2022 -- H 7625

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LC005280

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO TOWNS AND CITIES -- CITY OF PAWTUCKET DOWNTOWN

REDEVELOPMENT PROJECT

     

     Introduced By: Representatives Giraldo, McLaughlin, and Alzate

     Date Introduced: March 02, 2022

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 45-33.4-1 and 45-33.4-4 of the General Laws in Chapter 45-33.4

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entitled "City of Pawtucket Downtown Redevelopment Project" are hereby amended to read as

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follows:

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     45-33.4-1. Definitions.

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     For purposes of this chapter, the following terms shall have the meanings ascribed to them

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herein:

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     (1) "Agency" means either the Pawtucket redevelopment agency or the Central Falls

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redevelopment agency, established in accordance with chapter 31 of this title.

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     (2) "Arts district" means the economic development zone designated as the arts and

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entertainment district in the downtown area of the city described in § 44-30-1.1.

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     (3) "Ballpark district" means the ballpark district of the downtown Pawtucket

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redevelopment project area or tax increment master plan, including the ballpark known as McCoy

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Stadium, and related facilities and its immediately adjacent parcels within the redevelopment area

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approved by the agency in accordance with the procedures set forth in chapters 31, 32, 33, and 33.2

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of this title.

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     (4) "Bonds" means revenue bonds issued by the Pawtucket and/or Central Falls

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redevelopment agency or either the city in accordance with the provisions of chapters 31, 32, 33,

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and 33.2 of this title in order to finance a project, which bonds may be issued on a tax-exempt or

 

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taxable basis, on a fixed-rate basis or variable-rate basis, or any combination thereof, and may be

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issued in one or more sub-series and supported with letters or lines of credit, liquidity facilities,

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insurance or other support arrangements including, but not limited to, interest rate "caps," "floors,"

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"collars," that the agency or city, as issuer, determines to be necessary or desirable for the purpose

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of generating savings or managing interest rates in connection with, or subsequent to, or incidental

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to the issuance, carrying, or securing of the bonds.

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     (5) "City" means the city of Pawtucket, Rhode Island and/or the city of Central Falls.

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     (6) "City economic activity taxes" means city incremental tangible asset taxes, hotel taxes,

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food and beverage tax revenues, and non-real property assessments from activities in the arts

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district, the growth center district, and the ballpark district, as set forth in the economic activity

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taxes agreement negotiated by the governor and the state director of the department of revenue, as

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described in § 45-33.4-4.

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     (7) "City tax increment revenues" means revenues generated under chapter 33.2 of this title

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that are expected to include incremental real estate property taxes, personal property taxes, special

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assessments on real property, and betterment fees generated in the arts district, the growth center

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district, and the ballpark district.

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     (8) "Economic activity taxes agreement" means the agreement by and among the agency,

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the city, and the state described in § 45-33.4-4.

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     (9) "Growth center district" means the growth center district districts described in a

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redevelopment plan or in a tax increment district master plan approved by the agency in accordance

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with the procedures set forth in chapters 31, 32, 33, and 33.2 of title 45, which shall have boundaries

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as follows: Area 1 - The area beginning at the point of intersection of Lonsdale Avenue and the

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Central Falls/Pawtucket line, continuing south on Lonsdale Avenue until Beecher Street, then

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heading east, then south, then east on Beecher Street to Coleman Street, then turning south onto

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Coleman Street to Carpenter Street, then heading east onto Carpenter Street to Conant Street, then

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turning south onto Conant Street, continuing to Main Street, then turning northeast onto Main Street

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to Church Street, then turning east onto Church Street to Pine Street, then turning south onto Pine

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Street to South Union Street, then turning east onto South Union Street to Park Place West, then

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turning south onto Park Place West to George St, continuing south onto George Street to Division

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Street, then turning east onto Division Street to Taft Street, then turning south onto Taft Street to

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Max Read Field, turning east at Max Read Field and crossing the Seekonk River, then turning south

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along Seekonk River boundary to the intersection of Berry Spring Street and School Street,

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continuing northerly onto School Street to Bowers Street, turning east onto Bowers Street to

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Prospect Street, then turning north onto Prospect Street to Interstate 95, turning northeast onto

 

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Interstate 95 to Walcott Street, turning west onto Walcott Street to Broadway, turning northerly

