§ 958. Criteria for empire zone designation. (a) To be eligible for
designation as an empire zone, an area must be characterized by
pervasive poverty, high unemployment and general economic distress, must
correspond to traditional neighborhood or community boundaries, and
where appropriate, be bounded by major natural or man-made physical
boundaries, such as bodies of water, railroad lines, or limited access
highways; and must meet the following requirements:

(i) the area shall include a United States census tract or tracts or
block numbering area or areas, or portions thereof, each full census
tract or portion of a block numbering area of which, according to the
most recent census data available, has:

(A) a poverty rate of at least twenty percent for the year to which
the data relate;

(B) an unemployment rate of at least 1.25 times the statewide
unemployment rate for the year to which the data relate; and

(C) a population of at least two thousand.

(ii) lands nearby or contiguous to census tracts or block numbering
areas described in paragraph (i) of this subdivision may be eligible to
be included within an empire zone if, upon the request of the applicant,
the commissioner finds, in accordance with regulations promulgated
pursuant to this article, that such additional lands have significant
potential for business development and job creation, which will enhance
economic revitalization of the zone and benefit zone residents;
provided, however, that lands nearby shall not be included in a zone
until the commissioner, in consultation with the director of the budget,
promulgates regulations governing the inclusion of such lands;

(iii) the area proposed as an empire zone shall not exceed:

two square miles for any zone, such area shall be defined by one or
more borders, which borders shall be determined by the applicant and
need not be entirely coterminous with the borders of census tracts or
block numbering areas provided, however, that such zone shall be located
entirely within traditional neighborhood or community boundaries, and
where appropriate, be bounded by major natural or man-made physical
boundaries, such as bodies of water, railroad lines, or limited access
highways, and the zones created pursuant to paragraph (viii) of
subdivision (b) of section nine hundred sixty of this article should be
limited to one square mile; provided however, empire zones designated
under subdivision (b) of section nine hundred sixty of this article may
apply to increase their distinct and separate contiguous areas to two
square miles; provided further, regionally significant projects are not
included within such two square mile limitation;

(iv) if such area is governed by zoning laws or other laws or
regulations governing land use, such laws or regulations must allow at
least twenty-five percent of such area to be used for commercial or
industrial activity;

(v) at least twenty-five percent of the total land within such area
must be vacant, abandoned or otherwise available for industrial or
commercial development or redevelopment; and

(vi) such other requirements as may be established in regulations
promulgated by the commissioner with the approval of the director of the
budget and after consultation with the commissioner of labor, including
but not limited to:

(A) a comprehensive demonstration of chronic and severe economic
distress and the reasons therefor as evidenced by population and
employment decline, increase in unemployment and public assistance
recipients, decline in real property values, relative decline in per
capita income, the extent of abandoned property and deteriorated
industrial, commercial and residential properties, a decline in the
number of business establishments, obsolescence in plant capacity, loss
of markets to foreign competition, the unavailability of expansion
financing, poor access to markets, the retirement of local owners of
companies;

(B) a demonstration of the potential of the area to attract private
investment that will provide employment to persons in the area who are
unemployed or economically disadvantaged;

(C) a demonstration of substantial public and private commitments to a
long-term economic revitalization program for the area and the local
capacity to manage such a program;

(D) a demonstration of the manner in which the overall economic
development plan enunciates the needs of the area and sets forth
proposals to solve them; and

(E) a demonstration of the manner in which progress in implementing
the zone development plan will be routinely evaluated on the local level
and how information essential for periodic evaluations will be compiled.

Such regulations may require a demonstration of a decline in
population, a decline in employment, an increase in unemployment, a
decline in real property values, a relative decline in per capita
income, the extent of abandoned property and deteriorated industrial,
commercial and residential property, a decline in the number of business
establishments, and other indicators of severe economic distress.

(b) Notwithstanding the provisions of paragraph (i) of subdivision (a)
of this section, any county in which the average rate of unemployment in
the two most recent calendar years was at least one and one-quarter
times the state average for those years and in which the rate of poverty
for individuals was at least thirteen percent according to the most
recent census data available, and which does not contain a census tract
or tracts, portion of a block numbering area or a city, town or village
which meets the criteria specified in such paragraph (i) of subdivision
(a), may apply for designation of an area within a municipality as an
empire zone. The area proposed for designation shall be characterized by
pervasive poverty, high unemployment and general economic distress.

