Agency Mission

The Urban Development Corporation (UDC) is currently doing business as the Empire State Development Corporation (ESDC). The mission of the UDC is to promote economic and real estate development by providing financial assistance to local governments, businesses and not-for-profit corporations engaged in economic development activities. In addition, the Corporation is engaged in housing portfolio maintenance and provides State facility financing for the construction and modernization of State correctional facilities, as well as other special projects.

Year-to-Year Change

On an All Funds basis, Aid to Localities appropriations increased by $236,500 or 0.2 percent. This increase includes $19,000,000 to provide funding necessary to maintain the competitiveness of the Delphi Harrison Thermal Systems Corporation.

Legislative Proposals

The Assembly proposes to reduce the Community Enhancement Facilities Assistance Program (CEFAP) by $80 million. The $80 million reduction shall be allocated against the Executive's remaining CEFAP share.

UDC holds $30,000,000 of unallocated monies in accounts that are not being utilized. $15 million of these monies could be used to support economic development job creation and retention initiatives. The Assembly proposes the remaining $15 million be used to support other economic development initiatives.

The Assembly proposes reconstituting the UDC Board of Directors to provide for a nine member Board with equal number of appointments by the Governor, the Temporary President of the Senate, and the Speaker of the Assembly. The Governor will appoint the Chair of the Board.

The Assembly maintains support for the Delphi Harrison project and also includes the following initiatives in UDC:

I. Strategic Industries - $55,500,000

This program will require UDC to deliver economic development on a regional basis. Regions will target assistance to emerging industries and strategic alliances of businesses.

II. Small Business Growth - $26,500,000

This program offsets the decline in bank loans to small business, and provides Funds for small business loans made by banks to small businesses. This will ensure small businesses, that are the engine of the economy, have access to capital.

This initiative provides new capital for local loan Funds, targeted to small "micro loans" for the start-up of minority and women-owned businesses and provides funding for program activities in economically distressed and highly distressed areas.

This will increase the capacity of community development banks to make "micro-enterprise" and neighborhood development loans and provides funding for program activities in economically distressed and highly distressed areas. This funding will help ensure that all areas in the state have access to capital that will help them improve their local economy.

This program establishes a source of State technical assistance to stimulate main street business districts and downtown areas to attract new business and help existing businesses grow. This support will ensure that economically distressed and highly distressed communities have access to funds for developing local economies.

The Assembly supports $10,000,000 in the Executive Budget to support projects in the Harlem/South Bronx Empowerment Zone. This represents the fourth year of a ten year commitment by the State to the Federal Empowerment Zone.

This program is for infrastructure and other improvements associated with cooperative State/Federal efforts at Rome Laboratory on the Griffiss Air Force Base.

III. Other Funding Supporting Economic Development Initiatives - $15,000,000

The Assembly also provides funding for services and expenses for economic development, community outreach and neighborhood development projects including support for the RPI Semi Conductor Research Center, and the Watervliet Arsenal. In addition, it includes funding for the establishment of a new CAT in the area of advanced medical technologies in the Western New York region; and support for the University at Albany Research, Development and Pre Fabrication Facility, the SUNY Morrisville Agri-Business Center and the FDA Northeast Regional Headquarters Relocation Project.