Masten District and Portion of University District in City of Buffalo Designated as State's 10th Banking Development District (BDD)
On October 28, 2002, the Banking Department designated a new BDD in the City of Buffalo, which includes the Masten District and a portion of the University District. The Greater Buffalo Savings Bank, in conjunction with the city and Mayor Anthony M. Masiello, applied for the designation, and the bank opened a full service branch in the central city neighborhood in early November. A significant portion of the BDD is also designated as a New York State Economic Development Zone.
St. George Section Designated as Staten Island's First BDD, 11th in State
The Banking Department designated Staten Island's first BDD on December 16, 2002 in the St. George Section to enhance access to financial services for thousands of low-to-moderate-income residents. The Victory State Bank, in conjunction with the City of New York and the Office of the Staten Island Borough President James P. Molinaro, applied for the designation, and the bank opened a de novo retail branch in the BDD. The BDD covers an area of northern Staten Island, which is part of the North Shore Empire Zone.
What our institutions should know about BDDs:
To receive a BDD designation, a locality, acting jointly with an interested financial institution, must demonstrate to the Banking Department a need for banking services in a given area. A local government must first vote to approve the submission of a BDD application, which is then forwarded to the Department for approval. The local government must apply in conjunction with a commercial bank, trust company, savings bank, state or federally chartered savings bank, or savings and loan association.
The highlights of a BDD include:
- Banks may enter into an agreement with their local municipality whereby they would be entitled to a partial property tax exemption phased in over a 10-year period, beginning with a 50 percent exemption in the branch's first full year of operation, decreasing by five percent in each subsequent year;
- The State of New York or local governments may agree to earn interest on monies deposited at a rate which is at or below the bank's posted two-year Certificate of Deposit (CD) rate;
- New York State may provide grants to municipalities in order to fund studies designed to assess whether a Banking Development District is needed in a specific community.
More information and BDD application kits are available on the Department's web page at www.banking.state.ny.us/bdd.htm.