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CITY OF EAST PROVIDENCE

RHODE ISLAND

JOURNAL OF REGULAR COUNCIL MEETING

December 3, 2013

Council Chambers, City Hall, 145 Taunton Avenue, East Providence, RI 02914

7:00PM Executive Session - Claims Room, 101

7:30 P.M. Open Session

I. EXECUTIVE SESSION

The City Council of the City of East Providence will meet in Executive Session pursuant to RI General Laws § 42-46-5 (a) (2)

A. New Claims

1. Arbella Insurance Group (Insured Sheralyn & Jonathan Neuner)

2. Elaine Derosiers

3. Stephanie Duverge

4. Linda Guzman

II. CALL TO ORDER

III. SALUTE TO THE FLAG

IV. TO APPROVE THE CONSENT CALENDAR

All items under “CONSENT CALENDAR” are considered to be of a routine and noncontroversial nature by the City Council and will be enacted by one motion. There will be no separate discussion on these items unless a Council member so requests, in which event, the item will be removed from the “CONSENT CALENDAR” and will be considered in its normal sequence on the docket.

A. Letters

1. Notice of New Property Numbers:

69 Francis Avenue (02915) Map 412, Block 15, Parcel 004.1, Zoning R3

71 Francis Avenue (02915) Map 412, Block 15, Parcel 004.2, Zoning R3

Mount Development Group, LLC, 132 Old River Road, Lincoln (02865)

B. Cancellations/Abatements

Year	Amount

2008	$1, 122.07
2009	$1,360.83
2010	$324.63
2011	$510.12
2012	$2,178.72
2013	$130,624.86

Total	$136,121.23

C. Council Journals

1. Regular Council Meeting November 19, 2013

A motion to approve the Consent Calendar is made by Assistant Mayor Rose, seconded by Councilwoman Capobianco and on a roll call vote it is unanimous.

V. PUBLIC COMMENT

VI. LICENSES NOT REQUIRING PUBLIC HEARING

Licenses are granted subject to all required approvals from State and City departments.

A. Vict/Not Over 25 – Transfer (3 Locations 100 Newport Avenue, 1085 Waterman Avenue, 652 Bullocks Point Avenue)

From EDC Holdings LLC DBA Honey Dew Donuts, Ed DaCruz, 15 Sylvia Lane, Lincoln 902865) to EDC Holdings LLC DBA Honey Dew Donuts, Lawrence J. Silva, 24 Arthur Street, Seekonk, MA 02771

A motion to approve the License is made by Councilwoman Rossi, seconded by Assistant Mayor Rose and on a roll call vote it is unanimous.

B. Holiday Sales – Transfer (3 Locations 100 Newport Avenue, 1085 Waterman Avenue, 652 Bullocks Point Avenue)

From EDC Holdings LLC DBA Honey Dew Donuts, Ed DaCruz, 15 Sylvia Lane, Lincoln 902865) to EDC Holdings LLC DBA Honey Dew Donuts, Lawrence J. Silva, 24 Arthur Street, Seekonk, MA 02771

A motion to approve the License is made by Councilwoman Rossi, seconded by Assistant Mayor Rose and on a roll call vote it is unanimous.

C. Vict /Over 50

Don and Anthony’s at Sons of Italy, Inc, 99 Hicks Street (02914), Donald Cote, 97 Falcon Street, Warwick (02888)

A motion to approve the License is made by Assistant Mayor Rose, seconded by Councilman Cunha and on a roll call vote it is unanimous.

D. Vict/Not Over 25 – Transfer

E & Y Convenience, LLC, 665 North Broadway (02914), Mazen Abouchefeh, 30 Allen Avenue, Pawtucket (02860) to Broadway Market and Deli, Inc DBA Broadway Market and Deli 665 North Broadway (02914), Shaban H. Asaad, 145 Kenyon Avenue, Pawtucket (02861)

A motion to approve the License is made by Assistant Mayor Rose, seconded by Councilwoman Rossi and on a roll call vote it is unanimous.

E. Holiday Sales – Transfer

A motion to approve the License is made by Assistant Mayor Rose, seconded by Councilwoman Rossi and on a roll call vote it is unanimous.

