§ 862 — Restrictions on funds of the agency

New York § 862

• Jurisdiction: New York
• Law GMU: General Municipal
• Title 1: Agencies, Organization and Powers
• Art. 18-A: Industrial Development

Text

§ 862. Restrictions on funds of the agency. (1) No funds of the agency\nshall be used in respect of any project if the completion thereof would\nresult in the removal of an industrial or manufacturing plant of the\nproject occupant from one area of the state to another area of the state\nor in the abandonment of one or more plants or facilities of the project\noccupant located within the state, provided, however, that neither\nrestriction shall apply if the agency shall determine on the basis of\nthe application before it that the project is reasonably necessary to\ndiscourage the project occupant from removing such other plant or\nfacility to a location outside the state or is reasonably necessary to\npreserve the competitive position of the project occupant in its\nrespective industry.\n (2) (a) Except as provided in paragraph (b) of this subdivision, no\nfinancial assistance of the agency shall be provided in respect of any\nproject where facilities or property that are primarily used in making\nretail sales to customers who personally visit such facilities\nconstitute more than one-third of the total project cost. For the\npurposes of this article, "retail sales" shall mean: (i) sales by a\nregistered vendor under article twenty-eight of the tax law primarily\nengaged in the retail sale of tangible personal property, as defined in\nsubparagraph (i) of paragraph four of subdivision (b) of section eleven\nhundred one of the tax law; or (ii) sales of a service to such\ncustomers. Except, however, that tourism destination projects shall not\nbe prohibited by this subdivision. For the purpose of this paragraph,\n"tourism destination" shall mean a location or facility which is likely\nto attract a significant number of visitors from outside the economic\ndevelopment region as established by section two hundred thirty of the\neconomic development law, in which the project is located.\n (b) Notwithstanding the provisions of paragraph (a) of this\nsubdivision, financial assistance may, however, be provided to a project\nwhere facilities or property that are primarily used in making retail\nsales of goods or services to customers who personally visit such\nfacilities to obtain such goods or services constitute more than\none-third of the total project cost, where: (i) the predominant purpose\nof the project would be to make available goods or services which would\nnot, but for the project, be reasonably accessible to the residents of\nthe city, town, or village within which the proposed project would be\nlocated because of a lack of reasonably accessible retail trade\nfacilities offering such goods or services; or (ii) the project is\nlocated in a highly distressed area.\n (c) With respect to projects authorized pursuant to paragraph (b) of\nthis subdivision, no project shall be approved unless the agency shall\nfind after the public hearing required by section eight hundred\nfifty-nine-a of this title that undertaking the project will serve the\npublic purposes of this article by preserving permanent, private sector\njobs or increasing the overall number of permanent, private sector jobs\nin the state. Where the agency makes such a finding, prior to providing\nfinancial assistance to the project by the agency, the chief executive\nofficer of the municipality for whose benefit the agency was created\nshall confirm the proposed action of the agency.\n