New York’s Public Subsidy Board (the “Board”) recently decided to hold public hearings related to development projects throughout the state, while also changing an internal policy to allow it to reconsider prior project determinations when new facts come to light.

At its quarterly meeting, the Board considered holding public hearings on the following topics pursuant to the Board’s powers enumerated in Labor Law § 224-c(3):

a. Defining “Total Project Construction Costs” (Labor Law § 224-a(1))
b. Determining calculation of “tax savings” (Labor Law § 224-a(2)(b))
c. Determining classifications of funding sources:

  1. What is considered solely federal subsidy, or solely state subsidy (Labor Law § 224-a(5))
  2. Determining meaning of statutory exclusion (Labor Law § 224-a(3))

Upon conclusion of its deliberations, the Board resolved to schedule one or more public hearings to facilitate public discussion and comment on items (b) and (c) above. The tentative date for the hearings is May 20, 2024, which will be confirmed by the Board at a later date. The Board will solicit requests for public comment on the above-referenced issues in the near future.

The Board will reconsider holding a public hearing to discuss “Total Project Construction Costs” after additional review of Labor Law § 224-c(3), as there is not a meeting of the minds among Board members as to what the Board considers appropriate for a public hearing as prescribed in Labor Law § 224-c(3).

The Board also approved an amendment to its internal procedures relative to the reconsideration of prior project determinations under Labor Law §224-a. The amendment to Section 7 of the Board’s “Process to Identify Potentially Covered Projects” procedure prescribes that the Board may reconsider a prior Labor Law § 224-a determination on a project if relevant facts change or were not known when the Board issued the prior determination. The reconsideration of a prior Board determination may occur upon a motion to reconsider made by any Board member during the executive session, and a subsequent majority Board approval to reconsider the determination in the public portion of such meeting.

Harris Beach’s New York Public Finance and Economic Development attorneys are closely watching this and related issues. If you have a question concerning these new laws or matters related to the foregoing, please reach out to attorney Robert G. Murray at (716) 200-5180 and; attorney Andrew E. Pawenski at (716) 200-5150 and; or the Harris Beach attorney with whom you most frequently work.

This alert is not a substitute for advice of counsel on specific legal issues.

Harris Beach has offices throughout New York state, including Albany, Buffalo, Ithaca, Long Island, New York City, Rochester, Saratoga Springs, Syracuse and White Plains, as well as Washington D.C., New Haven, Connecticut and Newark, New Jersey.