F. Vict Not Over 25 – Change of Location

Jal Inc DBA Ronzio Pizza, 1055 South Broadway to Jal Inc, DBA Ronzio Pizza, 2777 Pawtucket Avenue, Justin Lavoie, 91 Anthony Street (02914)

A motion to approve the License is made by Assistant Mayor Rose, seconded by Councilwoman Rossi and on a roll call vote it is unanimous.

G. Vict Not Over 25 – Transfer

Adriance Group, Inc DBA E Prov on the Run, 900 Wampanoag Trail (02915) Karl Vucich, 21 Church Street, Mystic, CT (06355) to Adriance Group, Inc DBA East Providence Mobil, Mohamed F. Baccouche, 532 Great Road, North Smithfield (02896)

A motion to approve the License is made by Assistant Mayor Rose, seconded by Councilwoman Rossi and on a roll call vote it is unanimous.

H. Holiday Sales – Transfer

A motion to approve the License is made by Councilwoman Rossi, seconded by Councilwoman Capobianco and on a roll call vote it is unanimous.

VII. PUBLIC HEARING – ORDINANCES FINAL PASSAGE

A. An ordinance regarding a stop sign on Dorr Avenue eastbound and westbound traffic at its intersection with Smith Street.

A motion to dispense with the reading of the ordinance is made by Councilwoman Rossi, seconded by Assistant Mayor Rose and on a roll call vote it is unanimous.

AN ORDINANCE IN AMENDMENT OF CHAPTER 18 OF THE REVISED ORDINANCES OF THE CITY OF EAST PROVIDENCE, RHODE ISLAND, 1998, AS AMENDED, ENTITLED “VEHICLES AND TRAFFIC”

SECTION I. Subsection (b) of Sec. 18-269 entitled “Stop and yield intersections designated; when stops required.” is amended by adding thereto the following:

Dorr Avenue (eastbound and westbound traffic) at its intersection with Smith Street

SECTION II. This ordinance shall take effect upon second passage and all ordinances and parts of ordinances inconsistent herewith are hereby repealed.

Requested by: Director of Public Works

A motion to approve the Ordinance for Final Passage is made by Councilwoman Rossi, seconded by Assistant Mayor Rose and on a roll call vote it is unanimous.

VIII. NEW BUSINESS

A. City Managers Report

There is no City Manager’s Report

B. Reports of Other City Officials

1. Claims Committee Report (by City Solicitor Timothy Chapman)

Pursuant to R.I.G.L. § 42-46-5(a)(2), a motion is made by Councilman Rose and seconded by Councilman Cunha to convene in closed session for the purposes of discussing claims & litigation. Upon a roll call vote: Mayor Briden – Aye, Councilwoman Capobianco – Aye, Councilman Cunha - Aye, Councilman Rose – Aye, Councilwoman Rossi – Aye, the motion is approved 5-0.

EAST PROVIDENCE CLAIMS COMMITTEE

CLAIMS & LITIGATION REPORT

TUESDAY, DECEMBER 3, 2013; 7:00 P.M.; ROOM 101

====================================================================

NEW CLAIMS

ARBELLA INSURANCE GROUP $818.48

(INS: SHERALYN & JONATHAN NEUNER)

RM No. 13-050, Claim No. 13-057

Claim for property damage sustained to insured’s vehicle when a piece of metal from the City’s compost site hit the back window and rear deck area of the vehicle while it was parked at the Riverside Middle School.

Motion by: Councilman Rose Seconded by: Councilwoman Capobianco

Motion: Approve the claim in the amount of $818.48.

VOTE	MAYOR BRIDEN	COUNCILWOMAN CAPOBIANCO	COUNCILMAN CUNHA	COUNCILMAN ROSE	COUNCILWOMAN ROSSI
Aye	√	√	√	√	√
Nay
Abstain
Absent

ELAINE DEROSIERS $528.00

RM No. 13-061, Claim No. 13-050

Claim for reimbursement of medical expenses and personal property damage sustained when the claimant tripped and fell on tree roots in front of the clam shack located on the grounds of the carousel.

Motion by: Councilwoman Rossi Seconded by: Councilwoman Capobianco

Motion: Approve the claim in the amount of $528.00.

