NY State Senate Bill 2013-S3144A

Senate Bill S3144A

2013-2014 Legislative Session

Establishes a kitchen incubator/shared-use kitchen facility program within the urban development corporation

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Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2014	referred to corporations, authorities and commissions
May 17, 2013	print number 3144a
May 17, 2013	amend (t) and recommit to corporations, authorities and commissions
Jan 30, 2013	referred to corporations, authorities and commissions

Bill Amendments

Original

A (Active)

2013-S3144 - Details

See Assembly Version of this Bill:: A6997
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: New York State Urban Development Corporation Act
Laws Affected:: Add §16-w, amd §16-m, UDC Act
Versions Introduced in Other Legislative Sessions:: 2009-2010: S7729
2011-2012: S439
2015-2016: S3428
2017-2018: S3362

2013-S3144 - Summary

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.

2013-S3144 - Sponsor Memo

                                BILL NUMBER:S3144

TITLE  OF BILL:  An act to amend chapter 174 of the laws of 1968 consti-
tuting the New York state urban development corporation act, in relation
to kitchen incubator/shared-use kitchen facilities

PURPOSE:   Provide start-up and  expansion  funding  for  not-for-profit
sponsors of small-scale food processing facilities.

SUMMARY  OF PROVISIONS:   Would add a new section 16-v to chapter 174 of
the laws of 1968 constituting the NYS Urban Development Corporation  Act
creating a kitchen incubator/shared-use kitchen facility grant program.

Section  1.  Subdivision  (1)  defines  these  facilities  as government
licensed food processing or preparation facilities,  sponsored  by  not-
for-profits  or  government  agencies,  and  used by small emerging food
businesses who are either full-time or temporary tenants.  The  sponsors
must provide low-cost space and financing and business support services.
Other  services,  such  as technical, production, distribution and sales
assistance to tenants, may be provided. The corporation is authorized to
award competitive grants to sponsors for  construction,  rehabilitation,
equipment, training, technical assistance and other approved purposes.

Subdivision  (2)  requires  grant applicants to provide management plans
for financial self-sufficiency, community needs assessment, and planning
for providing assistance described in paragraph (1).

Subdivision (3) allows for one grant  per  applicant  per  year,  up  to
$250,000.  Preference  is  given to applicants: from distressed areas or
economic development zones;  providing  a  local  match;  meeting  local
needs;  providing services not offered by local governments or business;
providing services and assistance in addition to that required in subdi-
vision one; and, with a plan, developed in cooperation with the  Depart-
ment  of  Agriculture  and  Markets,  to assist facility businesses with
purchasing NYS farm products and  promoting  the  facility  to  regional
farmers.

Section  2.  amends  paragraph  b  of  subdivision  1 of section 16-m of
section 1 of chapter 174 of the laws of 1968 as added by chapter  84  of
the  laws  of  2002  to  include  kitchen  incubator/shared-use  kitchen
programs in the Economic Development Fund.

JUSTIFICATION:  Small businesses provide a significant  portion  of  the
jobs,  and  opportunities  for  financial success, in our State. This is
especially true for distressed communities, rural areas, immigrant popu-
lations and women and minorities. In the food sector of our economy many
successful enterprises have been started at home or on the farm by indi-
viduals who may not have an advanced degree  or  investment  income  but
have  created a great recipe or family dish that could be developed into
a profitable product. The growth of these types of businesses  is  often
dependent  on affordable, available processing space, financing, manage-

ment assistance and other services that can nurture an emerging firm.  A
facility  assisting  the growth of new or expanding businesses is called
an incubator. Kitchen incubators are similar to other types of  business
incubators;  they  provide inexpensive space, shared services, access to
financing and other  support  to  multiple  small  enterprises  such  as
specialty  food  producers, farmers, street vendors, restaurants, cater-
ers, and food service training programs. These food business  incubators
can  be built from scratch but most often are located in buildings, such
as abandoned or under used food service facilities,  that  already  have
available  food  preparation  space  and  equipment.  The goals of these
"kitchen" facilities are to foster  entrepreneurship,  job  development,
and community revitalization. An additional goal is improving local farm
sustainability  by providing an outlet for farmers to sell, or add value
themselves, to their farm products.  This bill would provide seed  fund-
ing  for  communities to establish facilities that provide opportunities
for all segments of our society to  become  food  business  owners.  New
business owners create jobs for the surrounding area. The facility could
also  participate  in  workforce  training and development. The proposed
funding for these facilities would be targeted and carefully  allocated.
Program  sponsors  would be required to develop a facility that is based
on a sound plan  that  analyzes  community  needs,  and  ensures  fiscal
responsibility. The State's economic development efforts currently focus
financial  assistance to large companies, however, major food processors
have virtually disappeared from New York. Creating a program for  small-
scale  food  businesses  will  help reverse this trend, benefiting local
economies, workers and farmers.

