[1]
Editor's note: Former Chapter 3.96, which pertained to similar subject matter and derived from Ord. 07-16 and Ord. 2008-59, adopted 12/15/2008, was repealed 4/25/2011 by Ord. 2011-11.
It is the intention of the administration and the city council to offer a tax incentive to new businesses locating in commercially zoned property within the city of Cranston, as well as to offer said incentive to existing businesses that are expanding, in an effort to retain, strengthen, expand and increase its work force within the city. After public hearing pursuant to R.I.G.L. Section 44-3-9, the city council has determined that:
A. 
Granting of the exemption will inure to the benefit of the city by reason of (1) willingness of commercial concerns to locate in the city; or (2) the willingness of a commercial firm to expand facilities with an increase in employment or the willingness of a commercial concern to retain its facility in the city and not reduce substantially its work force in the city; or (3) an improvement of the physical plant of the city which will result in a long term economic benefit to the city and state; or
B. 
Granting of the exemption will inure to the benefit of the city by reason of the willingness of a commercial firm or property owner to replace, reconstruct, convert, expand, retain or remodel existing buildings or facilities with modern buildings or facilities resulting in an increase or maintenance in plant investment by the firm or property owner in the city.
(Ord. 2011-11, § 1, 4/25/2011)
The city council establishes a tax incentive program for construction of new commercial facilities or the expansion of current commercial facilities in C-1, C-2, C-3, C-4 and C-5 zoned parcels in the city of Cranston. This tax incentive program shall be for a period not exceeding ten (10) years and shall be subject to the following terms and conditions.
A. 
Eligible projects shall include:
1. 
Total new construction of a commercial facility consisting of a total floor plan of a minimum of three thousand (3,000) square feet and a minimum of ten (10) employees and a minimum construction cost greater than two million five hundred thousand dollars ($2,500,000.00).
2. 
Renovation of an existing building consisting of a total floor plan of three thousand (3,000) square feet and a minimum construction cost of greater than two million five hundred thousand dollars ($2,500,000.00).
3. 
The purchase of an existing facility with a minimum purchase price of two million five hundred thousand dollars ($2,500,000.00).
4. 
Nothing in this chapter shall be deemed to permit the exemption or stabilization herein provided for any commercial concern relocating from one city or town within the state of Rhode Island to another and must comply with R.I. Gen. Laws Section 44-3-9; and
5. 
Nothing in the chapter shall be deemed transferable to another.
B. 
For purposes of this section, commercial facility or property used for commercial purposes means any building or structures used essentially for offices or commercial enterprises, including but not limited to professional office space, e.g. brokerage and investment services, medical, legal and insurance uses, and operation centers, bank branches, restaurants but shall exclude any and all facilities or property used for retail sales.
C. 
New or expanding commercial facilities must apply for designation under this tax incentive program for the new or expanded construction. Further, the new or expanding business must submit a review of the financial status for a determination of need and must have obtained approval for eligibility for participation in this program prior to the receipt of a certificate of occupancy from the building inspector. Application forms are available in the office of economic development.
D. 
Eligibility for participation in this tax incentive program shall require the collective approval of the economic development director, finance director, building inspector, tax assessor, city planner, and the city council.
E. 
At the time of the application each business must commit to the creation of jobs:
1. 
Existing businesses expanding their facility must commit to increasing its employment over the course of ten (10) years.
2. 
New businesses moving their businesses to Cranston who either construct a new facility or purchase an existing facility must commit to creating a minimum of ten (10) jobs, and must maintain ten (10) jobs during the entire ten (10) year period to be eligible to continue to receive tax benefits.
a. 
New businesses or existing businesses expanding their facility must commit to increasing its employment of full time W-2 employees over the course of years.
b. 
Businesses must submit a copy of their quarterly wage and tax reports to the economic development department in the city of Cranston.
3. 
If the new business does not maintain the ten (10) new jobs during the entire ten (10) year period then the business shall no longer be entitled to receive the tax incentive benefit and shall be taxed at the regular rates and shall immediately be removed from the tax incentive program.
4. 
Businesses must submit a copy of their quarterly wage and tax reports to the economic development department in the city of Cranston.
F. 
All participating businesses either new or expanding are required to comply with all federal, state and municipal rules and regulations regarding job safety and hiring practices.
G. 
All new or expanding business including any and all subsidiaries, affiliates, subdivisions, parents or other entities of said businesses with ten (10) percent or more common ownership, unless otherwise approved by the city council, must provide proof that all municipal taxes, fees and other assessments are paid and current and have been current for the last three years in order for said business to be eligible under this tax incentive program.
H. 
Notwithstanding any vote and findings by the city council, the property shall be assessed for and shall pay that portion of the tax if any assessed by the city in which the real property is located, for the purpose of paying the indebtedness of the state or any political subdivision thereof to the extent assessed upon or apportioned to the city, and the interest thereon, and for appropriation to any sinking fund of the city, which portion of the tax shall be paid in full, and the taxes so assessed and collected shall be kept in a separate account and used only for that purpose.
I. 
The finance director, [the] city planner, the tax assessor, the building inspector and the director of economic development shall promulgate with city council approval such rules and regulations and provide suitable documents necessary to effect the purpose of this article.
J. 
