TITLE 42

State Affairs and Government

CHAPTER 42-64.21

Rhode Island Tax Increment Financing

SECTION 42-64.21-3



   § 42-64.21-3  Definitions. –

As used in this chapter:



   (1) "Applicant" means a developer proposing to enter into a

tax increment financing agreement under this chapter.



   (2) "Commerce corporation" means the Rhode Island commerce

corporation established pursuant to general laws § 42-64-1 et. seq.



   (3) "Developer" means a person, firm, corporation,

partnership, association, political subdivision, or other entity that proposes

to divide, divides, or causes to be divided real property into a subdivision or

proposes to build, or builds a building or buildings or otherwise improves land

or existing structures, which division, building, or improvement qualifies for

benefits under this chapter.



   (4) "Hope Community" means a municipality for which the five

(5) year average percentage of families with income below the federal poverty

level exceeds the state five (5) year average percentage, both most recently

reported by the U.S. Department of Commerce, Bureau of the Census.



   (5) "Eligible revenue" means the incremental revenues set

forth in § 42-64.21-5 of this chapter.



   (6) "Incremental" means (i) net new revenue to the State of

Rhode Island as defined by the commerce corporation, in consultation with the

department of revenue as established in Chapter 42-142 of the general laws, or

(ii) existing revenue at substantial risk of loss to the State of Rhode Island

as defined by the commerce corporation in consultation with the department of

revenue.



   (7) "Project area" means land or lands under common ownership

or control as certified by the commerce corporation.



   (8) "Project financing gap" means:



   (i) The part of the total project cost that remains to be

financed after all other sources of capital have been accounted for, including,

but not limited to, developer-contributed capital, which shall be defined

through rules and regulations promulgated by the commerce corporation; or



   (ii) The amount of funds that the state may invest in a

project to gain a competitive advantage over a viable and comparable location

in another state by means described in this chapter.



   (9) "Qualified development project" means a specific

construction project or improvement, including lands, buildings, improvements,

real and personal property or any interest therein, including lands under

water, riparian rights, space rights and air rights, acquired, owned, leased,

developed or redeveloped, constructed, reconstructed, rehabilitated or

improved, undertaken by a developer, owner or tenant, or both, within a

specific geographic area, meeting the requirements of this chapter, as set

forth in an application made to the commerce corporation.



   (10) "Qualifying TIF area" shall mean an area containing a

qualified development project identified by the commerce corporation as a

priority because of its potential to generate, preserve or otherwise enhance

jobs or its potential to produce, preserve or otherwise enhance housing units.

The commerce corporation shall take into account the following factors in

determining whether a qualified development project is a priority:



   (i) Generation or preservation of manufacturing jobs;



   (ii) Promotion of targeted industries;



   (iii) Location in a port or airport district;



   (iv) Location in an industrial or research park;



   (v) Location in a transit oriented development area;



   (vi) Location in a hope community;



   (vii) Location in an area designated by a municipality as a

redevelopment area under § 45-32-4 of the general laws; and



   (viii) Location in an area located within land approved for

closure under any federal commission on base realignment and closure action.



   (11) "Revenue increment base" means the amounts of all

eligible revenues from sources within the qualifying TIF area in the calendar

year preceding the year in which the TIF agreement is executed, as certified by

the division of taxation.



   (12) "TIF agreement" means an agreement between the commerce

corporation and a developer, under which, in exchange for the benefits of the

funding derived from qualification under this chapter, the developer agrees to

perform any work or undertaking necessary for a qualified development project,

including the clearance, development or redevelopment, construction, or

rehabilitation of any structure or improvement of commercial, industrial, or

residential property; public infrastructure; preexisting municipally-owned

stadium of 10,000 seats or greater; or utilities within a qualifying TIF area.



   (13) "TIF payment" means reimbursement of all or a portion of

the project financing gap of a qualified development project from the division

of taxation as provided under this chapter.



   (14) "Targeted industry" means any advanced, promising or

otherwise prioritized industry identified in the economic development vision

and policy promulgated pursuant General Laws § 42-64.17-1 or, until such

time as any such economic development vision and policy is promulgated, as

identified by the commerce corporation.



   (15) "Transit oriented development area" means an area in

proximity to transit infrastructure that will be further defined by regulation

of the commerce corporation in consultation with the Rhode Island department of

transportation.



History of Section.

(P.L. 2015, ch. 141, art. 19, § 4.)