2022 -- S 2483

========

LC005198

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

____________

A N   A C T

RELATING TO TOWNS AND CITIES -- CITY OF PAWTUCKET DOWNTOWN

REDEVELOPMENT PROJECT

     Introduced By: Senators Acosta, Kallman, and Cano

     Date Introduced: March 01, 2022

     Referred To: Senate Housing & Municipal Government

     It is enacted by the General Assembly as follows:

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

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

follows:

     45-33.4-1. Definitions.

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

herein:

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

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

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

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

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

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

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

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

of this title.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

described in § 45-33.4-4.

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

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

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

district, and the ballpark district.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

LC005198 - Page 2 of 7

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

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

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

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

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

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

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

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

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

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

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

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

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

intersects with Broad Street..

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

LC005198 - Page 3 of 7

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

or equivalent officer, shall attest under oath:

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

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

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

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

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

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

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

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

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

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

in which the employment is to be provided or maintained.

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

defined in § 45-33.2-3.1.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

applicable fund downtown Pawtucket redevelopment economic activity taxes fund. Monies

LC005198 - Page 4 of 7

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

LC005198 - Page 5 of 7

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

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

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

120 days of the submission of the request for financing.

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

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

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

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

revenue estimates, and project completion schedules.

     SECTION 2. This act shall take effect upon passage.

========

LC005198

========

LC005198 - Page 6 of 7

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TOWNS AND CITIES -- CITY OF PAWTUCKET DOWNTOWN

REDEVELOPMENT PROJECT

***

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

the Pawtucket Downtown Redevelopment Project.

     This act would take effect upon passage.

========

LC005198

========

LC005198 - Page 7 of 7