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onto Broadway to edge of Interstate 95, continuing north along the western edge of Interstate 95 to

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Pawtucket/Attleboro city line, then turning west at the city line to the Blackstone River, then south

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along the city boundary on the Blackstone River, continuing westerly along the city line to the

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intersection with Clay Street, then northerly along the easterly property line of Central Falls

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Assessor’s plat 5 lot 29 to Cross Street, then westerly along Cross Street until the intersection with

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Pine Street, then northerly along Pine Street to Rand Street, then westerly along Rand Street to

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Lonsdale Avenue, then southerly along Lonsdale Avenue to the point where the city line intersects

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with Lonsdale Avenue. Area 2 - The area beginning at the intersection of Broad Street and

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Blackstone Street in Central Falls, then running north along Broad Street to the intersection with

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High Street, then running easterly along High Street to the intersection with the now or formerly

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Providence & Worcester Railroad, then southerly along the railroad to the intersection with

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Blackstone Street, then westerly along Blackstone Street to the point where Blackstone Street

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intersects with Broad Street..

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     (10) "Project" means any project as defined in § 45-33.2-3 or any capital project as defined

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in § 45-33.2-3.1 within the ballpark district, arts district, or growth center district and shall include

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"project costs" as described in § 45-33.2-28, which definition shall apply irrespective of whether

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the project is described in a redevelopment plan or in a tax increment district master plan.

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     (11) "Redevelopment plan" means a redevelopment plan as defined in § 45-31-8.

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     (12) "State" means the state of Rhode Island.

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     (13) "State economic activity taxes" means incremental tax revenues realized in the arts

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district, the growth center district, and the ballpark district assessed and collected under chapters

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11, 18, 19, and 30 of title 44 as set forth in the economic activity taxes agreement negotiated by the

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governor and the state director of the department of revenue; provided, however, that state

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economic activity taxes shall not include existing tax revenues unless: 1) The project is to facilitate

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an expansion of an existing business that will otherwise be unable to increase the number of full-

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time employees in the state; or 2) The commerce corporation certifies in writing that a defined

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amount of revenues from the districts collected and assessed under chapters 18, 19, and 30 of title

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44 are necessary to finance or complete a given project; 3) The public investments made under this

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chapter for a project can be demonstrated to have a likely appreciable positive impact on the

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revenues of an existing business within the district; or 4) The project is necessary to retain a

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businesses that is at substantial risk of relocating to a viable location out-of-state as verified by the

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Rhode Island commerce corporation. The commerce corporation shall establish, by regulation, the

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documentation that shall be required to verify compliance under this subsection. In order to assist

 

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the commerce corporation in verifying compliance, the affected business's chief executive officer,

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or equivalent officer, shall attest under oath:

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     (i) With respect to any portion of a project that is financing municipal or public facilities,

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that the project is needed and that the financing of the project is in the public interest; or

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     (ii) With respect to any portion of the project providing financing for industrial or

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commercial development purposes, that unemployment or the threat of unemployment exists in the

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city or that security against future unemployment is required; that the project is needed; that it will

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provide employment or security against loss of employment, including the approximate number of

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new jobs that should be created or preserved, construction and nonconstruction, their approximate

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wage rates, what types of fringe benefits such as healthcare or retirement benefits there will be; and

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the projected increase in personal income taxes to the state of Rhode Island, all having a reasonable

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relationship to the probable cost of acquiring, establishing, improving, or rehabilitating the facilities

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in which the employment is to be provided or maintained.

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     (14) "Tax increment district master plan" means a tax increment district master plan as

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defined in § 45-33.2-3.1.

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     45-33.4-4. Authorization of economic activity taxes agreement.

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     (a) The state, acting by and through the department of revenue, is authorized to enter into

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an economic activity taxes agreement with the agency and the city for the purposes of financing

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projects, bonding costs, including capitalized interest, debt service reserves, and costs of issuance.

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Such economic activity taxes agreement may include such covenants and undertakings of the state

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as the state director of the department of revenue and the governor deem reasonable, including,

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without limitation, provisions enabling the payment of amounts under the economic activity taxes

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agreement from legally available funds for each fiscal year during which any bonds are outstanding.

