(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 for the purposes of financing projects, bonding costs, including capitalized interest, debt service reserves, 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.
(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 chapter 64.21 of title 42. Upon the execution of an economic activity taxes agreement, such 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." However, in the event an economic activity taxes agreement has not been signed by June 30, 2020, incremental tax revenues realized in the arts district, the growth center district, and the ballpark district assessed and collected under chapters 18 and 19 of title 44 shall be segregated by the state division of taxation and deposited into 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 costs of infrastructure improvements in and around the ballpark district, arts district, and the growth center district; to fund future debt service on the bonds; and to fund a redevelopment revolving fund established in accordance with § 45-33-1. If economic activity taxes remain in such downtown Pawtucket redevelopment economic activity taxes fund at the end of the state's fiscal year, the 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, the bonds may be retired. 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 agency, the city, and the state from time to time; provided however, that the state hereby pledges to and agrees with any person, firm, or corporation, or federal agency subscribing to or acquiring any bonds secured by revenues under this chapter, that the state will not limit or alter the rights vested in the city or the agency or such bondholders until all bonds at any time issued, together with their interest, are fully met and discharged. The state does further pledge to and agree with the United States, and any other federal agency, that in the event that any federal agency constructs or contributes any funds for the construction, extension, improvement, equipping, furnishing, or enlargement of any project, or any portion of it, the state will not alter or limit this chapter in any manner that would be inconsistent with the due performance of any agreements with the federal agency; and the city and the agency continue to have and may exercise all powers granted by this chapter, so long as the powers are necessary or desirable for the carrying out of the purposes of this chapter.
(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.
(d) The economic activity taxes agreement may be terminated upon agreement of the parties thereto, provided, however, the economic activity taxes agreement shall not be terminated so long as any bonds secured by the economic activity taxes remain outstanding.
(e) By no later than September 30, 2019, the state department of revenue shall establish the baseline to be used in the calculation of state revenues in the state economic activity tax agreement. By that date, the department of revenue, in consultation with the state commerce corporation shall develop a template of an economic activity tax agreement to be executed between the city, the agency, and the state at such time that a redevelopment project is submitted for consideration. Upon submission of a redevelopment project by the city or the agency for financing under this statute, the state shall complete negotiations and finalize approval of an economic activity agreement within 120 days of the submission of the request for financing.
(f) Not later than February 1 of each year commencing February 1, 2022, the city, the agency, and the Rhode Island commerce corporation shall submit a performance review report to the general assembly which includes, but is not limited to, the following information: sources and uses of project funds, permanent job and construction job creation numbers, local and state tax revenue estimates, and project completion schedules.
History of Section.
P.L. 2018, ch. 103, § 1; P.L. 2019, ch. 118, § 2; P.L. 2019, ch. 143, § 2.