2018 -- H 7290 SUBSTITUTE A

========

LC003949/SUB A

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

____________

A N   A C T

RELATING TO TOWNS AND CITIES -- REDEVELOPMENT AGENCIES AND PROJECTS

     Introduced By: Representatives Messier, Coughlin, Johnston, Tobon, and Barros

     Date Introduced: January 25, 2018

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby

amended by adding thereto the following chapter:

CHAPTER 33.4

CITY OF PAWTUCKET DOWNTOWN REDEVELOPMENT PROJECT

     45-33.4-1. Definitions.

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

them herein:

     (1) "Agency" means the Pawtucket Redevelopment Agency, established in accordance

with chapter 31 of title 45 of the general laws.

     (2) "Ballpark" shall mean a new ballpark, currently known as the Ballpark at Slater Mill,

and related facilities and parking in the City.

     (3) "Ballpark District" means the Ballpark district of the Downtown Pawtucket

Redevelopment Project Area including the Ballpark and its immediately adjacent parcels within

the redevelopment area approved by the Agency in accordance with the procedures set forth in

chapters 31, 32 and 33 of title 45 of the general laws.

     (4) "Bonds" means revenue bonds issued by the Pawtucket Redevelopment Agency in

accordance with the provisions of chapters 31, 32 and 33 of title 45 of the general laws in order to

finance the Ballpark and Land Costs, 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 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.

     (6) "City Economic Activity Taxes" means City tangible asset taxes, food and beverage

tax revenues and non-real property assessments tax revenues from activities at McCoy Stadium

plus incremental tangible asset taxes, hotel taxes, food and beverage tax revenues and non-real

property assessments to be generated in and around the Downtown Pawtucket Redevelopment

Area 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, in addition to premium

ticket surcharges.

     (7) "City Tax Increment Revenues" means revenues generated under chapter 33.2 of title

45 of the general laws which are expected to include incremental real estate property taxes,

special assessments on real property and betterment fees generated in and around the Downtown

Pawtucket Redevelopment Area.

     (8) "Downtown Pawtucket Redevelopment Plan" means the redevelopment plan

proposed to be approved by the Agency pursuant to chapters 31, 32 and 33 of title 45 of the

general laws that contemplates public uses of the Ballpark and a mixed use real estate

development in an adjacent area which may include retail, entertainment, restaurant, public park,

civic space, hotel, office space and residential components as part of a larger redevelopment of

downtown Pawtucket.

     (9) "Downtown Pawtucket Redevelopment Project" means the project proposed to be

approved by the Agency in accordance with chapters 31, 32 and 33 of title 45 of the general laws,

that contemplates public uses of the Ballpark and a mixed use real estate development in an

adjacent area which may include retail, entertainment, restaurant, public park, civic space, hotel,

office space and residential components as part of a larger redevelopment of downtown

Pawtucket.

     (10) "Downtown Pawtucket Redevelopment Area" means the redevelopment area

approved by the Agency in accordance with the procedures set forth in chapters 31, 32 and 33 of

title 45 of the general laws.

     (11) "State Economic Activity Taxes" shall mean existing tax revenues realized from

activities at McCoy Stadium and tax revenue in the Ballpark District of the Downtown Pawtucket

LC003949/SUB A - Page 2 of 21

Redevelopment Area assessed and collected under chapters 18, 19, and 30 of title 44 of the

general laws.

     (12) "Economic Activity Taxes Agreement" means the agreement by and among the

Agency, the City and the State described in § 45-33.4-4.

     (13) "Land Costs" means the cost of land acquisition for the Ballpark and related

infrastructure which shall include all related expenses of acquisition by purchase or through

eminent domain;

     (14) "Lease" means the lease agreement to be entered into by the Agency, as lessor and

the Team, as lessee, providing for the lease of, and payment of rentals for the Ballpark and related

facilities.

     (15) "McCoy Stadium" means the existing minor league baseball stadium by that name

located in the City.

     (16) "PawSox" or "Team" shall mean the Pawtucket Red Sox Baseball Club, LLC, its

affiliates, successors or assigns.

     (17) "Renewal and Replacement Reserve Fund" means the fund established pursuant to §

45-33.4-5 to ensure funding of maintenance, renewal and replacement of the Ballpark and related

facilities.

     (18) "State" means the State of Rhode Island and Providence Plantations.

     (19) "Ticket" means any physical, electronic, or other form of certificate, document, or

token showing that a fare, admission, or license fee for a right to enter the Ballpark has been paid.

     45-33.4-2. Findings and legislative determinations.

