21 CRR-NY 4211.5NY-CRR
21 CRR-NY 4211.5
21 CRR-NY 4211.5
4211.5 Infrastructure projects.
The corporation may make loans and grants, as set forth below and within available appropriations, for: business infrastructure projects; tourism destination infrastructure projects; infrastructure investment projects; and infrastructure planning projects.
(a) Business infrastructure projects.
(1) Assistance available.
(i) The corporation may make loans and grants, as set forth below and within available appropriations, for business infrastructure projects. A business infrastructure project is a project that consists of the construction or installation of basic systems and facilities on publicly or privately owned property including, without limitation, drainage systems, sewer systems, access roads, sidewalks, docks, wharves, water supply systems, demolition and site clearance, preparation and improvement.
(ii) Business infrastructure project assistance may be provided to:
(a) industrial, manufacturing, commercial, research and development, high technology, tourism, agricultural or service companies (each an eligible company);
(b) eligible local governments;
(c) industrial development agencies; and
(d) local, county or regional development corporations designated by local governments.
(iii) Program assistance to business infrastructure projects shall not exceed 49 percent of the total project cost or $750,000, whichever is less. Of the total funds provided by the corporation to any business infrastructure project:
(a) no more than 60 percent shall be in the form of a grant, if the project is located within an economic development zone; and
(b) no more than 50 percent shall be in the form of a grant, if the project is located outside of an economic development zone.
(iv) Business infrastructure assistance may be used for:
(a) the acquisition, renovation and construction or installation of the basic systems and facilities constituting the project; and
(b) related ancillary costs, including, without limitation, legal expenses, appraisal costs, brokerage commissions, interest costs, survey expenses, architectural and engineering fees and site preparation expenses.
(v) Business infrastructure assistance may not be used for:
(a) expenses incurred prior to the initiation of the application process for REDPP assistance; or
(b) tax or employee benefit arrearages.
(2) Eligibility. To be eligible for business infrastructure project assistance, the project must:
(i) be directly related and essential to a specific business development. A business development is any work or undertaking for the creation or retention of permanent private-sector jobs;
(ii) involve an eligible company;
(iii) 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;
(iv) create or retain substantial permanent private-sector jobs, taking into consideration the following factors:
(a) the nature of the industry of the applicant;
(b) the total number of jobs available, and the level of unemployment in the area in which the proposed project is located;
(c) the overall level of business activity in such area; and
(d) such other aspects of the local economy as the corporation deems appropriate;
(v) be reasonably likely to be completed within the time and cost estimates presented in the proposal;
(vi) 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
(vii) satisfy one of the following:
(a) the project is located in an economic development zone, has firm commitments from all other financing sources for the total project cost and an eligible company has expressed an interest in the project;
(b) the project is not located in an economic development zone, has firm commitments from an eligible company to carry out the related business development and from all other financing sources for the total project cost and furthers one of the following economic development objectives: business development by women, minority group members or unemployed persons; modernization and productivity improvements by an eligible company; diversification of the economic base of a community; creation of substantial, permanent private-sector jobs, including jobs for dislocated workers, public assistance recipients, disadvantaged youth, or long-term unemployed persons; retention of jobs involving companies at imminent risk of reducing unemployment; prevention of the loss of a primary employer which will have a major adverse impact on the economic condition of the community; or development of a location or facility that is likely to attract a significant number of visitors from outside the region.
(3) Ineligible projects. Business infrastructure project assistance may not be provided to projects that involve any of the following:
(i) retail businesses;
(ii) overnight lodging facilities;
(iii) businesses providing legal, medical or nursing services;
(iv) newspaper, broadcasting or other news media company;
(v) debt refinancing;
(vi) 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
(vii) 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, except as otherwise provided in this subdivision; or
(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 a State employee.
(4) Business terms.
(i) Within the limitations set forth hereunder, terms and security arrangements will be flexible, depending on the type of assistance provided and the particular characteristics of the business infrastructure project. Business infrastructure project loans that provide permanent financing and are secured by fixed assets will be preferred. Where repayment of a business infrastructure project loan is predicated upon a revenue stream derived from a related business development, the corporation may require the assignment of the revenue stream.
(ii) No business infrastructure loan or grant shall be disbursed without firm commitments from all other funding sources.
(iii) Construction loans and grants for business infrastructure projects approved by the corporation hereunder will not be disbursed before secure commitments for permanent financing have been obtained.
(iv) Interest rates on business infrastructure project loans will be set at the time the directors approve an application. Rates and terms will be fixed based upon what is necessary to make the project feasible, and will reflect market conditions, the applicant's ability to repay and project requirements.
(v) Business infrastructure project loans will be made for the following terms:
(a) permanent loans generally may be made for a term not to exceed 20 years; and
(b) construction loans generally will not exceed 24 months.
(vi) Standard repayment terms generally will include level debt service payments over the term of the business infrastructure project loan. In certain circumstances, deferred or graduated payments may be permitted, provided that the business infrastructure project loan is fully amortized over the remainder of the loan term.
(b) Tourism destination infrastructure projects.
(1) The corporation may make loans and grants, as set forth below and within available appropriations, for tourism destination infrastructure projects. A tourism destination infrastructure project is a project that:
(i) consists of the construction or installation of basic systems and facilities on publicly or privately owned property including, without limitation, drainage systems, sewer systems, access roads, sidewalks, docks, wharves, water supply systems, demolition and site clearance, preparation and improvement; and
(ii) is directly related and essential to a tourism destination development that would qualify as and meet all of the requirements of a tourism destination project set forth in section 4211.4 of this Part.
