New York Codes, Rules and Regulations
Title 21 - Miscellaneous
Chapter L - New York State Urban Development Corporation
Part 4211 - Regional Economic Development Partnership Program
Section 4211.8 - Economic development assistance grants
Universal Citation: 21 NY Comp Codes Rules and Regs ยง 4211.8
Current through Register Vol. 45, No. 52, December 27, 2023
(a) Assistance available.
(1) The corporation may make grants, as set
forth below and within available appropriations, of up to $100,000 each for
economic development assistance projects; provided, however, that for
feasibility studies, as set forth below in paragraphs (2) and (3) of this
subdivision, the corporation may make grants of up to $75,000. Economic
development assistance projects are projects that provide business or
economic development services to stabilize, retain or revitalize existing
businesses and to assist small and new businesses or business sectors
including, without limitation, the following services:
(i) analysis of industrial sectors;
(ii) productivity assistance to mature
industries;
(iii) assistance in
marketing and promoting regional business clusters;
(iv) export assistance;
(v) management and procurement assistance to
small business, including minority- and women-owned businesses;
(vi) regional marketing of State economic
development programs to areas underserved in those programs;
(vii) assistance in the training of community
and economic development staff to assist communities to build capacity to
engage in economic development;
(viii) assistance to expand the capacity of
existing entities administering minority and women revolving loan funds to
deliver services;
(ix) studies of
the feasibility of establishing a business improvement district and for initial
organizational costs other than costs associated with purchasing, constructing,
or renovating facilities or purchasing equipment;
(x) the establishment and operation of
neighborhood-based small business service centers;
(xi) industrial effectiveness or global
export and marketing assistance, as approved by the Department of Economic
Development;
(xii) regional
marketing of tourism destinations (i.e., recreational,
educational, cultural or historic locations or facilities that are likely to
attract a significant number of visitors from outside the region), including
tourism destination areas which are primarily commercial in nature and where an
increase in visitors to such areas will contribute to the stability and
economic vitality of the area; and
(xiii) feasibility studies that meet the
requirements of paragraphs (2) and (3) of this subdivision.
(2) A feasibility
study is:
(i)
(a) an examination of: the need for a
particular facility; the use of a facility or site for a particular use; or the
need for use of infrastructure related to a facility or site for a particular
purpose; and
(b) the facility or
site to be studied or assisted by the infrastructure to be studied is the key
element in a plan to attract, retain or permit the expansion of eligible
companies (i.e.,industrial, manufacturing, commercial,
research and development, high technology, tourism, agricultural or service
companies) to or in a community; or
(ii) an examination of the feasibility of any
work or undertaking which is intended to further one of the following
objectives:
(a) business development by women,
minority group members or unemployed persons;
(b) modernization and productivity
improvements by an eligible company;
(c) diversification of the economic base of a
community;
(d) creation of
substantial, permanent private-sector jobs, including jobs for dislocated
workers, public assistance recipients, disadvantaged youth, or long-term
unemployed persons;
(e) retention
of jobs involving companies at imminent risk of reducing employment;
(f) prevention of the loss of a primary
employer which will have a major adverse impact on the economic condition of
the community; or
(g) development
of a location or facility which is likely to attract a significant number of
visitors from outside the region.
(3) A feasibility study must have received
firm commitments for the use of other public or private development funds in an
amount equal to or greater than one third the amount of assistance requested
from the corporation hereunder; provided, however, that in the case of
feasibility studies to be undertaken for a project located in an economic
development zone, such other funds may be in an amount equal to or greater than
10 percent of the amount of assistance requested from the corporation. Funds
committed in the manner of in-kind services shall not satisfy the requirements
of this section.
(4) Grant awards
shall be made by the corporation on a competitive basis and in response to
requests for proposals that may be issued by the corporation. Applicants may
request assistance for more than one project per funding cycle, in which case a
separate application for each project must be submitted. The corporation may
fund all or none of the projects applied for, depending on the corporation's
assessment of each application's merit, the regional council certification, the
relative merit of other applications received for program funding and the
availability of funds. In no event shall the corporation award program
assistance to any applicant in any one funding cycle in excess of
$250,000.
