[Approved 3-26-2015 by Ch. No. 3062]
As used in this article, the following terms shall have the
meanings indicated:
The lessee or property owner who initiates the property tax
stabilization application process.
The land, buildings and/or facilities where the expansion,
construction or renovation occurs or business tangible property.
The purpose of this article is to promote business expansion
in the City through the development of a property tax stabilization
program.
A.
All legally permitted commercial and industrial facilities within
the City which meet the qualifications established in this article
are eligible to participate. No property under Tax Incremental Financing
(TIE) agreement shall be eligible for stabilization, unless approved
by the Council.
[Amended 8-21-2019 by Ch. No. 3201]
B.
All legally permitted apartments, condominium complexes and hotels
which meet the qualifications established in this article are eligible
to participate.
C.
All new business tangible property which meets the qualifications
established in this article is eligible to participate.
D.
Any applicant business and/or property owner for tax stabilization
pursuant to this article must be current on all tax, user fees and
any other payments owed to the City as of the time of application
and at the time the property tax stabilization is granted. Any property
owner who applies for property tax credits on behalf of a business
operating at the property owner's facilities shall be current
on all tax, user fees and other payments owed to the City.
E.
The granting of the exemption or stabilization will inure to the
benefit of the City by reason of:
F.
The granting of the exemption stabilization of taxes will inure to
the benefit of the City by reason of the willingness of an eligible
property owner to replace, reconstruct, expand, retain or remodel
existing buildings, facilities, fixtures, machinery or equipment with
modern buildings, facilities, fixtures, machinery or equipment, resulting
in an increase or maintenance in plant, equipment or commercial building
investment by the property owner in the City.
G.
Prior to authorizing any property tax stabilization for the property,
the property owner shall be required to obtain a municipal lien certificate
from the Tax Collector's office, indicating that the applicant
business and/or property owner is current on all payments owed to
the City. In addition, the applicant shall be required to obtain a
certificate of good standing from the State of Rhode Island, indicating
that the applicant business and/or property owner is current on all
taxes owed to the state. If the applicant business and/or property
owner is unable to produce these certificates, the applicant shall
be deemed ineligible for the incentives offered through this article.
H.
The property which is the subject of the application must conform
to the City's Comprehensive Plan, all City and state zoning laws,
building and fire codes prior to the authorization of any property
tax stabilization for the applicant. The Zoning officer, the Building
Official and Fire Marshal for the City shall be required to issue
a written certification indicating that the property does so conform.
I.
The minimum threshold for participation in this program by existing
eligible properties is $250,000 in taxable improvements as determined
by the City Tax Assessor. The minimum threshold for new eligible properties
and tangible business equipment is $500,000. The assessed value of
the proposed improvements or tangible business equipment shall be
established by the City Tax Assessor prior to authorizing any tax
stabilization pursuant to this article. Applicants for stabilization
of tangible business equipment shall document the creation or relocation
of no fewer than 10 full-time equivalent jobs (FTEs). Such documentation
shall be submitted to the Department of Planning and Redevelopment
for review and verification at the time of application. Failure to
create or maintain such jobs within or for a twelve-month period from
the date of application for stabilization will result in the tax exemption
granted pursuant to this stabilization program ceasing immediately.
Notice of the failure to comply with this job creation requirement
shall be sent to the property owner by registered mail.
J.
In the event the applicant is delinquent on any quarterly tax or
other payment due to the City on property receiving the exemption
hereunder for a period of more than 45 days, or in the event that
the subject property no longer complies with City and state zoning
laws, building and fire codes, the tax exemption granted pursuant
to this stabilization program shall cease immediately. Notice of the
tax delinquency and/or failure to comply with City and state zoning
laws, building and fire codes shall be sent to the property owner
by registered mail after the tax delinquency and/or failure to comply
with City and state zoning laws, building and fire codes occurs. A
copy of said delinquency notice shall be provided to the Mayor and
City Council at the same time.