FISCAL IMPLICATIONS:  Subject to state appropriations.

REGULATION IMPACT:   State regulations  establishing  grant  application
requirements may be needed.

EFFECTIVE DATE:  Immediately, with provisions.

2013-S3144 - Bill Text download pdf

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

                                  3144

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 30, 2013
                               ___________

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

AN  ACT  to  amend  chapter 174 of the laws of 1968 constituting 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:

  Section 1. 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. SMALL BUSINESS KITCHEN INCUBATOR/SHARED-USE  KITCHEN  PROGRAM.
1.  THERE  IS HEREBY ESTABLISHED WITHIN THE CORPORATION A SMALL BUSINESS
KITCHEN INCUBATOR/SHARED-USE KITCHEN PROGRAM. THE CORPORATION IS AUTHOR-
IZED WITHIN AVAILABLE APPROPRIATIONS IN THE EMPIRE STATE ECONOMIC DEVEL-
OPMENT FUND ESTABLISHED PURSUANT TO SECTION 16-I OF THIS ACT,  TO  AWARD
GRANTS,  ON A COMPETITIVE BASIS IN RESPONSE TO REQUEST-FOR-PROPOSALS, TO
LOCAL  DEVELOPMENT  CORPORATIONS,  MUNICIPALITIES,  EDUCATIONAL   INSTI-
TUTIONS,  AND  OTHER NOT-FOR-PROFIT ORGANIZATIONS FOR THE COSTS INVOLVED
IN STARTING OR EXPANDING A KITCHEN INCUBATOR/SHARED-USE KITCHEN  FACILI-
TY.   THE CORPORATION IS FURTHER AUTHORIZED TO CONTRACT WITH THE COMMIS-
SIONER OF AGRICULTURE AND MARKETS, AND SUCH COMMISSIONER  IS  AUTHORIZED
TO  CONTRACT  WITH  THE  CORPORATION,  TO PREPARE AND ISSUE REQUESTS FOR
PROPOSALS, ACCEPT GRANT APPLICATIONS, RECOMMEND THOSE APPLICATIONS  THAT
BEST  MEET ESTABLISHED CRITERIA, TO ESTABLISH CRITERIA AND TO ADMINISTER
GRANTS AWARDED UNDER THIS SUBDIVISION.  SUCH GRANTS MAY BE USED FOR  THE
CONSTRUCTION  OR REHABILITATION OF SUCH FACILITY, PURCHASE OF EQUIPMENT,
TRAINING, TECHNICAL ASSISTANCE, AND OTHER  PURPOSES  NECESSARY  FOR  THE
SUCCESSFUL  DEVELOPMENT  OR  EXPANSION OF A KITCHEN INCUBATOR/SHARED-USE
KITCHEN FACILITY. KITCHEN INCUBATOR/SHARED-USE KITCHEN FACILITIES  SHALL
BE  FOOD  PROCESSING  OR  PREPARATION  FACILITIES  THAT  ARE OPERATED BY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01853-01-3

