[Approved 10-21-1999 by Ch. No. 2539[1]]
[1]
Editor's Note: This chapter repealed former
Art. XI, Tax Treaty or Agreement Requests, approved 11-10-1994 by
Ch. No. 2372, as amended.
As used in this article, the following terms
shall have the meanings indicated:
The property owner or lessee who initiates the property stabilization
application process.
Includes those mill buildings designated by the State of
Rhode Island Enterprise Zone Council as a "Certified Mill Building."
Includes new facilities or the expansion of an existing facility
that exceeds 20% of the existing area of the building.
Includes those census tracts within the City of Pawtucket
that have been designated by the State of Rhode Island's Enterprise
Zone Council as an enterprise zone under the Council's guidelines.
Any building or structure used or intended to be used essentially
for offices, manufacturing or commercial enterprises.
Includes major renovations and/or retrofitting of existing
buildings which increases the total assessed tax value of the property
by more than 25% of the properties' current tax assessment.
The purpose of this ordinance is to encourage
the expansion of businesses, within the City of Pawtucket, by granting
property tax incentives for the substantial renovation or construction
of business or commercial properties, including properties used to
promote travel and tourism, when in conjunction with the construction
or substantial renovation of the business or commercial property,
new jobs are created in the City of Pawtucket for City residents.
A.
All legally permitted commercial and industrial facilities
within the City of Pawtucket which meet the qualifications established
in this article are eligible to participate.
B.
Any applicant business and/or property owner must
be current on all tax payments to the City of Pawtucket 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 owner's facilities shall
be current on all real estate tax payments to the City of Pawtucket
when the owner applies for the benefits, and when the stabilization
is granted.
C.
Prior to authorizing any property tax stabilization
for a property, the Collections office shall be required to issue
a written certification indicating that the applicant business and/or
property owner is current on all appropriate tax payments to the City
of Pawtucket. Any payments that are in arrears on the property shall
render the applicant ineligible for the incentives offered though
this article. A copy of this certification shall be included in the
application for the stabilization of property taxes on the property.
D.
The property which is the subject of the application
must conform with all City and state zoning laws and building and
fire codes prior to the authorization of any property tax stabilization
for the applicant. The Director of Building and Code Enforcement shall
issue a written certification that the property does so conform. A
copy of this certification shall be included in the application for
the stabilization of property taxes on the property.
E.
Participation in property tax stabilization requires
the participant to create at least three jobs in the City of Pawtucket,
and that 1/3 of those jobs employ residents of the City of Pawtucket.
The participant is also required to either substantially renovate
the property or perform new construction on the premises.
F.
Each permanent, full-time job with a minimum work
week of 30 hours per week, and which pays 125% of the current federal
minimum hourly wage, shall be counted as one job. All permanent part-time
job hours shall be totaled and divided by 30 to determine the number
of full-time equivalent jobs. Temporary employees shall not be counted
for the purpose of eligibility for property tax stabilization.
G.
Notice of a tax delinquency and/or failure to comply
with City and state zoning laws and building and fire codes shall
be sent to the property owner by registered mail not more than 30
days after the tax delinquency and/or failure to comply with the City
and state zoning laws and building and fire codes by the Director
of the Collections Department, or the Director of Building and Code
Enforcement, respectively.
A.
For new construction of industrial buildings there
will be a five-year phase-in period for the increased property assessment.
The percentage of the increased assessment will be according to the
following table:
|
Percentage of Increased Assessment
| ||||||
|---|---|---|---|---|---|---|
|
New Jobs Created
|
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Year 5
| |
|
3-14 or equal to 20% of existing work force
|
50%
|
60%
|
75%
|
85%
|
100%
| |
|
15-74 or equal to 30% of existing work force
|
50%
|
60%
|
70%
|
80%
|
100%
| |
|
75-399 or equal to 40% of the existing work
force
|
40%
|
55%
|
65%
|
75%
|
100%
| |
|
Over 400 or equal to 50% of existing work force
|
30%
|
45%
|
60%
|
75%
|
100%
| |
B.
