AN ORDINANCE AMENDING ORDINANCE NUMBER 15-011
ENTITLED "ESTABLISHMENT OF A
TAX EXEMPTION AND TAX STABILIZATION
AGREEMENT FOR PROPERTY LOCATED AT
184 WOONASQUATUCKET AVENUE,
NORTH PROVIDENCE, RHODE ISLAND"
IT IS HEREBY ORDAINED BY THE TOWN OF NORTH PROVIDENCE THAT ORDINANCE NUMBER 15-011 THAT WAS ADOPTED ON SEPTEMBER 1, 2015 BE AMENDED TO READ AS FOLLOWS:
SECTION 1: RECITALS:
WHEREAS, THETA PROPERTIES, INC., a Rhode Island business corporation ("Theta"), is the present record owner of the real property designated as 184 Woonasquatucket Avenue, North Providence, Rhode Island 02911, also referred to as North Providence Tax Assessor's Plat 10, Lot 91 (the "Property");
WHEREAS, the Property was originally built and operated as a textile mill and for at least the past thirty years has been utilized as a rental facility for commercial and industrial tenants,
WHEREAS, Theta has entered into an agreement with an affiliated entity known and styled as LYMAN LOFTS DEVELOPERS LLC, a Rhode Island limited liability company ("Lyman Lofts") whereby Lyman Lofts will purchase the property from Theta;
WHEREAS, Lyman Lofts has contracted with THE BAILEY GROUP, a Rhode Island limited liability company ("Bailey") to renovate and convert the Property into residential rental units;
WHEREAS, Theta/Lyman Lofts has duly obtained permission and authority from the North Providence Town Council and Planning Board to renovate and convert a portion of the Property into residential units;
WHEREAS, Theta/ Lyman Lofts has duly complied with the requirements of the HISTORICAL PRESERVATION & HERITAGE COMMISSION so that the Property is designated as an historical site and is entitled to the benefits of such designation;
WHEREAS, it is in the best interest of the Town of North Providence to encourage the restoration and conversion of its old mill properties and particularly the Property located at 184 Woonsquatucket Avenue, North Providence Rhode Island into useful, for profit operations;
WHEREAS, in order to insure the viability of the restoration and conversion of the Property into residential units, the Town of North Providence has agreed to enter into a Tax Exemption and Stabilization Agreement with the Theta and Lyman Lofts, the present and intended future owner of the Property (the "Tax Stabilization Agreement");
WHEREAS, the Town of North Providence has authority pursuant to R.I. Gen. Laws ?44-3-9 to exempt and stabilize, in whole or in part, real and personal property taxes upon the determination that the "Granting of the exemption or stabilization of taxes will inure to the benefit of the city or town by reason of the willingness of a manufacturing or commercial or residential firm or property owner to construct new or to replace, reconstruct, convert, expand, retain or remodel existing buildings, facilities, machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment resulting in an increase or maintenance in plant, residential housing or commercial building investment by the firm or property owned in the city or town";
WHEREAS, Theta/Lyman Lofts have committed to make significant investments in the property located at 184 Woonasquatucket Avenue, North Providence, Rhode Island to ensure the properties sustainability;
WHEREAS, the North Providence Town Council has determined that the granting of the exemption or stabilization will inure to the benefit of the Town of North Providence by reason of the willingness of Theta/Lyman Lofts to convert and remodel the existing building or buildings located on the Property into residential "rental" units thereby resulting in an increase in residential "rental" housing within the Town of North Providence at the Property.
SECTION II: Article V, Chapter 32, Section 32-39 of the North Providence Code of Ordinances shall read as follows:
Section 32-39.1 -DEFINITIONS:
The following terms -shall have the following meanings:
(i) "Commencement Date" means the date of the adoption of this
Ordinance by the Town of North Providence Town Council or January 1, 2016 whichever is later.
(ii) "Real Property" means the land and buildings located and designated as 184 Woonasquatucket Avenue, North Providence, Rhode Island as set forth in Exhibit A attached hereto, and identified in the Town of North Providence Tax Assessor's records as Plat 10, Lot 91.
(iii) "Personal Property" means any and all tangible personal property in which Lyman Lofts, its successor and assigns, have ownership and that is located on the Property.
(iv) "Stabilized Payments" mean the amount set forth in the Stabilized Tables in 32-39.3.2 & 32-39.3.3 below.
(v) "Term of this Agreement" means the period commencing on the Commencement date and ending December 31, 20232.
(vi) "Project Owner" shall be Theta Properties, Inc. or Lyman Lofts Developers, LLC.
(vii) "Termination Date" shall mean eight sevefi. (87) years from the Commencement Date.
Section 32-39.2 Term. The term of this Ordinance shall be a period commencing upon the Commencement Date and terminating on the Termination Date.