S. 3144                             2

NOT-FOR-PROFIT CORPORATIONS OR GOVERNMENT AGENCIES AND USED PRIMARILY BY
SMALL AND EMERGING BUSINESSES, INCLUDING BOTH FULL-TIME FACILITY TENANTS
AND BUSINESSES THAT RENT SPACE ON A TEMPORARY BASIS.  THEY MUST  PROVIDE
OR MAKE AVAILABLE FOR FACILITY BUSINESSES: LOW-COST SPACE, BELOW CURRENT
MARKET  VALUE  IN  THE  AREA  THE FACILITY SERVES; AND SUPPORT SERVICES,
INCLUDING BUT NOT LIMITED TO, BUSINESS PLANNING, MANAGEMENT  ASSISTANCE,
FINANCIAL  PACKAGING,  LINKAGES  TO  FINANCING SOURCES, AND COORDINATION
WITH OTHER SOURCES OF TRAINING AND ASSISTANCE.  THEY MAY PROVIDE OR MAKE
AVAILABLE FOR FACILITY BUSINESSES, SERVICES SUCH AS FOOD  PRODUCTION  OR
PROCESSING  TECHNICAL  ASSISTANCE,  MARKETING, DISTRIBUTION, PURCHASING,
STORAGE, PACKING, INSURANCE, ON-SITE RETAILING OR OTHER SERVICES.
  2. PROJECT PLANS.   APPLICANTS FOR GRANTS MUST  PROVIDE  A  MANAGEMENT
PLAN  AND A BUSINESS PLAN FOR OPERATING THE KITCHEN INCUBATOR/SHARED-USE
KITCHEN FACILITY WHICH DEMONSTRATES TO THE SATISFACTION  OF  THE  CORPO-
RATION:  (I)  LOCAL  BUSINESS  INTEREST  IN  A NEW OR EXPANDED FACILITY,
INCLUDING THE FOOD PROCESSING NEEDS OF EXISTING AND POTENTIAL FOOD BUSI-
NESSES; (II) THE APPLICANT'S ABILITY TO DELIVER SERVICES AND  ASSISTANCE
AS DESCRIBED IN SUBDIVISION ONE OF THIS SECTION, INCLUDING A DESCRIPTION
OF HOW SUCH ASSISTANCE AND SERVICES WILL BE DELIVERED; (III) WHETHER THE
SERVICES  PROVIDED  TO  FACILITY  TENANTS  WILL  BE  COVERED  BY FEES OR
INCLUDED IN THE RENT, AND HOW RENTALS AND/OR FEES  WILL  BE  STRUCTURED;
(IV) A POLICY FOR TENANTS' ENTRANCE TO AND EXIT, OR GRADUATION, FROM THE
FACILITY; AND, (V) THAT THE FACILITY CAN BE SELF-SUSTAINING AND WILL NOT
REQUIRE LONG-TERM STATE OPERATING SUBSIDIES.
  3.  GRANT  CRITERIA. GRANTS AND LOANS MADE BY THE CORPORATION PURSUANT
TO THIS SECTION SHALL BE SUBJECT TO THE FOLLOWING LIMITATIONS:
  A. NO SUCH GRANT SHALL EXCEED TWO HUNDRED FIFTY THOUSAND  DOLLARS  PER
YEAR; AND
  B.  PREFERENCE  SHALL  BE  GIVEN  TO APPLICANTS WHICH: (I) MEET HIGHLY
DISTRESSED AREA CRITERIA  OR  WHICH  SUPPORT  EMPIRE  ZONES  ESTABLISHED
PURSUANT  TO  ARTICLE 18-B OF THE GENERAL MUNICIPAL LAW; PROVIDE A LOCAL
MATCH; MEET A SUBSTANTIAL  LOCAL  OR  REGIONAL  NEED;  COMPLEMENT  LOCAL
PROGRAMS  OR  PROVIDE SERVICES NOT READILY AVAILABLE FROM UNITS OF LOCAL
GOVERNMENT OR THE PRIVATE SECTOR; PLAN TO PROVIDE OR MAKE AVAILABLE  FOR
FACILITY  BUSINESSES,  SERVICES,  INCLUDING  BUT  NOT  LIMITED  TO, FOOD
PRODUCTION OR PROCESSING TECHNICAL ASSISTANCE, MARKETING,  DISTRIBUTION,
PURCHASING,  STORAGE,  PACKAGING,  INSURANCE, ON-SITE RETAILING OR OTHER
SERVICES; AND (II) HAVE DEVELOPED A PLAN TO  ASSIST  BUSINESSES  PARTIC-
IPATING IN THE APPLICANT'S KITCHEN INCUBATOR/SHARED-USE KITCHEN FACILITY
WITH  PURCHASING NEW YORK STATE AGRICULTURAL PRODUCTS, AND PROMOTING THE
FACILITY TO REGIONAL FARMERS.
  S 2. Paragraph (b) of subdivision 1 of section 16-m of  section  1  of
chapter  174  of the laws of 1968, constituting the New York state urban
development corporation act, as added by section 1 of part N of  chapter
84 of the laws of 2002, is amended to read as follows:
  (b)  Loans,  loan  guarantees,  and  grants including interest subsidy
grants may be provided to municipalities, industrial  development  agen-
cies,  not-for-profit corporations or local development corporations for
the purpose of  developing  federal  facility  sites,  urban  industrial
sites, industrial parks and incubator buildings INCLUDING SMALL BUSINESS
KITCHEN INCUBATOR/SHARED-USE KITCHEN FACILITIES; or to undertake prelim-
inary planning relating thereto;
  S  3.  This act shall take effect immediately, provided, however, that
the amendments to section 16-m of the urban development corporation  act
made  by section two of this act shall not affect the expiration of such
section and shall expire and be deemed repealed therewith.

