A N
A C T
RELATING TO PUBLIC
PROPERTY AND WORKS --
PUBLIC-PRIVATE REDEVELOPMENT INITIATIVE ACT
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Introduced By: Representatives Murphy, Montanaro, Moura, Naughton, and Long |
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Date Introduced: February 12, 2002 |
It is enacted
by the General Assembly as follows:
SECTION 1. Title 37 of the General Laws entitled "Public
Property and Works" is hereby amended by adding thereto the following
chapter:
CHAPTER 22
THE I-195 REDEVELOPMENT ACT OF 2002
37-22-2. Legislative findings. -- (a) The general assembly finds
that:
(1) The
realignment of Interstate Route 195 through the City of Providence provides a
unique opportunity to advance public purposes by transforming a major
transportation project into an important economic and civic development
opportunity;
(2) Said
opportunity arises, in large part, from certain land to be made available for
redevelopment due to the relocation of Interstate Route 195 and its access
roads;
(3) The
clearance of highway structures, replatting, redevelopment and improvement of
such land shall spur economic development and, as such, is in the public
interest;
(4) In
addition, such a unique opportunity can be utilized to advance the state's
ability to improve public education, public services and infrastructure, thus,
furthering an even more critical public purpose;
(5) The state
would greatly benefit from the participation of private institutions in the
improvement of public education, public services and infrastructure.
37-22-3.
Declaration of purpose.--(a) It is declared that there exist certain state-owned properties
which shall become available by relocation of Interstate Route 195 and its on
and off ramps. The abandonment of said properties shall create substandard
areas for appropriate urban planning and development purposes. Said urban
planning and development shall be consistent with and subject to the City of
Providence comprehensive plan, pursuant to R.I. General Laws section 45-22.2-1
et seq., City of Providence Zoning Ordinance, pursuant to R.I. General Laws
section 45-24-27 et seq. and the I-195 Old Harbor Plan (October 1992). As
consistent therewith, said properties can then be utilized for the expansion of
institutional use. The clearance of highway structures, replatting,
redevelopment and improvement of such land in recognition of the I-195 Old
Harbor Plan (October 1992) shall spur the economic development and the improvement
of public education, public services and infrastructure. Thus, said clearance
of highway structures, replanning, redevelopment and improvement is hereby
declared a public purpose. Therefore, the general assembly hereby establishes
the I-195 redevelopment board to be responsible to supervise the replanning,
replatting, redevelopment and improvement of such land through the
solicitation, negotiation, execution and enforcement of comprehensive
agreements for the redevelopment of such state-owned property through
privately-funded qualifying projects. The board is hereby further authorized
and directed to take advantage of private sector efficiencies in designing,
developing and constructing qualifying institutional projects, which include
components that specifically improve public education, public services and
infrastructure. The board is hereby further authorized and directed to ensure
that the state and its agencies permit and approve qualifying projects in an
expedited fashion. In turn, the board shall exercise its authority in
recognition of the plan objectives set forth in the I-195 Old Harbor Plan
(October 1992).
37-22-4.
Definitions. - -As
used in this chapter, the following words and terms shall have the following
meaning:
(1)
"Acquiring authority" means an acquiring authority as defined in R.I.
General Laws Title 37, Chapter 7.
(2)
"Board" means the I-195 Redevelopment Board.
(3)
"Comprehensive agreement" means a comprehensive agreement between the
board and those persons obligated to undertake a qualifying project as set
forth in section 27-22-7 of this chapter.
(4)
"Material default" means any default by the private entity in the
performance of its duties under a comprehensive agreement of section 37-22-10
of this chapter that jeopardizes adequate service to the public from a
qualifying project and remains unremedied after the board has provided notice
to the private entity and a reasonable cure period has elapsed.
(5)
"Permits and approvals" means all permits, licenses, variances and/or
approvals to be issued by state and/or local agencies as necessary for the
development, construction and/or operation of a qualifying project.
(6)
"Plan" means the I-195 Old Harbor Plan (October 1992) adopted by the
State of Rhode Island, City of Providence and Providence Foundation, a
nonbusiness corporation.
(7)
"Private entity" means any person, institution and/or entity
proposing to undertake a qualifying project and to enter into a comprehensive
agreement for the development, construction and/or operation of a qualifying
project.