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     (b) Such economic activity taxes agreement and the pledge and assignment of the state

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economic activity taxes shall be subject to the provisions of this chapter rather than the provisions

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of chapter 64.21 of title 42. Upon the execution of an economic activity taxes agreement, such

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economic activity taxes shall be segregated by the state division of taxation from all other tax

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revenues of the state and deposited on a monthly basis into a restricted account known as the

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"downtown Pawtucket redevelopment economic activity taxes fund or the Central Falls

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redevelopment economic activity fund." However, in the event an economic activity taxes

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agreement has not been signed by June 30, 2020, incremental tax revenues realized in the arts

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district, the growth center district, and the ballpark district assessed and collected under chapters

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18 and 19 of title 44 shall be segregated by the state division of taxation and deposited into the

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applicable fund downtown Pawtucket redevelopment economic activity taxes fund. Monies

 

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deposited in the downtown Pawtucket redevelopment economic activity taxes fund may be applied

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to payment of debt service on the bonds; to fund debt service reserves; to costs of infrastructure

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improvements in and around the ballpark district, arts district, and the growth center district; to

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fund future debt service on the bonds; and to fund a redevelopment revolving fund established in

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accordance with § 45-33-1. If economic activity taxes remain in such downtown Pawtucket

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redevelopment economic activity taxes fund at the end of the state's fiscal year, the monies shall be

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retained in the fund to be applied in future fiscal years and shall not be applied to reduce future

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payments but may be applied to "super sinker," "turbo," or other redemption of the bonds, such that

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if the agency receives revenues in excess of requirements in the bond indenture or trust agreement

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securing the bonds, the bonds may be retired. Nothing in this chapter shall prohibit the pooling of

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revenues for the payment of the bonds, provided that the economic activity taxes agreement, bond

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indenture, or trust agreement shall provide for a reconciliation of contributions of the agency, the

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city, and the state from time to time; provided however, that the state hereby pledges to and agrees

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with any person, firm, or corporation, or federal agency subscribing to or acquiring any bonds

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secured by revenues under this chapter, that the state will not limit or alter the rights vested in the

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city or the agency or such bondholders until all bonds at any time issued, together with their interest,

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are fully met and discharged. The state does further pledge to and agree with the United States, and

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any other federal agency, that in the event that any federal agency constructs or contributes any

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funds for the construction, extension, improvement, equipping, furnishing, or enlargement of any

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project, or any portion of it, the state will not alter or limit this chapter in any manner that would

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be inconsistent with the due performance of any agreements with the federal agency; and the city

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and the agency continue to have and may exercise all powers granted by this chapter, so long as

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the powers are necessary or desirable for the carrying out of the purposes of this chapter.

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     (c) The economic activity taxes agreement shall not constitute indebtedness of the state or

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any of its subdivisions, or a debt for which the full faith and credit of the state or any of its

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subdivisions is pledged. The state's obligation to make payments of state economic activity taxes

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under the state economic activity taxes agreement shall be solely from legally available funds.

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     (d) The economic activity taxes agreement may be terminated upon agreement of the

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parties thereto, provided, however, the economic activity taxes agreement shall not be terminated

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so long as any bonds secured by the economic activity taxes remain outstanding.

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     (e) By no later than September 30, 2019, the state department of revenue shall establish the

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baseline to be used in the calculation of state revenues in the state economic activity tax agreement.

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By that date, the department of revenue, in consultation with the state commerce corporation shall

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develop a template of an economic activity tax agreement to be executed between the city, the

 

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agency, and the state at such time that a redevelopment project is submitted for consideration. Upon

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submission of a redevelopment project by the city or the agency for financing under this statute,

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the state shall complete negotiations and finalize approval of an economic activity agreement within

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120 days of the submission of the request for financing.

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     (f) Not later than February 1 of each year commencing February 1, 2022 2023, the city, the

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agency, and the Rhode Island commerce corporation shall submit a performance review report to

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the general assembly which includes, but is not limited to, the following information: sources and

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uses of project funds, permanent job and construction job creation numbers, local and state tax

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revenue estimates, and project completion schedules.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TOWNS AND CITIES -- CITY OF PAWTUCKET DOWNTOWN

REDEVELOPMENT PROJECT

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     This act would provide that portions of the city of Central Falls would be included within

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the Pawtucket Downtown Redevelopment Project.

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     This act would take effect upon passage.

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