co-Sponsors

2013-S3144A (ACTIVE) - Details

See Assembly Version of this Bill:: A6997
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: New York State Urban Development Corporation Act
Laws Affected:: Add §16-w, amd §16-m, UDC Act
Versions Introduced in Other Legislative Sessions:: 2009-2010: S7729
2011-2012: S439
2015-2016: S3428
2017-2018: S3362

2013-S3144A (ACTIVE) - Summary

2013-S3144A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S3144A

TITLE OF BILL:  An act to amend the New York state urban development
corporation act, in relation to kitchen incubator/shared-use kitchen
facilities

PURPOSE OF BILL:

Provide start-up and expansion funding for not-for-profit sponsors of
small-scale food processing facilities.

SUMMARY OF SPECIFIC PROVISIONS:

Would add a new section 16-w to chapter 174 of the laws of 1968
constituting the NYS Urban Development Corporation (UDC) Act creating
a kitchen incubator/shared-use kitchen facility grant program. Section
1.  Subdivision (1) establishes that the Corporation (UDC) would be
authorized to award competitive grants to local development
corporations, municipalities, educational institutions and other
not-for-profit organizations for the costs involved in starting or
expanding a kitchen incubator/shared-use kitchen facility. The
Corporation would be authorized to contract with the Commissioner of
Agriculture and Markets, to prepare and issue requests for proposals,
accept grant applications, recommend those applications that best meet
criteria, establish criteria and administer grants. Grants may be used
for construction, rehabilitation, equipment, training, technical

assistance and other approved purposes and the sponsors must provide
low-cost space and financing and business support services. Other
services, such as technical, production, distribution and sales
assistance to tenants, may be provided. Subdivision (2) requires grant
applicants to provide management plans for financial self-sufficiency,
community needs assessment, and planning for providing assistance
described in paragraph (1). Subdivision (3) grants and loans shall not
exceed $250,000 per year. Preference would be given to applicants:
from highly distressed areas or empire zones; providing a local match;
meeting a substantial local or regional need; complementing local
programs or providing services not available from local programs or
local government or the private sector; providing services, including,
but not limited to, food production or processing technical
assistance, marketing, distribution, purchasing, storage, packaging,
insurance, on-site retailing or other services; and, who have
developed a plan, to assist businesses in the facility with purchasing
NYS agricultural products and promoting the facility to regional
farmers. Section 2. Amends paragraph b of subdivision 1 of section
16-m of section 1 of chapter 174 of the laws of 1968 as added by
chapter 84 of the laws of 2002 to include kitchen incubator/shared-use
kitchen programs in the Economic Development Fund.

JUSTIFICATION:

Small businesses provide a significant portion of the jobs, and
opportunities for financial success, in our State. This is especially
true for distressed communities, rural areas, immigrant populations
and women and minorities. In the food sector of our economy many
successful enterprises have been started at home or on the farm by
individuals who may not have an advanced degree or investment income
but have created a great recipe or family dish that could be developed


into a profitable product. The growth of these types of businesses is
often dependent on affordable, available processing space, financing,
management assistance and other services that can, nurture an emerging
firm. A facility assisting the growth, of new or expanding businesses
is called an incubator. Kitchen incubators are similar to other types
of business incubators; . they provide inexpensive space, shared
services, access to financing and other support to multiple small
enterprises such as specialty food producers, farmers, street vendors,
restaurants, caterers, and food service training programs. These food
business incubators - can be built from scratch but most often are
located in buildings, such as abandoned or underused food service
facilities, that already have available food preparation space and
equipment. The goals of these "kitchen" facilities are to foster
entrepreneurship, job -development, and community revitalization. An
additional go al is improving local farm sustainability by providing
an outlet for farmers to sell, or add value themselves, to their farm
products.

This bill would provide seed funding for communities to establish
facilities that provide opportunities for all segments of our society
to become food business owners. New business owners create jobs fox
the surrounding area. The facility could also participate in workforce
training and development. The proposed funding for these facilities
would be targeted and carefully allocated. Program sponsors would be
required to develop a facility that is based on a sound plan that
analyzes community needs, and ensures fiscal responsibility. The
State's economic development efforts currently focus financial
assistance to large companies, however, major food processors have
virtually disappeared from New York. Creating a program for
small-scale food businesses will help reverse this trend, benefiting
local economies, workers and farmers.

