§ 42-63.5-4. Additional provisions of Public Investment and HOV Agreement and Ground Lease.
(a)(1) Notwithstanding the provisions of any other general or special law, and subject to
the approval of and upon terms acceptable to the EDC, the Public Investment and HOV
Agreement and the Ground Lease shall provide for, among other things: (i) payment
to the developer of an annual sum payable in monthly installments, for a period of
twenty (20) years, the sum to be calculated in accordance with the following subdivisions
and evidenced by an economic development note of the EDC having a term not exceeding
twenty (20) years to be secured by a capital reserve fund under § 42-64-18(4), and (ii) an option for the State to acquire a one-half (½) interest in the garage
for nominal consideration to be exercised at any time during the last year of the
initial ninety-nine (99) year term of the Ground Lease.
(2) The annual payment due under the Public Investment and HOV Agreement and the economic
development note executed in connection with that agreement, in addition to parking
revenue from the HOV spaces in the garage, during the initial five (5) year period
shall be equal to the lesser of: (i) three million six hundred eighty thousand dollars
($3,680,000), or (ii) two-thirds (â…”) of the actual amount of sales tax generated from
retail sales transactions occurring at or within the Mall during the year reduced
by any payments required to be made to the Rhode Island Depositors Economic Protection
Corporation Special Revenue Fund ("DEPCOâ€�) 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 hundred sixty thousand dollars ($3,560,000),
or (ii) two-thirds (â…”) of the actual amount of sales tax generated from retail sales
transactions occurring at or within the Mall during the year reduced by payments required
to be made to DEPCO.
(4) In the event the annual payment due in one or more years is less than the maximum
applicable amount set forth above, and if the actual sales tax revenues derived from
the Mall in any subsequent year as adjusted for the required DEPCO payments referred
to above exceeds the maximum payment amount specified for the applicable years set
forth above, then the annual payment due for each subsequent year during the initial
twenty (20) year period shall be equal to the maximum amount applicable for the year
plus one-half (½) of the amount by which sales tax revenues derived from the Mall
in each subsequent year during the initial twenty (20) year period as adjusted for
the required DEPCO payments referred to above exceed the maximum amounts until the
aggregate amount of all underpayments below such maximum amounts for all preceding
years has been paid to the developer.
(5) No payment under either the Public Investment and HOV Agreement or the economic development
note, shall be due after the expiration of the initial twenty (20) year period.
(6) Notwithstanding the provision of any other general or special law, including, without
limitation, § 42-64-11, the Ground Lease shall be for an initial term of ninety-nine (99) years, with four
(4) successive options to extend for additional terms of ninety-nine (99) years each,
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 the EDC is required to make to the
developer pursuant to the Public Investment and HOV Agreement or economic development
note described herein.
(b) Notwithstanding the provisions of any other general or special 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 any amounts paid to the developer
under the Public Investment and HOV Agreement or the economic development note.