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.      Mariann Andreozzi

2.      Louis Correia

3.      Romualdo Lima

4.      Robert & Diana Neves

B.     Sewer Charge Abatements

1.      Brewery Parkade Inc.

2.      Carl J. Hultine

3.      Alverto R. Martins

C.     Litigation

1.      Commission for Human Rights Matter – Status Report

Kathleen T. Waterbury vs City of East Providence, Richard Kirby, Paul Lemont and Fire Chief Oscar Elmasian

2.      NES Equipment Services Corporation DBA NES Rentals vs Steven Hazard, in His Capacity as Tax Assessor for the City of East Providence and the East Providence Board of Tax Assessment Review

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

V.                PUBLIC COMMENT

All persons wishing to make public comment shall sign a public comment sheet stating their name, address, and the subject of their comments.  .  Said public comment sheet shall be available on a desk at the entrance of the City Hall Chambers no later than forty-five (45) minutes before the call to order of any regularly scheduled council meeting and shall be delivered to the presiding officer no earlier than five (5) minutes before the call to order of the meeting.

VI.             APPOINTMENTS

A.    Traffic Control (by Councilwoman Capobianco)

Mike Callahan, 6 Wheeler Avenue (02915)

Motion___By___2^nd___

                                                Britto___Capobianco___Conley___Cunha___Rose___

B.     Traffic Control (by Assistant Mayor Cunha)

Angela Campos, 70 James Street (02914)

Motion___By___2^nd___

                                                Britto___Capobianco___Conley___Cunha___Rose___

C.    Traffic Control (by Councilman Britto)

Robert Holderness, 31 Bullocks Point Avenue (02915)

Motion___By___2^nd___

                                                Britto___Capobianco___Conley___Cunha___Rose___

D.    Traffic Control (by Councilman Britto)

Derek Andrade, 99 Goldsmith Avenue, Apt. 314 (02914)

Motion___By___2^nd___

                                                Britto___Capobianco___Conley___Cunha___Rose___

E.     Canvassing Authority (by Mayor Rose)

Elizabeth Pegg, 74 Sweet Briar Avenue (02915)

Motion___By___2^nd___

                                                Britto___Capobianco___Conley___Cunha___Rose___

F.     Canvassing Authority (by Mayor Rose)

Kimberly Bass, 1102 S. Broadway (02914)

Motion___By___2^nd___

                                                Britto___Capobianco___Conley___Cunha___Rose___

G.    Planning Board – Alternate (by Mayor Rose)

Michael Rose, 165 Dover Avenue (02914)

Motion___By___2^nd___

                                                Britto___Capobianco___Conley___Cunha___Rose___

VII.          COMMUNICATIONS

VIII.       NEW BUSINESS

A.    City Manager’s Report (by City Manager, Richard Kirby)

1.      The Grand Opening of the Fuller Creative Learning Center and the Farmer’s Market. 

IX.             INTRODUCTION OF ORDINANCES

A.  Ordinance Approving an ExtendED Tax Exemption and Stabilization Program for UOI-Kettle Point, LLC

            WHEREAS, the Applicant, UOI-Kettle Point, LLC has entered into an agreement to purchase and develop Property, as that term is defined in Article X, Chapter 16 of the Revised Ordinances of the City of East Providence, Rhode Island, 1998, as amended and entitled “Tax Stabilization for Qualified Businesses” (hereinafter the “Tax Stabilization Ordinance”);  

            WHEREAS, the Applicant intends to acquire the Property located at One Kettle Point Drive to construct and develop a 90,000 square foot medical office/surgical center which will employ approximately 275 people (the “Project”);

            WHEREAS, the Applicant’s plans to acquire, develop and construct the Project are contingent upon an extended tax exemption and stabilization program;

            WHEREAS, pursuant to the Tax Stabilization Ordinance, the City is authorized to grant an extended exemption and stabilization program relating to real property taxes to be assessed and levied upon eligible properties;

            WHEREAS, pursuant to the Tax Stabilization Ordinance, the City finds that the granting of the exemption and stabilization program herein will inure to the benefit of the City as the Project represents a significant economic benefit both in long-term generation of tax revenue and the potential for generating additional job growth;

WHEREAS, in addition to the Tax Stabilization Ordinance, when such a benefit is found, the City Council is also authorized, pursuant to R.I. Gen. Laws §44-9-3, to exempt and stabilize an amount of taxes to be paid on account of real property used for commercial purposes; 

