N.Y. General Municipal Law § 862: Restrictions on funds of the agency

§ 862. Restrictions on funds of the agency. (1) No funds of the agency

shall be used in respect of any project if the completion thereof would

result in the removal of an industrial or manufacturing plant of the

project occupant from one area of the state to another area of the state

or in the abandonment of one or more plants or facilities of the project

occupant located within the state, provided, however, that neither

restriction shall apply if the agency shall determine on the basis of

the application before it that the project is reasonably necessary to

discourage the project occupant from removing such other plant or

facility to a location outside the state or is reasonably necessary to

preserve the competitive position of the project occupant in its

respective industry.

(2) (a) Except as provided in paragraph (b) of this subdivision, no

financial assistance of the agency shall be provided in respect of any

project where facilities or property that are primarily used in making

retail sales to customers who personally visit such facilities

constitute more than one-third of the total project cost. For the

purposes of this article, "retail sales" shall mean: (i) sales by a

registered vendor under article twenty-eight of the tax law primarily

engaged in the retail sale of tangible personal property, as defined in

subparagraph (i) of paragraph four of subdivision (b) of section eleven

hundred one of the tax law; or (ii) sales of a service to such

customers. Except, however, that tourism destination projects shall not

be prohibited by this subdivision. For the purpose of this paragraph,

"tourism destination" shall mean a location or facility which is likely

to attract a significant number of visitors from outside the economic

development region as established by section two hundred thirty of the

economic development law, in which the project is located.

(b) Notwithstanding the provisions of paragraph (a) of this

subdivision, financial assistance may, however, be provided to a project

where facilities or property that are primarily used in making retail

sales of goods or services to customers who personally visit such

facilities to obtain such goods or services constitute more than

one-third of the total project cost, where: (i) the predominant purpose

of the project would be to make available goods or services which would

not, but for the project, be reasonably accessible to the residents of

the city, town, or village within which the proposed project would be

located because of a lack of reasonably accessible retail trade

facilities offering such goods or services; or (ii) the project is

located in a highly distressed area.

(c) With respect to projects authorized pursuant to paragraph (b) of

this subdivision, no project shall be approved unless the agency shall

find after the public hearing required by section eight hundred

fifty-nine-a of this title that undertaking the project will serve the

public purposes of this article by preserving permanent, private sector

jobs or increasing the overall number of permanent, private sector jobs

in the state. Where the agency makes such a finding, prior to providing

financial assistance to the project by the agency, the chief executive

officer of the municipality for whose benefit the agency was created

shall confirm the proposed action of the agency.