     (a) After lengthy study, review of and comment on various proposals, numerous public

hearings and substantial due diligence, the General Assembly hereby finds that:

     (1) McCoy Stadium was constructed seventy-five (75) years ago in the City, has

undergone two renovations since that time and, being near the end of its useful life, will not meet

the standards for Triple-A baseball without major repairs and renovations; and

     (2) The estimated cost to repair and renovate McCoy Stadium is approximately the same

as the cost of constructing a new facility, with no expected catalytic impact on ancillary

development surrounding McCoy Stadium; and

     (3) The downtown area of the City has been economically depressed and has seen very

limited new infrastructure, development, or investment in decades and the Ballpark is anticipated

to jumpstart new economic initiatives in the City and in the Blackstone Valley and create new

jobs in the state; and

     (4) The City is developing a redevelopment plan that contemplates public uses of the

LC003949/SUB A - Page 3 of 21

Ballpark and a mixed use real estate development in an adjacent area which may include retail,

entertainment, restaurant, public park, civic space, hotel, office space and residential components

as part of a larger redevelopment of downtown Pawtucket; and

     (5) The Ballpark will operate and be utilized as a public park and will create public

recreational, social, and communal benefits; and

     (6) It is proposed that the Agency will own the Ballpark and lease the Ballpark to the

Team and that the State will not be a party to the Lease or any sublease of the Ballpark; and

     (7) In order to reduce interest rate costs to finance the Ballpark and Land Costs, the City

has proposed that the Agency will issue the Bonds to finance such costs on a tax-exempt basis, to

the extent permitted by federal tax law; and

     (8) Revenues to be generated by the Downtown Pawtucket Redevelopment Project are

projected by industry experts to be more than sufficient to cover the costs of financing the

Ballpark and Land Costs; and

     (9) Land Costs and Ballpark construction costs are expected to be approximately eighty-

three million dollars ($83,000,000), excluding financing costs; and

     (10) The PawSox propose to contribute forty-five million dollars ($45,000,000),

including twelve million dollars ($12,000,000) in equity contributions from PawSox owners to

the total project cost, which equity contributions shall be expended toward the construction of the

Ballpark and shall be expended in full no later than the opening of the Ballpark, and thirty-three

million dollars ($33,000,000) to be financed by Bonds issued by the Agency; and

     (11) The Bonds shall, to the extent practicable, be issued by means of a public offering,

and shall not be sold by means of a private placement unless it is impracticable or economically

inefficient to issue and sell the bonds in a public offering. If Bonds are privately placed, the

underwriters, placement agent or purchasers of such Bonds, or a municipal financial advisor

registered with the Securities and Exchange Commission, shall certify that the interest rates,

prices and yields of the Bonds represent fair market prices of the Bonds.

     (12) The Team, the Agency and the State shall conduct due diligence with the

underwriters or placement agent for the Bonds in accordance with federal securities laws and

rules of the United States Securities and Exchange Commission and Municipal Securities

Rulemaking Board to ensure that the contributions and financial responsibilities of the parties are

fully and publicly disclosed.

     (13) The State proposes to contribute State Economic Activity Taxes realized from

activities in the Ballpark District and at McCoy Stadium to support Bonds issued by the Agency;

and

LC003949/SUB A - Page 4 of 21

     (14) The City proposes to contribute City Tax Increment Revenues and City Economic

Activity Taxes in order to support Bonds of the Agency,

     (15) Energy costs for public buildings are skyrocketing and will likely continue to

increase; energy use by public buildings contributes substantially to the problems of pollution and

global warming; public buildings can be built and renovated using high-performance methods

that save energy, reduce water consumption, improve indoor air quality, preserve the

environment, and make workers and students more productive; and

     (16) The use of green and sustainable infrastructure in the development and construction

of the Ballpark will address stormwater runoff and reduce flooding, reduce pollutant levels in

nearby waterways, and may reduce long-term operating costs of the Ballpark.

     (b) The General Assembly hereby determines and declares that the financing,

construction, and development of a Ballpark in the City to be used primarily as a venue for Minor

League Baseball and also as a public park, as well as the redevelopment of the surrounding

depressed neighborhood, are public uses that are in the interest of, and for benefit of, the citizens

of the State, and will contribute substantially to the social and economic well-being of the citizens

of the State and significantly enhance the economic development and employment opportunities

within the City and the State;

     (c) The General Assembly hereby determines and declares that government support in

facilitating the presence of Minor League Baseball and the development of a public park in the

City provides to the State and its citizens highly-valued intangible benefits that increase the

quality of life and civic relationships of their citizens; and

     (d) The General Assembly hereby determines and declares that the expenditure of public

money for these purposes is necessary and serves a public purpose.