(c) Notwithstanding the provisions of paragraph (i) of subdivision (a)
of this section, any county may apply for designation of an area within
a municipality as an empire zone provided that the following
requirements are met:

(i) at the time of application, the unemployment rate of the
metropolitan statistical area must exceed the national average of
unemployment and the metropolitan statistical area must have experienced
or is likely to experience within three years the lesser of a loss of
four thousand direct jobs or a dislocation of workers equal to one-half
percent of the employed population of the metropolitan statistical area
and at least fifty percent of the job loss or dislocation of workers
must result from the action of a single employer, or eighty percent of
such job loss or dislocation must occur in a single standard industry
classification (two digit code); or

(ii) at the time of application, the unemployment rate of the
metropolitan statistical area must be equal to or less than the national
average of unemployment and the metropolitan statistical area must have
experienced or is likely to experience within three years the lesser of
a loss of eight thousand direct jobs or a dislocation of workers equal
to one percent of the employed population of the metropolitan
statistical area and at least fifty percent of the job loss or
dislocation of workers must result from the action of a single employer,
or eighty percent of such job loss or dislocation must occur in a single
standard industry classification (two digit code); or

(iii) at the time of application, the unemployment rate of the labor
market area must exceed the national average of unemployment and the
labor market area must have experienced or is likely to experience
within three years the lesser of a loss of five hundred direct jobs or a
dislocation of workers equal to two percent of the employed population
of the labor market area; or

(iv) at the time of application, the unemployment rate of the labor
market area must be equal to or less than the national average of
unemployment and the labor market area must have experienced or is
likely to experience within three years the lesser of a loss of one
thousand direct jobs or a dislocation of workers equal to four percent
of the employed population of the labor market area; or

(v) at the time of application, the municipality is declared a natural
disaster area by the president of the United States; or

(vi) at the time of application, the municipality contains:

(A) a defense or military base or facility which has been designated
for closure or realignment; or

(B) a state-operated hospital or facility listed in section 7.17 or
13.17 of the mental hygiene law, or a facility operated by the office
for people with developmental disabilities, that has been designated by
either the commissioner of mental health or the commissioner of
developmental disabilities for contraction or discontinuance. Provided
however, that not more than one-third of the zones designated pursuant
to paragraph (iii) or (iv) of subdivision (b) of section nine hundred
sixty of this article, shall be based on applications filed pursuant to
this paragraph.

(d) Notwithstanding the provisions of paragraph (i) of subdivision (a)
of this section, any municipality may apply for designation as an empire
zone for an area which shall include a United States census tract or
tracts or block numbering area or areas or portions thereof, each full
census tract or portion of a block numbering area of which according to
the most recent census data available has:

(i) at the time of application, an unemployment rate equal to or
exceeding the unemployment rate of the state of New York;

(ii) a rate of poverty for individuals of at least twenty percent;

(iii) a number of households receiving public assistance of fourteen
percent or more;

(iv) the municipality is considered a non-metropolitan area; and

(v) there is no other empire zone in the county in which designation
is sought.

(e) The empire zones designation board may accept from an applicant
seeking designation any data in lieu of census data supporting such
application as the commissioner deems to be reliable.

(f) Notwithstanding subdivisions (a), (b), (c) and (d) of this section
or any other provision of this article, the following counties are
deemed eligible to receive empire zone designation pursuant to
subdivisions (b) and (c) of this section: Delaware; Greene; Hamilton;
Livingston; Nassau; Putnam; Rockland; Schoharie; Tompkins; Wyoming; and
Yates. New York county in the vicinity south of East Houston Street,
east of Broadway, west of the East River, and north of Chambers Street
and the Brooklyn Bridge, in an area commonly known as Chinatown, shall
be deemed eligible to receive empire zone designation pursuant to
subdivisions (a) and (d) of this section.

(g) Notwithstanding any other provision of this section, after March
thirty-first, two thousand five, a municipality shall demonstrate in an
application for designation as an empire zone, that there is no viable
alternative area or areas that has or have existing public sewer or
water infrastructure available other than the proposed zone.