§ 45-33.2-3 - Definitions.
SECTION 45-33.2-3
§ 45-33.2-3 Definitions. – As used in this chapter, unless a different meaning clearly appears from thecontext, the following words have the following meanings:
(1) "Base date" means the last assessment date next precedingthe adoption of the project plan.
(2) "Project" means the undertaking of one or more of thefollowing activities in accordance with a project plan:
(i) The acquisition of land and improvements on it, if any,within the project area, and the assembly and clearance of the land so acquired,
(ii) The development, redevelopment, revitalization, orconservation of the project area through the construction or rehabilitation ofbuildings or other improvements or through acquisition by gift, purchase, oreminent domain of land and any improvements of the area, and demolition,removal, or rehabilitation of those improvements, whenever these activities arenecessary to provide land for and the development of needed municipal and otherpublic facilities or industrial or commercial development or revitalization, orto eliminate unhealthful, unsanitary, or unsafe conditions or lessen density,mitigate or eliminate traffic congestion, reduce traffic hazards, eliminateobsolete or other uses detrimental to the public welfare or otherwise remove orprevent the spread of blight or deterioration,
(iii) The provision of grants, loans, security or otherassistance from project revenues and other funds in connection with (A) homeand neighborhood improvement programs, (B) programs to acquire, renovate ortransfer abandoned or fully or partially vacated houses and (C) programs toacquire land, demolish buildings and other structures and clear andrehabilitate sites for the purpose of reducing building density or promotingnew housing construction, or
(iv) The provision of grants, loans, security or otherassistance from project revenues and other funds to combat poverty, improvemunicipal and neighborhood living conditions and enhance educational andemployment opportunities, including, without limiting the generality of theforegoing, by means of job training and retraining programs, literacy programs,apprenticeship programs, programs to provide post-secondary school educationalgrants or other assistance to students meeting eligibility criteria establishedin the project plan, programs to improve the performance of public schools,pilot projects to provide special or enhanced municipal services and commercialand industrial revitalization and development.
(v) A project may involve a combination of the previouslymentioned activities. A project may include the provision of financial andother assistance in the relocation of persons and organizations displacedthereby, and the planning and construction, reconstruction, or rehabilitationof public facilities.
(3) "Project area" except as set forth in this subdivision,means all or any portion of a "redevelopment area," as that term is defined in§ 45-31-8(15), in which the project is to be carried out; provided, thatthe following projects are not required to be in a "redevelopment area": (i)the acquisition and clearance of land and the construction on it of a municipalor other public facility under the definition of "project," paragraphs (2)(i)or(2)(ii); or (ii) a project described in paragraphs (2)(iii) or (2)(iv) of thedefinition of "project.". The project area may consist of one or more parcelsor lots of land, whether or not contiguous, or one or more buildings orstructures, whether or not adjacent, on one or more parcels of land. Theproject area may, but need not, be within the tax increment area. All or anyportion of a project area may be amended as provided in § 45-33.2-4. Aproject for which a designated beneficiary class or classes is established onthe basis of income and/or some other generally applicable criteria in theproject plan may have, but is not required to have, a project area.
