2023 Rhode Island General Laws › Title 42 - State Affairs and Government › Chapter 42-64.21 - Rhode Island Tax Increment Financing › Section 42-64.21-6. - Agreements permitted.

§ 42-64.21-6. Agreements permitted.
(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.
(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.