[Amended 12-21-2017 by Ch. No. 3148; 2-6-2020 by Ch. No. 3214]
A five-year tax treaty may be granted by the administration
as an effort to promote commerce or investment in the City of Pawtucket.
A.
Exemptions.
(1)
For expansion or renovation of any existing facility, construction
of a new facility, the addition of tangible business property or leasehold
improvements, the percentage of new added taxable assessment shall
be stabilized in accordance with the following tax exemption schedule
(the below tax exemption schedules may be modified with the approval
of the City Council, after its review of the facts and circumstances
of a specific project):
Year
|
Percentage Exempt from Tax
|
---|---|
1
|
100%
|
2
|
80%
|
3
|
60%
|
4
|
40%
|
5
|
20%
|
6
|
0%
|
(a)
In Year 6 and thereafter, the new value will be taxed at the
normal rate for the City.
(2)
For expansion or renovation of any existing facility, or construction
of a new facility, which is subject to the Pawtucket Percent for Public
Art Ordinance[1] and is eligible for tax stabilization under this section,
shall be stabilized in accordance with the following tax exemption
schedule:
Year
|
Percentage Exempt from Tax
|
---|---|
1
|
100%
|
2
|
100%
|
3
|
80%
|
4
|
60%
|
5
|
40%
|
6
|
20%
|
7
|
0%
|
(a)
In Year 7 and thereafter, the new value will be taxed at the
normal rate for the City.
(3)
For expansion or renovation of any existing facility, construction of a new facility, addition of tangible business property or construction of leasehold improvements whose taxable value is in excess of $5,000,000, the requirements as prescribed under § 363-80 of this article may apply. The applicant may elect, however, to proceed with the five-year administrative stabilization program.
B.
The exemption provided for herein will not relate to the value of
land, but to the value of related improvements and tangible business
property only. Tax assessment and collection practices and procedures
will be the same as for any other property, including revaluation
and improvements unrelated to stabilization, except for the application
of the tax stabilization provided for herein.
C.
Leasehold improvements will be classified as tangible business property
in order to qualify for the exemption provided for herein, provided
they are physically attached to the building.
D.
All exemptions granted pursuant to this tax stabilization program
may be transferred in the event the property is sold during the term
of the stabilization program.
A.
The application procedure for projects seeking a five-year administrative
tax stabilization agreement shall proceed as follows:
(1)
Eligible property owners planning to utilize this program shall,
prior to obtaining a building permit, apply for the program through
the City Planning and Redevelopment Department. A complete application
will contain the following material exhibits:
(a)
Application form;
(b)
Three sets of improvement plans;
(c)
An itemized description of the improvements associated with
the project;
(d)
A nonrefundable application fee in the amount of $100;
(e)
A municipal lien certificate issued by the City Collections
Office for the project property;
(f)
A certificate of good standing from the State of Rhode Island.
(2)
The City Tax Assessor, Building Official, Fire Marshal and City Clerk
shall be immediately forwarded a copy of the application for comment
and review. The City Tax Assessor shall review and establish the taxable
value of the proposed improvements as described by the applicant within
the application for stabilization. The Planning and Redevelopment
Department may also forward copies of the application to other departments
for additional review and comment.
(3)
The Planning and Redevelopment Department must determine that the
granting of the exemption or stabilization will inure to benefit of
the City by reason of:
(4)
The Planning and Redevelopment Department must determine that the
granting of the exemption or stabilization of taxes will inure to
the benefit of the City by reason of the willingness of an eligible
property to replace, reconstruct, expand, retain or remodel existing
buildings, facilities, machinery or equipment with modern buildings,
facilities, fixtures, machinery or equipment resulting in an increase
or maintenance in plant or commercial building investment by the property
in the City.
(5)
The Planning and Redevelopment Department shall review the application
and any other comments received from other departments and divisions
and deem the application complete within 30 days of receiving the
application.