(8)
"Project area" means that area which is bounded by Pine Street,
Chestnut Street, Clifford and Foster Streets.
(9)_
"Public-private partnerships" means prearrangements between the
public and private sectors for the delivery by the private sector of certain
sector of certain public infrastructure and/or public services, which
traditionally would have been provided by the public sector and funded by
property taxes.
(10)
"Qualifying project" means the privately funded redevelopment, construction
and operation of a project within the project area and in furtherance of the
plans planning principals as provided in the Old Harbor Plan (October 1992).
Qualifying projects shall include, but not be limited to, institutional uses.
(11)
"State-owned property" means property to which title is vested in the
State of Rhode Island and located in the project area.
37-22-5.
Board. --
(a) There is hereby established a board to take custody, control and
supervision over certain real property, title to which is vested in the State
of Rhode Island, to review applications for qualifying projects, to approve or
reject said applications, to negotiate and enter into comprehensive agreements,
to assist in expediting all permits and approvals pursuant to the comprehensive
agreements, to administer and enforce comprehensive agreements, and to exercise
the authority necessary to accomplish the purposes of this chapter. However, no
real property currently within the freeway line of the interstate shall be
transferred to the board for sale, lease, or utilization pursuant to a
public-private partnership, until the project area becomes available for
redevelopment pursuant to the plan.
(b) The board
shall consist of nine (9) members as follows: two (2) public members to be
appointed by the speaker of the house for a term of four (4) years; two (2)
public members to be appointed by the majority leader of the senate for a term
of four (4) years; two (2) members to be appointed by the Governor of the State
of Rhode Island, one (1) such member being a public member and the other such
member being the director of the Rhode Island department of transportation, for
a term of four (4) years; two (2) public members to be appointed by the Mayor
of the City of Providence, one such member being the City of Providence's
director of planning, for a term of four (4) years; and one (1) public member
to be appointed by the Providence Foundation, a nonbusiness corporation for a
term of four (4) years. All members shall serve until successors are appointed.
A member shall be eligible to succeed himself or herself.
(c) Board
members shall select a chairperson and vice chairperson. A quorum necessary to
conduct business shall consist of five (5) members of the board. A majority
vote of the quorum present shall be required for action.
(d) The
members of the board shall not receive any compensation. The members of the
board shall be reimbursed for their actual expenses necessarily incurred in the
performance of their duties. The board may engage professionals and consultants
as it deems necessary.
(e) The board
shall promulgate rules and regulations pursuant to the Rhode Island
Administrative Procedures Act, section 42-35-1 et seq. The general assembly
shall provide meeting space for the board.
(f) The board
shall be authorized to establish reasonable application fees. Said fees shall
cover the estimated expenses of reviewing the applications and the execution of
the comprehensive agreements.
37-22-6.
Powers and duties of the board. -- (a) The board is hereby authorized and directed to entertain,
solicit, evaluate, negotiate, execute, administer and enforce comprehensive
agreements for the redevelopment of the project area by and through
privately-funded qualifying projects in recognition of and consistent with the
plan. The state department of transportation shall develop a legal description
of said property for the board. Upon completion of the legal description,
custody, control and supervision of the underlying property shall be
transferred to the board and a certificate shall be filed with the secretary of
state notwithstanding the requirements of R.I. General Laws sections 37-7-6 and
37-7-7. The board shall then be authorized to sell, lease and/or enter into
public-private initiative agreements with regard to such property
notwithstanding the requirements of section 37-7-1 et seq.
(b) If
comprehensive agreements are entered into pursuant to the provisions of this
chapter, the board is hereby authorized and directed to expedite the consideration
and issuance of permits and approvals necessary for development, construction,
and operation of qualifying projects.
(c) The board
is hereby authorized and directed to administer and enforce all comprehensive
agreements entered into pursuant to the provisions of this chapter.
(d) The board
shall annually submit a written report of all its activities to the Governor,
the General Assembly, and the Mayor and City Council of Providence.
37-22-7.
