Rhode Island Code of Regulations
Title 870 - Rhode Island Commerce Corporation
Chapter 30 - Tax Credits and Exemptions
Subchapter 00 - N/A
Part 6 - Rules and Regulations for the Rhode Island Tax Increment Financing Act
Section 870-RICR-30-00-6.15 - TIF Agreement
Universal Citation: 870 RI Code of Rules 30 00 6.15
Current through March 20, 2024
A. Upon approval of TIF Incentive by the Board and in order to safeguard the expenditure of public funds and sure that the disbursement of funds further the objectives of the Act, the Corporation and the Applicant will enter into a TIF Agreement, which shall include, among others, the following terms:
1. A detailed description of the boundaries
of the Qualifying TIF Area;
2. The
period in years in which the Applicant will be eligible for Annual TIF
Payments, the maximum amount of Project Cost, the maximum percentage
reimbursement amount, the maximum aggregate dollar amount of the TIF Incentive
to be awarded to the Applicant, the maximum annual percentage of reimbursement,
the particular tax or taxes to be included in the Eligible Revenues and the
order in which multiple taxes will be applied to determine the TIF Incentive
grant amount;
3. The TIF Incentive
shall be issued prior to the Qualified Developed Project being Placed in
Service or such later date as determined by the Board in its approving
resolution;
4. If applicable, a
provision requiring that the receipt of TIF Payments for any year be subject to
the Applicant meeting any job creation or retention requirements or any other
conditions that the Corporation, it its sole discretion, shall set as a
condition of its approval of TIF Incentive for the Applicant;
5. Evidence that the Applicant is in good
standing with the Secretary of State and Division of Taxation at the time of
execution of the TIF Agreement; a Letter of Good Standing from the Division of
Taxation shall be evidence of good standing;
6. A provision indicating whether the TIF
Incentive is allowed as a payment from the State subject to annual
appropriation or as an exemption subject to payment to the Corporation as
provided in the Act;
7. At the
Corporation's discretion, a provision requiring the Applicant to pay the
Corporation's reasonable costs, including attorneys' fees, incurred in
connection with the negotiation, execution and enforcement of the TIF
Agreement;
8. Indemnification and
insurance requirements;
9. Default
and remedies including events, if any, that would trigger forfeiture,
revocation, and/or repayment of the TIF Incentive;
10. Reporting requirements including, but not
limited to, any requirements under the Act;
11. The imposition of such restrictions or
covenants upon the Qualified Development Project as may be necessary to ensure
continued compliance with the Act and the Rules;
12. The procedure by which the Developer may
pledge and assign as security for any loan, any or all of its rights, title and
interest in and to the TIF Agreement and in the TIF Incentive;
13. A certification procedure, which shall
include, but not be limited to, the following:
a. Representations that the Qualified
Development Project complies with all applicable laws and
regulations;
b. Evidence that the
Applicant is in good standing with the Secretary of State and the Division of
Taxation at the time the Applicant files its certification for issuance of the
TIF Incentive; a Letter of Good Standing from the Division of Taxation shall be
evidence of good standing;
c. A
requirement that the Applicant submit, prior to issuance of any TIF Payment,
satisfactory evidence of the actual Project Cost, as certified by a certified
public accountant. If the actual Project Cost is less than the estimated
Project Cost forming the bases for the approval of the awarded TIF Incentive,
then the awarded incentives shall be reduced based upon the actual Project
Cost;
d. Evidence that the
Qualified Development Project has been Placed in Service and/or meets such
other criteria as imposed by the Board in its approving resolution;
and
e. If applicable, evidence that
the Applicant has met any additional job creation or retention requirements or
any other conditions that the Corporation, in its sole discretion, set as a
condition of its approval of TIF Incentive for the Applicant.
Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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