     45-33.4-3. Contributions from parties.

     Debt service payments on the Bonds shall be payable from Lease rental payments by the

PawSox, from annual naming rights payments received by the PawSox, and any such other

payments necessary to fully cover the Team's annual Lease obligation, State Economic Activity

Taxes, City Tax Increment Revenues, and City Economic Activity Taxes, each year for a period

of up to thirty (30) years or any combination thereof.

     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 with a term

coterminous with the Bonds for the purposes of financing a portion of the Ballpark and Land

Costs and costs associated with the Bonds, including capitalized interest, debt service reserves

LC003949/SUB A - Page 5 of 21

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. The Division of Taxation may issue rules and

regulations with respect to this section.

     (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 title 42 of chapter 64.21 of the general laws. Beginning no earlier than July 1, 2019

such State 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." Monies 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 the State's contributions to

the Renewal and Replacement Reserve Fund, to costs of infrastructure improvements in and

around the area of the Downtown Pawtucket Redevelopment Project, to fund future debt service

on the Bonds and to fund a redevelopment revolving fund established in accordance with § 45-

33-1. If monies remain in such Downtown Pawtucket Redevelopment Economic Activity Taxes

Fund at the end of the State's fiscal year, such 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, it

may retire bonds. 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 Team, the Agency, the City

and the State from time to time, but no less than every three (3) years. Such reconciliation shall be

subject to review by the State Auditor General. Such review shall be provided to the Governor,

Speaker of the House and the President of the Senate.

     (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.

     45-33.4-5. Renewal and replacement reserve fund.

LC003949/SUB A - Page 6 of 21

     (a) The Team, the Agency and the State shall establish and maintain a Renewal and

Replacement Reserve Fund for the long-term capital needs of the Ballpark to ensure that the

Ballpark remains a first class Triple-A minor league baseball facility and an asset to the Agency

and the surrounding community. The Team shall be responsible for a minimum of fifty percent

(50%) of the costs of annual capital expenditures for structural repairs including, but not limited

to, repairs and improvements to the roof and exterior walls of the facility, protective coatings,

ramps, plumbing, and all repairs, replacements, and improvements, whether capital or ordinary,

needed to preserve the Ballpark. The Team, the City, and the State, from legally available funds,

shall contribute a combined minimum of one hundred fifty thousand dollars ($150,000) per year

in total to the Renewal and Replacement Reserve Fund for use to finance capital expenditures.

The Team shall contribute a minimum of seventy-five thousand dollars ($75,000) of the one

hundred fifty thousand dollars ($150,000). Under no condition, shall monies in the Renewal and

Replacement Reserve Fund be utilized for operations of the Ballpark or public park. The State,

the Team and the Agency shall jointly develop a renewal and replacement capital plan between

every two (2) to five (5) years, which plan shall include directives to the parties to make

contributions to the Renewal and Replacement Reserve Fund in order to carry out the capital

improvements set forth in the renewal and replacement capital plan.

     45-33.4-6. Additional agreements of the team, the city and the agency.

     (a) The Lease shall be negotiated and executed forthwith upon the passage of this chapter

and such Lease shall include, but shall not be limited to, the following terms:

     (1) The Lease period shall be for a term not fewer than thirty (30) years, which term shall

commence upon the completion of the construction of the Ballpark shall establish the obligations

and commitments of the Team and the Minor League Baseball Association and shall not be

subject to any escape clause; and

     (2) The Team shall be responsible for the daily maintenance of the Ballpark, including,

but not limited to, keeping the facility in good condition and repair, maintaining the office areas,

furnishings, fixtures, and equipment, and maintaining the general cleanliness of the Ballpark, and

shall be responsible for the financial costs associated with such maintenance·

     (b) The General Assembly encourages the City to provide planning and operational

assistance with respect to the "public park" aspect of the Ballpark, which will operate year-round

in and around the Ballpark separate and apart from the Ballpark's baseball-related uses.

     (c) The Team shall be solely responsible for any Ballpark construction costs that exceed

the projected eighty-three million dollar ($83,000,000) total project cost.

     (d) In the event that the total Ballpark construction costs and Land Costs are less than the

LC003949/SUB A - Page 7 of 21

projected eighty-three million dollars ($83,000,000) or in the event that not all of the bond

proceeds are needed to complete the specified project, any unused bond proceeds shall be used to

pay the debt service on the Bonds as provided in the bond indenture, trust agreement or Economic

Activity Taxes Agreement. No Land Costs or Ballpark construction costs savings will be credited

toward the Team's twelve million dollar ($12,000,000) equity contribution.