For substantial renovations of existing buildings
in designated enterprise zones and certified mill buildings, there
will be a seven-year phase-in period for the increased property assessment.
The following table shows the scheduled phase-in for the full assessment.
|
Percentage of Increased Assessment
| ||||||||
|---|---|---|---|---|---|---|---|---|
|
New Jobs Created
|
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Year 5
|
Year 6
|
Year 7
| |
|
3-14 or equal to 20% of existing work force
|
50%
|
60%
|
70%
|
80%
|
90%
|
100%
|
100%
| |
|
15-74 or equal to 30% of existing work force
|
50%
|
60%
|
70%
|
75%
|
80%
|
90%
|
100%
| |
|
75-399 or equal to 40% of the existing work
force
|
50%
|
50%
|
65%
|
75%
|
75%
|
80%
|
100%
| |
|
Over 400 or equal to 50% of existing work force
|
50%
|
50%
|
60%
|
65%
|
75%
|
75%
|
100%
| |
C.
For substantial renovations of existing buildings
that have been vacant for more than one year, there will be a five-year
phase-in period for the increased property assessment. The following
table shows the scheduled phase-in of the increased assessment.
|
Percentage of Increased Assessment
| ||||||
|---|---|---|---|---|---|---|
|
New Jobs Created
|
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Year 5
| |
|
3-14 or equal to 20% of existing work force
|
50%
|
60%
|
75%
|
85%
|
100%
| |
|
15-74 or equal to 30% of existing work force
|
50%
|
60%
|
70%
|
80%
|
100%
| |
|
75-399 or equal to 40% of the existing work
force
|
40%
|
55%
|
65%
|
75%
|
100%
| |
|
Over 400 or equal to 50% of existing work force
|
30%
|
45%
|
60%
|
75%
|
100%
| |
D.
At the end of the phase-in period for the increased
property assessment, as determined by the type of property granted
the stabilization, the new value of the property will be taxed at
the normal rate for the City of Pawtucket.
E.
The exemption provided for herein does not relate
to the value of land, but to the value of related improvements only.
Tax assessment and collection practices and procedures will be the
same as for any other property except for the application of the tax
exemption provided for herein.
F.
Leasehold improvement will be classified as real property
in order to qualify for the exemption herein, provided that they are
physically attached to the building.
G.
All exemptions granted pursuant to this tax stabilization
program are nontransferable. In the event that the property is sold
during the term of the stabilization program, the new owner may reapply
for the tax exemption under the procedures outlined in this article.
The application procedure shall proceed as follows:
A.
Business or property owners planning to utilize this
program shall apply for the program prior to or at the same time as
they file for any required building permit(s). The application shall
be submitted on the forms and in the format provided by the Tax Assessor's
office. The application shall also include copies of the certifications
obtained from the Department of Collections and the Director of Building
and Code Enforcement, which are no greater than 30 days old, which
establish that all taxes and fees owing on the property are paid,
and that the building is in conformance with all applicable City and
state zoning, fire and building occupancy codes.
B.
Upon receiving an application, the Tax Assessor shall
assess the current value of the property and estimate the improved
value of the property after the proposed renovation or new construction
is complete.
C.
Upon the processing of the application, the Tax Assessor
shall notify the business or property owner of the Assessor's approval
or denial of the request and, if denied, the reason for that denial.
D.
If the Tax Assessor denies the application, within
30 days of that decision the applicant may appeal the matter to the
City Council for a determination on whether or not the Tax Assessor
should reconsider his decision.
E.
If the Tax Assessor's approval is secured, the applicant
will contact the City Clerk and have the matter scheduled on the City
Council's agenda for referral to the City Council Finance Committee.
In the event that Finance Committee approval is secured, 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 Rhode Island General Laws § 44-5-61.2.
F.
If the City Council determines that granting of the
stabilization or exemption for qualifying property will inure to the
benefit of the City of Pawtucket, by reason of the willingness of
the owners to improve existing structures or build new structures,
and that these improvements or buildings will lead to an increase
of jobs for residents in the City of Pawtucket, the City Council may
approve the application after a public hearing on the matter.