(2) Tourism destination infrastructure project assistance may be provided to:
(i) a tourism-related company or entity;
(ii) eligible local government;
(iii) industrial development agency; and
(iv) local county or regional development corporation designated by local government.
(3) Program assistance to tourism destination infrastructure projects shall not exceed 49 percent of the total project cost or $750,000, whichever is less. Of the total funds provided by the corporation to any tourism destination infrastructure project:
(i) no more than 60 percent shall be in the form of a grant, if the project is located within an economic development zone; and
(ii) no more than 50 percent shall be in the form of a grant, if the project is located outside of an economic development zone.
(4) Tourism destination infrastructure assistance may be used for:
(i) the acquisition, renovation and construction or installation of the basic systems and facilities constituting the project; and
(ii) related ancillary costs, including, without limitation, legal expenses, appraisal costs, brokerage commissions, interest costs, survey expenses, architectural and engineering fees and site preparation expenses.
(5) Tourism destination infrastructure assistance may not be used for:
(i) expenses incurred prior to the initiation of the application process for REDPP assistance; or
(ii) tax or employee benefit arrearages.
(6) Business terms.
(i) Within the limitations set forth hereunder, terms and security arrangements will be flexible, depending on the type of assistance provided and the particular characteristics of the tourism destination infrastructure project. Tourism destination infrastructure project loans that provide permanent financing and are secured by fixed assets will be preferred. Where repayment of a tourism destination infrastructure project loan is predicated upon a revenue stream derived from a related tourism destination development, the corporation may require the assignment of the revenue stream.
(ii) No tourism destination infrastructure loan or grant shall be disbursed without firm commitments from all other funding sources.
(iii) Construction loans and grants for tourism destination infrastructure projects approved by the corporation hereunder will not be disbursed before secure commitments for permanent financing have been obtained.
(iv) Interest rates on tourism destination infrastructure project loans will be set at the time the directors approve an application. Rates and terms will be fixed based upon what is necessary to make the project feasible, and will reflect market conditions, the applicant's ability to repay and project requirements.
(v) Tourism destination infrastructure project loans will be made for the following terms:
(a) permanent loans generally may be made for a term not to exceed 20 years; and
(b) construction loans generally will not exceed 24 months.
(vi) Standard repayment terms generally will include level debt service payments over the term of the tourism destination infrastructure project loan. In certain circumstances, deferred or graduated payments may be permitted, provided that the tourism destination infrastructure project loan is fully amortized over the remainder of the loan term.
(c) Infrastructure investment projects.
(1) Assistance available. The corporation may make grants, as set forth below and within available appropriations, of up to $400,000 or 80 percent of total project cost, whichever is less, for infrastructure investment projects. An infrastructure investment project is a project consisting solely of site preparation, clearance and/or demolition on property owned by:
(i) a municipality;
(ii) an eligible local government;
(iii) a local development corporation;
(iv) an urban renewal agency; or
(v) an industrial development agency designated by a municipality or eligible local government.
(2) Eligibility.
(i) To be eligible for infrastructure investment project assistance:
(a) the applicant for assistance must be an eligible local government, municipality, industrial development agency, urban renewal agency or local development corporation;
(b) the project must be located in a highly distressed area;
(c) the project must 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;
(d) the project must be part of an economic development or urban renewal plan to attract, retain or permit the expansion of one of the following types of company: industrial; manufacturing; research and development; high technology; tourism; service; or food processing or distribution;
(e) the project must be located in an area that is zoned to permit development for commercial and industrial, including manufacturing, activity;
(f) the project must be reasonably likely to be completed within the time and cost estimates presented in the proposal; and
(g) the project must 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.
(ii) Infrastructure investment project assistance may finance:
(a) the actual cost of site clearance, site preparation or building demolition; and
(b) ancillary costs including legal expenses and engineering fees and environmental review costs.
(iii) Infrastructure investment assistance shall not finance:
(a) expenses incurred prior to the initiation of the REDPP application process; or
(b) the payment of tax or employee benefit arrearages.
(d) Infrastructure planning projects.
(1) Assistance available. The corporation may make grants, as set forth below and within available appropriations, of up to $25,000 or 50 percent of total project cost, whichever is less, for infrastructure planning projects. An infrastructure planning project is a project consisting solely of planning, including the preparation of schematic designs and preliminary environmental assessments, for a project that is intended to become and would qualify as a business infrastructure project as described in subdivision (a) of this section, a tourism destination infrastructure project as described in subdivision (b) of this section or an infrastructure investment project as described in subdivision (c) of this section.
(2) Eligibility.
(i) To be eligible for infrastructure planning project assistance, the applicant must be:
(a) an eligible local government;
(b) a municipality;
(c) an industrial development agency;
(d) an urban renewal agency; or
(e) a local development corporation.
(ii) Infrastructure planning project assistance may finance the cost of outside consultants to perform the planning and/or assessment that constitute the project.
(iii) Infrastructure planning project assistance may not be used for:
(a) expenses incurred prior to the initiation of the REDPP application process; or
(b) the payment of tax or employee benefit arrearages.
21 CRR-NY 4211.5
Current through September 15, 2021
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