     (e) Members of the Team ownership shall develop independently, or with partners, secure

the development of a minimum of fifty thousand square feet (50,000 ft2) of real estate on the

Ballpark site or in the ancillary redevelopment area, subject to the City or Agency's acquisition

and delivery of developable land, and which development shall align contemporaneously with the

construction of the Ballpark;

     (f) Advance Ticket prices for children, senior citizens, and general admission will not

increase from the cost of those Tickets in the 2017 regular and post-season for a minimum period

of five (5) years from the opening of the Ballpark, or before September 30, 2025, whichever is

earlier.

     (g) Any person working at the Ballpark during the planning, construction, or operational

phases, including, but not limited to, concessions, the box office, or custodial services, shall be

employed with the protections of both federal and state labor standards, including fair pay, health

and safety, anti-discrimination, and provisions that prevent labor misclassification by incorrectly

designating workers as "independent contractors".

     (h) The contract for construction of the Ballpark shall be a guaranteed maximum price

contract.

     (i) The General Assembly, encourages:

     (1) the use of green and sustainable building materials, techniques and standards,

including those enacted by the General Assembly in the Rhode Island Green Buildings Act,

chapter 24 of title 37 of the general laws; and

     (2) The use of highly efficient energy systems, the use of water conservation measures,

and the potential use of on-site renewable energy generation in the development and construction

of the Ballpark.

     (j) In furtherance of building an energy efficient and sustainable Ballpark, the General

Assembly encourages the use of financing programs available through Rhode Island

Infrastructure Bank established pursuant to chapter 12.2 of title 46 of the general laws, including,

to the extent practicable, the state revolving funds and the efficient buildings fund, which provide

low-cost financing for eligible renewable and energy efficiency, stormwater abatement, water

conservation, and other sustainable infrastructure projects.

LC003949/SUB A - Page 8 of 21

     45-33.4-7. Severability.

     If any provision of this chapter or the application thereof to any person or circumstances

is held invalid, such invalidity shall not affect other provisions or applications of this chapter,

which can be given effect without the invalid provision or application, and to this end the

provisions of this Act are declared to be severable.

     SECTION 2. 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 unsanitary 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. An arrested blighted area need

not be restricted to, or consist entirely of, lands, buildings, or improvements which of themselves

fall within this definition, but may consist of an area in which these conditions exist and

injuriously affect the entire area.

     (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 § 23-19.14-2, impairs the use, reuse, or redevelopment of impacted sites are present,

regardless of whether or not the entire area contains such hazardous materials.

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

obligations issued by an agency pursuant to §§ 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

LC003949/SUB A - Page 9 of 21

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, or otherwise falls within the definition of a "blighted

or substandard area," 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,

LC003949/SUB A - Page 10 of 21

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,

construction, rehabilitation, improvement, furnishing, equipping, 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 infrastructure 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, and may include such other acts within a redevelopment area

permitted pursuant to chapters 31 through 33, inclusive, of this title as determined by the

legislative body to be consistent with the purposes of chapters 31 through 33, inclusive, of this

title.

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

finds is has determined includes 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

LC003949/SUB A - Page 11 of 21

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 3. Sections 45-32-5 and 45-32-40 of the General Laws in Chapter 45-32

entitled "Redevelopment Projects" are hereby amended to read as follows:

     45-32-5. Corporate powers of agencies.

     (a) Each redevelopment agency constitutes a public body, corporate and politic,

exercising public and essential governmental functions, and has all the powers necessary and

convenient to carry out and effectuate the purposes and provisions of chapters 31 -- 33 of this

title, including the powers enumerated in this section in addition to others granted by these

chapters:

     (1) To sue and be sued; to borrow money; to compromise and settle claims; to have a

seal; and to make and execute contracts and other instruments necessary or convenient to the

exercise of its powers.

     (2) To make, and, from time to time, amend and repeal bylaws, rules, and regulations,

consistent with chapters 31 -- 33 of this title, to carry into effect the powers and purposes of these

chapters.

     (3) To select and appoint officers, agents, counsel, and employees, permanent and

temporary, as it may require, and determine their qualifications, duties, and compensation.

     (4) Within the redevelopment area or for purposes of redevelopment: to purchase, lease,

obtain an option upon, acquire by gift, grant, bequest, devise, or otherwise, any real or personal

property, or any estate or interest in it, together with any improvements on it; to acquire by the

exercise of the power of eminent domain any real property or any estate or interest in it, although

temporarily not required to achieve the purposes of chapters 31 -- 33 of this title; to clear,

LC003949/SUB A - Page 12 of 21

demolish, or remove any and all buildings, structures, or other improvements from any real

property so acquired; to rehabilitate or otherwise improve any or all substandard buildings,

structures, or other improvements; to insure or provide for the insurance of any real or personal

property or operations of the agency against risk or hazard; and to rent, maintain, rehabilitate,

improve, manage, operate, repair, and clear the property.