G.
The period of tax reduction called for in an application
phase-in schedule shall commence immediately following City Council
approval and the issuance of a certificate of occupancy for the facility.
H.
Employment projections, submitted by the business
occupying the qualifying property and approved by the Tax Assessor,
and the estimated value of the improvements on the property, shall
provide the basis for selection of an applicable phase-in schedule
for the first year of tax reduction.
A.
Prior to December 15 of each calendar year following
the issuance of a certificate of occupancy during the phase-in period,
each business shall submit a certified payroll including all new employees
and current addresses of those employees to the Tax Assessor and Director
of Planning and Redevelopment. In a case involving the expansion or
renovation of existing facilities, that business shall also submit
a certified payroll for the pay period immediately preceding the expansion
or renovation to the Tax Assessor and the Director of Planning and
Redevelopment.
B.
The Director of Planning and Redevelopment shall determine
the net number of new qualifying jobs that were created under this
program, and whether or not 1/3 of those positions have been filled
by Pawtucket residents for every application. For every position that
is created where 1/3 of those positions were filled by Pawtucket residents,
the Director of Planning and Redevelopment shall submit said number
to the Tax Assessor prior to December 31 of that year.
C.
The Tax Assessor shall reassess the value of the property
to ensure compliance with the requirement that the value of the property
has increased, based on whether the property is new construction or
has undergone a substantial renovation. The submitted payroll(s),
residency determinations and final tax assessment of the property
shall provide the basis for the selection of an appropriate phase-in
schedule for the remaining years of the tax stabilization.
D.
In the event that the applicant is delinquent on any
tax or fees owing the City of Pawtucket they shall be removed from
the program and all real property taxes on the effected property shall
be immediately owing based on the full assessed value of the property
for the year effected.
E.
Failure to comply with City and state zoning laws
and building and fire codes, shall result in the termination of any
tax stabilization benefits and the reinstatement of the full assessed
tax value for the year in which the benefit is terminated.
F.
All businesses and/or property owners who qualify
for benefits under this article must comply with all federal and state
regulations concerning job safety and affirmative action. Failure
to comply with these regulations shall result in the termination of
any tax stabilization benefits and the reinstatement of the full assessed
tax value for the year in which the benefit is terminated.
G.
In the event that a property or business is sold that
secured benefits under this article, all benefits under this article
shall terminate 90 days after the closing on the property or business
by the new property owner, and the full amount of taxes assessed on
the property for that calendar year will be due when the stabilized
taxes would have been due in the event that the new owner does not
apply and receive benefits under this program within those 90 days.
H.
In the event that a property and/or business owner
does not create enough jobs, either in number or in its employment
of City of Pawtucket residents, or if a property and/or business owner
does not pay the employees 125% of the then-current federal hourly
minimum wage, any benefits received under this article shall be terminated
and 100% of the property taxes owing on the property for that calendar
year shall become due when the otherwise stabilized tax amount would
have been due.
I.
The Tax Assessor shall notify the business of its
removal from the program. Appeals of any administrative decisions
by the Tax Assessor shall be made by an applicant or qualifying property
owner to the City Council. Such an appeal must be made within 30 days
of the decision by the Tax Assessor to be heard by the City Council.
Once an appeal is requested, the Tax Assessor shall transmit a copy
of the annual report, certified payroll, the number of new jobs the
property or qualified business created in the previous year, as determined
by the Director of Planning and Redevelopment, and the assessed value
of the property, both prior and subsequent to the new construction
or substantial renovation of the property.
J.
The Director of Planning and Redevelopment and the
Tax Assessor shall jointly prepare and submit an annual report to
the Mayor and City Council, identifying all businesses receiving benefits
under this article no later than the end of the first quarter of every
calendar year. Additionally, this ordinance 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 tax stabilization program.
K.
The City of Pawtucket reserves the right to terminate
this program at any time through action of the City Council, and nothing
herein shall preclude the City of Pawtucket from amending, revising
or expanding this program by action of the City Council.