VOTE	MAYOR BRIDEN	COUNCILWOMAN CAPOBIANCO	COUNCILMAN CUNHA	COUNCILMAN ROSE	COUNCILWOMAN ROSSI
Aye	√	√	√	√	√
Nay
Abstain
Absent

STEPHANIE DUVERGE $3760.00

RM No. 13-084, Claim No. 13-058

Claim for reimbursement of expenses incurred and property damage sustained to claimant’s vehicle after being towed and stored by the police department. Recommend referral to the insurance carrier.

Motion by: Councilwoman Rossi Seconded by: Councilman Cunha

Motion: Refer the claim to the insurance carrier.

VOTE	MAYOR BRIDEN	COUNCILWOMAN CAPOBIANCO	COUNCILMAN CUNHA	COUNCILMAN ROSE	COUNCILWOMAN ROSSI
Aye	√	√	√		√
Nay
Abstain				√
Absent

LINDA GUZMAN $2019.47

RM No. 13-078, Claim No. 13-054

Claim for property damage sustained to claimant’s residence as a result of a legal forced entry by the police department. See recommendation of the Chief of Police.

Motion by: Councilman Cunha Seconded by: Councilman Rose

Motion: Deny the claim.

VOTE	MAYOR BRIDEN	COUNCILWOMAN CAPOBIANCO	COUNCILMAN CUNHA	COUNCILMAN ROSE	COUNCILWOMAN ROSSI
Aye	√	√	√	√	√
Nay
Abstain
Absent

A motion to approve the Claims Committee Report is made by Councilwoman Rossi, seconded by Councilman Cunha and on a roll call vote it is unanimous.

2. Council Meeting Dates 2014 (by City Clerk Kim Casci)

Council Meeting Dates	Claims Committee Meeting Dates
January 7 & 21	January 7 & 21
February 4 & 18	February 4 & 18
March 4 & 18	March 4 & 18
April 2 & 16	April 2 & 16
May 6 & 20	May 5 & 20
June 3 & 17	June 3 & 17
July 15	July 15
August 19	August 19
September 2 & 16	September 2 & 16
October 7& 21	October 7 & 21
November 5 (Wednesday due to Election Day), & 18	November 5 & 18
December 2 & 16	December 2 & 16

A motion to approve is made by Councilwoman Rossi, seconded by Assistant Mayor Rose and on a roll call vote it is unanimous.

C. Council Members

1. The Year In Review (by Mayor Briden)

Mayor Briden stated it’s been a good year in East Providence. He sees the headlines, the Google Settlement approval and the US Department of Justice allowing $49 million for police and fire pension benefits happening and the reduction in the ARC. There was also the ribbon cutting for Tockwotten a $52.3 million project and the restoring of live streaming of City Council meetings as well as much needed repairs to the Crescent Park Carousel. In addition, was the approval of the Kettle Point project and the development of the CME Solar Field as well as a great development for a Taunton Avenue apartment project. Just last month ETON Aerospace held an open house. This is a great business to have in East Providence. It represents 200 high paying manufacturing jobs in a long vacant factory space. The work this company did at the new Oldham School set a standard for others to get involved in the community. Last week, Teachers Credit Union was approved and it has been one great project after the next. Providence Business News featured a series where the City is seen as a model for permitting and we really received statewide recognition for economic development over the past year. We are seeing fiscal stability and the City Council really did a great job on our budget. The City’s bond rating increased from B plus to A. It is a very good year for our City and a lot of hard work by the City Council and Administration and he looks forward to next year.

2. Chicken and Hen Ordinance (by Assistant Mayor Rose)

Assistant Mayor Rose stated that he has received an overwhelming number of requests via a petition for a chicken and hen ordinance and he is going to put this ordinance on the next docket. Barrington, Providence and Pawtucket already have this and he is requesting the law department work on this.

3. Welcoming Businesses (by Councilwoman Capobianco)

Councilwoman Capobianco deferred this item to the next Council Docket.

4. Economic Development Plans (by Councilwoman Rossi)

Councilwoman Rossi stated that she would like to see a presentation at the Council meeting on what we do to attract businesses in East Providence. Is there a greater tax benefit, do we solicit to put their business here, what do we do to make our City more attractive? She added she wants to keep the momentum going.