     (5) To develop as a building site or sites any real property owned or acquired by it.

     (6) To cause streets and highways to be laid out and graded, and pavements or other road

surfacing, sidewalks, and curbs, public utilities of every kind, parks, playgrounds, and other

recreational areas, off street parking areas and other public improvements to be constructed and

installed.

     (7) To prepare or have prepared all plans necessary for the redevelopment of blighted and

substandard areas; with the consent and approval of the community planning commission, to

carry on and perform, for and on behalf of the commission, all or any part of the planning

activities and functions within the community; to undertake and perform, for the community,

industrial, commercial, and family relocation services; to obtain appraisals and title searches; to

make investigations, studies, and surveys of physical, economic, and social conditions and trends

pertaining to a community; to develop, test, and report methods and techniques and carry out

research and other activities for the prevention and the elimination of blighted and substandard

conditions and to apply for, accept, and utilize grants of funds from the federal government and

other sources for those purposes; and to enter upon any building or property in any

redevelopment area in order to make investigations, studies, and surveys, and, in the event entry

is denied or resisted, an agency may petition the superior court in and for the county in which the

land lies for an order for this purpose. Upon the filing of a petition, due notice of it shall be served

on the person denying or resisting entry, and after a hearing on the petition, the court shall enter

an order granting or denying the petition.

     (8) To undertake technical assistance to property owners and other private persons to

encourage, implement, and facilitate voluntary improvement of real property.

     (9) To undertake and carry out code enforcement projects pursuant to the provisions of

appropriate federal legislation.

     (10) To invest any funds held in reserves or sinking funds or any funds not required for

immediate disbursement, in property or securities in which savings banks may legally invest

funds subject to their control; and to purchase its bonds at a price not more than the principal

amount and accrued interest, all bonds so purchased to be cancelled.

     (11) To lend money, and to sell, lease, exchange, subdivide, transfer, assign, pledge,

LC003949/SUB A - Page 13 of 21

encumber (by mortgage, deed of trust, or otherwise), or otherwise dispose of any real or personal

property or any estate or interest in it acquired under the provisions of chapters 31 -- 33 of this

title, to the United States, the state government, any state public body, or any private corporation,

firm, or individual at its fair value for uses in accordance with the redevelopment plan,

irrespective of the cost of acquiring and preparing the property for redevelopment. In determining

the fair value of the property for uses in accordance with the redevelopment plan, the agency shall

take into account, and give consideration to, the uses and purposes required by the plan, the

restrictions upon, and the obligations assumed by the purchaser or lessee of the property, and the

objectives of the redevelopment plan for the prevention of the recurrence of blighted and

substandard conditions. Any lease or sale of the property may be made without public bidding

provided, that no sale or lease is made until at least ten (10) days after the legislative body of the

community has received from the agency a report concerning the proposed sale or lease.

     (12) To obligate the purchaser or lessee of any real or personal property or any estate or

interest in it to:

     (i) Use the property only for the purpose and in the manner stated in the redevelopment

plan;

     (ii) Begin and complete the construction or rehabilitation of any structure or improvement

within a period of time which the agency fixes as reasonable; and

     (iii) Comply with other conditions that in the opinion of the agency are necessary to

prevent the recurrence of blighted and substandard conditions and otherwise to carry out the

purposes of chapters 31 -- 33 of this title. The agency, by contractual provisions, may make any

of the purchasers' or lessees' obligations, covenants, or conditions running with the land, and may

provide that, upon breach thereof, the fee reverts to the agency.

     (13) To exercise all or any part or combination of the powers granted in this chapter.

     (b)(14) Nothing contained in this chapter authorizes an agency to To construct any new

buildings for residential, recreational, commercial, or industrial, institutional, public or other uses

contemplated by the redevelopment plan.

     (15) To grant or loan any redevelopment project revenues, or other revenues, including

the proceeds of any issue of bonds or notes issued pursuant to this chapter to an individual or any

nonprofit organization or governmental or quasi-governmental entity or private enterprise, in

order to finance the cost of any portion of a redevelopment project authorized pursuant to

chapters 31 through 33 of this title, including, without limiting the generality of the foregoing, the

cost of acquiring land for, and constructing or rehabilitating, furnishing and equipping residential,

commercial, industrial, institutional, public, or recreational facilities, within a redevelopment

LC003949/SUB A - Page 14 of 21

area, or to loan bond or note proceeds in order to refinance any such loans.

