N.Y. Urban Development Corporation Act 174/68 § 16-s: The upstate agricultural economic development fund and healthy food / healthy communities initiative

§ 16-s. The upstate agricultural economic development fund and healthy

food / healthy communities initiative. 1. The upstate agricultural

economic development fund and healthy food / healthy communities

initiative is hereby created. The corporation is authorized, within

available appropriations, to provide financial assistance in the form of

loans, grants or contracts for services, to eligible entities as set

forth in this subdivision to support the upstate revitalization fund to

reduce the cost of financing the construction, expansion or renovation

of agricultural economic development projects, to reduce the cost of

agricultural inputs or to support activities related to the retention of

existing farmers or the recruitment of new farmers and to increase the

number of food markets providing affordable and nutritious foods in

underserved areas.

2. Not-for-profit corporations, agricultural cooperative corporations,

public benefit corporations, municipalities and educational institutions

serving rural areas shall be eligible to apply for support under this

subdivision for the following activities:

(a) Support for local efforts to identify new agricultural economic

development opportunities, and to organize industry-wide collaborative

efforts designed to develop growth strategies for the agricultural

industry.

(b) Support for local or regional activities designed to provide

business development and financial packaging assistance to new and

expanding agricultural economic development projects.

(c) Development and delivery of programs to promote the retention of

existing farmers and to attract new farmers.

(d) Feasibility studies to determine the projected local, national

and/or international demand for the proposed crop or product to be

financed pursuant to this section and the suitability of the land and

climate for such production.

(e) Support for land acquisition and/or the construction, acquisition

or expansion of buildings, machinery and equipment associated with a

project.

(f) Loans can be provided by the corporation to agricultural

cooperative corporations, not-for-profit corporations and public benefit

corporations for the purpose of providing low cost financing from such

entities to projects for purposes described in this subdivision.

(g) Such projects shall be consistent with the environmental

protection goals of the state.

3. Community development financial institutions, as defined by

paragraph (a) of subdivision 2 of section sixteen-o of this act, shall

be eligible to apply for designation under this subdivision to perform

the duties of a program administrator for the healthy food / healthy

communities initiative.

(a) Program administrators will be required to enter into a contract

with the corporation for the following responsibilities:

(i) raise matching capital to leverage state funds within three years

of signing a contract with the corporation;

(ii) report, at least annually, on the sources and amounts of funds

raised;

(iii) develop underwriting criteria; and

(iv) process loans and grants for food markets.

(b) Administrative costs of program administrators will be

reimbursable as set forth in either rules and regulations issued in

accordance with paragraph (d) of subdivision 5 of this section or in a

request for proposal.

(c) Eligible food markets are any entities in subparagraph (i) of this

paragraph. Eligible food markets must demonstrate that their proposed

project will benefit an underserved area, as defined in subparagraph

(ii) of this paragraph.

(i) An eligible food market applicant may be a for-profit business

enterprise (including a corporation, limited liability company, sole

proprietor, cooperative or partnership), not-for-profit corporation,

agricultural cooperative corporation, public benefit corporation,

municipal corporation, regional market facility, or a food cooperative.

(ii) An underserved area is defined as a low- or moderate-income

census tract, an area of below average supermarket density or an area

having a supermarket customer base with more than 50 percent living in a

low-income census tract.

(iii) Eligible uses for funds from state grants and loans to food

markets include:

(A) pre-development costs for project feasibility, including

professional fees, market studies and appraisals;

(B) land assembly, including demolition and environmental remediation;

(C) site development;

(D) infrastructure improvements, including renovation, new

construction or adaptive reuse; and

(E) equipment purchases.

(d) The program administrator shall review, and if appropriate

approve, applications by food markets. The program administrator shall

review applications every other month for as long as funds remain

available in the loan pool. The program administrator shall review each

application to determine whether the proposed project is financially

viable and demonstrates all of the following:

(i) makes a positive impact on the local economy;

(ii) increases revenues to the state, the host municipality, or the

market region or creates a new agricultural economic development

opportunity;

(iii) adherence to sound land use principles;

(iv) promotes community development by working in conjunction with

other programs;

(v) incorporates energy efficiency and green building principles; and

(vi) to the maximum extent practicable, provides healthy, nutritious

food grown by sustainable agricultural practices.

4. Applications for assistance pursuant to this section, except for

the healthy foods / healthy communities initiative, shall be reviewed

and evaluated pursuant to eligibility requirements and criteria set

forth in rules and regulations promulgated by the upstate chairman, in

consultation with the commissioner of the department of agriculture and

markets, and subject to approval by the board of directors of the

upstate empire state development corporation. Approval of project

applications shall be made by the upstate chairman, in consultation with

the commissioner of the department of agriculture and markets, subject

to approval by the board of directors of the upstate empire state

development corporation.

5. Applications to be the program administrator for the healthy food /

healthy communities initiative shall be reviewed and evaluated pursuant

to eligibility requirements and criteria which may be set forth in

either rules and regulations, a request for proposal or an application.

(a) Applications shall identify at least one food access, health or

community development organization who will work with the program

administrator applicant to:

(i) analyze market opportunities in underserved areas;

(ii) recruit food market operators and developers;

(iii) pre-qualify food market applications on non-financial criteria;

and

(iv) provide technical assistance with regard to operating grocery

stores in low-income communities.

(b) Administrative costs of the food access, health or community

development organization will be reimbursable as set forth in rules and

regulations issued in accordance with paragraph (d) of this subdivision

or in a request for proposal.

(c) Approval of at least one program administrator shall be made by

the upstate chairman, in consultation with the commissioner of the

department of agriculture and markets, subject to approval by the board

of directors of the upstate empire state development corporation.

(d) At his or her discretion, the upstate chairman of the corporation

may promulgate rules and regulations, in consultation with the

commissioner of the department of agriculture and markets, and subject

to approval by the board of directors of the upstate empire state

development corporation for the implementation of this section.

6. The corporation, in consultation with the commissioner of the

department of agriculture and markets, shall submit a report to the

director of the budget, the temporary president of the senate, the

speaker of the assembly, the minority leader of the senate and the

minority leader of the assembly on the investments and accomplishments

of the upstate agricultural economic development fund. Such report shall

include, but not be limited to, information on the number of jobs

created and retained, levels of private sector investment, economic

benefit to the state and local economies and types of industries

invested in. Such report shall be submitted by July 1, 2009 and July

first every year thereafter.

7. The corporation, in consultation with the commissioner of the

department of agriculture and markets, shall submit a report to the

director of the budget, the temporary president of the senate, the

speaker of the assembly, the minority leader of the senate and the

minority leader of the assembly evaluating the economic and social

benefits of the upstate agricultural economic development fund. Such

evaluation shall be prepared by an entity or entities independent of the

corporation which shall be selected through a request for proposal

process. Such evaluation shall be submitted by October 1, 2009 and

October first every year thereafter.

8. The corporation is hereby authorized to promulgate rules and

regulations in accordance with the state administrative procedure act as

are necessary to fulfill the purposes of this section.

9. The provisions of section ten and subdivision 2 of section sixteen

of this act shall not apply to assistance provided under this section.