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

Current through June 14, 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.