(6)
The Director of Planning and Redevelopment and the City Tax Assessor
shall approve or deny a decision within 15 days of the application
being deemed complete. A copy of that decision shall be provided to
the Mayor and City Council at the same time it is provided to the
applicant.
(7)
Upon approval of the application, the City Tax Assessor or his designee,
shall conduct an inspection of the subject property in order to determine
the assessed valuation of the property prior to improvements and/or
renovations.
(8)
Subsequent to the City Tax Assessor's inspection and approval
of the subject property, the applicant may obtain a building permit
for improved property from the City Building Official. A building
permit must be obtained within one year of the application's
approval. Failure to obtain a building permit for improved property
within the allotted time shall deem the approval null and void.
(9)
Upon completion of the improvements, the Tax Assessor or person designated
by him shall inspect the subject property and confirm the taxable
assessed value added to the property. The City Tax Assessor will thereupon
notify the applicant and the City Planning and Redevelopment Department
of the added value and the schedule of phased-in taxable value on
the new construction, improvement or increase in tangible business
property.
(10)
The Planning and Redevelopment Department and City Tax Assessor
shall submit a quarterly report to the City Mayor and City Council
identifying all properties participating in the property tax stabilization
program. Additionally, this article shall be reviewed annually by
the Department of Planning and Redevelopment and the City Tax Assessor
in order to evaluate the overall effectiveness of the program and
to recommend to the City Council any additional language or amendments
which may improve the effectiveness of the program.
[Amended 2-6-2020 by Ch. No. 3214]
(11)
All participating employers are required to comply with all
federal and state regulations concerning job safety and affirmative
action requirements.
(12)
The City reserves the right to terminate this program at any
time through the action of the City Council.
(13)
An appeal of the decision of the Planning and Redevelopment
Director and City Tax Assessor must be filed with the Zoning Board
of Appeals within 20 days of the decision. The decision of the Zoning
Board of Appeals is final.
In the event the expansion or renovation of any existing facility, construction of a new facility or leasehold improvements of an existing facility exceeds $5,000,000 in taxable value, as determined by the City Assessor, the amount of the tax stabilization and the length of term of the stabilization may be granted to 10 years as determined by the City Council, subject to the requirements set forth in § 363-80 of this article.
A.
Schedule.
[Amended 2-6-2020 by Ch. No. 3214]
Year
|
Percentage Exempt from Tax
|
---|---|
1
|
100%
|
2
|
90%
|
3
|
80%
|
4
|
70%
|
5, 6, 7, 8, 9, 10
|
60%, 50%, 40%, 30%, 20%, 10%
|
In Year 11 and thereafter, the new value will be taxed at the
normal rate for the City.
The above schedule may be modified at the discretion of the
City Council, after its review of the facts and circumstances of a
specific project.
|
B.
For expansion or renovation of any existing facility, or construction
of a new facility or leasehold improvements of an existing facility,
which is subject to the Pawtucket Percent for Public Art Ordinance[1] and is eligible for tax stabilization under § 363-78 of this article, may be stabilized in accordance with the following tax exemption schedule, subject to the requirements set forth in § 363-80 of this article:
[Added 12-21-2017 by Ch.
No. 3148; amended 2-6-2020 by Ch. No. 3214]
Year
|
Percentage Exempt from Tax
|
---|---|
1
|
100%
|
2
|
100%
|
3
|
90%
|
4
|
80%
|
5
|
70%
|
6, 7, 8, 9, 10, 11
|
60%, 50%, 40%, 30%, 20%, 10%
|
In Year 12 and thereafter, the new value will be taxed at the
normal rate for the City.
The above schedule may be modified at the discretion of the
City Council, after its review of the facts and circumstances of a
specific project.
|
C.
Notwithstanding the eleven-year schedule above, in order to get reimbursement from the state, the City Council may authorize a twelve-year schedule for those projects in § 363-79, Subsection B, that are qualified development projects as defined in the rules and regulations of the Rebuild Rhode Island Tax Credit Program. Any project not approved by Commerce RI for the Rebuild Rhode Island Tax Credit Program will be limited to the eleven-year schedule.
