Code of Massachusetts Regulations › 801 CMR - EXECUTIVE OFFICE FOR ADMINISTRATION AND FINANCE › Title 801 CMR 51.00 - Generating New State Tax Revenues And Local Tax Revenues By Stimulating Sustainable Economic Development Through Infrastructure Improvements › Section 51.17 - Infrastructure Development Assistance Agreement

Current through Register 1525, July 5, 2024
(1) The Secretary, Agency, Developer and
			 Municipality shall enter into an Infrastructure Development Assistance
			 Agreement prior to the issuance of any of the Bonds.
(2) The Infrastructure Development Assistance
			 Agreement shall have terms and conditions consistent with the requirements of
			 St. 2006, c. 293, §§ 5 through 12, as amended by St. 2008, c. 129,
			 §§ 2 through 17 and St. 2012, c. 238, §§ 60 through 63, and
			 801 CMR 51.00, the related
			 Economic Development Proposal and the Secretary's certification of approval of
			 the Economic Development Proposal.
(3) The Infrastructure Development Assistance
			 Agreement shall set forth the finance plan for the Public Infrastructure
			 Improvements, including the amount, structure, date or dates of issuance,
			 security and other relevant terms of the Bonds, and it shall require that the
			 Developer pay the Bond Issuance Fee to the Agency upon the issuance of the
			 Bonds.
(4) The Infrastructure
			 Development Assistance Agreement shall authorize the Agency, upon request of
			 the Secretary, to issue refinancing Bonds to refinance all or a portion of the
			 Bonds originally issued to finance the Public Infrastructure Improvements. No
			 approval of the Municipality shall be required for the issuance of refinancing
			 Bonds unless the issuance of the refinancing Bonds would result in an increase
			 in Debt Service in any fiscal year of the Commonwealth. Upon any refinancing of
			 Bonds that results in a reduction of future Debt Service payments, the
			 Infrastructure Development Assistance Agreement shall be amended to reflect
			 such reduction in Debt Service.
(5)
			 The Infrastructure Development Assistance Agreement shall provide for the
			 Commissioner to issue the Annual Certification of New State Tax Revenues by not
			 later than December 1st in each year in accordance
			 with St. 2006, c. 293, §§ 5 through , as amended by St. 2008, c. 129,
			 §§ 2 through 17 and St. 2012, c. 238, §§ 60 through 63,
			 801 CMR 51.00 and the DOR
			 Guidance. In order to ensure that the Commissioner has the information
			 necessary to make the determination as to New State Tax Revenues and to issue
			 the Annual Certification as to New State Tax Revenues by December
			 1st of each year, the Infrastructure Development
			 Assistance Agreement shall require Owners of each Project Component to provide
			 the Annual Data directly to the Commissioner by not later than August
			 31st of each year. In the event that the Annual Data
			 with respect to any Project Component is not provided to the Commissioner by
			 August 31st, the Annual Certification of New State
			 Tax Revenues with respect to such Project Component shall state that there were
			 no New State Tax Revenues for the prior fiscal year. The Commissioner may, in
			 the Commissioner's sole discretion, waive the August
			 31st deadline if the Annual Data is provided prior
			 to December 1st with sufficient time for the
			 Commissioner to make the required determination as to New State Tax Revenues
			 prior to December 1st. The Annual Data submitted to
			 the Commissioner will be kept confidential by the Department to the extent
			 required as permitted by law; provided that the Developer and successor Owners
			 shall be required to waive such confidentiality in limited circumstances to
			 permit the Secretary and the Municipal Officers to review the Annual Data as
			 prescribed in the DOR Guidance.
