[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Editor's Note: This chapter repealed former Art.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:
APPLICANT
The property owner or lessee who initiates the property stabilization application process.
CERTIFIED MILL BUILDING
Includes those mill buildings designated by the State of Rhode Island Enterprise Zone Council as a "Certified Mill Building."
CONSTRUCTION
Includes new facilities or the expansion of an existing facility that exceeds 20% of the existing area of the building.
ENTERPRISE ZONE
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.
PROPERTY
Any building or structure used or intended to be used essentially for offices, manufacturing or commercial enterprises.
SUBSTANTIAL RENOVATION
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.