New York Codes, Rules and Regulations
Title 5 - DEPARTMENT OF ECONOMIC DEVELOPMENT
Chapter XXII - Start-Up NY Program
Part 220 - Suny Tax-free Areas To Revitalize And Transform Upstate New York (start-up Ny) Program
Section 220.5 - Eligibility criteria for designation as a tax-free NY area

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

Only certain land and buildings located on the campuses of a SUNY or CUNY, community colleges, certain properties of private colleges and universities, certain properties outside the campuses of a SUNY or CUNY, community college or private colleges or universities, designated New York State incubators, strategic State assets, START-UP NY airport facilities, and correctional facilities, as defined in section 220.2 of this Part, shall be eligible for designation as a tax-free NY area.

(a) For SUNY and community college campuses in upstate New York, excluding all Empire State College campuses except for the Empire State College campus in Saratoga Springs:

(1) Any vacant space in any building located on campus shall be eligible for designation as a tax-free NY area.

(2) Any vacant land on campus shall be eligible for designation as a tax-free NY area.

(3) Up to a total of 200,000 square feet of vacant land or vacant building space located within one mile of a perimeter of a SUNY or community college campus shall be eligible for designation as a tax-free NY area.
(i) Upon application from such SUNY or community college and in consultation with the chancellor or his or her designee, the commissioner may qualify identified vacant land or identified vacant space in a building that is located more than one mile from its campus as eligible for purposes of this program if the commissioner determines that the SUNY or community college has shown that the use of the land or space will be consistent with the requirements of this program.

(4) A New York State incubator with a bona fide affiliation to the SUNY or community college-which therefore must involve a partnership to provide assistance and physical space to eligible businesses towards the goals of jointly creating jobs and incubating new startup businesses, and which must be aligned with or furthering the academic mission of the SUNY or community college-shall be eligible for designation as a tax-free NY area.

(5) No academic programs, administrative programs, offices, housing facilities, dining facilities, athletic facilities, or any other facility, space or program that actively serves students, faculty or staff may be closed or relocated in order to create vacant land or space to be utilized for the program.

(b) For SUNY and community college campuses in Nassau, Suffolk, or Westchester Counties:

(1) any vacant space in any building located on campus shall be eligible for designation as a tax-free NY area;

(2) any vacant land on campus shall be eligible for designation as a tax-free NY area;

(3) a New York State incubator with a bona fide affiliation to the SUNY or community college shall be eligible for designation as a tax-free NY area;

(4) plans may be submitted to the START-UP Approval Board for designation of eligible lands directly adjacent to the campus as tax-free NY area, described in section 220.4(d) of this Part;

(5) no academic programs, administrative programs, offices, housing facilities, dining facilities, athletic facilities, or any other facility, space or program that actively serves students, faculty or staff may be closed or relocated in order to create vacant land or space to be utilized for this program.

(c) For SUNY and community college campuses in New York City:

(1) any vacant land or vacant building space on campus property that is located in upstate New York shall be eligible for designation as a tax-free NY area;

(2) any property affiliated with Downstate Medical Center that constitutes a New York State incubator shall be eligible for designation as a tax-free NY area;

(3) for SUNY and community colleges in New York City with campus property in upstate New York, up to 200,000 square feet of vacant land or building space located within one mile of a perimeter of a SUNY or community college campus property that is in upstate New York shall be eligible for designation as a tax-free NY area;
(i) upon application from such SUNY or community college and in consultation with the chancellor or his or her designee, the commissioner may qualify identified vacant land or identified vacant space in a building that is located more than one mile from its campus as eligible for purposes of this program if the commissioner determines that the SUNY or community college has shown that the use of the land or space will be consistent with the requirements of this program.

(4) a New York State incubator with a bona fide affiliation with a New York City-based state university or community college shall be eligible for designation as a tax-free NY area; and

(5) Downstate Medical Center, Fashion Institute of Technology (FIT), Maritime College and College of Optometry are eligible to seek designation of additional tax-free NY space by the START-UP NY Approval Board as described in section 220.4(d) of this Part and subdivision (f) of this section;

(6) no academic programs, administrative programs, offices, housing facilities, dining facilities, athletic facilities, or any other facility, space or program that actively serves students, faculty or staff may be closed or relocated in order to create vacant land or space to be utilized for this program.

