§ 42-63.5-3 - Property taxes.
SECTION 42-63.5-3
§ 42-63.5-3 Property taxes. – (a) Notwithstanding the provisions of any other general or special law to thecontrary, the EDC and the City are authorized to enter into and execute a taxtreaty agreement with the developer with respect to all real and personalproperty taxes or payments in lieu of these taxes which relate to theProvidence Place Project, including, without limitation, the real propertywhich constitutes the Project Site, and including the real and personalproperty of owners, tenants, and occupants of the Project Site, as well asprovisions dealing with the revitalization of the downtown district of the Cityand the development of the Capital Center District of the City and any othermatters and terms, without limitation, as both the EDC and the City shall deemadvisable. The tax treaty agreement shall provide, among other things, for: (i)the stated term set forth in paragraph (ii) below, (ii) fixing the amount oftax payments or payments in lieu of tax due for each year of the term as setforth in the following Schedule A:
SCHEDULE A
SEE THE BOOK FOR THE PROPER TABLE.
**to be adjusted by the CPI over the prior year
and (iii) dedicating one hundred percent (100%) of thepayments during the first (20) twenty years in which the payments are required,and ninety percent (90%) during the next ten (10) years in which the paymentsare required to the amortization of costs incurred to finance or refinance theconstruction and development of the Providence Place Garage on which the Citywill hold an option to acquire a one-half ( 1/2) interest for nominalconsideration upon substantially the same terms as the State's option describedin § 42-63.5-4, the payments (together with liens related thereto and therights to enforce the liens) to be made or assigned directly to the lender orlenders or trustees for the lenders (as designated from time to time by thedeveloper) which are providing the original or subsequent financing orrefinancing of the Providence Place Garage (which may be separate or combinedwith the financing for the Mall portion of the Providence Place Project), forany period during the term of the agreement that the then outstanding amount ofprincipal, interest or other charges remaining due under this financing orrefinancing is equal to or greater than the last amount of the payments, and(iv) dedicating ten percent (10%) of the payment during the ten (10) years inwhich the payments are made to the city of Providence.
(b) The tax treaty agreement described in this section issubject to the approval of the city council of the city of Providence.