Local Development Corporation

What is a Local Development Corporation (LDC)?

Local Development Corporations (LDCs) are specialized not-for-profit corporations established to support community and economic development at the local level. Governed by New York State law, LDCs can uniquely revitalize communities by addressing unemployment, promoting job growth, and improving local economies through real estate development projects and the administration of economic development programs.

Key Features of LDCs:

1. Purpose:

   - Lessen the burdens of government by supporting community improvement.

   - Promote and maintain job opportunities and provide training for workforce development.

   - Encourage industrial and economic growth in specific geographic areas.

2. LDC Powers Include:

   - Acquire, develop, and manage properties for economic development purposes.

   - Issue bonds and borrow funds to support projects.

   - Accept surplus real estate from municipalities to facilitate development and redevelopment projects.

   - Provide loans and grants to businesses, facilitating partnerships between public and private sectors.

   - Serving as supporting organizations for municipalities in connection with complex municipal infrastructure and redevelopment projects.

3. Advantages:

   - LDCs can work on projects that local governments may find challenging due to legal, environmental or financial constraints.

   - They help manage real estate and economic initiatives while shielding municipalities from direct financial and environmental risks.

   - Their status as municipally-controlled affiliates and not-for-profits ensures all earnings are used to further public objectives.

4. Transparency:

   - The LDC is a local authority under the public authorities law and is subject to the Freedom of Information Law (FOIL) and Open Meetings Law (OML)

   - In addition to FOIL and OML requirements, the LDC is subject to State reporting and oversight, and will undertake an annual financial audit as a component 

     unit of the Village

   - The LDC will file annual reports with the NYS Authority Budget Office (ABO), including annual audit, adopted budget and other financial and legal reporting 

     requirements

5. Common Uses

   - Surplus and redevelopment of underutilized properties.

   - Promotion of tourism and recreation.

   - Assistance in workforce training programs.

   - Applying for and securing State and Federal grants for local projects

   - Establishing and administering local grant and loan programs, including business loan programs, building façades grants programs, and other community 

     benefit programs

   - Structuring “public-private partnerships” for large scale projects within the community.

LDCs are instrumental tools for municipalities seeking innovative ways to address economic challenges while fostering growth and sustainability in their communities.”