(4) "Project plan" means a plan, which, except as set forthin this subdivision, is part of a "redevelopment plan," as that term is definedin § 45-31-8(16), adopted by a city or town in the manner provided in§ 45-33.2-4, for a project, provided, that a project plan for thefollowing projects is not required to be a part of a "redevelopment plan": (A)the acquisition and clearance of land and the construction on it of a municipalor other public facility under paragraphs (2)(i) or (2)(ii) of the definitionof "project"; or (B) a project under subdivision (2). The project plan shallpresent an estimate of project costs and the amounts and sources of funds to beused to defray those costs and shall include provisions for tax incrementfunding and/or financing of project costs in whole or in part. The taxincrement financing provisions of the project plan shall state the estimatedamount of indebtedness to be incurred pursuant to this chapter, an estimate ofthe tax increment to be generated as a result of the project, the method ofcalculating the tax increment, together with any provisions for adjustment ofthe method of calculation, and shall designate the board or officer of the cityor town responsible for calculating the tax increment. Funds may be provided tocarry out the plan from any lawful source, including the direct use of all orany portion of the tax increment therefore or the issuance of bonds under thischapter, but may not be provided by the issuance of general obligation bondsfor any purpose for which general obligation bonds could not be issued in theabsence of this chapter. The plan may include any other provisions that may bedeemed necessary in order to carry out the tax increment funding and/orfinancing of the project. The project plan shall not be inconsistent with thecomprehensive plan for the city or town as is then applicable, shall besufficiently complete to indicate the nature of any designated beneficiaryclass, as described in this subdivision, the location and boundaries of anyproject area and of the tax increment area, and land acquisition, demolition,removal and rehabilitation of structures and development, redevelopment, andgeneral public improvements that are proposed to be carried out within theproject area, and to the extent applicable the plan shall indicate the proposedmethod for relocation of persons or organizations that may be displaced as aresult of carrying out the project.
(ii) Once adopted by the legislative body of a city or town,a project plan may be amended to add additional projects, to increase theestimated amount of indebtedness to be incurred pursuant to this chapter or toamend all or any portion of a project area or the designation of a beneficiaryclass relating to any project contained in the project plan, in the mannerprovided in § 45-33.2-4. Each project contained in a project plan shalleither have a project area designated in the project plan or there shall beestablished in the project plan a designated beneficiary class or classes (fromwhose members the actual beneficiaries shall be chosen) on the basis of income(with provision for revision of income limits due to inflation and otherexternal economic factors) or some other generally applicable criteria;provided, that a project may have both a project area and a designatedbeneficiary class or classes.
(5) "Project revenues" means any receipts of a city or townwith respect to a project or the tax increment area relating to it including,without limiting the generality of the foregoing, tax increments, repayments ofloans including loans made under § 45-33.2-5(13), investment earnings,proceeds of insurance, or disposition of property, and proceeds of borrowingunder this chapter.
(6) "Tax increment" means the tax levied on the real andpersonal property situated in or otherwise assignable for the purposes ofproperty taxation to a tax increment area, to the extent that the tax isattributable to an excess of the aggregate taxable valuation of the propertyover its aggregate taxable valuation as of the base date. The portion of thetax levy attributable to the increased valuation after the base date shall becalculated using the same classification factors as were used as of the basedate, or without classification factors if property was not classified for taxpurposes as of the base date. In calculating the tax increment there shall beexcluded from the tax the portion levied for the purpose of paying theprincipal of or interest on bonds, notes, and other evidences of indebtednesswhich are general obligations of the city or town. Prior to the actual use ofany portion of a tax increment to support or secure a project or portion ofone, unused tax increment may be deposited upon receipt into the general fundof the city or town, to be used in accordance with generally applicable law.Once the city or town has used any portion of the tax increment to support orsecure one or more projects or portions of them, only the excess of taxincrement may be deposited into the general fund of the city or town, to beused in accordance with generally applicable law, after satisfaction of: (i)the payment of the principal of or interest on any special obligation bondsissued under the provisions of § 45-33.2-6, as principal and interestshall then be due and owing; (ii) any requirement to fund any reserve or otheraccount or satisfy any other financial requirement which must be satisfied inconnection with the issuance of bonds or any other indebtedness or obligationincurred in connection with any project or portion of one; and (iii) anypayments made to directly fund any project or portion of one as provided in theproject plan therefor.
(7) "Tax increment area" means a tax increment areadesignated in a project plan adopted pursuant to § 45-33.2-4. The taxincrement area may consist of one or more parcels or lots of land, whether ornot contiguous, on one or more buildings or structures, whether or notadjacent, or on one or more parcels of land; provided, that upon adoption ofthe project plan the aggregate taxable valuation of the property within all taxincrement areas within the city or town does not exceed twenty-five percent(25%) of the taxable valuation of all property subject to taxation within thecity or town.