Rhode Island Code of Regulations › Title 870 - Rhode Island Commerce Corporation › Chapter 30 - Tax Credits and Exemptions › Subchapter 00 - N/A › Part 9 - Rules and Regulations for the City of Pawtucket Downtown Redevelopment Project Act › Section 870-RICR-30-00-9.11 - Incentive Agreement

Current through June 14, 2024
A. Upon approval of an Award by the Board and in order to safeguard the expenditure of public funds and ensure that the disbursement of funds furthers the objectives of the Act, the Corporation and an Applicant will enter into an Incentive Agreement, which shall include, among others, the following terms:
1. A description of the Project;
2. The total amount of the Award;
3. The annual amount of Award payments to be made on account of the Award;
4. A requirement that payments of Baseline Revenue shall not commence prior to the Project being Placed in Service unless otherwise provided for by the Board in its approving resolution;
5. If applicable, and at the Corporation's discretion, a provision requiring that the receipt of annual payments on account of an Award for any year be subject to an Applicant meeting any job creation or retention requirements or any other conditions that the Corporation, shall set as a condition of its approval or the disbursement of the Award.
6. Evidence that the Applicant is in good standing with the Secretary of State and Division of Taxation at the time of execution of the Incentive Agreement. This provision shall not be applicable to governmental entities;
7. A provision indicating that the Award is allowed as a payment from the State subject to annual appropriation;
8. 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 Incentive Agreement;
9. Indemnification and insurance requirements;
10. Default and remedies including events, if any, that would trigger forfeiture, revocation, and/or repayment of the Award;
11. Reporting and auditing requirements;
12. The imposition of such restrictions or covenants upon the Project as may be necessary to ensure continued compliance with the Act and the Rules;
13. The procedure by which an Applicant may pledge and assign as security for any financing, any or all of its rights, title and interest in and to the Award; and
14. A Certification procedure, which may include, but not be limited to, the following:
a. Representations that the 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 request for Certification. This provision will not be applicable to governmental entities;
c. A requirement that the Applicant submit, prior to issuance of any Award, 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 basis for the approval of the Award, then the Award shall be reduced;
d. Evidence that the 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 the Award.