(6)
			 In accordance with St. 2006, c. 293, § 8, as amended by St. 2008, c. 129,
			 §§ 8 and 9 and § 10, as amended by St. 2008, c. 129,
			 §§ 10 through 12, the Infrastructure Development Assistance Agreement
			 shall provide that the Bonds shall be secured by a pledge of the Infrastructure
			 Development Assistance Agreement and the rights of the Agency to receive State
			 Infrastructure Development Assistance in accordance with St. 2006, c. 293,
			 §§ 5 through 12 , as amended by St. 2008, c. 129, §§ 2
			 through 17 and St. 2012, c. 238, §§ 60 through 63, and with the terms
			 of the Infrastructure Development Assistance Agreement. The Infrastructure
			 Development Assistance Agreement shall provide for the State Infrastructure
			 Development Assistance to be paid to the Agency in the amounts and at the times
			 necessary to pay the Debt Service on the Bonds when the same is due and
			 payable. The Infrastructure Development Assistance Agreement shall provide for
			 an administrative fee to be paid to the Agency on a onetime basis or on a
			 periodic basis during the life of the Bonds to cover reasonable costs incurred
			 by the Agency in connection with its ongoing responsibilities related to the
			 Bonds.
(7)
(a) In accordance with St. 2006, c. 293,
			 § 9 of the Infrastructure Development Assistance Agreement shall provide
			 for the Municipality to fix and assess Infrastructure Assessments with respect
			 to each Assessment Parcel commencing with the fiscal year of the Commonwealth
			 following the fiscal year in which the Bonds are issued in amounts sufficient
			 in each fiscal year to reimburse the Commonwealth for the total amount of the
			 Debt Service payable by the Commonwealth during that fiscal year. The
			 Infrastructure Assessments shall be assessed and collected by the Municipality
			 and paid to the Commonwealth by not later than June
			 30th of the related fiscal year.
(b) The methodology for calculating the
			 amount of the Infrastructure Assessment on each Assessment Parcel provided for
			 in the Infrastructure Development Assistance Agreement shall be consistent with
			 the methodology set forth in the Economic Development Proposal. In the fiscal
			 year of the Commonwealth in which a Project Component becomes an Occupied
			 Project Component, the amount of the Infrastructure Assessment for the related
			 Assessment Parcel shall be equal to a prorated portion of the total Debt
			 Service on the Bonds allocable to such Assessment Parcel payable during that
			 fiscal year based on the number of days in the fiscal year that had elapsed
			 prior to the date on which the related Project Component became an Occupied
			 Project Component.
(c) Pursuant to
			 St. 2006, c. 293, § 10, as amended by St. 2008, c. 129, § 12(d), a
			 Developer may agree in the Infrastructure Development Assistance Agreement to
			 allow the Municipality to fix and assess Infrastructure Assessments with
			 respect to any Assessment Parcel to reimburse the Commonwealth, or to reimburse
			 the Municipal Liquidity Reserve or any credit facility provider thereof to the
			 extent a draw was made by the Commonwealth against the Municipal Liquidity
			 Reserve, to cover all or a portion of any Shortfall. Any such Infrastructure
			 Assessment with respect to an Assessment Parcel with an Occupied Project
			 Component shall be assessed and collected by the Municipality in the fiscal
			 year of the Commonwealth following the fiscal year in which the related
			 Shortfall occurred and shall be paid to the Commonwealth, or shall be applied
			 to reimburse the related Municipal Liquidity Reserve or any credit facility
			 provider thereof to the extent a draw was made by the Commonwealth against the
			 Municipal Liquidity Reserve to cover all or any portion of such Shortfall, by
			 not later than July 1st of the second fiscal year
			 following the fiscal year of the Commonwealth in which the Shortfall occurred.
			 Failure by the Municipality to assess and collect all or any portion of an
			 Infrastructure Assessment to cover a Shortfall, or any failure by the Owner of
			 the related Assessment Parcel to pay any such Infrastructure Assessment, shall
			 not relieve the Municipality of its obligation under St. 2006, c. 293, §
			 10, as amended by St. 2008, c. 129, §§ 10 through 12, and 801 CMR
			 51.17(8) to pay Local Development Infrastructure Assistance to the Commonwealth
			 in an amount sufficient, together with any portion of the Infrastructure
			 Assessment that has been assessed, collected and paid to the Commonwealth or
			 applied to reimburse the related Municipal Liquidity Reserve, to cover the
			 Shortfall amount on or before July 1st of the second
			 fiscal year following the fiscal year of the Commonwealth in which the
			 Shortfall occurred.