S T A T E   O F   N E W   Y O R K
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                                  4019

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 14, 2011
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and Commissions

AN ACT to amend the New York state urban development corporation act, in
  relation  to  the planning and development of urban and regional farm-
  ers' markets facilities

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

  Section  1.  Section  16-n  of section 1 of chapter 174 of the laws of
1968, constituting the New York state urban development corporation act,
as added by chapter 428 of the laws of 2006, is renumbered section 16-u.
  S 2. Section 1 of chapter 174 of the laws of  1968,  constituting  the
New York state urban development corporation act, is amended by adding a
new section 16-v to read as follows:
  S  16-V.  URBAN  AND REGIONAL FARMERS' MARKETS FACILITIES CONSTRUCTION
PROGRAM. 1.  DEFINITIONS. FOR PURPOSES OF THIS SECTION:
  (A) "URBAN OR REGIONAL FARMERS'  MARKET  CONSTRUCTION  PROJECT"  SHALL
MEAN  A  PROJECT  FOR  THE ESTABLISHMENT, EXPANSION AND DEVELOPMENT OF A
YEAR-ROUND URBAN OR REGIONAL FARMERS' MARKET PRIMARILY LEASING SPACE  TO
FARMERS,  FARMER/PROCESSORS  AND CRAFT BUSINESSES FROM WITHIN THE REGION
OF THE GREENMARKET TO SELL DIRECTLY TO CUSTOMERS.
  (B) "NOT-FOR-PROFIT CORPORATION" SHALL MEAN AGRICULTURAL COOPERATIVES,
REGIONAL MARKET AUTHORITIES, CORPORATION BUSINESS IMPROVEMENT  DISTRICTS
AND REGIONAL AND COMMUNITY DEVELOPMENT ORGANIZATIONS ORGANIZED UNDER THE
PROVISIONS  OF  THE  NOT-FOR-PROFIT  CORPORATION  LAW OR OTHER STATE LAW
PROVIDING FOR NONPROFIT CORPORATIONS.
  (C) "HIGHLY DISTRESSED" SHALL HAVE THE SAME MEANING AS PROVIDED FOR IN
SECTION SIXTEEN-D OF THIS ACT.
  (D) "ECONOMICALLY DISTRESSED AREAS" SHALL HAVE  THE  SAME  MEANING  AS
PROVIDED FOR IN SECTION SIXTEEN-D OF THIS ACT.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02076-01-1

              

