07-R380

2007 -- S 1118 SUBSTITUTE A AS AMENDED

Enacted 06/22/07

J O I N T R E S O L U T I O N

APPROVING PROJECT STATUS FOR SHIPWRECK FALLS RESORT/RHODE ISLAND L.P. A HOTEL AND INDOOR WATER PARK LOCATED IN WEST WARWICK

Introduced By: Senator Stephen D. Alves

Date Introduced: June 19, 2007

WHEREAS, Section 45-37.1-9 authorizes the Rhode Island industrial facilities

corporation to engage in projects which are sales tax exempt subject to approval of the general

assembly; and

WHEREAS, Section 45-37.1-9.1 establishes the procedure whereby the Rhode Island

industrial facilities corporation adopts and submits a request for approval by the general assembly

that includes:

(a) A full description of the project to which the tax exemption is related; and

(b) The corporation's analysis of impact required by subsection 45-37.1-9(2); and

WHEREAS, The general assembly, through its finance committees, thoroughly reviews

the request for approval submitted by the Rhode Island industrial facilities corporation in order to

ensure that the Shipwreck Falls project consisting of the acquisition of approximately 22 acres of

land in the town of West Warwick and the construction of an approximately 430,000 square foot

facility thereon, and the equipping and furnishing of such facility to be used as a hotel and indoor

water park ; and

WHEREAS, The corporation has estimated the number of new jobs to be one hundred

and thirty-two (132), the amount of personal income tax revenue to be received to be two hundred

forty-three thousand nine hundred ninety nine hundred dollars ($243,999) and the estimated loss

of sales tax revenue to one million one hundred nineteen three hundred twenty dollars

($1,119,320); and

WHEREAS, The general assembly must assure that the project is in the best interests of

the citizens of Rhode Island prior to approval; now, therefore be it

RESOLVED, That project status is hereby approved for shipwreck Falls Resort/Rhode

Island L.P. subject to the following additional requirements:

(a) the total sales tax exemption benefit identified in the project status request, which

cannot exceed the amount of new income tax revenue from direct jobs, two hundred forty-three

thousand nine hundred ninety-nine dollars ($243,999), will be implemented through a

reimbursement process rather than up-front purchase exemption. Said reimbursement shall not be

made until after June 30, 2008;

(b) the sales tax benefits granted pursuant to section 45-37.1-9 of the general laws shall

only apply to material used in the construction, reconstruction or rehabilitation of the project and

to the acquisition of furniture, fixtures and equipment, except automobiles, trucks or other motor

vehicles, for the project for a period not to exceed six (6) months after receipt of a certificate of

occupancy for any given phase of the project for which sales tax benefits are utilized;

general laws to the house and senate fiscal committee chairs, the house and senate fiscal advisors,

the department of labor and training and the division of taxation promptly upon completion.

Annually thereafter, the department of labor and training shall certify to the house and senate

fiscal committee chairs, the house and senate fiscal advisors, the corporation and the division of

taxation that the actual number of new full-time jobs with benefits created by the project not

including construction jobs, is on target to meet or exceed the estimated number of new jobs

identified in the analysis above, which in the case of Shipwreck Falls Resort/Rhode Island L.P. is

one hundred thirty-two (132). This certification shall no longer be required when the total amount

of new income tax revenue received by the state exceeds the amount of the sales tax exemption

benefit granted above. For purposes of this section, "full-time jobs with benefits" means jobs that

require working a minimum of thirty (30) hours per week within the state, with a median wage

that exceeds by five percent (5%) the median annual wage for full-time jobs in "Rhode Island or

within the lessee's industry, with a benefit package that is typical of companies within the lessee's

industry; and

(d) The department of labor and training shall certify to the house and senate fiscal

committee chairs, the house and senate fiscal advisors, and the division of taxation that jobs

created by the project are "new jobs" in the state of Rhode Island, meaning that the employees of

the project are in addition to, and without a reduction of, those employees of the lessee currently

employed in Rhode Island, are not relocated from another facility of the lessee's in Rhode Island

or are employees assumed by the lessee as the result of a merger or acquisition of a company

already located in Rhode Island. Additionally, the corporation, with the assistance of the lessee,

the department of labor and training, the department of human services and the division of

taxation shall provide annually an analysis of whether any of the employees of the project quality

for RIte Care or RIte Share benefits and the impact such benefits or assistance may have on the

state budget. Notwithstanding any other provision of law or rule or regulation, the division of

taxation, the department of labor and training and the department of human services are

authorized to present, review and discuss lessee specific tax or employment information or data

with the corporation, the house and senate fiscal committee chairs, and/or the house and senate

fiscal advisors for the purpose of verification and compliance with this resolution.

RESOLVED, The corporation and the project lessee shall agree that, if at any time prior

to pay back of the amount of the sales tax exemption through new income tax collections, not

including construction job income taxes, the lessee will be unable to continue the project, or

otherwise defaults on its obligations to the corporation, the lessee shall be liable to the state for all

the sales tax benefits granted to the project plus interest, as determined in section 44-1-7 of the

general laws calculated from the date the lessee received the sales tax benefits; and

RESOLVED, That this General Assembly hereby recognizes and approves that the tax

stabilization agreement including any extension thereon, shall be authorized to have a term of up

to twenty-five (25) years; and be it further

RESOLVED, That this Joint Resolution shall take effect upon passage.

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LC03380/SUB A

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