BILL NUMBER: S1370
SPONSOR: SERRANO
 
TITLE OF BILL:
An act to amend the New York state urban development corporation act, in
relation to establishing a Second Avenue Subway construction economic
development grant program; and to amend the economic development law, in
relation to the definition of micro business
 
PURPOSE OR GENERAL IDEA OF BILL:!
To provide financial and technical assistance to businesses located
along the route of the Second Avenue Subway construction in Manhattan
during the construction process.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 adds a new section 16-bb to section 1 of Chapter 174 of the
New York State Urban Development Corporation Act creating the Second
Ave. subway construction economic development grant program and defines
terms. Financial Assistance under this program may be provided for capi-
tal improvements, marketing and advertising costs, and for endangered
and terminal businesses, payroll, rent, utilities, insurance and coun-
seling assistance. This legislation will also establish a technical
assistance program to assist small and micro businesses through third-
party service providers. Grants will be awarded through an application
procedure.
Section 2 adds a new section 131-A to the economic development law by
defining a micro business as one which is resident in this state, inde-
pendently owned and operated and employs 10 or fewer people on a full-
time basis
 
JUSTIFICATION:
The East Side of Manhattan is currently undergoing one of the most
significant construction projects in decades -- the creation of the
long-awaited Second Avenue subway. The construction has begun and will
eventually run through parts of eight Assembly Districts. While the
Second Avenue Subway will eventually bring much needed transportation
improvements to the East Side, it is currently having a substantially
negative effect on local businesses. Some establishments in the heart of
the initial construction area have lost 20 to 30 percent of business,
while others have closed permanently. The businesses that are still
around continue to cling on to the limited amount of business that is
scarcely around. With the subway' construction still underway, all busi-
nesses in the area are facing financial hardship.
This bill would create a Second Avenue Subway construction economic
development grant program for the purpose of providing financial and
technical assistance to small and micro businesses located within the
area where construction is taking place. Assistance would be provided
for projects such as capital improvements, marketing and advertising, as
well as emergency funds for endangered businesses. Thus, any grants from
this program would be funneled right back into the New York City econo-
my. The completion of the Second Ave. subway line is projected to be
completed within the next five years. Financial assistance to these
businesses will help assure that these businesses may still be around to
enjoy the spike of customers that the new subway line is projected to
attract.
 
PRIOR LEGISLATIVE HISTORY:
2023-2024: S.808 - referred to Corporations, Authorities and Commissions
2021-2022: S.1425 - referred to Corporations, Authorities and Commis-
sions
2019-20: S.3908- referred to Corporations, Authorities and Commissions
2011-12: S1912-A 2011/12 - Amend and Recommit to Corporations, Authori-
ties and Commissions
2009-10: S3798A - Reported and Committed to Finance
2008: S8154-A - Passed Senate. Passed Assembly. Vetoed by Governor.
 
FISCAL IMPLICATIONS:
Undetermined
 
EFFECTIVE DATE:
This act shall take effect immediately