WHEREAS, the Project is located on property subject to Tax Increment Financing (“TIF”) as recently re-structured by the City of East Providence, pursuant to Resolution dated April 28, 2016;

WHEREAS, the Tax Stabilization Ordinance does not allow tax stabilization and a TIF with regard to the same property and to the extent that restriction is at variance with this Ordinance, it is hereby amended solely for the purposes of this Ordinance;

WHEREAS, only a percentage of the incremental real property tax revenue under the re-structured TIF is needed to satisfy bond obligations; and

WHEREAS, the City can consider applying tax stabilization solely to that incremental real property tax revenue which is not dedicated repayment of bond obligations.

The Council of the City of East Providence hereby Ordains:

Section 1.  The findings set forth in the preceding recitals are hereby made and confirmed.

Section 2.  An extended tax exemption and stabilization program is hereby approved pursuant to Sections 16-66 through 16-68 of the Tax Stabilization Ordinance with the modifications set forth herein. 

Section 3.  Definitions. 

(a)    “Applicant” shall be UOI-Kettle Point, LLC, a limited liability company organized under the laws of the State of Rhode Island.

(b)   “Base Taxes” shall mean the $319.00 in real property taxes assessed against the Project Site as of December 31, 2015.

(c)     “Bond” shall mean the bond obligations incurred to finance the TIF as restructured pursuant to Resolution dated April 28, 2016.

(d)   “Commencement Date” shall be the date on which the City Assessor first assesses real property taxes to be levied upon the Project after completion pursuant to the issuance of a certificate of occupancy or a temporary certificate of occupancy from the City of East Providence.

(e)    “Incremental Taxes” shall be the incremental real property taxes defined in the TIF Resolution dated April 28, 2016. 

(f)    “Project Site” shall mean the real property located at One Kettle Point Drive, further described as Assessor’s Plat 109, Block 001, Lot 2.2, in the Land Evidence Records of the City of East Providence.

(g)   “Project Site Owner” shall mean the Applicant and/or any persons or entities who succeed to the Applicant’s interest in and to the Project Taxable Property. 

(h)   “Project Taxable Property” shall mean collectively, the Project Site and all Real Property Improvements thereon.

(i)     “Real Property Improvements” shall mean any structures or improvements including but not limited to buildings, parking lots/structures and related improvements to be constructed and developed on the Project Site. 

(j)      “Stabilized Tax Payments” shall mean the tax payments made pursuant to the Tax Exemption/Stabilization Program set forth in Section 6, below.

(k)   “Tax Exemption/Stabilization Program” shall mean the schedule of real property taxes to be assessed and levied upon the Project Site and Real Property Improvements during the Term hereof.

(l)      “Termination Date” shall mean the eleventh (11^th) anniversary of the December 31^st in which the Project Site is first assessed pursuant to the Tax Exemption/Stabilization Program set forth in Section 6, below. 

Section 4.  Extended Tax Stabilization.  The City, in accordance with the Laws of the State of Rhode Island and the Code of Ordinances for the City of Providence is hereby authorized to grant the schedule of Stabilized Tax Payments pursuant to the Tax Exemption/Stabilization Program, under Section 6, below.

Section 5.  Term.  The term of this Ordinance shall be a period commencing upon the Commencement Date and terminating on the Termination Date. 

Section 6.  Tax Exemption/Stabilization Program.  The Base Taxes and the Incremental Taxes required to satisfy the Bond obligations are to be paid by the Applicant in the normal course and are not subject to any tax exemption/stabilization.  However, Incremental Taxes to be paid based upon real property taxes assessed and levied upon the Project Taxable Property and not required to satisfy the Bond obligations shall have the benefit of a Tax Stabilization/Exemption Schedule as follows:

Section 7.  Satisfaction of Obligations.  The City agrees that so long as the real property taxes not subject to Section 6 and the Stabilized Tax Payments are made by the Owner of the Project Site in accordance with the terms of this Ordinance, as calculated pursuant to Section 6, above, the City shall, during the term of this Ordinance, accept said payments in full satisfaction of the obligations of the Owner of the Project Site as to the payment of any and all real property taxes, which would or could otherwise be levied upon the Project Site.

