(a)  The commerce corporation is authorized to enter into a TIF agreement with a developer for any qualified development project located within a qualifying TIF area. The TIF agreement between the commerce corporation and the developer shall contain a provision acknowledging that the benefits of said agreement, with the exception of § 42-64.21-5(d) of this chapter, are subject to such annual appropriation.

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Terms Used In Rhode Island General Laws 42-64.21-6

  • Applicant: means a developer proposing to enter into a tax increment financing agreement under this chapter. See Rhode Island General Laws 42-64.21-3
  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Commerce corporation: means the Rhode Island commerce corporation established pursuant to § 42-64-1 et seq. See Rhode Island General Laws 42-64.21-3
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Developer: means a person, firm, corporation, partnership, association, political subdivision, or other entity that proposes to divide, divides, or causes to be divided real property into a subdivision or proposes to build, or builds a building or buildings or otherwise improves land or existing structures, which division, building, or improvement qualifies for benefits under this chapter. See Rhode Island General Laws 42-64.21-3
  • Incremental: means (i) net new revenue to the State of Rhode Island as defined by the commerce corporation, in consultation with the department of revenue as established in chapter 142 of Title 42, or (ii) existing revenue at substantial risk of loss to the State of Rhode Island as defined by the commerce corporation in consultation with the department of revenue. See Rhode Island General Laws 42-64.21-3
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Qualified development project: means a specific construction project or improvement, including lands, buildings, improvements, real and personal property or any interest therein, including lands under water, riparian rights, space rights and air rights, acquired, owned, leased, developed or redeveloped, constructed, reconstructed, rehabilitated or improved, undertaken by a developer, owner or tenant, or both, within a specific geographic area, meeting the requirements of this chapter, as set forth in an application made to the commerce corporation. See Rhode Island General Laws 42-64.21-3
  • real estate: may be construed to include lands, tenements, and hereditaments and rights thereto and interests therein. See Rhode Island General Laws 43-3-10
  • TIF agreement: means an agreement between the commerce corporation and a developer, under which, in exchange for the benefits of the funding derived from qualification under this chapter, the developer agrees to perform any work or undertaking necessary for a qualified development project, including the clearance, development or redevelopment, construction, or rehabilitation of any structure or improvement of commercial, industrial, or residential property; public infrastructure; preexisting municipally-owned stadium of 10,000 seats or greater; or utilities within a qualifying TIF area. See Rhode Island General Laws 42-64.21-3
  • Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.

(b)  The decision whether or not to enter into a TIF agreement is solely within the discretion of the commerce corporation. However, to enter into an agreement with the commerce corporation as authorized in this chapter, applicants shall apply:

(1)  To the commerce corporation for approval of the proposed project. Such approval shall require:

(i)  That the applicant has submitted a completed application as developed by the commerce corporation;

(ii)  That the chief executive officer of the commerce corporation provide written confirmation to the commerce corporation board that (A) the commerce corporation has reviewed the application and any determination regarding the potential impact on the project’s ability to promote the retention and expansion of existing jobs, stimulate the creation of new jobs, including good-paying jobs, attract new business and industry to the state, and stimulate growth in real estate developments and/or businesses that are prepared to make meaningful investment and foster job creation in the state; and (B) the length of the TIF agreement and the percentage of incremental revenues to be allocated under the TIF agreement.

(iii)  That the secretary of commerce provide written confirmation to the commerce corporation board that the recommendation of the commerce corporation is consistent with the purposes of this chapter.

(c)  A developer that has entered into a TIF agreement with the commerce corporation pursuant to this section may, upon notice to and consent of the corporation, pledge and assign as security for any loan, any or all of its right, title and interest in and to the TIF agreement and in the TIF payments due thereunder, and the right to receive same, along with the rights and remedies provided to the developer under such agreement. Any such assignment shall be an absolute assignment for all purposes, including the federal bankruptcy code.

(d)  Any pledge of TIF payments made by the developer shall be valid and binding from the time when the pledge is made and filed in the records of the commerce corporation. The TIF agreement and payments so pledged and thereafter received by the developer shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the developer irrespective of whether the parties have notice thereof.

(e)  The commerce corporation shall be entitled to impose an application fee and impose other charges upon developers associated with the review of a project and the administration of the program.

(f)  Maximum agreement amount. In no event shall the amount of the reimbursements under a TIF agreement exceed 30 percent of the total cost of the project and provided further, that the commerce corporation may exempt public infrastructure, a preexisting municipally-owned stadium of 10,000 seats or greater, or utilities from said 30 percent cap.

History of Section.
P.L. 2015, ch. 141, art. 19, § 4.