     (c)(b) Nothing contained in this chapter authorizes an agency to retain for a period in

excess of five (5) years from the date of acquisition, or within another additional period of time

that the legislative body fixes as reasonable, the fee or any estate or interest in it to any building,

structure, or other improvement, not demolished or otherwise removed, which has been acquired

by the agency in accordance with the redevelopment plan.

     45-32-40. Taxation of real property acquired.

     All real property acquired by an agency for redevelopment purposes is subject to taxation

in the same manner and at the same rate as other real property in the community unless the real

property is located in the city of Providence or the city of Pawtucket and is exempted by an

ordinance enacted by the city council.

     SECTION 4. Chapter 45-32 of the General Laws entitled "Redevelopment Projects" is

hereby amended by adding thereto the following sections:

     45-32-24.1. Finding with respect to use of the power of eminent domain with respect

to recreational redevelopment projects which create and/or preserve jobs within the State.

     (a) The General Assembly hereby determines and declares that the financing,

construction, and development of recreational facilities, with planned redevelopment of the

surrounding project area, which will create and/or preserve jobs within the State, are public uses

of statewide concern and are in the interest of, and for benefit of, the citizens of the State, and will

contribute substantially to the social and economic well-being of the citizens of the State and

significantly enhance the economic development and employment opportunities within the State;

and

     (b) The General Assembly hereby determines and declares that government support in

facilitating the presence of recreational facilities, with planned redevelopment of the surrounding

project area, and the creation and/or preservation of jobs within the State, provides to the State

and its citizens highly-valued intangible benefits that increase and/or improve the quality of life

and civic relationships of their citizens.

     45-32-24.2. Power of eminent domain with respect to recreational redevelopment

projects which create and/or preserve jobs within the State.

     (a) With respect to any project in the State which includes the financing, construction,

and development of recreational facilities, with planned redevelopment of the surrounding project

area, which will create and/or preserve jobs within the State, the provisions of this section shall

apply rather than the provisions of §§ 45- 32-26 through 45-32-37.

     (b) The acquisition of real property for the construction of recreational facilities, with

LC003949/SUB A - Page 15 of 21

planned redevelopment of the surrounding project area, which will create and/or preserve jobs

within the State, is declared to be a public use for economic development purposes.

     (c) If, for any of the purposes of this chapter, an agency shall find it necessary to acquire

any real property, whether for immediate or future use, the agency may find and determine that

the property, whether a fee simple absolute or a lesser interest, is required for the acquisition,

construction, or operation of a project, and upon that determination, the property shall be deemed

to be required for public use until otherwise determined by the agency; and with the exceptions

hereinafter specifically noted, the determination shall not be affected by the fact that the property

has been taken for, or is then devoted to, a public use; but the public use in the hands or under the

control of the agency shall be deemed superior to the public use in the hands of any other person,

association, or corporation; provided further, however, that no real property or interest, estate, or

right in these belonging to the state shall be acquired without consent of the state; and no real

property or interest, estate, or right in these belonging to any municipality shall be acquired

without the consent of the municipality; and no real property, or interest or estate in these,

belonging to a public utility corporation may be acquired without the approval of the public

utility commission or another regulatory body having regulatory power over the agency.

     (d) As part of an agency's diligence in determining whether it is necessary to acquire

certain real property, whether for immediate or future use, the agency may enter said real

property and conduct environmental testing upon giving the owner not less than two (2) weeks

written notice.

     (e) The agency may proceed to acquire and is authorized to and may proceed to acquire

property, whether a fee simple absolute or a lesser interest, by the exercise of the right of eminent

domain in the manner prescribed in this chapter.

     (f) Nothing contained in this section shall be construed to prohibit the agency from

bringing any proceedings to remove a cloud on title or any other proceedings that it may, in its

discretion, deem proper and necessary, or from acquiring property by negotiation or purchase.

     (g) The necessity for the acquisition of property under this chapter shall be conclusively

presumed upon the adoption by the agency of a vote determining that the acquisition of the

property or any interest in property described in that vote is necessary for the acquisition,

construction, or operation of a project. Within six (6) months after its passage, the agency shall

cause to be filed in the appropriate land evidence records a copy of its vote together with a

statement signed by the chairperson or vice-chairperson of the agency that the property is taken

pursuant to this chapter, and also a description of the real property indicating the nature and

extent of the estate or interest in the estate taken and a plat of the real property, which copy of the

LC003949/SUB A - Page 16 of 21

vote and statement of the chairperson or vice-chairperson shall be certified by the secretary of the

agency and the description and plat shall be certified by the city or town clerk for the city or town

within which the real property lies.