Comprehensive agreement. -- (a) Prior to developing, improving, constructing, maintaining,
and/or operating a qualifying project, the private entity shall enter into a
comprehensive agreement with the board. The comprehensive agreement shall
establish:
(1) A
specific narrative and description of the qualifying project, including
consistency with the plan and identification of those components of the project
which result in the direct improvement to public education, public services and
infrastructure;
(2) The terms
of sale, lease, or public-private initiative. A public-private initiative shall
establish user fees. User fees shall be set at a level that takes into account:
(i) fair market rental value of the real property; (ii) the improvements of or
the benefits directly resulting to public education, public services and
infrastructure from the qualifying project; (iii) payments in lieu of taxes
and/or payments under the host community agreement subject to approval by the
Providence City Council; and (iv) the services to be provided by and through
the board. All such revenues shall be deposited in the Intermodal Surface
Transportation Fund, as defined in section 35-4-11, to be used for activities
eligible for funding under title 23 (Highways) - United States Code;
(3) The
comprehensive agreement shall address payment in lieu of taxes, or a host
community agreement subject to approval by the City Council of the City of
Providence. All such revenues may be pledged by the City of Providence pursuant
to R.I. General Laws section 45-33.2-1 et seq.;
(4)
Reimbursement to be paid to the board for expenses incurred and services
provided by the board;
(5) With
regard to a public-private initiative, the comprehensive agreement shall also
address:
(i) The
duties of the private entity under this chapter and may contain such other
terms and conditions consistent with this chapter. Without limitation, the
comprehensive agreement may contain provisions under which the board agrees to
collateral assignment provisions, notice of default provisions, and cure rights
for the benefit of the private entity and the persons specified therein as
providing financing for the qualifying project;
(ii) The schedule for completion of the qualifying project;
(iii) Delivery of performance and payment bonds in connection with
the construction of, or improvements to, the qualifying project, in the forms
and amounts satisfactory to the board;
(iv) The review of plans and specifications for the qualifying
project;
(v) The inspection of construction of, or improvements to, the
qualifying project to ensure conformance with the approved engineering
standards;
(vi) The maintenance of a policy or policies of public liability
insurance (copies of which shall be filed with the board accompanied by proofs
of coverage), self-insurance, in form and amount satisfactory to the board and
reasonably sufficient to insure coverage of tort liability to the public and to
enable the continued operation of the qualifying project;
(vii) Monitoring of the maintenance practices of the private
entity by the board and the taking of such actions as the board finds
appropriate to ensure that the qualifying project is properly maintained;
(viii) Filing of appropriate financial statements on a periodic
basis; and
(ix) The date of termination of the private entity's authority and
duties under this chapter and dedication to the appropriate public entity.
(b) Any changes in the terms of the comprehensive agreement, as
may be agreed upon by the parties from time to time, shall be added to the
comprehensive agreement by written amendment.
(c) Each comprehensive agreement may provide for state
indemnification of the contracting party for design and construction liability
where the state has approved relevant design and construction plans.
37-22-8. Application process. -- (a) Persons may apply to the board
for the development of privately-funded qualifying projects within the project
area. All applications shall be accompanied by the following material and
information, unless waived by the board, with respect to the project that the
private entity proposes to operate as a qualifying project:
(1) A topographic map (1:2,000 or other appropriate scale)
indicating the location of the project;
(2) Description of the project, including the conceptual design of
such project;
(3) A statement setting forth the specific improvements to public
education, public services and infrastructure;
(4) The projected total life-cycle cost of the project, tax
payments, payments in lieu of taxes or including reimbursement for host public
services and the proposed date for the beginning of and the planned completion
date for the construction of, or improvements required by the project;
(5) A statement setting forth the method by which the private
entity proposes to finance, develop and operate the project;
(6) A statement setting forth the private entity's general plans
for financing and operating the project;
(7) The names and addresses of the persons who may be contacted
for further information concerning the request; and
(8) Such additional material and information as the board may
reasonably request.
(b) The board may grant approval of a qualifying project and enter
into a comprehensive agreement, if the board determines that it is consistent
with the plan's principles for the expansion of institutional use and said
project includes component(s) that improve public education, public services
and infrastructure. The board shall also consider fair market value as defined
in 23 U.S.C. section 156 and 23 CFR section 710.403. The director of the Rhode
Island department of transportation as a member of the board shall issue a
report to the board on this subject relative to each individual application.
(c) The board may charge a reasonable fee to cover the costs of
processing, reviewing and evaluating any application, including without
limitation, reasonable attorneys' fees and fees for financial and other
necessary advisors or consultants.
