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

Current through Register Vol. 44, No. 38, September 21, 2022

(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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