[Added 12-21-2017 by Ch.
No. 3148]
A.
The application procedure shall proceed as follows:
(1)
Businesses or property owners planning to utilize this program shall,
prior to obtaining a building permit, apply for the program through
the City Planning and Redevelopment Department. A complete application
will contain the following material exhibits:
(a)
Application form;
(b)
Three sets of improvement plans;
(c)
An itemized description of the improvements associated with
the project;
(d)
A nonrefundable application fee in the amount of $200;
(e)
A municipal lien certificate issued by the City Collections
Department for the project property;
(f)
A certificate of good standing from the State of Rhode Island.
(2)
The City Tax Assessor, Building Official, Fire Marshal and City Clerk
shall be immediately forwarded a copy of the application for comment
and review. The City Tax Assessor shall review and establish the taxable
value of the proposed improvements as described by the applicant within
the application for stabilization. If the proposed expansion or improvements
exceed the $5,000,000 threshold as established under this article,
the application shall be deemed eligible for City Council stabilization
review. The Planning and Redevelopment Department may also forward
copies of the application to other departments for additional review
and comment.
(3)
The Planning and Redevelopment Department shall review the application
and any other comments received from other departments and divisions
and deem the application complete within 30 days of receiving the
application.
(4)
Once the application is deemed complete, the City Tax Assessor, or
his designee, shall conduct an inspection of the subject property
in order to determine the assessed valuation of the property prior
to improvements and/or renovations. The results of this inspection
shall be provided to the Planning and Redevelopment Department for
inclusion in the Planning and Redevelopment Department's recommendation
to the City Council Finance Committee.
(5)
Subsequent to the City Tax Assessor's inspection of the subject
property, the Department of Planning and Redevelopment shall review
and prepare a written recommendation to the City Council Finance Committee
which outlines the fiscal impacts the proposed stabilization will
have on the tax base of the City and provide a recommendation for
stabilization on the property. Upon receiving the City Council Finance
Committee's recommendation, the City Clerk shall have the matter
scheduled on the City Council agenda for a public hearing and publish
notice of the scheduled public hearing at least 10 days prior to the
meeting of the City Council in a newspaper having a general circulation
in the City of Pawtucket as is required by R.I.G.L. § 44-5-61.2.
(6)
In reviewing the application, the City Council must determine that
the granting of the exemption or stabilization will inure to benefit
of the City by reason of:
(a)
The willingness of the manufacturing or commercial concern to
locate in the City; or
(b)
The willingness of a manufacturing or commercial firm to expand
facilities with an increase in employment or the willingness of a
commercial or manufacturing concern to retain its facility in the
City and not reduce substantially its work force in the City.
(7)
In reviewing the application the City Council must determine that
the granting of the exemption or stabilization of taxes will inure
to the benefit of the City by reason of the willingness of a manufacturing
or commercial firm to replace, reconstruct, expand, retain or remodel
existing buildings, facilities, machinery or equipment with modern
buildings, facilities, fixtures, machinery or equipment resulting
in an increase or maintenance in plant or commercial building investment
by the eligible property in the City.
(8)
The City Council shall vote to approve, deny, modify or defer the
application for stabilization at the Council's discretion.
[Amended 2-6-2020 by Ch. No. 3214]
(9)
Upon approval by the City Council, the applicant may obtain a building
permit from the City Building Official. All other necessary permits
required for development of the site must be obtained, however, prior
to the issuance of a building permit. Regulatory review of a proposed
development may proceed prior to the approval of the stabilization
by the City Council. A building permit must be obtained within one
year of the application's approval by the City Council. Failure
to obtain a building permit within the allotted time shall deem the
approval null and void. The applicant may request an extension of
the approval not to exceed six months, which will be subject to approval
by the City Council.
