Code of Massachusetts Regulations › 810 CMR - DIVISION OF CAPITAL ASSET MANAGEMENT AND MAINTENANCE › Title 810 CMR 51.00 - Generating new state tax revenues and local tax revenues by stimulating sustainable economic development through infrastructure improvements › Section 51.13 - Process for Approval of Economic Development Proposal

Current through Register 1525, July 5, 2024
(1) Within 60 days of receipt of the Economic
			 Development Proposal from the Developer and the Municipality in the form and
			 with the information and documentation required by 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 by
			 801 CMR 51.00, the Secretary
			 shall take action on the Proposal by approving it, disapproving it, requesting
			 its amendment or requesting further information.
(2) Prior to approving any Economic
			 Development Proposal, and, if the Economic Development Project is a Phased
			 Project, prior to approving any phase of any Economic Development Project for
			 which the Developer is seeking approval, the Secretary must have received or
			 provided the following:
(a) An updated
			 Independent Consultant Analysis to take into account any difference between the
			 Economic Development Proposal and the Preliminary Economic Development Proposal
			 and any changes in facts or assumptions since the original Independent
			 Consultant Analysis. The updated Independent Consultant Analysis should be
			 conducted and paid for in the same manner and by the same parties as the
			 original Independent Consultant Analysis.
(b) An updated version of the Preliminary
			 Certificate of the Commissioner to reflect any changes in the Economic
			 Development Proposal filed by the Developer and the Municipality from the
			 Preliminary Economic Development Proposal and the updated Independent
			 Consultant Analysis and to reflect only the New Revenues and New State Tax
			 Revenues projected to be generated from Project Components for which
			 Commitments have been obtained. If the Economic Development Project is a Phased
			 Project, the updated version of the Certificate shall address only the phase of
			 the Economic Development Project for which the Developer is seeking
			 approval.
(c) An updated version of
			 the Preliminary Certificate of the Agency to reflect any changes in the
			 Economic Development Proposal filed by the Developer and the Municipality from
			 the Preliminary Economic Development Proposal, the Independent Consultant
			 Analysis and the updated version of the Preliminary Certificate of the
			 Commissioner. If the Economic Development Project is a Phased Project, the
			 updated version of the Certificate shall address only the phase of the Economic
			 Development Project for which the Developer is seeking approval.
(d) Certification of the Agency confirming
			 that the Agency has reviewed the documentation provided by the Developer to
			 demonstrate that the Developer has sufficient equity and financing commitments
			 to fund Costs of the Economic Development Project and that, based on such
			 review and on any additional investigation or review the Agency deemed
			 necessary, the Agency has determined that the Developer has sufficient equity
			 and financing commitments to fund all of the Costs of the Economic Development
			 Project or, if the Economic Development Project is a Phased Project, all of the
			 Costs of the phase of the Economic Development Project for which the Developer
			 is seeking approval, except any of such Costs expected to be funded by the
			 Agency from the proceeds of the Bonds under 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.
(e) Certification of the Commissioner
			 confirming that the amount of projected annual New State Tax Revenues allocable
			 to each of the Project Components of the Economic Development Project, or, if
			 the Economic Development Project is a Phased Project, the phase of the Economic
			 Development Project for which the Developer is seeking approval, following
			 completion and occupancy thereof will be at least equal to the projected
			 maximum annual Debt Service due on the related Bonds to be issued by the Agency
			 following the completion and occupancy of the related Occupied Project
			 Component as determined under
			 801 CMR 51.00 and identified
			 in the certification of the Executive Director of the Agency referenced in 801
			 CMR 51.13(2)(c).
(f) Certification
			 of the Agency confirming that Agency has approved the Economic Development
			 Proposal, or, if the Economic Development Project is a Phased Project, the
			 Economic Development Proposal with respect to the phase of the Economic
			 Development Project for which the Developer is seeking approval.
(g) Certification of the Secretary that:
1. the Developer has funding or financial
			 commitments satisfactory to the Secretary sufficient to fund the Costs of the
			 Economic Development Project, or, if the Economic Development Project is a
			 Phased Project, the phase of the Economic Development Project for which the
			 Developer is seeking approval, exclusive of any Costs of the Public
			 Infrastructure Improvements to be financed by Bonds to be issued by the Agency,
			 and such commitments include the commitment of the Developer's construction
			 lender or lenders, on terms and conditions acceptable to the Secretary, to
			 advance loan proceeds on the Developer's behalf to pay for the costs of
			 completing Public Infrastructure Improvements that are not being funded from
			 proceeds of the Bonds, whether or not the construction lender's loan with the
			 Developer is in default, or such other security or assurance as the Secretary
			 has determined to be acceptable;
2.
			 the Developer's plan to secure the obligations of its selected contractor or
			 contractors to complete each of the Project Components and the Public
			 Infrastructure Improvements with payment, performance and lien bonds which, in
			 the case of the Public Infrastructure Improvements being funded in whole or in
			 part from the proceeds of the Bonds, provide for the Developer and the Agency
			 to be co-obligees under such bonds, and to secure its own obligation to
			 complete the portion of the Public Infrastructure Improvements not funded by
			 Bonds under this Act, or to provide other security satisfactory to the
			 Secretary, is satisfactory to the Secretary, and the Secretary's approval of
			 the Economic Development Proposal, or of the portion thereof that relates to
			 the phase of the Economic Development Project for which the Developer is
			 seeking approval if it is a Phased Project, will be made conditional upon such
			 security having been obtained prior to the issuance of the related Bonds;
			 and
3. the Municipality has
			 established a Municipal Liquidity Reserve for the benefit of the Commonwealth
			 for each Assessment Parcel within the Economic Development Project, or, if the
			 Economic Development Project is a Phased Project, for each Assessment Parcel
			 that is a part of the phase of the Economic Development Project for which the
			 Developer is seeking approval, and has funded or has provided for the funding
			 of such Reserve in an amount equal to twice the total maximum annual Debt
			 Service due on the Bonds allocable to said Assessment Parcel.
4. if the Developer seeks a waiver or partial
			 waiver of the any requirements necessary for the Secretary's Approval of the
			 Economic Development Proposal for the purpose of issuance of Bond Anticipation
			 Notes, the Secretary has received evidence that the Developer has obtained a
			 letter of credit or other security for the repayment of the Developer's
			 obligations under an Infrastructure Development Assistance Agreement acceptable
			 to the Secretary and that the Secretary waives any necessary
			 requirements.