SUMMARY OF AMENDMENTS:

Would authorize the Commissioner of Agriculture and Markets to
contract to administer the grant program.  Removes reference to
licensing of facilities. Removes reference to applicants developing
plans with Agriculture and Markets. Removes limit on grants per
application.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Subject to state appropriations.

REGULATION IMPACT:

State regulations establishing grant application-requirements may be
needed.

EFFECTIVE DATE:

Immediately.

2013-S3144A (ACTIVE) - Bill Text download pdf

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

                                 3144--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 30, 2013
                               ___________

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

  Section  1. 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-w to read as follows:
  S  16-W.  SMALL BUSINESS KITCHEN INCUBATOR/SHARED-USE KITCHEN PROGRAM.
1. THERE IS HEREBY ESTABLISHED WITHIN THE CORPORATION A  SMALL  BUSINESS
KITCHEN INCUBATOR/SHARED-USE KITCHEN PROGRAM. THE CORPORATION IS AUTHOR-
IZED WITHIN AVAILABLE APPROPRIATIONS IN THE EMPIRE STATE ECONOMIC DEVEL-
OPMENT  FUND  ESTABLISHED PURSUANT TO SECTION 16-I OF THIS ACT, TO AWARD
GRANTS, ON A COMPETITIVE BASIS IN RESPONSE TO REQUEST-FOR-PROPOSALS,  TO
LOCAL   DEVELOPMENT  CORPORATIONS,  MUNICIPALITIES,  EDUCATIONAL  INSTI-
TUTIONS, AND OTHER NOT-FOR-PROFIT ORGANIZATIONS FOR THE  COSTS  INVOLVED
IN  STARTING OR EXPANDING A KITCHEN INCUBATOR/SHARED-USE KITCHEN FACILI-
TY.  THE CORPORATION IS FURTHER AUTHORIZED TO CONTRACT WITH THE  COMMIS-
SIONER  OF  AGRICULTURE AND MARKETS, AND SUCH COMMISSIONER IS AUTHORIZED
TO CONTRACT WITH THE CORPORATION, TO  PREPARE  AND  ISSUE  REQUESTS  FOR
PROPOSALS,  ACCEPT GRANT APPLICATIONS, RECOMMEND THOSE APPLICATIONS THAT
BEST MEET ESTABLISHED CRITERIA, TO ESTABLISH CRITERIA AND TO  ADMINISTER
GRANTS  AWARDED UNDER THIS SUBDIVISION.  SUCH GRANTS MAY BE USED FOR THE
CONSTRUCTION OR REHABILITATION OF SUCH FACILITY, PURCHASE OF  EQUIPMENT,
TRAINING,  TECHNICAL  ASSISTANCE,  AND  OTHER PURPOSES NECESSARY FOR THE
SUCCESSFUL DEVELOPMENT OR EXPANSION OF  A  KITCHEN  INCUBATOR/SHARED-USE
KITCHEN  FACILITY. KITCHEN INCUBATOR/SHARED-USE KITCHEN FACILITIES SHALL
BE FOOD PROCESSING  OR  PREPARATION  FACILITIES  THAT  ARE  OPERATED  BY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01853-02-3

