§ 16-r. The downstate revitalization fund. 1. The downstate
revitalization fund is hereby created. The corporation is authorized,
within available appropriations, to provide financial, project
development, or other assistance from such fund to eligible entities as
set forth in this subdivision for the purposes of supporting investment
in distressed communities in the downstate region, and in support of
such projects that focus on: encouraging business, community, and
technology-based development, and supporting innovative programs of
public and private cooperation working to foster new investment, job
creation and small business growth. For-profit businesses,
not-for-profit corporations, public benefit corporations,
municipalities, and research and academic institutions shall be eligible
to apply for such activities under this subdivision including, but not
limited to, the following:

(a) Support for projects identified through collaborative efforts as
part of the overall growth strategy for the local economy, including but
not limited to smart growth and energy efficiency initiatives.

(b) Support for the attraction or expansion of a business including,
but not limited to, those primarily engaged in activities identified as
a strategic industry and minority-owned and women-owned business
enterprises as defined by subdivisions (c) and (g) of section nine
hundred fifty-seven of the general municipal law.

(c) Support for land acquisition and/or the construction, acquisition
or expansion of buildings, machinery and equipment associated with a
project.

(d) Support for projects located in an investment zone as defined by
paragraph (i) of subdivision (d) of section 957 of the general municipal
law.

2. Applications for assistance pursuant to this section shall be
reviewed and evaluated pursuant to eligibility requirements and criteria
set forth in rules and regulations promulgated by the corporation.
Approval of project applications shall be made by the chairman and
subject to approval by the board of directors of the corporation. Grants
and loans awarded under this section shall be awarded on a competitive
basis, in response to requests for proposals, and through direct
applications accepted at other times at the discretion of the
corporation.

3. Priority in granting assistance generally will be given to projects
(a) with significant private financing or matching funds through other
public entities, (b) likely to produce a high return on public
investment, (c) with existence of significant support from the local
business community, local government, community organizations, academic
institutions and other regional parties, (d) deemed likely to increase
the community's economic and social viability, (e) with cost benefit
analysis that demonstrates sustainable job creation and investments, (f)
located in distressed areas using economic criteria developed by the
corporation, which may include but not be limited to land value,
employment, private investment, economic activity, and population, or
(g) whose application is submitted by multiple entities, both public and
private.

4. Applications for support or assistance under this subdivision shall
be made in a form and manner as determined by the corporation, and
applicants shall be required to meet the criteria and requirements
determined by the corporation pursuant to this act, which will focus on
the potential of the project or program to stimulate or enhance economic
development in the area or employment opportunities in the distressed
communities and regions.

5. Assistance may be in the form of loans, grants, or monies
contributing to projects for which the corporation or a subsidiary acts
as developer. (i) The corporation may act as developer in the
acquisition, renovation, construction, leasing or sale of development
projects authorized pursuant to this act in order to stimulate private
sector investment within the affected community. (ii) In acting as a
developer, the corporation may borrow for purposes of this subdivision
for approved projects in which the lender's recourse is solely to the
assets of the project, and may make such arrangements and agreements
with community-based organizations and local development corporations as
may be required to carry out the purposes of this section. (iii) Prior
to developing any such project, the corporation shall secure a firm
commitment from entities, independent of the corporation, for the
purchase or lease of such project. (iv) Projects authorized under this
subdivision whether developed by the corporation or a private developer,
must be located in distressed communities, for which there is a
demonstrated demand within the particular community.

6. Eligible applicants shall include, but not be limited to, business
improvement districts, local development corporations, economic
development organizations, institutions of higher education, incubators,
technology parks, private firms, municipalities, counties, regional
planning councils, tourist attractions, and community facilities.

7. The corporation shall submit a report to the director of the
budget, the temporary president of the senate, the speaker of the
assembly, the minority leader of the senate and the minority leader of
the assembly on the investments and accomplishments of the downstate
revitalization fund. Such report shall include, but not be limited to,
information on the number of jobs created and retained, levels of
private sector investment, economic benefit to the state and local
economies and types of industries invested in. Such report shall be
submitted by July 1, 2009 and July first every year thereafter.

8. The corporation shall submit a report to the director of the
budget, the temporary president of the senate, the speaker of the
assembly, the minority leader of the senate and the minority leader of
the assembly evaluating the economic and social benefits of the
downstate revitalization fund. Such evaluation shall be prepared by an
entity or entities independent of the corporation which shall be
selected through a request for proposal process. Such evaluation shall
be submitted by October 1, 2009 and October first every year thereafter.

9. The corporation is hereby authorized to promulgate rules and
regulations in accordance with the state administrative procedure act as
are necessary to fulfill the purposes of this section.