Councilman Cunha stated that he would like to add to Councilwoman Rossi’s comments and ask that they also report on what the City does to keep local businesses here.

5. Community Event Announcements (by Councilwoman Rossi)

Councilwoman Rossi announced that on Saturday, Riverside Middle School 9am-2pm Craft Fair, Saturday is Winterfest at the Senior Center and if someone sponsored a tree go pick up your sign and lights 9am-4pm Thursday December 5th or Friday December 6^th. The doors open at Noon on Saturday December 7^th, on Sunday December 8th 9am-12pm there is a breakfast with Santa at the Brightridge Club with proceeds going to the Joseph Silva Memorial Toy Drive cost is $10, the dinner is at the Columbus Club on Pawtucket Avenue on Saturday December 14^th, December 13^th is the City Hall Tree Lighting Santa arrives at 6pm and the doors open at 5:30pm.

Under announcements Solicitor Chapman stated that Barbara Sousa in the Law Department has retired after 9 years of outstanding service and he thanked her.

D. Report of School Committee Liaison

School Committee Member Anthony Ferreira reported that they had a meeting at 5pm with the architects and Ed Catelli and others from the City they should have the exact numbers in a week or week and a half. At the beginning of the year there will be a walk thru of all the schools. They think there will be $7,000-$8,000 in savings.

E. Introduction of Ordinances

1. AN ORDINANCE IN AMENDMENT OF CHAPTER 16 OF THEREVISED ORDINANCES OF THE CITY OF EAST PROVIDENCE, RHODE ISLAND, 1998, AS AMENDED, ENTITLED “TAXATION”

SECTION I. Article X entitled “Tax Stabilization for Qualified Businesses” of Chapter 16 of the Revised Ordinances of the City of East Providence, Rhode Island, 1998, as amended, entitled “Taxation.” Is amended to read as follows:

Sec. 16-61. Definitions.

Applicant means the lessee or property owner who initiates the property tax stabilization application process.

Property for the purposes of this ordinance means the land, buildings and/or facilities where the expansion, construction or renovation occurs, or business tangible property.

Sec. 16-62. Purpose.

The purpose of this article is to promote business expansion in the city through the development of a property tax stabilization program.

Sec. 16-63. Eligible property.

(a) All legally permitted commercial and industrial facilities within the city which meet the qualifications established in this article are eligible to participate. No property under Tax Incremental Financing (TIF) agreement shall be eligible for stabilization.

(b) ~~Any applicant business and/or property owner for tax stabilization pursuant to this article~~ must be current on all tax payments to the city as of the time of application and at the time the property tax stabilization is granted. Any property owner who applies for property tax credits on behalf of a

~~business operating at the property owner's facilities shall be current on all real estate tax payments to the city.~~

(b) All legally permitted apartments, condominium complexes, and hotels which meet the qualifications established in this article are eligible to participate.

~~(c)~~ ~~The granting of the exemption or stabilization will inure to the benefit of the city by reason of:~~

~~(1)~~ ~~The willingness of the manufacturing or commercial concern to locate in the city; or~~

~~(2)~~ The willingness of a manufacturing firm to expand facilities with an increase in employment or the willingness of a commercial or manufacturing concern to retain its facility in the city and not reduce substantially its work force in the city.

(c) All new business tangible property which meets the qualifications established in this article is eligible to participate.

(d) The granting of the exemption stabilization of taxes will inure to the benefit of the city by reason of the willingness of a manufacturing or commercial firm to replace, reconstruct, expand, retain or remodel existing buildings, facilities, machinery, or equipment with modem buildings, facilities, fixtures, machinery, or equipment resulting in an increase or maintenance in plant or commercial building investment by the firm in the city.

(d) Any applicant business and/or property owner for tax stabilization pursuant to this article must be current on all tax, user fees and any other payments owed to the city as of the time of application and at the time the property tax stabilization is granted. Any property owner who applies for property tax credits on behalf of a business operating at the property owner's facilities shall be current on all tax, user fees and other payments owed to the city.

