Chapter 466

2006 -- H 7328

Enacted 07/07/06

A N A C T

RELATING TO TOWNS AND CITIES -- REDEVELOPMENT AGENCIES

Introduced By: Representatives Slater, Dennigan, Williams, Diaz, and Almeida

Date Introduced: February 15, 2006

It is enacted by the General Assembly as follows:

     SECTION 1. Section 45-31-8 of the General Laws in Chapter 45-31 entitled

"Redevelopment Agencies" is hereby amended to read as follows:

45-31-8. Definitions. -- The following definitions and general provisions govern the

construction of chapters 31 -- 33 of this title:

      (1) "Agency" means a redevelopment agency created by this chapter.

      (2) "Arrested blighted area" means any area which, by reason of the existence of

physical conditions including, but not by way of limitation, the existence of unsuitable soil

conditions, the existence of dumping or other insanitary or unsafe conditions, the existence of

ledge or rock, the necessity of unduly expensive excavation, fill or grading, or the necessity of

undertaking unduly expensive measures for the drainage of the area or for the prevention of

flooding or for making the area appropriate for sound development, or by reason of obsolete,

inappropriate, or otherwise faulty platting or subdivision, deterioration of site improvements,

inadequacy of utilities, diversity of ownership of plots, or tax delinquencies, or by reason of any

combination of any of the foregoing conditions, is unduly costly to develop soundly through the

ordinary operations of private enterprise and impairs the sound growth of the community.

      (3) "Blighted and substandard area" includes a "slum blighted area", a "deteriorated

blighted area", or an "arrested blighted area", or any combination of these areas. "Blighted and

substandard area" shall also include those areas where the presence of hazardous materials, as

defined in section 23-19.14-2, impairs the use, reuse, or redevelopment of impacted sites.

      (4) "Bonds of agency" means any bonds, notes, interim certificates, debentures, or other

obligations issued by an agency pursuant to sections 45-33-5 -- 45-33-15.

      (5) "Community" means a city or town.

      (6) "Deteriorated blighted area" means any area in which there exist buildings or

improvements, either used or intended to be used for living, commercial, industrial, or other

purposes, or any combination of these uses, which by reason of:

      (i) Dilapidation, deterioration, age, or obsolescence;

      (ii) Inadequate provision for ventilation, light, sanitation, open spaces, and recreation

facilities;

      (iii) High density of population and overcrowding,

      (iv) Defective design or unsanitary or unsafe character or conditions of physical

construction;

      (v) Defective or inadequate street and lot layout; and

      (vi) Mixed character, shifting, or deterioration of uses to which they are put, or any

combination of these factors and characteristics, are conducive to the further deterioration and

decline of the area to the point where it may become a slum blighted area as defined in

subdivision (18), and are detrimental to the public health, safety, morals, and welfare of the

inhabitants of the community and of the state generally. A deteriorated blighted area need not be

restricted to, or consist entirely of, lands, buildings, or improvements which of themselves are

detrimental or inimical to the public health, safety, morals, or welfare, but may consist of an area

in which these conditions exist and injuriously affect the entire area.

      (7) "Federal government" means the United States of America or any agency or

instrumentality, corporate or otherwise, of the United States of America.

      (8) "Legislative body" means the city council or town council.

      (9) "Obligee of the agency" or "obligee" include any bondholder, trustee or trustees for

any bondholder, or lessor demising to the agency property used in connection with a

redevelopment project or any assignee or assignees of that lessor, and the federal government.

      (10) "Planning commission" or "commission" means a planning commission or other

planning agency established under any state law or created by or pursuant to the charter of the

community.

      (11) "Project area" means all or any portion of a redevelopment area. A project area may

include lands, buildings, or improvements which of themselves are not detrimental or inimical to

the public health, safety, morals, or welfare, but whose inclusion is necessary, with or without

change in their conditions or ownership, for the effective redevelopment of the area of which they

are a part.

      (12) "Public hearing" means a hearing before a legislative body or before any committee

of the legislative body to which the matter to be heard has been referred.

      (13) "Real property" means lands, including lands underwater and waterfront property,

buildings, structures, fixtures, and improvements to the lands, and every estate, interest, privilege,

easement, franchise and right, legal or equitable, including rights of way, terms for years and

liens, charges or encumbrances by way of judgment, attachment, mortgage, or otherwise, and the

indebtedness secured by liens.

      (14) "Redevelopment" means the elimination and prevention of the spread of blighted

and substandard areas. Redevelopment may include the planning, replanning, acquisition,

rehabilitation, improvement, clearance, sale, lease, or other disposition, or any combination of

these, of land, buildings, or other improvements for residential, recreational, commercial,

industrial, institutional, public, or other purposes, including the provision of streets, utilities,

recreational areas, and other open spaces consistent with the needs of sound community growth in

accordance with the community's general plan and carrying out plans for a program of voluntary

repair and rehabilitation of buildings or other improvements.

