Developers across New York State continue to face a challenge that extends well beyond traditional zoning, permitting and environmental-review requirements: access to electric infrastructure.
A growing number of residential projects, including in Farmington/Ontario County and other communities in the Finger Lakes region, are experiencing delays because electric utility infrastructure is unable to keep pace with new development. In some cases, developers have reportedly been unable to obtain timely commitments for the power capacity necessary to serve approved projects.
Industry stakeholders have increasingly discussed the concept of Infrastructure Development Districts (“IDDs”) as a potential mechanism for helping fund and facilitate infrastructure improvements necessary to support housing growth.
Although the details and implementation of IDDs continue to evolve, the concept generally focuses on establishing a financing structure that allows infrastructure costs to be allocated among properties that will benefit from the improvements. Such districts may provide a mechanism for advancing utility, transportation, water, sewer and other public infrastructure needed to support new development.
The intersection of housing demand, electrification policies and utility infrastructure capacity is likely to remain a significant issue for developers throughout New York. As municipalities, industry groups, and state policymakers continue to examine methods to support housing production, Infrastructure Development Districts and similar financing mechanisms may receive increased attention as potential tools to address infrastructure constraints.
Summer Associate Ashanti R. Nelson contributed to this report.
Harris Beach Murtha’s Real Estate Developers Industry Team and Public Finance and Economic Development Practice Group will continue to monitor developments affecting housing production, infrastructure financing, utility capacity and land use throughout New York State. If you need assistance with these or related matters, please reach out to attorney Francis L. Gorman at (585) 419-8628 and flgorman@harrisbeachmurtha.com; attorney Stephen J. Maier at (585) 419-8959 and smaier@harrisbeachmurtha.com; 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 Murtha’s lawyers and consultants practice from offices throughout Connecticut in Bantam, Hartford, New Haven and Stamford; New York State in Albany, Binghamton, Buffalo, Ithaca, New York City, Niagara Falls, Rochester, Saratoga Springs, Syracuse, Long Island and White Plains; as well as in Boston, Massachusetts, and Newark, New Jersey.