~~(e) Prior to authorizing any property tax stabilization for the property, the city treasurer shall~~ be required to issue a written certification indicating that the applicant business and/or property owner is current on all appropriate tax payments to the city. Any payments that are in arrears on the property shall render the applicant ineligible for the incentives offered through this article.

(e) The granting of the exemption or stabilization will inure to the benefit of the city by reason of:

(1) The willingness of the ~~manufacturing or commercial concern~~ eligible property owner to locate in the city; or

(2) The willingness of ~~a manufacturing firm~~ an eligible property owner to expand facilities with an increase in employment or ~~or the willingness of commercial or manufacturing concern or~~ to retain its facility in the city and not reduce substantially its work force in the city.

(f) The property which is the subject of the application must conform with all city and state zoning laws, building and fire codes prior to the authorization of any property tax stabilization for the applicant. The zoning officer, the building official and fire marshal for the city shall be required to issue a written certification indicating that the property does so conform.

(f) The granting of the exemption stabilization of taxes will inure to the benefit of the city by reason of the willingness of ~~a manufacturing or commercial firm~~ an eligible property owner to replace, reconstruct, expand, retain or remodel existing buildings, facilities, machinery, or equipment with modem buildings, facilities, fixtures, machinery, or equipment resulting in an increase or maintenance in plant, equipment, or commercial building investment by the property owner in the city.

~~(g)~~ The minimum threshold for participation in this program is $50,000 in taxable improvements as determined by the city tax assessor. The assessed value of the proposed improvements shall be established by the city tax assessor prior to authorizing any tax stabilization pursuant to this article.

(g) Prior to authorizing any property tax stabilization for the property, the property owner shall be required to obtain a Municipal Lien Certificate from the tax collector’s office, indicating that the applicant business and/or property owner is current on all payments owed to the city. Any payments that are in arrears on the property shall render the applicant ineligible for the incentives offered through this article.

(h) In the event the applicant is delinquent on any quarterly tax or other payment due to the city on property receiving the exemption hereunder for a period of more than 45 days, or in the event that the subject property no longer complies with city and state zoning laws, building and fire codes, the tax exemption granted pursuant to this stabilization program shall cease immediately. Notice of the tax delinquency and/or failure to comply with city and state zoning laws, building and fire codes shall be sent to the property owner by registered mail not more than 30 days after the tax delinquency and/or failure to comply with city and state zoning laws, building and fire codes occurs.

(h) The property which is the subject of the application must conform to all city and state zoning laws, building and fire codes prior to the authorization of any property tax stabilization for the applicant. The zoning officer, the building official and fire marshal for the city shall be required to issue a written certification indicating that the property does so conform.

(i) The minimum threshold for participation in this program by existing eligible properties is ~~$50,000~~ $150,000 in taxable improvements as determined by the city tax assessor. The minimum threshold for new eligible properties and tangible business equipment is $1,000,000. The assessed value of the proposed improvements or tangible business equipment shall be established by the city tax assessor prior to authorizing any tax stabilization pursuant to this article. Applicants for stabilization of tangible business equipment shall document the creation or relocation of no fewer than 10 full time equivalent jobs (FTE’s). Such documentation shall be submitted to the Department of Planning for review and verification at the time of application. Failure to create or maintain such jobs within or for a 12 month period from the date of application for stabilization will result in the tax exemption granted pursuant to this stabilization program ceasing immediately. Notice of the failure to comply with this job creation requirement shall be sent to the property owner by registered mail.

(j) In the event the applicant is delinquent on any quarterly tax or other payment due to the city on property receiving the exemption hereunder for a period of more than 45 days, or in the event that the subject property no longer complies with city and state zoning laws, building and fire codes, the tax exemption granted pursuant to this stabilization program shall cease immediately. Notice of the tax delinquency and/or failure to comply with city and state zoning laws, building and fire codes shall be sent to the property owner by registered mail after the tax delinquency and/or failure to comply with city and state zoning laws, building and fire codes occurs.

Sec. 16-64. Stabilization schedule.

(a) (1) For expansion or renovation of any existing facility, construction of a new facility, the addition of tangible business property, or leasehold improvements, excepting instances where the proposed taxable improvements are in excess of ~~$1,000,000~~ $5,000,000, the percentage of new added taxable assessment shall be stabilized is in accordance with the following tax exemption schedule:

Year Percent Exempt From Tax

1	100
2	80
3	60
4	40
5	20
6	0

In year six and thereafter, the new value will be taxed at the normal rate for the city.