Section 32-39.3. Stabilization Payments-:
Section 32-39.3.1. Determination of Stabilized Payments. Project Owner desires to enter into a positive partnership with the Town of North Providence to ensure that the Project Owner can forecast its potential tax liabilities appropriately and to ensure that the Town of North Providence receives adequate revenues for the provision of municipal services.
Section 32-39.3.2. Stabilized Plan for Real Property. After the Commencement Date, all taxes assessed, levied and collected on account of Real Property -shall be satisfied, in full, by payments made in accord with the Stabilized Payment Table, below:
After the Commencement date and commencing with calendar year 2016, all taxes assessed, levied and collected on account of the Real Property shall be satisfied, in full, by payments made in accord with the Stabilized Payment Tables below; except that in order to qualify for the tax benefit, commencing with tax
year 2019, the Property, that is the residential units, must be at least 25% occupied.
2016 (7/2016 Bill) Due 8/1/16 $33,889.00
2017 (7/2017 Bill) Due 8/1/17 33,889.50
2018 (7/2018 Bill) Due 8/1/18 33,889.5038,644.25
2019 (7/2019 Bill) Due 8/1/19 38,644.2577,2g8,50
2020 (7/2020 Bill) Due 8/1/20 77 288.50115,932.75
2021 (7/2021 Bill) Due 8/1/21 115,932.75151,577.00
2022 (7/2022 Bill) Due 8/1/22 154,577.00193,221.95
2023 (7/2023 Bill) 193,221.95
Section 32-39.3.3. Stabilized Plan for Personal Property. After the Commencement Date, all taxes assessed, levied and collected on account of Personal Property shall be satisfied, in full, by payments made in accord with the Stabilized Payment Table, below:
The Property Owner shall retain all applicable rights regarding any assessment as set forth under Rhode Island law, including R.I. Gen. Laws ?44-5-26.
Section 32-39.3.4 -Payment.
Payments shall be made by Project Owner directly to the Town of North Providence Tax Collector's Office. Failure to receive a stabilized tax bill shall not relieve Project Owner of its obligation to make Stabilized Payments herein. If for any reason the Project Owner does not receive an appropriate stabilized tax bill, the Project Owner shall have the responsibility and obligation to make reasonable inquiries to the Town of North Providence in order to have such a stabilized tax bill issued and thereafter to make payment of the same no later than the due dates provided herein.
Section 32-39.3.5- Property Taxation After the Termination Date/ Calendar Year 2022:
After the Termination Date, that being calendar year 20232, the Town of North Providence shall have the right to assess, levy and collect all property taxes in accord with existing laws and the Project Owner shall have all rights of a taxpayer. As such, after the Termination Date or calendar year 2023,2 both the Real and Personal Property shall be taxed at One Hundred Percent (100%) of assessed value at then current rates (unless otherwise modified by Rhode Island law or North Providence Ordinance).
Section 32-39.4. Satisfaction of Obligations,:
The Town of North Providence agrees that so long as the Stabilized Payments are made by the Project Owner, in accordance with the terms of this Ordinance, the Town of North Providence shall accept said payments in full satisfaction of the obligations of the Project Owner as to the payments of any and all taxes, including real and personal property assessments, to the Town of North Providence which could otherwise be levied upon the Real and Personal Property.
Section 32-39.5 Beneficiaries of Ordinance:
The Town of North Providence expressly acknowledges that any and all future owners of the Property are intended to be beneficiaries of this Ordinance, and the provisions herein will apply with the same force and effect, except that if the Project Owner loses title to the Property as a result of a foreclosure or tax sale, this Ordinance will have no further effect on a future owner of the Property.
Notwithstanding, the beneficiary language in this section shall only apply so long as the Real and Personal Property is utilized for residential "rental" units.
Furthermore, upon a sale of the Real Property and/or substantially all of the Personal Property, the Transacting Parties shall pay all outstanding property taxes at the time of sale.
Section 32-39.5 Effective Date:
This Ordinance shall become effective immediately upon the Commencement
Section 32-39.6 -Applicable Law:
This Agreement and/or Ordinance shall be construed under the laws of the State of Rhode Island and the Town of North Providence.
Section 32-39.7 Severability. If any one section of this Ordinance is found to be unenforceable, then the other provisions herein shall continue to have the same force and effect as if the unenforceable provision were not passed as part of this Ordinance.
Section 32-39.8 All existing ordinances or parts thereof inconsistent herewith are hereby repealed.
Section 32-39.9. This Ordinance shall take effect upon its adoption. APPROVED AS TO FORM AND LEGALITY
THIS ORDINANCE WILL BE HEARD ON DECEMBER 5, 2017 AT THE NORTH PROVIDENCE TOWN HALL, COUNCIL CHAMBERS, 2000 SMITH STREET, NORTH PROVIDENCE AT 7PM