     (h) Forthwith thereafter the agency shall cause to be filed in the superior court in and for

the county within which the real property lies a statement of the sum of money estimated to be

just compensation for the property taken, and shall deposit in the superior court to the use of the

persons entitled to the money the sum set forth in the statement. The agency shall satisfy the court

that the amount deposited with the court is sufficient to satisfy the just claims of all persons

having an estate or interest in the real property. Whenever the agency satisfies the court that the

claims of all persons interested in the real property taken have been satisfied, the unexpended

balance shall be ordered repaid forthwith to the agency.

     (i) Upon the filing of the copy of the vote, statement, description, and plat in the land

evidence records and upon the making of the deposit in accordance with the order of the superior

court, title to the real property in fee simple absolute or any lesser estate or interest specified in

the resolution shall vest in the agency, and that real property shall be deemed to be condemned

and taken for the use of the agency and the right to just compensation for the condemned property

shall vest in the persons entitled to compensation, and the agency thereupon may take possession

of the real property. No sum paid unto the court shall be charged with clerks' fees of any nature.

     (j) After the filing of the copy of the vote, statement, description, and plat, notice of the

taking of that land or other real property shall be served upon the owners of, or persons having

any estate or interest in, the real property by the sheriff or his or her deputies of the county in

which the real estate is situated by leaving a true and attested copy of the vote, statement,

description, and plat with each of those persons personally, or at the last and usual place of abode

in this state with some person living there, and in case any of those persons are absent from this

state and have no last and usual place of abode therein occupied by any person, the copy shall be

left with the person or persons, if any, in charge of, or having possession of the real property

taken of the absent persons, and another copy shall be mailed to the address of the person, if the

address is known to the officer serving the notice.

     (k) After the filing of the vote, description, and plat, the agency shall cause a copy to be

published in some newspaper having general circulation in the city or town in which the real

property lies at least once a week for three (3) successive weeks.

     (l) If any party shall agree with the agency upon the price to be paid for the value of the

real property so taken and of appurtenant damage to any remainder or for the value of his or her

estate, right, or interest therein, the court, upon application of the parties in interest, may order

LC003949/SUB A - Page 17 of 21

that the sum agreed upon be paid forthwith from the money deposited, as the just compensation to

be awarded in the proceedings.

     (m) Any owner of, or person entitled to any estate or right in, or interested in any part of,

the real property taken, who cannot agree with the agency upon the price to be paid for his or her

estate, right or interest in the real property taken and the appurtenant damage to the remainder,

may, within three (3) months after personal notice of the taking, or if he or she has no personal

notice, may within one year from the time the sum of money estimated to be just compensation is

deposited in the superior court to the use of the persons entitled to the compensation, apply by

petition to the superior court for the county in which the real property is situated, setting forth the

taking of his or her land or his or her estate or interest in these and praying for an assessment of

damages by the court or by a jury. Upon the filing of the petition, the court shall cause twenty

(20) days' notice of the filing of said petition to be given to the agency by serving the chairperson

or vice chairperson of the agency with a certified copy of the notice.

     (n) After the service of notice, the court may proceed to the trial thereof. The trial shall be

conducted as other civil actions at law are tried. The trial shall determine all questions of fact

relating to the value of the real property, and any estate or interest, and the amount of this value

and the appurtenant damage to any remainder and the amount of this damage, and the trial and

decision or verdict of the court or jury shall be subject to all rights to except to rulings, to move

for new trial, and to appeal, as are provided by law. Upon the entry of judgment in those

proceedings, execution shall be issued against the money deposited in court and in default against

any other property of the agency. Pre-judgment interest and post-judgment interest,

notwithstanding § 9-21-10 of the general laws, shall be computed in accordance with either the

methodology set forth in § 37-6-23 or § 9-21-10, whichever produces the lower interest cost.

Such interest shall be paid by the agency out of any funds appropriated and available therefor.

     (o) In case two (2) or more petitioners make claim to the same real property, or to any

estate or interest, or to different estate or interests in the same real property, the court shall, upon

motion, consolidate their several petitions for trial at the same time, and may frame all necessary

issues for the trial.