(2) For expansion or renovation of any existing facility, construction of a new facility, addition of tangible business property, or construction of leasehold improvements whose taxable value is in excess of ~~$1,000,000~~, $5,000,000 the requirements as prescribed under section 16-66 of this article may apply. The applicant may elect, however, to proceed with the five-year administrative stabilization program.

(b) The exemption provided for herein will not relate to the value of land, but to the value of related improvements and tangible business property only. Tax assessment and collection practices and procedures will be the same as for any other property, including revaluation and improvements unrelated to stabilization, except for the application of the ~~tax exemption~~ tax stabilization provided for herein.

(c) Leasehold improvements will be classified as tangible ~~personal~~ business property in order to qualify for the exemption provided for herein, provided they are physically attached to the building.

(d) All exemptions granted pursuant to this tax stabilization program may be transferred in the event the property is sold during the term of the stabilization program.

Sec. 16-65. Application procedure.

(a) The application procedure for projects with greater than ~~$50,000~~ $150,000 in taxable improvements but less than ~~$1,000,000~~ $5,000,000 in taxable improvements shall proceed as follows:

(1) ~~Businesses or~~ Eligible property owners planning to utilize this program shall, prior to obtaining a building permit, apply for the program through the city planning department. A complete application will contain the following material exhibits:

a. Application form;

b. Five sets of improvements plans;

c. An itemized description of the improvements associated with the project;

d. An application fee in the amount of ~~$100.00~~ $200.00;

e. A municipal lien certificate issued by the city collector’s office for the project property.

(2) The city tax assessor, building official, zoning officer, fire marshal and city clerk shall be immediately forwarded a copy of the application for comment and review. The city tax assessor shall review and establish the taxable value of the proposed improvements as described by the applicant within the application for stabilization. The planning department may also forward copies of the application to other departments for additional review and comment.

(3) The planning department must determine that the granting of the exemption or stabilization will inure to benefit of the city by reason of:

a. The willingness of the ~~manufacturing or commercial concern~~ eligible property owners to locate in the city; or

b. The willingness of ~~a manufacturing firm~~ an eligible property to expand facilities with an increase in employment or ~~the willingness of a commercial or~~ ~~manufacturing concern~~ to retain its facility in the city and not reduce substantially its work force in the city.

(4) The planning department must determine that the granting of the exemption or stabilization of taxes will inure to the benefit of the city by reason of the willingness of an ~~manufacturing or commercial firm~~ eligible property to replace, reconstruct, 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 or commercial building investment by the property in the city.

(5) The planning department shall review the application and any other comments received from other departments and divisions and deem the application complete within 30 days of receiving the application.

(6) The director of planning and the city assessor shall approve, deny or defer a decision pending additional information within fifteen days of the issuance of a certificate of completeness.

(7) Upon approval of the application, the city tax assessor or his designee, shall conduct an inspection of the subject property in order to determine the assessed valuation of the property prior to improvements and/or renovations.

(8) Subsequent to the city tax assessor's inspection and approval of the subject property, the applicant may obtain a building permit for improved property from the city building official. A building permit must be obtained within six months of the application’s approval. Failure to obtain a building permit for improved property within the allotted time shall deem the approval null and void.

(9) (a) Upon completion of the improvements, the tax assessor or person designated by him shall inspect the subject property, and confirm the taxable assessed value added to the property. The city tax assessor will thereupon notify the applicant and the city planning department of the added value and the schedule of phased in taxable value on the new construction, improvement or increase in tangible business property.

(b) The planning department and city assessor shall submit an annual report to the city manager and the city council identifying all properties participating in the property tax stabilization program. Additionally, this ordinance shall be reviewed annually by the department of planning and the city tax assessor in order to evaluate the overall effectiveness of the program and to recommend to the city council any additional language or amendments which may improve the effectiveness of the program.

(c) All participating employers are required to comply with all federal and state regulations concerning job safety and affirmative action requirements.

(d) The city reserves the right to terminate this program at any time through the action of the city council.

