N.Y. Economic Development Law § 435: Approval of tax-free NY areas

§ 435. Approval of tax-free NY areas. 1. The president or chief

executive officer of any state university campus, community college or

city university campus seeking to sponsor a tax-free NY area and have

some of its eligible land specified under subdivision one of section

four hundred thirty-two of this article be designated as a tax-free NY

area must submit a plan to the commissioner that specifies the land or

space the campus or college wants to include, describes the type of

business or businesses that may locate on that land or in that space,

explains how those types of businesses align with or further the

academic mission of the campus or college and how participation by those

types of businesses in the START-UP NY program would have positive

community and economic benefits, and describes the process the campus or

college will follow to select participating businesses. At least thirty

days prior to submitting such plan, the campus or college must provide

the municipality or municipalities in which the proposed tax-free NY

area is located, local economic development entities, the applicable

campus or college faculty senate, union representatives and the campus

student government with a copy of the plan. In addition, if the plan of

the campus or college includes land or space located outside of the

campus boundaries, the campus or college must consult with the

municipality or municipalities in which such land or space is located

prior to including such space or land in its proposed tax-free NY area

and shall give preference to underutilized properties. Before approving

or rejecting the plan submitted by a state university campus, community

college or city university campus, the commissioner shall consult with

the chancellor of the applicable university system or his or her

designee.

2. The president or chief executive officer of any private college or

university or of any state university campus, community college or city

university campus seeking to sponsor a tax-free NY area and have some of

its eligible land specified under subdivision two of section four

hundred thirty-two of this article be designated as a tax-free NY area

must submit a plan to the commissioner that specifies the land or space

the college or university wants to include, describes the type of

business or businesses that may locate on that land or in that space,

explains how those types of businesses align with or further the

academic mission of the college or university and how participation by

those types of businesses in the START-UP NY program would have positive

community and economic benefits, and describes the process the campus or

college will follow to select participating businesses. In addition, if

the plan of the campus or college includes land or space located outside

of the campus boundaries, the campus or college must consult with the

municipality or municipalities in which such land or space is located

prior to including such space or land in its proposed tax-free NY area

and shall notify local economic development entities. The commissioner

shall forward the plan submitted under this subdivision to the START-UP

NY approval board. In evaluating such plans, the board shall examine the

merits of each proposal, including but not limited to, compliance with

the provisions of this article, reasonableness of the economic and

fiscal assumptions contained in the application and in any supporting

documentation and potential of the proposed project to create new jobs,

and, except for proposals for designation of eligible land under

paragraph (c) of subdivision two of section four hundred thirty-two of

this article, shall prioritize for acceptance and inclusion into the

START-UP NY program plans for tax-free NY areas in counties that contain

a city with a population of one hundred thousand or more without a

university center as defined in subdivision seven of section three

hundred fifty of the education law on the effective date of this

article. No preference shall be given based on the time of submission of

the plan, provided that any submission deadlines established by the

board are met. In addition, the board shall give preference to private

colleges or universities that include underutilized properties within

their proposed tax-free NY areas. The board by a majority vote shall

approve or reject each plan forwarded to it by the commissioner.

3. A campus, university or college may amend its approved plan,

provided that the campus, university or college may not violate the

terms of any lease with a business located in the approved tax-free NY

area. In addition, if a business located in a tax-free NY area does not

have a lease with a campus, university or college, and such business is

terminated from the START-UP NY program pursuant to paragraph (b) of

subdivision four of section four hundred thirty-six of this article, and

subsequently does not relocate outside of the tax-free NY area, a

campus, university or college may amend its approved plan to allocate an

amount of vacant land or space equal to the amount of space occupied by

the business that is terminated. The amendment must be approved pursuant

to the procedures and requirements set forth in subdivision one or two

of this section, whichever is applicable.

4. The START-UP NY approval board, by majority vote, shall designate

correctional facilities described in subdivision fourteen of section

four hundred thirty-one of this article, START-UP NY airport facilities

described in subdivision fifteen of section four hundred thirty-one of

this article and up to twenty strategic state assets as tax-free NY

areas. Each shall be affiliated with a state university campus, city

university campus, community college, or private college or university

and such designation shall require the support of the affiliated campus,

college or university. Each strategic state asset and START-UP NY

airport facility, other than a correctional facility, may not exceed a

maximum of two hundred thousand square feet of vacant land or vacant

building space designated as a tax-free NY area. Designation of

strategic state assets, correctional facilities described in subdivision

fourteen of section four hundred thirty-one of this article, and

START-UP NY airport facilities described in subdivision fifteen of

section four hundred thirty-one of this article as tax-free NY areas

shall not count against any square footage limitations in section four

hundred thirty-two of this article.

5. The commissioner shall promulgate regulations to effectuate the

purposes of this section, including, but not limited to, establishing

the process for the plan submissions and approvals of tax-free NY areas

and the eligibility criteria that will be applied in evaluating those

plans.