N.Y. Comp. Codes R. & Regs. tit. 21 § 4249.4

Current through Register Vol. 46, No. 50, December 11, 2024

Section 4249.4 - Eligibility

(a) Eligible applicants shall include, but not be limited to, business improvement districts, local development corporations, economic development organizations, for profit businesses, not-for-profit corporations, public benefit corporations, municipalities, counties, research and academic institutions, incubators, technology parks, private firms, regional planning councils, tourist attractions and community facilities.

(b) The corporation shall be eligible for assistance in the form of loans, grants, or monies contributing to projects for which the corporation or a subsidiary act as developer.

(1) The corporation may act as developer in the acquisition, renovation, construction, leasing or sale of development projects authorized pursuant to this program in order to stimulate private sector investment within the affected community.

(2) 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.

(3) 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. Such firm commitment shall be evidenced by a memorandum of understanding or other document describing the intent of the parties.

(4) Projects authorized under this subdivision whether developed by the corporation or a private developer, must be located in distressed communities, for which there is demonstrated demand within the particular community.

(c) Program assistance is available for the following funding tracks:

(1) Business investment. Business investments are capital expenditures that facilitate an employer's ability to create new jobs in New York State or retain jobs that are otherwise in jeopardy. Such jobs otherwise in jeopardy include, but are not limited to, jobs in danger of being eliminated, having hours and/or wages reduced or relocated outside of New York State. Within the business investment track, five-year job commitments will be required of all beneficiaries; it is by underwriting these job commitments that ESDC is best able to forecast the economic benefits of providing assistance to any particular project. Applicants will therefore be required to commit to the number of jobs at risk that will be retained by the proposed project, the number of new jobs that will be created by the project, and the average salaries of each. Failure to achieve or maintain these employment commitments will subject a beneficiary to potential recapture of assistance.

(2) Infrastructure investment. The funds will finance infrastructure investments in order to attract new businesses and expand existing businesses, thereby fostering further investment. Infrastructure investments are capital expenditures for infrastructure including transportation, water and sewer, communication, and energy generation and distribution. Infrastructure also includes the construction of parking garages. Unlike the other two tracks, infrastructure investment may be used to finance planning or feasibility studies relating to capital expenditures. The infrastructure investment track is appropriate only for infrastructure activity for unidentified end-users or for multiple users; infrastructure projects that will serve a single identified entity must apply for assistance under the business investment track, which may be used to fund infrastructure expenses. Although projects without identified users may be funded under the infrastructure investment track, preference under this track will be given to projects with identified tenants.

(i) Job commitments: infrastructure investment projects that are able to provide job commitments will be viewed favorably. However, it is important to note that:

(a) few infrastructure investment projects are anticipated to be able to provide job commitments; and

(b) if the employer will be an entity other than the applicant, a third party guarantee of the applicant's job commitment must be provided by the prospective employer and that prospective employer must be found by ESDC to be creditworthy.

(3) Downtown redevelopment. Downtown neighborhoods - whether major commercial areas of big cities or one block stretches of village main streets - are important generators of economic activity in New York State. In an effort to strengthen these cores of commerce, the downtown redevelopment track will finance rehabilitation and new construction in downtown areas statewide. Funding will be available for a range of commercial uses, including retail, office and commercial. Funding will also be available for projects that are likely to increase tourism, including hotels, cultural institutions and entertainment facilities, and streetscape improvements. This track will not be used to finance speculative development, and therefore only projects in which 60 percent of the square footage has been pre-leased generally will be considered.

(i) Job commitments: downtown redevelopment projects that are able to provide job commitments will be viewed favorably. However, it is important to note that:

(a) few downtown redevelopment projects are anticipated to be able to provide job commitments; and

(d) No full-time employee of the State or full-time employee of any agency, department, authority or public benefit corporation (or any subsidiary of a public benefit corporation) of the State shall be eligible to receive assistance under this initiative, nor shall any business, the majority ownership interest of which is beneficially controlled by any such employee, be eligible for assistance under this initiative.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 4249.4