Finance Committee

FINANCE COMMITTEE

NOTICE OF PUBLIC HEARING

A Public Hearing on the following proposed Ordinance will be held before the Finance Committee on Thursday, November 12, 2015 at 6:30 p.m. Council Chambers, 869 Park Avenue, Cranston, RI. pursuant to Section 3.12 of the Charter.

Complete copies of proposed Ordinances are available for public review at the City Clerk’s Office and the Cranston Central Library and can be viewed on the City’s website cranstonri.com under calendar by clicking on the meeting date.

“Individuals requesting interpreter services for the deaf or hard of hearing must notify the City Clerk’s Office at 461-1000 ext. 3197 seventy-two (72) hours in advance of the hearing date.”

Steven A. Stycos, Chair Maria Medeiros Wall, JD

Finance Committee City Clerk

PROPOSED ORDINANCE NO. 10-15-02 IN AMENDMENT OF CHAPTER 3 OF THE CODE OF THE CITYOF CRANSTON, 2005, ENTITLED ‘REVENUE AND FINANCE’ (Tax Incentive Industrial 15 and 20 years)

A. Findings and Purpose. The purpose of the ordinance is to offer a phase-in of increased real estate property tax payments as an incentive to new and existing businesses in industrial zoned areas to increase Cranston’s commercial tax base and workforce.

1. Granting of the incentive would attract industrial concerns to the city, would encourage the retention, expansion, improvement, redevelopment, and conversion of industrial activities within the city, and would promote the development and redevelopment of industrial areas, including areas requiring environmental remediation, within the city. Granting of the exemption would encourage industrial property owners and firms to replace, reconstruct, convert, expand, retain or remodel existing, facilities.

B. Program Description. The tax incentive program would provide for a phase-in of property tax payments related to the assessed value of new industrial zones facilities and the expansion or renovation of existing industrial zoned facilities, subject to conditions and restrictions.

1. Projects consisting of new construction, renovation, and/or purchase of facilities with a minimum project cost of $12,000,000 would be eligible for a 15 year phase-in and projects consisting of new construction, renovation, and/or purchase of facilities with a minimum project cost of $20,000,000 be eligible for a 20 year phase-in of increased property tax payments.

2. Prior to acquisition and construction, applicant may submit evidence of project cost to the Administration for approval and ratification by the City Council. Evidence of payment of project costs to be submitted upon completion of project.

3. In no event shall the property taxes payable upon any real estate be less than the amount of property taxes paid in the prior year as a result of a phase-in pursuant to this ordinance.

4. The City of Cranston shall place a lien on real estate for the duration of the property tax phase-in an aggregate amount equal to the total tax exemption.

5. Failure of the property owner to pay applicable taxes when due or to continue to use the property for a qualifying industrial use shall terminate disqualify the property from the benefit of the tax phase-in program.

6. A report of all projects participating in the phase-in program shall be made to the Finance Committee annually in the month of March.

Please see the complete proposed ordinance for detailed requirements and procedure for the phase in.

Summary prepared by Robert Coupe, Director of Administration

And approved by

Christopher Rawson, City Solicitor

11/5/15