New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle A - Governor's Office › Chapter I - Executive Orders › Part 7 - Executive Orders (David A. Paterson) › Section 7.44 - Executive order no. 44: directing the reallocation of deemed waived recovery zone facility bond allocations

Current through Register Vol. 46, No. 28, July 10, 2024
WHEREAS, the Federal government enacted the American
					 Recovery and Reinvestment Act of 2009 ("ARRA") in order to stimulate the
					 national economy and increase employment; and
WHEREAS, the ARRA created the Recovery Zone Facility Bond
					 ("RZFB") program in order to support private business development projects and
					 trade activity in designated economically distressed areas termed "Recovery
					 Zones"; and
WHEREAS, pursuant to the ARRA and as described in Notice
					 2009-50 of the Internal Revenue Service (Notice 2009-50), the State of New York
					 ("State") received an allocation of RZFB Volume Cap of $555,147,000; Notice
					 2009-50 further required that such allocation be initially allocated among
					 counties and certain large municipalities ("Original Allocation Recipients") in
					 the amounts as provided therein ("Original Allocations"); and
WHEREAS, to advance the State's economic development
					 efforts, Empire State Development Corporation ("ESDC") and the Department of
					 Economic Development ("DED") distributed a memorandum on December 29, 2009
					 requesting information from Original Allocation Recipients about their issuance
					 plans for RZFBs and use of the Original Allocations and requested the delivery
					 of express and affirmative waivers to ESDC of all or part of their Original
					 Allocations in the event such allocations would not be used, attaching a form
					 to be used for such purpose; and
WHEREAS, under ARRA, RZFB's must be issued before January
					 1, 2011 (the "Expiration Date"); and
WHEREAS, the State, through the efforts of ESDC and DED,
					 has provided extensive guidance about RZFBs to Original Allocation Recipients,
					 including outreach and assistance to elected officials and economic developers
					 related to projects and reallocation requests; and
WHEREAS, in November 2010, the Chair of the New York State
					 Economic Recovery and Reinvestment Cabinet, which I created to manage the
					 development of State and local infrastructure projects financed through ARRA,
					 issued a request for RZFB waivers, which noted FSDC's authorization to act for
					 State regarding RZFB guidance and included the waiver form previously
					 distributed by ESDC; and
WHEREAS, it is critical that the State and its localities
					 take advantage of the RZFB program to create jobs, foster economic development,
					 and develop critical infrastructure, and therefore, to the extent any Original
					 Allocations will not be used by the Original Allocation Recipients, it is
					 imperative to provide for the re-allocation of such unused allocations to
					 projects that would promote economic recovery of the State prior to the
					 Expiration Date; and
WHEREAS, there is no reasonable basis to assume that such
					 Expiration Date will be extended by the Federal government; and
WHEREAS, the ARRA and Notice 2009-50 provide that all or
					 any portion of the Original Allocations may be waive or deemed waived by the
					 Original Allocation Recipients and upon such waiver, a state shall be
					 authorized to re-allocate the waived allocation in any reasonable manner as it
					 shall determine in good faith in its discretion;
NOW, THEREFORE, I, David A. Paterson, Governor of the State
					 of New York, by virtue of the authority vested in me by the Constitution and
					 Laws of the State of New York do hereby order as follows:
1. Original Allocations which have not been
				  utilized for the issuance of RZFBs shall be deemed waived by an Original
				  Allocation Recipient unless such Original Allocation Recipient delivers to ESDC
				  on or before December 21, 2010, a written report detailing the RZFB issuance
				  plans of such Original Allocation Recipient, specifying amounts and
				  projects.
2. ESDC shall reallocate
				  such deemed waived Original Allocations, together with allocations heretofore
				  waived by Original Allocation Recipients, in any reasonable manner for use for
				  eligible costs for qualified Recovery Zone purposes.
Signed: David A. PatersonDated: December 17, 2010
[FN*] [Revoked by Executive Order No. 12 (Andrew M. Cuomo),
					 infra.]