Section 8.  Resolution of Calculation Disputes.  The Project Site Owner and the City agree that if the Project Site Owner should dispute the annual calculation of the Stabilized Tax Payment, but not the assessed value of the Tangible Property (see section 10), either party may appeal to the Board of Assessment Review (the “BAR”) acting as mediator to resolve all such disputes.  A decision by the BAR on the appeal shall be conclusive and binding upon the Project Site Owner and the City.  The foregoing provision applies only to calculation disputes and does not apply to the resolution of any disputes with respect to any other provision of this Ordinance.

Section 9.  Beneficiaries of Ordinance. The City expressly acknowledges that any and all future Owners of the Project Site and/or units or sub-units thereof, are intended to be beneficiaries of this Ordinance, and the provisions herein shall apply with the same force and effect.

Section 10.  Taxpayer Rights.  The Applicant retains all rights of a taxpayer under local and state law regarding the assessment and levy of taxes upon the Facility Taxable Property which shall take place in accord with local and state law applicable to any similarly situated taxpayer separate and apart from any tax stabilization and/or exemption.

Section 11.  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 12.  Effective Date.  This Ordinance shall become effective immediately upon its second passage by the City Council.

Section 13.  Applicable Law. This agreement shall be construed under the laws of the State of Rhode Island.

Requested By:  Mayor Rose

Motion___By___2^nd___

                                                Britto___Capobianco___Conley___Cunha___Rose___

B.  Ordinance Approving A Tax Exemption and Stabilization Program for TANGIBLE PROPERTY OF UNIVERSITY ORTHOPEDICS, INC. AT KETTLE POINT

            WHEREAS, UOI-Kettle Point, LLC has entered into an agreement to purchase and develop Property, as that term is defined in Article X, Chapter 16 of the revised Ordinances of the City of East Providence, Rhode Island, 1998, as amended and entitled “Tax Stabilization for Qualified Businesses” (hereinafter the “Tax Stabilization Ordinance”);

            WHEREAS, UOI-Kettle Point, LLC intends to acquire the Property located at One Kettle Point Drive to construct and develop a 90,000 square foot medical office/surgical center which would employ approximately 275 people (the “Facility”);

            WHEREAS, the Applicant herein, University Orthopedics, Inc., intends to enter into a 40 year lease of the Facility;  

            WHEREAS, the Applicant intends to move its corporate headquarters, its outpatient surgical center and medical offices to the Facility;

            WHEREAS, the Applicant’s plans to operate within the Facility are contingent upon a tax exemption and stabilization program relative to all the tangible assets acquired and/or utilized during the Term of this Ordinance for the purpose of operating Applicant’s corporate headquarters, outpatient surgical center, and medical offices at the Facility;

            WHEREAS, pursuant to the Tax Stabilization Ordinance, the City is authorized pursuant to Section 16-63(c) to grant an exemption and stabilization program relating to tangible property taxes to be assessed and levied upon tangible property as defined herein;

            WHEREAS, the City Assessor has reviewed the proposed and anticipated list of tangible assets being acquired solely for the purposes of operating the Facility and it has been determined that the Facility is eligible for participation in the City’s Tax Stabilization Program pursuant to the Tax Stabilization Ordinance;

            WHEREAS, pursuant to the Tax Stabilization Ordinance, the City finds that the granting of the exemption and stabilization program herein will inure to the benefit of the City as the Facility represents a significant economic benefit both in long-term generation of tax revenue and the potential for generating additional job growth;

WHEREAS, in addition to the Tax Stabilization Ordinance, when such a benefit is found, the City Council is also authorized, pursuant to R.I. Gen. Laws §44-9-3, to exempt and stabilize an amount of taxes to be paid on tangible property used for commercial purposes. 

The Council of the City of East Providence hereby Ordains:

Section 1.  The findings set forth in the preceding recitals are hereby made and confirmed.

Section 2.  A tax exemption and stabilization program is hereby approved pursuant to Section 16-63(c) of the Tax Stabilization Ordinance with the modifications set forth herein. 

Section 3.  Definitions. 

(a)    “Applicant” shall be University Orthopedics, Inc., a professional corporation organized under the laws of the State of Rhode Island;

(b)    “Commencement Date” shall be the date on which the Applicant files its first Declaration of Tangible Property Taxes with the City Assessor.