S. 3144--A                          2

NOT-FOR-PROFIT CORPORATIONS OR GOVERNMENT AGENCIES AND USED PRIMARILY BY
SMALL AND EMERGING BUSINESSES, INCLUDING BOTH FULL-TIME FACILITY TENANTS
AND  BUSINESSES THAT RENT SPACE ON A TEMPORARY BASIS.  THEY MUST PROVIDE
OR MAKE AVAILABLE FOR FACILITY BUSINESSES: LOW-COST SPACE, BELOW CURRENT
MARKET  VALUE  IN  THE  AREA  THE FACILITY SERVES; AND SUPPORT SERVICES,
INCLUDING BUT NOT LIMITED TO, BUSINESS PLANNING, MANAGEMENT  ASSISTANCE,
FINANCIAL  PACKAGING,  LINKAGES  TO  FINANCING SOURCES, AND COORDINATION
WITH OTHER SOURCES OF TRAINING AND ASSISTANCE.  THEY MAY PROVIDE OR MAKE
AVAILABLE FOR FACILITY BUSINESSES, SERVICES SUCH AS FOOD  PRODUCTION  OR
PROCESSING  TECHNICAL  ASSISTANCE,  MARKETING, DISTRIBUTION, PURCHASING,
STORAGE, PACKING, INSURANCE, ON-SITE RETAILING OR OTHER SERVICES.
  2. PROJECT PLANS.   APPLICANTS FOR GRANTS MUST  PROVIDE  A  MANAGEMENT
PLAN  AND A BUSINESS PLAN FOR OPERATING THE KITCHEN INCUBATOR/SHARED-USE
KITCHEN FACILITY WHICH DEMONSTRATES TO THE SATISFACTION  OF  THE  CORPO-
RATION:  (I)  LOCAL  BUSINESS  INTEREST  IN  A NEW OR EXPANDED FACILITY,
INCLUDING THE FOOD PROCESSING NEEDS OF EXISTING AND POTENTIAL FOOD BUSI-
NESSES; (II) THE APPLICANT'S ABILITY TO DELIVER SERVICES AND  ASSISTANCE
AS DESCRIBED IN SUBDIVISION ONE OF THIS SECTION, INCLUDING A DESCRIPTION
OF HOW SUCH ASSISTANCE AND SERVICES WILL BE DELIVERED; (III) WHETHER THE
SERVICES  PROVIDED  TO  FACILITY  TENANTS  WILL  BE  COVERED  BY FEES OR
INCLUDED IN THE RENT, AND HOW RENTALS AND/OR FEES  WILL  BE  STRUCTURED;
(IV) A POLICY FOR TENANTS' ENTRANCE TO AND EXIT, OR GRADUATION, FROM THE
FACILITY; AND, (V) THAT THE FACILITY CAN BE SELF-SUSTAINING AND WILL NOT
REQUIRE LONG-TERM STATE OPERATING SUBSIDIES.
  3.  GRANT  CRITERIA. GRANTS AND LOANS MADE BY THE CORPORATION PURSUANT
TO THIS SECTION SHALL BE SUBJECT TO THE FOLLOWING LIMITATIONS:
  A. NO SUCH GRANT SHALL EXCEED TWO HUNDRED FIFTY THOUSAND  DOLLARS  PER
YEAR; AND
  B.  PREFERENCE  SHALL  BE  GIVEN  TO APPLICANTS WHICH: (I) MEET HIGHLY
DISTRESSED AREA CRITERIA; PROVIDE A  LOCAL  MATCH;  MEET  A  SUBSTANTIAL
LOCAL  OR  REGIONAL  NEED; COMPLEMENT LOCAL PROGRAMS OR PROVIDE SERVICES
NOT READILY AVAILABLE FROM UNITS OF  LOCAL  GOVERNMENT  OR  THE  PRIVATE
SECTOR;  PLAN  TO  PROVIDE  OR  MAKE  AVAILABLE FOR FACILITY BUSINESSES,
SERVICES, INCLUDING BUT NOT LIMITED TO, FOOD  PRODUCTION  OR  PROCESSING
TECHNICAL  ASSISTANCE,  MARKETING,  DISTRIBUTION,  PURCHASING,  STORAGE,
PACKAGING, INSURANCE, ON-SITE RETAILING OR OTHER SERVICES; AND (II) HAVE
DEVELOPED A PLAN TO ASSIST BUSINESSES PARTICIPATING IN  THE  APPLICANT'S
KITCHEN  INCUBATOR/SHARED-USE  KITCHEN FACILITY WITH PURCHASING NEW YORK
STATE AGRICULTURAL PRODUCTS, AND  PROMOTING  THE  FACILITY  TO  REGIONAL
FARMERS.
  S  2.  Paragraph  (b) of subdivision 1 of section 16-m of section 1 of
chapter 174 of the laws of 1968, constituting the New York  state  urban
development  corporation act, as added by section 1 of part N of chapter
84 of the laws of 2002, is amended to read as follows:
  (b) Loans, loan guarantees,  and  grants  including  interest  subsidy
grants  may  be provided to municipalities, industrial development agen-
cies, not-for-profit corporations or local development corporations  for
the  purpose  of  developing  federal  facility  sites, urban industrial
sites, industrial parks and incubator buildings INCLUDING SMALL BUSINESS
KITCHEN INCUBATOR/SHARED-USE KITCHEN FACILITIES; or to undertake prelim-
inary planning relating thereto;
  S 3. This act shall take effect immediately, provided,  however,  that
the  amendments to section 16-m of the urban development corporation act
made by section two of this act shall not affect the expiration of  such
section and shall expire and be deemed repealed therewith.

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