.  KRUGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT to amend the general municipal law, in relation to  the  creation
  of urban commercial redevelopment action areas

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Legislative  intent.  The  legislature  hereby  finds  and
declares that the establishment of commercial redevelopment action areas
can promote expanded retail operations in urban commercial districts and
thereby facilitate downtown urban revitalization.
  S  2.  Section 692 of the general municipal law is amended by adding a
new subdivision 8 to read as follows:
  8. "URBAN COMMERCIAL REDEVELOPMENT ACTION AREA".  AN  AREA  PREVIOUSLY
DESIGNATED  AS  AN  URBAN DEVELOPMENT ACTION AREA WHICH IS DESIGNATED BY
THE GOVERNING BODY OF A MUNICIPALITY AS AN URBAN  COMMERCIAL  REDEVELOP-
MENT ACTION AREA.
  S  3.  The  opening  paragraph of section 693 of the general municipal
law, as amended by chapter 701 of the laws of 2006, is designated subdi-
vision 1 and a new subdivision 2 is added to read as follows:
  2. AN URBAN COMMERCIAL REDEVELOPMENT ACTION AREA SHALL  BE  DESIGNATED
BY  RESOLUTION  OF  THE  GOVERNING  BODY  OF THE MUNICIPALITY MAKING THE
DESIGNATION; PROVIDED, THAT SUCH URBAN COMMERCIAL  REDEVELOPMENT  ACTION
AREA MUST:
  (A) CONTAIN AT LEAST FORTY PERCENT VACANT LAND AND/OR ABANDONED BUILD-
INGS,
  (B)  BE LOCATED WITHIN OR ADJACENT TO A CENSUS TRACT HAVING A MINORITY
POPULATION IN EXCESS OF TWENTY PERCENT,
  (C) CONSIST OF REAL PROPERTY AT LEAST THIRTY PERCENT  OF  WHICH  SHALL
HAVE DECLINED IN VALUE FOR ASSESSMENT PURPOSES, AND
  (D) HAVE POTENTIAL FOR ATTRACTING NEW COMMERCIAL BUSINESSES.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD02691-01-9

S. 174                              2

  S  4.  The  opening  paragraph of section 693 of the general municipal
law, as amended by chapter 437 of the laws of 2000, is designated subdi-
vision 1 and a new subdivision 2 is added to read as follows:
  2.  AN  URBAN COMMERCIAL REDEVELOPMENT ACTION AREA SHALL BE DESIGNATED
BY RESOLUTION OF THE GOVERNING  BODY  OF  THE  MUNICIPALITY  MAKING  THE
DESIGNATION;  PROVIDED,  THAT SUCH URBAN COMMERCIAL REDEVELOPMENT ACTION
AREA MUST:
  (A) CONTAIN AT LEAST FORTY PERCENT VACANT LAND AND/OR ABANDONED BUILD-
INGS,
  (B) BE LOCATED WITHIN OR ADJACENT TO A CENSUS TRACT HAVING A  MINORITY
POPULATION IN EXCESS OF TWENTY PERCENT,
  (C)  CONSIST  OF  REAL PROPERTY AT LEAST THIRTY PERCENT OF WHICH SHALL
HAVE DECLINED IN VALUE FOR ASSESSMENT PURPOSES, AND
  (D) HAVE POTENTIAL FOR ATTRACTING NEW COMMERCIAL BUSINESSES.
  S 5. The general municipal law is amended  by  adding  a  new  section
694-a to read as follows:
  S  694-A.  URBAN  COMMERCIAL REDEVELOPMENT ACTION AREA APPROVAL BY THE
DEPARTMENT OF ECONOMIC DEVELOPMENT. THE DESIGNATION OF AN URBAN  COMMER-
CIAL REDEVELOPMENT ACTION AREA BY A MUNICIPALITY SHALL BE SUBJECT TO THE
APPROVAL BY THE STATE DEPARTMENT OF ECONOMIC DEVELOPMENT. THE DEPARTMENT
MUST  CERTIFY  THAT SUCH AREA COMPLIES WITH THE REQUIREMENTS OF SUBDIVI-
SION TWO OF SECTION SIX HUNDRED NINETY-THREE OF THIS ARTICLE.
  S 6. The general municipal law is amended  by  adding  a  new  section
696-e to read as follows:
  S 696-E. TAX INCENTIVES FOR RETAIL ESTABLISHMENTS WITHIN URBAN COMMER-
CIAL REDEVELOPMENT ACTION AREAS. 1. UPON CERTIFICATION BY THE DEPARTMENT
OF  ECONOMIC DEVELOPMENT, IN CONSULTATION WITH THE COMMISSIONER OF TAXA-
TION AND FINANCE, THAT THE ANTICIPATED LOSS OF SALES AND USE TAX  REVEN-
UES  TO THE STATE WITHIN ALL SUCH AREAS DOES NOT EXCEED IN THE AGGREGATE
TEN MILLION DOLLARS IN ANY FISCAL YEAR AN URBAN COMMERCIAL REDEVELOPMENT
ACTION AREA MAY BE GRANTED AN EXEMPTION FROM THE IMPOSITION OF SALES AND
USE TAXES WITHIN SUCH AREA AS FOLLOWS:
  (A) A PERIOD OF FIVE YEARS FOR SALES  BY  NEW  RETAIL  AND  COMMERCIAL
ESTABLISHMENTS,
  (B)  A  PERIOD OF FOUR YEARS FOR SALES BY RETAIL AND COMMERCIAL ESTAB-
LISHMENTS MAKING SUBSTANTIAL  CAPITAL  IMPROVEMENTS  TO  EXISTING  OPER-
ATIONS, AND
  (C)  A PERIOD OF THREE YEARS FOR SALES BY ALL OTHER RETAIL AND COMMER-
CIAL ESTABLISHMENTS LOCATED WITHIN THE DESIGNATED AREA.
  2. IN THE EVENT THAT THE COUNTY IN WHICH AN URBAN COMMERCIAL  REDEVEL-
OPMENT  ACTION AREA IS LOCATED IMPOSES A SALES AND USE TAX, SUCH COUNTY,
BY RESOLUTION, MUST APPROVE THE CREATION  OF  SUCH  AREA  PRIOR  TO  THE
GRANTING  OF  ANY  TAX  EXEMPTION  PURSUANT  TO  THE  PROVISIONS OF THIS
SECTION.
  S 7. This act shall take effect immediately; provided that the  amend-
ments  to section 693 of the general municipal law made by section three
of this act shall be subject to the expiration  and  reversion  of  such
section  pursuant  to  section  2 of chapter 701 of the laws of 2006, as
amended, when upon such date the provisions of section four of this  act
shall take effect.