(d) For CUNY campuses:

(1) up to five CUNY campuses, one each in the boroughs of Manhattan, Brooklyn, Bronx, Queens and Staten Island, may be designated by the board of trustees of the CUNY in economically distressed communities as defined by the commissioner;
(i) any vacant space in any building located on a designated campus shall be eligible for designation as a tax-free NY area;

(ii) any vacant land on a designated campus shall be eligible for designation;

(2) any vacant land or vacant building space on property of a CUNY campus that is located in upstate New York shall be eligible for designation;

(3) a New York State incubator with a bona fide affiliation to the CUNY shall be eligible for designation as a tax-free NY area;

(4) CUNY campuses not otherwise designated are eligible to seek designation of tax-free NY space by the START-UP NY Approval Board as described in section 220.4(d) of this Part and subdivision (f) of this section;

(5) up to a total of 200,000 square feet of vacant land or vacant building space located within one mile of a perimeter of a CUNY campus in upstate NY shall be eligible for designation as a tax-free NY area;
(i) upon application from such CUNY and in consultation with the chancellor or his or her designee, the commissioner may qualify identified vacant land or identified vacant space in a building that is located more than one mile from its campus as eligible for purposes of this program if the commissioner determines that the SUNY or community college has shown that the use of the land or space will be consistent with the requirements of this program;

(6) no academic programs, administrative programs, offices, housing facilities, dining facilities, athletic facilities, or any other facility, space or program that actively serves students, faculty or staff may be closed or relocated in order to create vacant land or space to be utilized for this program.

(e) For private colleges and universities in upstate New York:

(1) up to 2.4 million square feet of vacant space in any building or vacant land in upstate New York shall be eligible for designation as a tax-free NY area;

(2) a New York State incubator with a bona fide affiliation to the private university or college shall be eligible for designation as a tax-free NY area and are subject to the limitation on eligible square footage in this section.

(f) For private colleges and universities in downstate New York:

(1) private colleges and universities in downstate New York are eligible-along with Downstate Medical Center, Fashion Institute of Technology (FIT), Maritime College, College of Optometry and campuses of CUNY not otherwise designated-to apply to the START-UP NY Approval Board for designation of up to 75,000 square feet of vacant campus land or space as a tax-free NY area in each of the following eight counties: Bronx, Kings, Nassau, New York, Queens, Richmond, Suffolk, and Westchester. In any county where the allocated 75,000 square feet is designated as a tax-free NY area, an additional 75,000 square feet shall be eligible for designation by the START-UP NY Approval Board as a tax-free NY area;

(2) a New York State incubator with a bona fide affiliation to the private university or college shall be eligible for designation as a tax-free NY area;

(3) private colleges or universities located in Nassau, Suffolk or Westchester Counties are eligible to apply for designation by the START-UP NY Approval Board of certain adjacent property as tax-free NY area, described in section 220.4(d) of this Part.

(g) For strategic State assets, START-UP NY airport facilities, and correctional facilities:

(1) the START-UP NY Approval Board may also approve plans that include up to 20 strategic State assets affiliated with a SUNY, CUNY, or community college, or with a private college or university;

(2) each strategic State asset approved by the board may include up to 200,000 square feet of vacant land or vacant building space designated as a tax-free NY area and shall not count against any other square footage limitations in the program;

(3) the START-UP NY Approval Board may also approve plans that include correctional facilities, as defined in section 220.2 of this Part, affiliated with a SUNY, CUNY or community college, or with a private college or university;

(4) the START-UP NY Approval Board may also approve plans that includes START-UP NY airport facilities, as defined in section 220.2 of this Part, affiliated with a SUNY, CUNY or community college, or with a private college or university. Each START-UP NY airport facility included in a plan approved by the START-UP NY Approval Board shall not exceed 200,000 square feet of vacant land or vacant building space.

(h) For a New York State incubator:

(1) for purposes of this Part, only certain land and buildings within certified New York State incubators with a bona fide affiliation with a sponsoring university or college shall be eligible to participate in START-UP NY;

(2) in order for there to be a bona fide affiliation of a New York State incubator with a sponsoring university or college, the incubator and the sponsoring university or college must have a partnership to provide assistance and physical space to eligible businesses, as described in section 16-v of the Urban Development Corporation Act;

(3) in the case of a business incubator or hot spot sponsored or administered by a university or college, the incubator or hot spot shall document the relationship with the university or college by providing the certificate of incorporation, by-laws, memorandum of understanding or similar document detailing the relationship between the parties;

(4) in the case of a business incubator or hot spot that is part of a partnership with another university or college or a not-for-profit entity other than the sponsoring or administering entity, the incubator or hot spot shall provide evidence of such partnership agreement through submission of a memorandum of understanding, certificate of incorporation, by-laws or similar document detailing the rights, responsibilities and expectations of the parties, including but not limited to financial commitments, shared use of staff, facilities or resources;

(5) the incubator and the sponsoring university or college must directly work together towards the goals of jointly creating jobs and incubating new startup businesses;

(6) the mission and activities of the incubator must align with or further the academic mission of the sponsor.

Amended New York State Register November 20, 2019/Volume XLI, Issue 47, eff. 11/20/2019

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