      (15) "Redevelopment area" means any area of a community which its legislative body

finds is a blighted and substandard area whose redevelopment is necessary to effectuate the public

purposes declared in this chapter.

      (16) "Redevelopment plan" means a plan, as it exists from time to time, for a

redevelopment project, which:

      (i) Conforms to the general plan for the community as a whole; and

      (ii) Is sufficiently complete to indicate land acquisition, demolition and removal of

structures, redevelopment, improvements, and rehabilitation as may be proposed to be carried out

in the project area, zoning and planning changes, if any, land uses, maximum densities, building

requirements, and the plan's relationship to definite local objectives, respecting appropriate land

uses, improved traffic, public transportation, public utilities, recreational and community

facilities, and other public improvements.

      (17) "Redevelopment project" means any work or undertaking of an agency pursuant to

chapters 31 -- 33 of this title.

      (18) "Slum blighted area" means any area in which there is a predominance of buildings

or improvements, either used or intended to be used for living, commercial, industrial, or other

purposes, or any combination of these uses, which by reason of: (i) dilapidation, deterioration,

age, or obsolescence; (ii) inadequate provision for ventilation, light, sanitation, open spaces, and

recreation facilities; (iii) high density of population and overcrowding; (iv) defective design or

unsanitary or unsafe character or condition of physical construction; (v) defective or inadequate

street and lot layout; and (vi) mixed character or shifting of uses to which they are put, or any

combination of these factors and characteristics, are conducive to ill health, transmission of

disease, infant mortality, juvenile delinquency, and crime; injuriously affect the entire area and

constitute a menace to the public health, safety, morals, and welfare of the inhabitants of the

community and of the state generally. A slum blighted area need not be restricted to, or consist

entirely of, lands, buildings, or improvements which of themselves are detrimental or inimical to

the public health, safety, morals, or welfare, but may consist of an area in which these conditions

predominate and injuriously affect the entire area.

      (19) "State government" means the state of Rhode Island, or any agency or

instrumentality of the state, corporate or otherwise.

      (20) "State public body" means the state, or any city or town or any other subdivision or

public body of the state or of any city or town.

     SECTION 2. Section 44-9-25.2 of the General Laws in Chapter 44-9 entitled "Tax Sales"

is hereby amended to read as follows:

44-9-25.2. Foreclosure of the rights of redemption on account of constructive

abandonment by a city or town. -- (a) Notwithstanding the provisions of section 44-9-25,

following a sale or taking of land for taxes, whenever the city or town holds the acquired title, the

city or town may at any time foreclose all rights of redemption upon a finding by the superior

court of constructive abandonment.

      (b) If the inspector of buildings determines that the buildings or unimproved land are

abandoned property he or she shall notify the record owner, and, if appropriate, the mortgagee or

lessee, of his or her finding. The notice shall include a statement that the inspection was

conducted at the request of the local treasurer and that the failure of the record owner, or other

interested party, to correct the conditions described in the notice within thirty (30) days of receipt

or publication of the notice will result in proceedings to foreclose the record owner's right of

redemption. The notice may be served in the manner required by law for the service in civil cases

or may be published. The inspector of buildings shall also, at the time of service or publication,

post a copy of the notice in two (2) or more convenient public places.

      (c) If at the expiration of the thirty (30) day period, the inspector of buildings is of the

opinion that action has not been initiated to correct the condition described in the notice, he or she

shall immediately notify the local treasurer in writing under penalties of perjury, that the

buildings on the land or the unimproved land itself have been found to be abandoned property.

The written notice shall include the facts and circumstances which formed the basis of his or her

findings, and a copy of the notice served on the record owner, or if service was by publication, an

account of the steps taken to locate the record owner and a copy of the published notice as well as

information appearing in the records of the assessors and of the collector and tending to establish

the validity of tax title on the land.

      (d) If the treasurer is of the opinion that the facts and circumstances as found by the

inspector of buildings are sufficient to establish that the buildings on the land or the unimproved

land taken or purchased are abandoned property and that the facts essential to the validity of the

tax title on the land have been adequately established, he or she shall make an affidavit of that

finding which shall be recorded in the registry of deeds for the district where the land lies. The

treasurer shall incorporate in his or her affidavit the statements of the inspector of buildings and

the treasurer, or portions of the statements he or she finds pertinent, and when recorded, shall be

prima facie evidence of those facts.