(b) Eligibility.
(1) Project
requirements. To be eligible for economic development assistance project
assistance, the project must:
(i) be
consistent with the regional strategic plan, as evidenced by the certification
of the regional council or the corporation, as the case may be, in accordance
with section
4211.11(b)
of this Part;
(ii) be reasonably
likely to be completed within the time and cost estimates presented in the
proposal;
(iii) be unable to obtain
sufficient funding on reasonable terms from other public or private sources to
permit the project to proceed without the requested assistance; and
(iv) benefit the region in which the project
is located. A proposed project shall be considered one which will benefit the
region if it is undertaken or seeks to address an economic development issue,
problem, or need which is of significance to the region, as determined by the
regional council and the corporation after taking into consideration such
factors as:
(a) the nature of the issue,
problem or need addressed;
(b) the
number of people, companies or industries affected;
(c) the nature and size of the companies or
industries affected and their importance as employers in the region;
and
(d) the geographic area
affected.
(2)
Eligible applicants. Economic development assistance project grants may be
awarded to:
(i) not-for-profit organizations,
including local development corporations, and management associations and other
organizations on behalf of business improvement districts; and
(ii) regional and community development
organizations, including industrial development agencies and regional planning
boards.
(3) Preferred
projects. Preference shall be given to economic development assistance project
that:
(i) are located in a distressed
area;
(ii) meet a substantial need
of the region;
(iii) complement
local programs or provide services not readily available from units of local
government or the private sector;
(iv) provide a local match;
(v) foster small business and minority
business development; or
(vi)
assist communities to build capacity to engage in economic
development.
(4)
Eligible costs.
(i) Economic development
assistance project grants may be applied to the cost of materials and supplies,
and to other outside vendor costs, directly related to or used exclusively for
the project, subject to clause (iv)(a) of this
paragraph.
(ii) Economic
development assistance project grants may not be used for the salaries of
employees of an eligible grant recipient unless the grant recipient can
demonstrate that it has the requisite expertise to perform some or all of the
project in-house, in which case, the project grant may be applied to that
portion of the employee's salary, relating to the time devoted to the project.
Criteria used in determining whether the grant recipient possesses the special
expertise required to perform some or all of the project include, but are not
limited to, foreign language fluency unique to the community in which the
project is located; the professional skills and background of the grant
recipient's employee(s); and past experience in conducting comparable
projects.
(iii) In addition, up to
10 percent of an economic development assistance project grant may be applied
to the administrative costs associated with implementing the project and the
operating expenses of the grant recipient.
(iv) Economic development assistance project
grants may not be applied to:
(a) the cost of
purchasing machinery, equipment, furniture or fixtures, or acquiring,
renovating or constructing facilities;
(b) tax or employee benefit arrearages;
or
(c) expenses incurred prior to
initiation of the application process for REDPP assistance.
(c) Ineligible projects.
(1)
Economic development assistance project assistance may not be provided directly
to:
(i) retail businesses or overnight
lodging facilities;
(ii) businesses
providing legal, medical or nursing services;
(iii) newspaper, broadcasting or other news
media companies.
(2)
Economic development assistance project grants may not be awarded to projects
involving;
(i) debt refinancing;
(ii) the relocation of a business from one
municipality to another municipality unless all municipalities from which the
business will be relocated are notified in writing of the corporation's
approval of funding for the project and the chief executive officers of the
municipalities do not object in writing to the corporation within 20 days of
receipt of such notification, or unless they waive in writing their right to
such notification; and
(iii) the
provision of financial assistance, directly or indirectly, by the corporation
to:
(a) the State or any agency, department,
authority, public benefit corporation or political subdivision
thereof;
(b) a full-time employee
of the State or of any State agency, department, authority, public benefit
corporation, or political subdivision (a State employee); or
(c) any entity that is controlled or a
majority of which is owned by the State or a State employee.
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