NY State Senate Bill 2015-S3428

Senate Bill S3428

2015-2016 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to corporations, authorities and commissions
Feb 09, 2015	referred to corporations, authorities and commissions

co-Sponsors

2015-S3428 (ACTIVE) - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: New York State Urban Development Corporation Act
Laws Affected:: Add §16-x, amd §16-m, UDC Act
Versions Introduced in Other Legislative Sessions:: 2009-2010: S7729
2011-2012: S439
2013-2014: S3144
2017-2018: S3362

2015-S3428 (ACTIVE) - 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.

2015-S3428 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S3428

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-x 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 al ready 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 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.

2015-S3428 (ACTIVE) - Bill Text download pdf

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

                                  3428

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 9, 2015
                               ___________

Introduced by Sens. KRUEGER, MONTGOMERY -- read twice and ordered print-
  ed, 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 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-x to read as follows:
  S 16-X. 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
NOT-FOR-PROFIT CORPORATIONS OR GOVERNMENT AGENCIES AND USED PRIMARILY BY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03349-01-5

S. 3428                             2

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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Senate Bill S3428

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Sponsored By

Liz Krueger