S. 4019                             2

  2.  THE  CORPORATION SHALL, FROM APPROPRIATIONS MADE AVAILABLE FOR THE
PURPOSE, ESTABLISH AN URBAN AND  REGIONAL  FARMERS'  MARKETS  FACILITIES
CONSTRUCTION  PROGRAM  WHICH SHALL OFFER CONSTRUCTION GRANTS PURSUANT TO
PARAGRAPHS (A) AND (B) OF SUBDIVISION 3 OF THIS  SECTION  AND  REVOLVING
LOANS AND LOAN GUARANTEES PURSUANT TO PARAGRAPHS (C) AND (D) OF SUBDIVI-
SION 3 OF THIS SECTION.
  3.  TO  THE  EXTENT  THAT  MONIES  ARE  APPROPRIATED FOR THE URBAN AND
REGIONAL FARMERS' MARKETS FACILITIES CONSTRUCTION  PROGRAM,  THE  CORPO-
RATION  SHALL  PROVIDE  FINANCING  FOR URBAN OR REGIONAL FARMERS' MARKET
FACILITIES CONSTRUCTION PROJECTS FOR THE  ESTABLISHMENT,  EXPANSION  AND
DEVELOPMENT  OF URBAN AND REGIONAL FARMERS' MARKETS FACILITIES WHICH ARE
INTENDED TO SERVE THE NEEDS OF THE REGIONAL AGRICULTURAL  COMMUNITY  AND
THE  COMMUNITY  REVITALIZATION  OF  THE  HOST  CITY. THE CORPORATION, IN
CONSULTATION WITH THE DEPARTMENT OF ECONOMIC DEVELOPMENT, SHALL  DEVELOP
A  JOINT REQUEST FOR APPLICATIONS WITH THE DEPARTMENT OF AGRICULTURE AND
MARKETS' COMMENTS ON SOLICITING POTENTIAL APPLICANTS SEEKING  ASSISTANCE
FOR  THE  DEVELOPMENT OF URBAN AND REGIONAL FARMERS' MARKETS FACILITIES.
AN APPLICANT MUST BE A NOT-FOR-PROFIT CORPORATION, MUNICIPAL CORPORATION
OR PUBLIC BENEFIT CORPORATION.   IN DETERMINING  AWARD  RECIPIENTS,  THE
CORPORATION SHALL CONSIDER, AMONG OTHER FACTORS, THE DEPARTMENT OF AGRI-
CULTURE  AND MARKETS' COMMENTS ON THE APPLICATIONS. SUCH FINANCING SHALL
CONSIST OF GRANTS, REVOLVING LOANS AND LOAN GUARANTEES  FOR  THE  ESTAB-
LISHMENT,  EXPANSION,  AND  DEVELOPMENT  OF  URBAN AND REGIONAL FARMERS'
MARKETS FACILITIES.
  (A) GRANTS SHALL  BE  USED  FOR  GENERAL  PROJECT  DEVELOPMENT  COSTS,
INCLUDING, BUT NOT LIMITED TO:
  (I)  THE  ACQUISITION, DESIGN, CONSTRUCTION, IMPROVEMENT OR RENOVATION
OF THE SITE; AND
  (II) THE PURCHASE OF NECESSARY EQUIPMENT.
  (B) FOR THE PURPOSES OF  THIS  SUBDIVISION  GRANTS  SHALL  NOT  EXCEED
EIGHTY  PERCENT  OF THE TOTAL PROJECT COST IN HIGHLY DISTRESSED COMMUNI-
TIES; SHALL NOT EXCEED SEVENTY PERCENT OF  THE  TOTAL  PROJECT  COST  IN
ECONOMICALLY DISTRESSED AREAS; AND SHALL NOT EXCEED SIXTY PERCENT OF THE
TOTAL PROJECT COST IN NON-ECONOMICALLY DISTRESSED AREAS.
  (C) URBAN AND REGIONAL FARMERS' MARKET FACILITY CONSTRUCTION REVOLVING
LOAN  AND LOAN GUARANTEES. THE CORPORATION SHALL PROVIDE REVOLVING LOANS
AND LOAN GUARANTEES  FOR  THE  ESTABLISHMENT  BY  NOT-FOR-PROFIT  CORPO-
RATIONS,  MUNICIPAL CORPORATIONS OR PUBLIC BENEFIT CORPORATIONS OF URBAN
AND REGIONAL FARMERS' MARKET FACILITIES. SUCH REVOLVING LOANS  AND  LOAN
GUARANTEES  SHALL  BE FOR CONSTRUCTION COSTS, INCLUDING, BUT NOT LIMITED
TO THE DESIGN, CONSTRUCTION, IMPROVEMENT OR RENOVATION AND  MAY  INCLUDE
INTERIM FINANCING.
  (D) URBAN AND REGIONAL FARMERS' MARKET FACILITY CONSTRUCTION REVOLVING
LOAN  AND LOAN GUARANTEE FUND. FOR THE PURPOSES OF THIS SUBDIVISION, THE
CORPORATION SHALL ESTABLISH AN URBAN AND REGIONAL FARMERS' MARKET FACIL-
ITY CONSTRUCTION REVOLVING LOAN AND LOAN  GUARANTEE  FUND  ACCOUNT.  THE
CORPORATION  SHALL  DETERMINE THE TERMS AND INTEREST RATES OF SUCH LOANS
TO NOT-FOR-PROFIT CORPORATIONS, MUNICIPAL CORPORATIONS OR PUBLIC BENEFIT
CORPORATIONS, EXCEPT THAT NO LOAN SHALL EXCEED  EIGHTY  PERCENT  OF  THE
TOTAL  PROJECT COST IN HIGHLY DISTRESSED COMMUNITIES; SEVENTY PERCENT OF
THE TOTAL PROJECT COST  IN  ECONOMICALLY  DISTRESSED  AREAS;  AND  SIXTY
PERCENT  OF THE TOTAL PROJECT COST IN NON-ECONOMICALLY DISTRESSED AREAS.
IN INSTANCES WHERE AN OTHERWISE QUALIFIED APPLICANT LACKS  EQUITY  IN  A
PROJECT,  EQUITY  PARTICIPATION  MAY  INCLUDE ANY COMMITMENT FOR GRANTS.
PAYMENTS CONSISTING OF THE REPAYMENT OF THE PRINCIPAL AMOUNT OF THE LOAN
AND INTEREST SHALL BE DEPOSITED BY THE CORPORATION INTO  THE  URBAN  AND

S. 4019                             3

REGIONAL  FARMERS'  MARKET  FACILITY  CONSTRUCTION  REVOLVING  LOAN FUND
ACCOUNT FROM WHICH THE LOAN WAS MADE.
  4.  FINANCING  FOR  URBAN  AND  REGIONAL  FARMERS'  MARKETS FACILITIES
CONSTRUCTION PROJECTS AUTHORIZED PURSUANT  TO  THIS  SUBDIVISION,  SHALL
ONLY  BE  MADE  UPON A DETERMINATION BY THE CORPORATION, IN CONSULTATION
WITH THE DEPARTMENT OF ECONOMIC DEVELOPMENT, AND THE DEPARTMENT OF AGRI-
CULTURE AND MARKETS THAT SUCH A FACILITY WILL IMPROVE  THE  AGRICULTURAL
AND  URBAN  ECONOMIES.  SUCH REVOLVING LOANS, LOAN GUARANTEES AND GRANTS
SHALL ONLY BE MADE FOR FACILITIES WHERE THERE  ARE  INADEQUATE  AGRICUL-
TURAL  DIRECT  MARKETING  FACILITIES. SUCH CENTERS SHALL DEMONSTRATE THE
POTENTIAL TO OBTAIN, FROM APPROPRIATE GOVERNMENTAL AGENCIES, ALL  NECES-
SARY  APPROVALS,  LICENSES,  AND  OTHER SUPPORTS REQUIRED TO OPERATE THE
FACILITY.
  S 3. This act shall take effect immediately.