(c)    “Facility” shall mean the University Orthopedics, Inc., medical office/surgical suite complex to be acquired by and constructed by UOI-Kettle Point, LLC., on that real property located at One Kettle Point Dr., East Providence, Rhode Island, further described as Assessor’s Plat 109, Block 001, Lot 2.2, in the Land Evidence Records of the City of East Providence.

(d)   “Facility Site Owner” shall mean UOI-Kettle Point, LLC.

(e)    “Facility Taxable Property” shall mean collectively, the tangible property identified on the Declaration of Tangible Property provided to the Tax Assessor at the time of acquisition, when such acquisitions of tangible property are made during the term of this Ordinance.

(f)    “Tangible Property” means all goods, chattels, and effects, wherever they may be and includes all property which may be seen, weighed, measured, felt, or touched, or which is in any other manner perceptible to the senses and also includes electricity, water, gas, steam, and prewritten computer software acquired and/or utilized during the Term of this Ordinance for the purpose of the Applicant’s operations and its corporate headquarters, its outpatient surgical center and medical offices to be located on the Facility. The definition of Tangible Property shall also include any property taxed by the City as tangible property during the Term of this Ordinance.

(g)   “Stabilized Tax Payments” shall mean the tax payments made pursuant to the Tax Exemption/Stabilization Program set forth in Section 6, below.

(h)   “Tax Exemption/Stabilization Program” shall mean the schedule of real property taxes to be assessed and levied upon the Facility Taxable Property during Term hereof.

(i)      “Termination Date” shall mean the fifth (5th) anniversary of the December 31^st in which the Facility Taxable Property is first assessed pursuant to the Tax Exemption/Stabilization Program set forth in Section 6, below. 

Section 4.  Tax Stabilization.  The City, in accordance with the Laws of the State of Rhode Island and the Code of Ordinances for the City of Providence, is hereby authorized to grant the schedule of Stabilized Tax Payments pursuant to the Tax Exemption/Stabilization Program, under Section 6, below.

Section 5.  Term.  The term of this Ordinance shall be a period commencing upon the Commencement Date and terminating on the Termination Date. 

Section 6.  Tax Exemption/Stabilization Program. 

Section 7.  Satisfaction of Obligations.  The City agrees that so long as the Stabilized Tax Payments are made by the Owner of the Facility Taxable Property in accordance with the terms of this Ordinance, as calculated pursuant to Section 6, above, the City shall, during the term of this Ordinance, accept said payments in full satisfaction of the obligations of the Owner of the Facility Site as to the payment of any and all tangible property taxes, which would or could otherwise be levied upon the Facility Taxable Property.

Section 8.  Resolution of Calculation Disputes.  The Facility Taxable Property Owner and the City agree that if the Facility Taxable Property Owner should dispute the annual calculation of the Stabilized Tax Payment, but not the assessed value of the Tangible Property (see Section 10), either party may appeal to the Board of Assessment Review (the “BAR”) acting as mediator to resolve all such disputes.  A decision by the BAR on the appeal shall be conclusive and binding upon the Facility Taxable Property Owner and the City.  The foregoing provision applies only to calculation disputes and does not apply to the resolution of any disputes with respect to any other provision of this Ordinance.

Section 9.  Beneficiaries of Ordinance. The City expressly acknowledges that any and all future Owners of the Facility Taxable Property which is and remains located at the Facility, are intended to be beneficiaries of this Ordinance, and the provisions herein shall apply with the same force and effect.

Section 10.  Taxpayer Rights.  The Applicant retains all rights of a taxpayer under local and state law regarding the assessment and levy of taxes upon the Facility Taxable Property which shall take place in accord with local and state law applicable to any similarly situated taxpayer separate and apart from any tax stabilization and/or exemption.

Section 11.  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 12.  Effective Date.  This Ordinance shall become effective immediately upon its second passage by the City Council.

Section 13.  Applicable Law. This agreement shall be construed under the laws of the State of Rhode Island.

Requested By:  Mayor Rose

Motion___By___2nd___

Britto___Capobianco___Conley___Cunha___Rose___

X.                ADJOURNMENT

Motion___By___2nd___

Britto___Capobianco___Conley___Cunha___Rose___

*If communications assistance is needed or any other accommodations to ensure equal participation please contact the City Clerk’s Office at 435-7590.