TOWN OF BRISTOL PROPOSED ORDINANCE NO. 2012-05

AMENDMENT OF THE ORDINANCES OF THE TOWN OF BRISTOL REGARDING TAX STABILIZATION

IT IS HEREBY ORDAINED by the Town Council of the Town of Bristol, Rhode Island, that Chapter 27 of the Town Code be amended as follows:

Chapter 27 TAXATION

Article I. In General

Sec. 27-5. Tax stabilization incentive for industrial, commercial and manufacturing facil- ities.

(a) Purpose. The purpose of this section is to promote and encourage the use of vacant space, expansion, and relocation, or renovation of nonresidential industrial, commer- cial and manufacturing facilities in the town through tax stabilization with the goal of increasing employment within the town.

(b) Procedure. Any nonresidential industrial, commercial and manufacturing facility may, prior to receiving the proper building permits, apply for tax stabilization at the office of the director of community development. To qualify for tax stabilization a busi- ness must be certified by the tax assessor as meeting the enterprise zone standards then in effect for the state or other criteria established by the town council as here- inafter set forth and the treasurer must certify that the applicant is current with regard to tax payments. The tax assessor will then evaluate the property’s existing condition prior to any new construction, expansion of an existing facility or renovation work greater than or equal to 50 percent of the existing building value and will conduct another evaluation when a final inspection or certificate of occupancy is obtained. The tax assessor will then calculate the increase in the valuation and follow the tax stabi- lization guidelines in subsection (e) of this section. Such revaluation will not relate to the value of land or tangible property, but to the value of related improvements only and validate the assessed value of land and building. Any tax stabilization authorization will require an increase in quality employment proportionate to the increase in facility size or such increase in employment as determined by the council that there be no loss of employment after the vacant space is filled, new construction, expansion, or renova-

tion.

(c) Conditions. If the applicant defaults on any quarterly tax or other payment due the town (real estate, motor vehicle, sewer or personal property), the stabilization shall may be ordered by the town council to cease immediately. Any tax stabilization grant- ed under this section is non-transferable to any other party, unless approved by the town council. The tax stabilization shall cease immediately upon the vacating of the property or the nonresidential industrial, commercial or manufacturing facility ceases operation; and if the property is vacated or operations cease within eight years after the tax stabilization was granted, the applicant shall owe the town all of the taxes, and interest thereon which it did not pay as a result of the tax stabilization granted under this section. The applicant, its successors and assigns agree to allow the town to place an annual lien against the property which is benefiting from tax stabilization to secure any taxes and interest owed if the property is vacant or operations cease during the first eight years after tax stabilization is in effect on the property.

***

(e) Guidelines for the use of vacant space, expansions of an existing facility, or new facility construction, or renovation of existing facilities. Tax stabilization guidelines for expansions of existing facility or new facility construction or renovation work greater than or equal to 50 25 percent of the existing building value or the use of at least 25 percent of existing vacant space are as follows:

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

. …………. . …………. . …………. . …………. . …………. . ………….

Percent Exempt from Taxation . . . . .100 . . . . .80

. . . . .60 . . . . .40 . . . . .20 . . . . .0

Such relief is provided on the use of vacant space or the expansion of an existing facil- ity, a new facility or renovation, reconstruction, remodeling, or conversion work greater than or equal to 50 25 percent of the existing building value only and does not change or effect any preexisting valuation.

(f) Facilities investing over $1,000,000.00 $500,000.00 in expansion or construction the use of vacant space or the expansion of existing facilities, new construction, or reno-

vation of existing facilities. If the cost of expansion of an existing facility or construction of a new facility or renovation work is over $1,000,000.00 $500,000.00, the following tax stabilization guidelines shall apply:

Percent Exempt

from Taxation . . . . . . . . . . . . . . . . . . . .100

. . . . . . . . . . . . . . . . . . . .90 . . . . . . . . . . . . . . . . . . . .80 . . . . . . . . . . . . . . . . . . . .70

. . . . . . . . . . . . . . . . . . .10 ………………. 0

Such relief is provided on the use of vacant space or the expansion of an existing facil- ity, a new facility or renovation, reconstruction, remodeling, or conversion work greater than $1,000,000.00 $500,000.00 only and does not change or effect any preexisting valuation.

*** The provisions of this ordinance shall be effective as of January 1, 2011.

The Town Council will be in session in the Town Hall, Council Chambers, on September 19, 2012. If remonstrance in the meantime, a petition bearing the valid signatures of at least twenty (20) qualified voters must be filed with the Town Clerk requesting a Public Hearing, such hearing must be held before final action may be taken on said ordinance.

By Order of the Town Council Louis P. Cirillo, CMC COUNCIL CLERK

Year 1 Year 2 Year 3 Year 4 Year5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

. . . . . . . . . . . . . . . . . . . . .60 . . . . . . . . . . . . . . . . . . . .50 . . . . . . . . . . . . . . . . . . . .40 . . . . . . . . . . . . . . . . . . . .30 . . . . . . . . . . . . . . . . . . . .20

September 6, 2012

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