GML ¤ 854 Definitions.
The definitions set forth in GML ¤ 854 are key to understanding the purposes of IDAs. The most important definition is set for in sub-paragraph 4 which defines what is a "Project." The definition of Project includes land and any building or other improvement suitable for "manufacturing, warehousing, research, civic, commercial or industrial purposes or other economically sound purposes identified and called for to implement a state designated urban cultural park management plan... and which may include or mean an industrial pollution control facility, a recreation facility, educational or cultural facility, a horse racing facility, or a railroad facility."
Until July 2, 2002 the definition of Project also includes a continuing care retirement community or a civic facility, except that only agencies created for the benefit of a county and the agency created for the benefit of the City of New York shall provide financial assistance in any respect to a continuing care retirement community.
The definitions for the various types of facilities, i.e. industrial or recreational, are set forth in ¤ 854 (8-14). A "straight-lease transaction" which involves the most common form of IDA assistance, is defined by GML ¤ 854(15) as a transaction in which the IDA takes title or has a leasehold interest in the property, thereby allowing the property to be exempt from certain taxes.
"Affected tax jurisdiction", which is defined by GML ¤ 854(16), includes any municipality or school district which would not receive real property tax payments if the property is made exempt if the municipality is kept on the tax rolls.
GML ¤ 856 Organization of Industrial Development Agencies.
IDAs are established by the Legislature at the request of local municipalities. Once so established, the IDAs must file with the Secretary of State a certificate setting forth:
(1) The date of passage of the special act establishing the agency; (2) the name of the agency; (3) the names of the members and the terms of office, specifying which member is the Chairman; and (4) facts establishing the need for the establishment of an agency in such municipality.
GML ¤ 856.
The members of the agency are chosen by the political entity. Paragraph 2 of ¤ 856 establishes the agency as a public benefit corporation, a defined term under New York Law. Section 4 provides that the members of the agency may be an official or employee of the municipality. Thus, it is often the case that council members or senior administration officials are members of the IDA board.