§ 42-63.5-4 - Additional provisions of Public Investment and HOV Agreement and Ground Lease.
SECTION 42-63.5-4
§ 42-63.5-4 Additional provisions ofPublic Investment and HOV Agreement and Ground Lease. – (a) Notwithstanding the provisions of any other general or special law, andsubject to the approval of and upon terms acceptable to the EDC, the PublicInvestment and HOV Agreement and the Ground Lease shall provide for, amongother things: (i) payment to the developer of an annual sum payable in monthlyinstallments, for a period of twenty (20) years, the sum to be calculated inaccordance with the following subdivisions and evidenced by an economicdevelopment note of the EDC having a term not exceeding twenty (20) years to besecured by a capital reserve fund under § 42-64-18(4), and (ii) an optionfor the State to acquire a one-half ( 1/2) interest in the garage for nominalconsideration to be exercised at any time during the last year of the initialninety-nine (99) year term of the Ground Lease.
(2) The annual payment due under the Public Investment andHOV Agreement and the economic development note executed in connection withthat agreement, in addition to parking revenue from the HOV spaces in thegarage, during the initial five (5) year period shall be equal to the lesserof: (i) three million six hundred eighty thousand dollars ($3,680,000), or (ii)two-thirds ( 2/3) of the actual amount of sales tax generated from retail salestransactions occurring at or within the Mall during the year reduced by anypayments required to be made to the Rhode Island Depositors Economic ProtectionCorporation Special Revenue Fund ("DEPCO") pursuant to § 44-19-40.
(3) The annual payment due during the second fifteen (15)year period shall be equal to the lesser of: (i) three million five hundredsixty thousand dollars ($3,560,000), or (ii) two-thirds ( 2/3) of the actualamount of sales tax generated from retail sales transactions occurring at orwithin the Mall during the year reduced by payments required to be made toDEPCO.
(4) In the event the annual payment due in one or more yearsis less than the maximum applicable amount set forth above, and if the actualsales tax revenues derived from the Mall in any subsequent year as adjusted forthe required DEPCO payments referred to above exceeds the maximum paymentamount specified for the applicable years set forth above, then the annualpayment due for each subsequent year during the initial twenty (20) year periodshall be equal to the maximum amount applicable for the year plus one-half (1/2) of the amount by which sales tax revenues derived from the Mall in eachsubsequent year during the initial twenty (20) year period as adjusted for therequired DEPCO payments referred to above exceed the maximum amounts until theaggregate amount of all underpayments below such maximum amounts for allpreceding years has been paid to the developer.
(5) No payment under either the Public Investment and HOVAgreement or the economic development note, shall be due after the expirationof the initial twenty (20) year period.
(6) Notwithstanding the provision of any other general orspecial law, including, without limitation, § 42-64-11, the Ground Leaseshall be for an initial term of ninety-nine (99) years, with four (4)successive options to extend for additional terms of ninety-nine (99) yearseach, subject to the conditions set forth in the Ground Lease.
(7) Subject to annual appropriation by the general assembly,the State shall pay to the EDC an amount equal to the annual payment, which theEDC is required to make to the developer pursuant to the Public Investment andHOV Agreement or economic development note described herein.
(b) Notwithstanding the provisions of any other general orspecial law to the contrary, including without limitation the provisions of§ 42-64-18(5), the EDC shall have no obligation to repay to the State anyamounts paid to the developer under the Public Investment and HOV Agreement orthe economic development note.