(10) An appeal of the decision of the planning director and city tax assessor must be filed with the board of assessment review within 20 days of the decision. The decision of the board of assessment review is final.

Sec. 16-66. Extended stabilization.

In the event the expansion or renovation of any existing facility, construction of a new facility or leasehold improvements of an existing facility exceeds ~~$1,000,000~~ $5,000,000 in taxable value, as determined by the city assessor, the amount of the tax stabilization and the length of term of the stabilization ~~shall be~~ may be extended to ten years determined by the city council, subject to the requirements set forth in section 16-67 of this article.

Sec. 16-67. Extended stabilization schedule.

~~In determining the amount of stabilization and the length of term of the stabilization, the following schedule may be used in computing the amount of stabilization:~~

Year	Percent Exempt From Tax
1	100
2	90
3	80
4	70
5,6,7,8,9,10	60,50,40,30,20,10

In year 21 11 and thereafter, the new value will be taxed at the normal rate for the city.

~~At the city council's discretion, the amount of stabilization and length of term of the stabilization may be modified, however the length of term for the stabilization shall not exceed 20 years.~~

Sec. 16-68. Application procedure for extended stabilization.

(a) The application procedure shall proceed as follows:

(1) Businesses or property owners planning to utilize this program shall, prior to obtaining a building permit, apply for the program through the city planning department. Tangible business property and leasehold improvements are not eligible for extended stabilization. A complete application will contain the following material exhibits:

a. Application form;

b. Ten sets of improvements plans;

c. An itemized description of the improvements associated with the project;

d. An application fee in the amount of ~~$200.00~~ $200.00;

e. A municipal lien certificate issued by the city collector’s office for the project property.

(2) The city tax assessor, building official, zoning officer, fire marshal and city clerk shall be immediately forwarded a copy of the application for comment and review. The city tax assessor shall review and establish the taxable value of the proposed improvements as described by the applicant within the application for stabilization. If the proposed expansion or improvements exceed the ~~$1,000,000~~ $5,000,000 threshold as established under this ordinance, the application shall be deemed eligible for city council stabilization review.

The planning department may also forward copies of the application to other departments for additional review and comment.

(3) The planning department shall review the application and any other comments received from other departments and divisions and deem the application complete within 30 days of receiving the application.

(4) Once the application is deemed complete, the city tax assessor or his designee, shall conduct an inspection of the subject property in order to determine the assessed valuation of the property prior to improvements and/or renovations. The results of this inspection shall be provided to the planning department for inclusion in the planning department's recommendation to the economic development commission.

(5) Subsequent to the city tax assessor's inspection of the subject property, the department of planning shall review and prepare a written recommendation to the economic development commission which outlines the fiscal impacts the proposed stabilization will have on the tax base of the city and provide a recommendation for stabilization on the property. The economic development commission shall consider the department of planning's recommendation and prepare a written recommendation to the city council within 30 days of the economic development commission meeting. Upon receiving the economic development commission's recommendation, the city clerk shall place the stabilization request on the docket of the next available city council meeting.

(6) In reviewing the application the city council must determine that the granting of the exemption or stabilization will inure to benefit of the city by reason of:

a. The willingness of the manufacturing or commercial concern to locate in the city; or

b. The willingness of a manufacturing firm to expand facilities with an increase in employment or the willingness of a commercial or manufacturing concern to retain its facility in the city and not reduce substantially its work force in the city.

(7) In reviewing the application the city council must determine that the granting of the exemption or stabilization of taxes will inure to the benefit of the city by reason of the willingness of a manufacturing or commercial firm to replace, reconstruct, 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 or commercial building investment by the eligible property in the city.

(8) The city council shall vote to approve, deny or defer the application for stabilization. ~~and~~ if ~~approved shall establish a stabilization schedule which describes the amount of the stabilization and the length of tern of the stabilization~~.

(9) Upon approval by the city council, the applicant may obtain a building permit from the city building official. All other necessary permits required for development of the site, must be obtained, however, prior to the issuance of a building permit. Regulatory review of a proposed development may proceed prior to the approval of the stabilization by the city council. A building permit must be obtained within one year of the application's approval by the city council. Failure to obtain a building permit within the allotted time shall deem the approval null and void. The applicant may request an extension of the approval not be exceed six months which shall be subject to approval by the city council.