(10)
Upon completion of the improvements, the Tax Assessor or person
designated by him shall inspect the subject property and confirm the
taxable assessed value added to the property. The City Tax Assessor
will thereupon notify the applicant and the City Planning and Redevelopment
Department of the added value and the schedule of phased-in taxable
value on the new construction or improvement.
(a)
The Planning and Redevelopment Department and City Tax Assessor
shall submit an annual report to the City Mayor and the City Council
identifying all eligible properties participating in the property
tax stabilization. Additionally, this article shall be reviewed annually
by the Department of Planning and Redevelopment and the City Tax Assessor
in order to evaluate the overall effectiveness of the program and
to recommend to the City Council any additional language or amendments
which may improve the effectiveness of the program.
(b)
All participating employers are required to comply with all
federal and state regulations concerning job safety and affirmative
action requirements.
(c)
The City reserves the right to terminate this program at any
time through the action of the City Council.
[Added 8-21-2019 by Ch.
No. 3201]
In the event the expansion or renovation of any existing facility, construction of a new facility or leasehold improvements of an existing facility exceeds $15,000,000 in taxable value, as determined by the City Assessor, the amount of the tax stabilization and the length of term of the stabilization may be granted to 15 years as determined by the City Council, subject to the requirements set forth in § 363-80 of this article.
[Added 8-21-2019 by Ch.
No. 3201; 2-6-2020 by Ch. No. 3214]
A.
Schedule.
Year
|
Percentage Exempt from Tax
|
---|---|
1
|
100%
|
2
|
95%
|
3
|
90%
|
4
|
85%
|
5
|
80%
|
6
|
75%
|
7
|
70%
|
8
|
65%
|
9
|
60%
|
10
|
55%
|
11
|
50%
|
12
|
40%
|
13
|
30%
|
14
|
20%
|
15
|
0%
|
In Year 15 and thereafter, the new value will be taxed at the
normal rate for the City.
The above schedule may be modified at the discretion of the
City Council, after its review of the facts and circumstances of a
specific project.
|
B.
For expansion or renovation of any existing facility or construction
of a new facility or leasehold improvements of an existing facility,
which is subject to the Pawtucket Percentage for Public Art Ordinance
and is eligible for tax stabilization under 363-78 of this article,
may be stabilized in accordance with the following tax exemption schedule,
subject to the requirements set forth in 363-80 of this article.
Year
|
Percentage Exempt from Tax
|
---|---|
1
|
100%
|
2
|
100%
|
3
|
95%
|
4
|
90%
|
5
|
85%
|
6
|
80%
|
7
|
75%
|
8
|
70%
|
9
|
65%
|
10
|
60%
|
11
|
55%
|
12
|
50%
|
13
|
30%
|
14
|
30%
|
15
|
20%
|
16
|
0%
|
Application procedure will be the same as for the Ten-Year Tax
Stabilization Program.
The above schedule may be modified at the discretion of the
City Council, after its review of the facts and circumstances of a
specific project.
|
In the event the expansion or renovation of any existing facility, construction of a new facility or leasehold improvements of an existing facility exceeds $20,000,000 in taxable value, as determined by the City Assessor, the amount of the tax stabilization and the length of term of the stabilization may be granted to 20 years as determined by the City Council, subject to the requirements set forth in § 363-80 of this article.
[Amended 2-6-2020 by Ch. No. 3214]
Year
|
Percentage Exempt from Tax
|
---|---|
1
|
100%
|
2
|
100%
|
3
|
95%
|
4
|
90%
|
5
|
85%
|
6
|
80%
|
7
|
75%
|
8
|
70%
|
9
|
65%
|
10
|
60%
|
11
|
55%
|
12
|
50%
|
13
|
45%
|
14
|
40%
|
15
|
35%
|
16
|
30%
|
17
|
25%
|
18
|
20%
|
19
|
15%
|
20
|
0%
|
Application procedure will be the same as for the Ten-Year Tax
Stabilization Program.
The above schedule may be modified at the discretion of the
City Council, after its review of the facts and circumstances of a
specific project.
|