(d) The board shall approve all comprehensive agreements with the
private entities.
(e) In connection with its approval, the board shall establish a
date for the beginning of the qualifying project. The board may extend such
date from time to time.
37-22-9. Permits and approvals for a qualifying project under a
comprehensive agreement. -- (a) The board shall, with the mandatory assistance of all
applicable state and municipal agencies and departments, control the schedule
for the processing and issuance of all necessary permits and approvals for
qualifying projects under this chapter. The board shall seek the cooperation of
all such agencies to expedite all necessary permits and approvals for the
qualifying projects; provided, however, that the comprehensive agreement shall
provide for reimbursement for those accelerated services being rendered by any
state or local agencies or departments. Qualifying projects shall remain
subject to the I-195 Old Harbor Plan (October 1992), the City of Providence's
comprehensive plan, zoning ordinance, the plan and design review.
(b) Within thirty (30) days of entry into a comprehensive
agreement, the board shall require that all applicable state and local agencies
and departments, meet with the board and establish an accelerated time frame
for the consideration of and decision upon permits and approvals. The board
shall have authority to approve and/or mandate an accelerated process, which
may include the implementation of phased and/or fast-track development, which
is defined as the initiation of development prior to final issuance of all
permits and approvals and/or the completion of final project design and
construction plans.
(c) All appeals timely filed with the Rhode Island
superior court relative to permits and approvals shall be accelerated and given
priority and advanced on the calendar of the Rhode Island superior court.
Appeals shall be subject to de novo review.
37-22-10. Material default -- Remedies -- Public-private
initiatives. -- (a)
Except upon agreement of the private entity and any other parties to the
comprehensive agreement, providing for public-private initiatives, the board
shall not exercise any of the remedies provided in this section, unless the
Providence county superior court, after notice to the private entity and the
secured parties (as may appear in the private entity's records) and an
opportunity for hearing, shall first issue a declaratory judgment that a
material default, as defined in section 37-22-4, has occurred and is continuing.
(b) Upon entry by the superior court of a declaratory
judgment order pursuant to subsection (a) above, unless such order is stayed
pending appeal to the Rhode Island supreme court, the board may exercise any or
all of the following remedies:
(1) The board may solicit other private entities to take
over a qualifying project and in such case it shall succeed to all of the
right, title and interest in such project, subject to the secured interests of
any person providing financing therefor in accordance with the comprehensive
agreement.
(2) The board may terminate the comprehensive agreement
and exercise any other rights and remedies which may be available to it at law
or in equity.
(3) The board may make or cause to be made any appropriate
claims under the performance and/or payment bonds required by subparagraph
37-22-7(a)(6).
37-22-11. Sovereign immunity. -- Nothing in this chapter shall be
construed as or deemed a waiver of the sovereign immunity of the State of Rhode
Island, any responsible public entity or any affected local jurisdiction or any
officer or employee thereof with respect to the participation in, or approval
of all or any part of the qualifying project. A city in which a qualifying
project is located shall possess sovereign immunity with respect to its
construction and operation.
37-22-12. Procurement. -- The State Purchases Act, Rhode
Island general laws section 27-2-1 et seq., the Management and Disposal of
Property Act, Rhode Island general laws section 37-7-1 et seq., and the
Municipal Award Act, Rhode Island general laws section 45-55-1 et seq., shall
not apply to this chapter. However, notwithstanding any provisions of this
chapter, the sale, lease or agreement for any real property subject to control
by the board shall secure an advisory opinion from the office of the attorney
general.
37-22-13. Construction. -- This chapter is deemed necessary
for the welfare of the state and its inhabitants and shall be literally
construed so as to effectuate its purposes. Insofar as the provisions of this
chapter are inconsistent with the provisions of any law or ordinance, general,
special or local, the provision of this chapter shall be controlling.
37-22-14. Severability. -- If any clause, sentence, paragraph, section or part of this
chapter shall be judged by any court or competent jurisdiction to be invalid,
such judgment shall not affect, impair or invalidate the remainder thereof, but
it shall be confined in its operation of the clause, sentence, paragraph,
section or part directly involved in the controversy in which that judgment
shall have been rendered.
SECTION 2. This
act shall take effect upon passage.