The mayor shall submit to the finance committee in the month of March an annual report prepared by the city planner, the tax assessor and the director of economic development which will identify all businesses participating in this tax incentive program and shall verify the applicant's compliance with all provisions of this chapter. Said report shall include the amount of incentive granted to each business previously approved, the number of jobs and/or the amount of expansion created by said new businesses, and the remaining term for said incentive program for each business. Said annual report shall also include the assessed value, the taxes generated and the taxes defeased as a result of the participation in the tax incentive program for each participating business.
K. 
That for the entire duration of the ten (10) year tax incentive the aforementioned facility must be solely owned and operated by the recipient of said tax incentive. That if for any reason the recipient of said tax incentive vacates the aforementioned premises, abandons, or sells the facility to another entity, corporation, partnership or person, prior to the expiration of the ten (10) year tax incentive the city of Cranston shall have the right to perfect a lien (equal to the incentive amount given to date) placed upon said property pursuant to subsections (L) and (M) below. The city of Cranston shall also have the right to assess a penalty requiring the business to pay an amount equal to the total amount of the tax incentive given to the business to date.
L. 
That for the entire period of said tax incentive program (ten (10) years) the recipient of said tax incentive shall grant to the city of Cranston a lien encumbering said property including all improvements placed thereon, in the amount of the value of the tax incentive. Said lien shall be filed with the land evidence records of the city of Cranston.
M. 
The terms of said lien shall include the right of the city of Cranston to perfect a lien without further notice to recipient of said tax incentive upon the following conditions:
1. 
The sale of aforementioned site to any corporation, individual, partnership and the like including any other owner other than the recipient of said tax incentive.
2. 
The non-payment or late payment of any tax, use charge, or assessment levied by the city of Cranston associated with the use and occupation of any site owned by said applicant in the city of Cranston.
3. 
The abandonment by recipient of said tax incentive of said property.
N. 
That in the event the city of Cranston perfects said tax lien due to a default of any provision contained in subsection (M) above, the city of Cranston shall be entitled to the entire amount of the lien regardless of when said default should occur. The city of Cranston may consider subordination of its lien upon a reasonable request made by either the owner of the property of their lender. Nothing contained in this chapter shall hamper, impede or prevent the financing of the property owner or the reasonable requests of the financial institution with whom the property owner conducts business.
O. 
Failure to timely pay the taxes under this incentive program when due (in addition to the foreclosure remedies provided herein) will result in forfeiture of all future benefits under this program and all future taxes due to be assessed without the benefit of the incentives.
P. 
Upon the expiration of the ten (10) year tax incentive program and the compliance with all terms by the recipient of said tax incentive, the city of Cranston shall provide a release of the lien described herein.
(Ord. 2011-11, § 1, 4/25/2011; Ord. 2023-15, § 1, 5/22/2023)
A. 
First Year. Businesses shall pay an amount equal to ten (10) percent or more of its total real estate property tax (excluding land) for new construction or an amount equal to ten (10) percent or more of any additional real estate property tax attributable to the addition or expansion to the existing structure.
B. 
Second Year. Businesses shall pay an amount equal to twenty (20) percent or more of its total real estate property tax (excluding land) for new construction or an amount equal to twenty (20) percent or more of any additional real estate property tax attributable to the addition or expansion to the existing structure.
C. 
Third Year. Businesses shall pay an amount equal to thirty (30) percent or more of its total real estate property tax (excluding land) for new construction or an amount equal to thirty (30) percent or more of any additional real estate property tax attributable to the addition or expansion to the existing structure.
D. 
Fourth Year. Businesses shall pay an amount equal to forty (40) percent or more of its total real estate property tax (excluding land) for new construction or an amount equal to forty (40) percent or more of any additional real estate property tax attributable to the addition or expansion to the existing structure.
E. 
Fifth Year. Businesses shall pay an amount equal to fifty (50) percent or more of its total real estate property tax (excluding land) for new construction or an amount equal to fifty (50) percent or more of any additional real estate property tax attributable to the addition or expansion to the existing structure.
F. 
Sixth Year. Businesses shall pay an amount equal to sixty (60) percent or more of its total real estate property tax (excluding land) for new construction or an amount equal to sixty (60) percent or more of any additional real estate property tax attributable to the addition or expansion to the existing structure.
G. 
Seventh Year. Businesses shall pay an amount equal to seventy (70) percent or more of its total real estate property tax (excluding land) for new construction or an amount equal to seventy (70) percent or more of any additional real estate property tax attributable to the addition or expansion to the existing structure.
H. 
Eighth Year. Businesses shall pay an amount equal to eighty (80) percent or more of its total real estate property tax (excluding land) for new construction or an amount equal to eighty (80) percent or more of any additional real estate property tax attributable to the addition or expansion to the existing structure.
I. 
Ninth Year. Businesses shall pay an amount equal to ninety (90) percent or more of its total real estate property tax (excluding land) for new construction or an amount equal to ninety (90) percent or more of any additional real estate property tax attributable to the addition or expansion to the existing structure.
J. 
Tenth Year. Businesses shall pay an amount equal to one hundred (100) percent of its total real estate property tax (excluding land) for new construction or an amount equal to one hundred (100) percent of any additional real estate property tax attributable to the addition or expansion to the existing structure.
(Ord. 2011-11, § 1, 4/25/2011; Ord. 2023-15, § 1, 5/22/2023)