      (e) The treasurer shall make an affidavit and shall bring a petition in the superior court

pursuant to section 45-9-25 for the foreclosure of all rights of redemption of the land. The petition

shall include a description of the land to which it applies, with its assessed valuation, the source

of title giving reference to the place, book and page of record, and other facts as may be necessary

for the information of the court. A finding of constructive abandonment will be made in a

situation where the owner of a property has manifested constructive abandonment with some act

or failure to act. In determining whether an owner has constructively abandoned a property, the

court shall consider the following:

      (1) Whether or not the property is vacant;

      (2) Whether or not housing and building code violations have not been addressed;

      (3) Whether or not the grounds are maintained;

      (4) Whether or not the building's interior is sound;

      (5) Whether or not any vandalism or damage to the building has not been repaired;

      (6) Whether or not dumping regularly occurs on the property;

      (7) Whether or not the property is regularly maintained (i.e. grass, litter control, etc.);

and

      (8) The length of time any of the above conditions have existed.

      (f) Actions brought under this section to foreclose the right of redemption on account of

constructive abandonment in the superior court shall be given precedence on the calendar and

shall be heard not later than thirty (30) days from the initiation of the proceedings.

     SECTION 3. Section 44-3-9 of the General Laws in Chapter 44-3 entitled "Property

Subject to Taxation" is hereby amended to read as follows:

44-3-9. Exemption or stabilizing of taxes on property used for manufacturing,

commercial, or residential purposes. -- (a) (1) Except as provided in this section, the electors of

any city or town qualified to vote on a proposition to appropriate money or impose a tax when

legally assembled, may vote to authorize the city or town council, for a period not exceeding

twenty (20) years, and subject to the conditions as provided in this section, to exempt from

payment, in whole or in part, real and personal property which has undergone environmental

remediation, is historically preserved, or is used for affordable housing, manufacturing,

commercial, or residential purposes, or to determine a stabilized amount of taxes to be paid on

account of the property, notwithstanding the valuation of the property or the rate of tax; provided,

that after public hearings, at least ten (10) days' notice of which shall be given in a newspaper

having a general circulation in the city or town, the city or town council determines that:

      (i) Granting of the exemption or stabilization will inure to the benefit of the city or town

by reason of:

      (A) The willingness of the manufacturing or commercial concern to locate in the city or

town, or of individuals to reside in such an area; or

      (B) The willingness of a manufacturing firm to expand facilities with an increase in

employment or the willingness of a commercial or manufacturing concern to retain or expand its

facility in the city or town and not substantially reduce its work force in the city or town; or

      (C) An improvement of the physical plant of the city or town which will result in a long-

term economic benefit to the city or town and state; or

(D) An improvement which converts or makes available land or facility that would

otherwise be not developable or difficult to develop without substantial environmental

remediation; or

      (ii) Granting of the exemption or stabilization of taxes will inure to the benefit of the city

or town by reason of the willingness of a manufacturing or commercial or residential firm or

property owner to construct new or to replace, reconstruct, convert, expand, retain or remodel

existing buildings, facilities, machinery, or equipment with modern buildings, facilities, fixtures,

machinery, or equipment resulting in an increase or maintenance in plant, residential housing or

commercial building investment by the firm or property owned in the city or town;

      (2) Provided that should the city or town council make the determination in

subparagraph (1)(i)(B) of this subsection, any exemption or stabilization may be granted as to

new buildings, fixtures, machinery, or equipment for new buildings, firms or expansions, and

may be granted as to existing buildings, fixtures, machinery and equipment for existing

employers in the city or town.

      (b) Cities shall have the same authority as is granted to towns except that authority

granted to the qualified electors of a town and to town councils shall be exercised in the case of a

city by the city council.

      (c) For purposes of this section, "property used for commercial purposes" means any

building or structures used essentially for offices or commercial enterprises.

      (d) Except as provided in this section, property, the payment of taxes on which has been

so exempted or which is subject to the payment of a stabilized amount of taxes, shall not, during

the period for which the exemption or stabilization of the amount of taxes is granted, be further

liable to taxation by the city or town in which the property is located so long as the property is

used for the manufacturing or commercial, or residential purposes for which the exemption or

stabilized amount of taxes was made.

      (e) Notwithstanding any vote of the qualified electors of a town and findings of a town

council or of any vote and findings by a city council, the property shall be assessed for and shall

pay that portion of the tax, if any, assessed by the city or town in which the real or personal

property is located, for the purpose of paying the indebtedness of the city or town and the

indebtedness of the state or any political subdivision of the state to the extent assessed upon or

apportioned to the city or town, and the interest on the indebtedness, and for appropriation to any

sinking fund of the city or town, which portion of the tax shall be paid in full, and the taxes so

assessed and collected shall be kept in a separate account and used only for that purpose.

      (f) Nothing in this section shall be deemed to permit the exemption or stabilization

provided in this section for any manufacturing or commercial concern relocating from one city or

town within the state of Rhode Island to another.

     SECTION 4. This act shall take effect upon passage.

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LC00530

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