(10) Upon completion of the improvements, the tax assessor or person designated by him shall inspect the subject property, and confirm the taxable assessed value added to the property. The city tax assessor will thereupon notify the applicant and the city planning department of the added value and the schedule of phased in taxable value on the new construction or improvement.

(b) The planning department and city assessor shall submit an annual report to the city manager and the city council identifying all eligible properties participating in the property tax stabilization. ~~to the~~ ~~city manager and the city council identifying all employers participating in the property tax stabilization program.~~ Additionally, this ordinance shall be reviewed annually by the department of planning and the city tax assessor in order to evaluate the overall effectiveness of the program and to recommend to the city council any additional language or amendments which may improve the effectiveness of the program.

(c) All participating employers are required to comply with all federal and state regulations concerning job safety and affirmative action requirements.

(d) The city reserves the right to terminate this program at any time through the action of the city council.

SECTION II. This ordinance shall take effect upon second passage and all ordinances and parts of ordinances inconsistent herewith are hereby repealed.

Assistant Mayor Rose thanks Councilwoman Rossi and Councilman Cunha for bringing up this ordinance. He will touch on both their questions as he worked on this with the planning and law departments. This will help keep businesses here and promotes new businesses. The tax stabilization program will make the City more advantageous. Section 16-63 line i has a minimum threshold at a $1 million and this would be changed to $500,000. The Assistant Mayor called Director Jeanne Boyle to the podium.

Director Boyle stated that she has had this on the books for 10 years and found a need to revisit it as an inducement for more businesses and she worked jointly with the Assessor and also with Paul Luba who made a few comments and revisions. The summary of changes includes apartments, condos and hotels and this can be an incentive for the location of those types of uses. Right now it is only available in the waterfront district and if in the waterfront district its either TIF or this it is not both. Other communities also do allow for this type of approach and it is more competitive allowing for tax stabilization of the tangible tax. East Providence is not competitive in tangible taxes. It is the 5th highest in the State and this has been an impediment for East Providence. Businesses look to leave not come and this will give them the ability to work with businesses and give them a leg up.

Assistant Mayor Rose mentioned $1 million seemed a little too steep and he would like to revise that to $500,000.

Councilwoman Rossi asked if there is a line forming to come here?

Director Boyle stated that they are hoping hotels and she knows of at least 2 businesses which are very anxious to apply. A fairly large number have said if the City can do something they will seriously consider locating to East Providence. This has been an albatross.

Councilwoman Rossi stated that she took a ride on Waterfront Drive and noticed lots of property available.

Director Boyle stated that some of the land is owned by the State and some is privately owned. Some of those properties have been designated for hotel type use and others for office space. The tax stabilization will help hotels.

Councilwoman Rossi stated that on the other side there are old buildings that are really falling apart.

Director Boyle stated that she understands a couple of buildings are coming down and that some of these properties come with significant costs. In the early years, it was more difficult for them to have the money flowing in for those needing clean up costs. The stabilization is very attractive and this will be of assistance to them.

Councilwoman Rossi asked about the minimum standards.

Director Boyle stated yes there are minimum standards but these are not the same as a residential property but it is something they can look into.

Mayor Briden stated that this is excellent and they can make the business community aware of some of these ideas by having this on the homepage of the website in a location where it is visible. They could also issue press releases and work on disseminating them directly to the business community.

Assistant Mayor Rose agreed.

Councilman Cunha stated the old Shaws on Taunton Avenue is still vacant and asked if there had been any hits for retail on this location.

Director Boyle stated they are looking at a rezoning of that whole corridor adding a residential lifestyle center and combo restaurant and office space and retail space. They just did this in South County where the old East Greenwich Golf Course is.

Requested By: Assistant Mayor Rose

A motion to approve the ordinance with an amendment to the threshold from $1 million to $500,000 is made by Assistant Mayor Rose, seconded by Councilwoman Rossi and on a roll call vote it is unanimous.

IX. ADJOURNMENT

A motion to Adjourn is made by Councilwoman Rossi, seconded by Councilwoman Capobianco and on a roll call vote it is unanimous.