     (p) If any real property or any estate or interest, in which any minor or other person not

capable in law to act in his or her own behalf is interested, is taken under the provisions of this

chapter, the superior court, upon the filing of a petition by or in behalf of the minor or person or

by the agency, may appoint a guardian ad litem for the minor or other person. Guardians may,

with the advice and consent of the superior court, and upon any terms as the superior court may

prescribe, release to the agency all claims for damages for the land of the minor or other person or

LC003949/SUB A - Page 18 of 21

for any estate or interest. Any lawfully appointed, qualified, and acting guardian or other

fiduciary of the estate of any minor or other person, with the approval of the court of probate

within this state having jurisdiction to authorize the sale of lands and properties within this state

of the minor or other person, may before the filing of any petition, agree with the minor or other

person for any taking of his or her real property or of his or her interest or estate, and may, upon

receiving the amount, release to the agency all claims for damages for the minor or other person

for the taking.

     (q) In case any owner of or any person having an estate or interest in the real property

fails to file his or her petition, superior court for the county in which the real property is situated,

in its discretion, may permit the filing of the petition within one year subsequent to the year

following the time of the deposit in the superior court of the sum of money estimated to be just

compensation for the property taken; provided, the person shall have had no actual knowledge of

the taking of the land in season to file the petition; and provided, no other person or persons

claiming to own the real property or estate or interest shall have been paid the value; and

provided, no judgment has been rendered against the agency for the payment of the value to any

other person or persons claiming to own the real estate.

     (r) If any real property or any estate or interest is unclaimed or held by a person or

persons whose whereabouts are unknown, after making inquiry satisfactory to the superior court

for the county in which the real property lies, the agency, after the expiration of two (2) years

from the first publication of the copy of the vote, statement, description, and plat, may petition the

court that the value of the estate or interest of the unknown person or persons be determined.

After the notice by publication to any person or persons that the court in its discretion may order,

and after a hearing on the petition, the court shall fix the value of the estate or interest and shall

order the sum to be deposited in the registry of the court in a special account to accumulate for

the benefit of the person or persons, if any, entitled to it. The receipt of the clerk of the superior

court shall constitute a discharge of the agency from all liability in connection with the taking.

When the person entitled to the money deposited shall have satisfied the superior court of his or

her right to receive that money, the court shall cause it to be paid over to him or her, with all

accumulations thereon.

     (s) The superior court shall have power to make any orders with respect to encumbrances,

liens, taxes, and other charges on the land, if any, as shall be just and equitable.

     (t) Whenever, in the opinion of the agency, a substantial saving in the cost of acquiring

title can be effected by conveying other real property, title to which is in the agency, to the person

or persons from whom the estate or interest in real property is being purchased or taken, or by the

LC003949/SUB A - Page 19 of 21

construction or improvement by the agency of any work or facility upon the remaining real

property of the person or persons from whom the estate or interest in real property is being

purchased or taken, the agency shall be and hereby is authorized to convey that other real

property to the person or persons from whom the estate or interest in real property is being

purchased or taken and to construct or improve any work or facility upon the remaining land of

the person or persons.

     (u) At any time during the pendency of any proceedings for the assessment of damages

for property or interests taken or to be taken by eminent domain by the agency, or in any appeal

of any order entered in any such proceeding, the agency or any owner may apply to the court for

an order directing an owner or the agency, as the case may be, to show cause why further

proceedings should not be expedited, and the court may upon that application make an order

requiring that the hearings proceed and that any other steps be taken with all possible expedition.

     (v) In the event that an owner of, or a person entitled to any estate or right in, or

interested in any part of, the real property taken (a "Petitioning Party"), files a petition with the

court challenging the amount that the agency had estimated to be just compensation for the

property taken (the "Estimated Value"), and the final judgment of the court, exclusive of

prejudgment interest, is an amount equal to or less than the Estimated Value, the Petitioning Party

shall be required to pay the reasonable attorneys' fees and expenses incurred by the agency, and

the reasonable expert witness fees and expenses incurred by the agency, in defending the

Estimated Value.

     (w) Chapter 64.12 of title 42 of the general laws shall not apply to property taken by

eminent domain pursuant to this § 45-32-24.1.

     SECTION 5. The provisions of this act are severable, and if any of its provisions are held

unconstitutional or invalid for any reason by any court of competent jurisdiction, the decision of

the court shall not affect or impair any of the remaining provisions.

     SECTION 6. This act shall take effect upon passage.

========

LC003949/SUB A

========

LC003949/SUB A - Page 20 of 21

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TOWNS AND CITIES -- REDEVELOPMENT AGENCIES AND PROJECTS

***

     This act would authorize the construction of a new ballpark in downtown Pawtucket, to

be financed by combined contributions from the Pawtucket Red Sox Baseball Club as well as

bonds to be issued by the Pawtucket Redevelopment Agency.

     This act would take effect upon passage.

========

LC003949/SUB A

========

LC003949/SUB A - Page 21 of 21