City of Providence

Ordinance
18670
Public Hearing Held
Jul 23, 2018 5:00 PM

Dominion Manchester Street, Inc.

Information

Department:City CouncilSponsors:Councilman John J. Igliozzi
Category:*Ordinance

Attachments

  1. Printout

Item Discussion

An Ordinance Amending Chapter 2017-10, Ordinance No. 191 of the Providence Code of Ordinances, Establishing a Tax Exemption and Stabilization Plan for Dominion Manchester Street, Inc. 

Document Comments

AN ORDINANCE AMENDING CHAPTER 2017-10, ORDINANCE NO. 191 OF THE PROVIDENCE CODE OF ORDINANCES, ESTABLISHING A TAX EXEMPTION AND STABILIZATION PLAN FOR DOMINION MANCHESTER STREET, INC.

 

Body

This modification agreement (the "Agreement") is made by and between the City of Providence, a Rhode Island municipal corporation (“City”) and Dominion Energy Manchester Street, Inc. (“Dominion”) (collectively, the “Parties”).

WHEREAS, On or about the 29th day of August, 2016 the City and Dominion executed a tax stabilization agreement relative to the “Manchester Street Power Station”).

WHEREAS, On or about the 12th day of May, 2017 the City and Dominion executed an amended and restated tax stabilization agreement relative to the “Manchester Street Power Station” for the purpose of modifying Sections 2.3 and 3.7 (the “TSA”).

WHEREAS, The purpose of this Agreement is to memorialize a further modification to the TSA which provides for the following: (1) a revision to the Tax Stabilization Plan to provide for an additional payment of $150,000.00; and (2) the removal of the agreements relative to the transfer of the use of Collier Park from Dominion to the City.

NOW, THEREFORE, In consideration of the mutual agreements and promises set forth herein and other good and lawful consideration, the receipt of which is hereby acknowledged, the parties agree that:

1.              Section 2.3 of the TSA is hereby modified to read as follows:

Section 2.3. Plan. During the tax stabilization term as defined in Section 2.2 above, the City has determined the stabilized amount of real and personal property taxes to be paid by the Property Owner with respect to the Dominion Property, notwithstanding the valuation of the Dominion Property or the then-current rate of tax as follows (hereinafter the “Tax Stabilization Plan”): 

 

Taxes assessed as of December 31

For Tax Year

For Fiscal Year

Annual Tax  Payments To City

2015

2016

July 1, 2016-June 30, 2017

$9,000,000.00

2016

2017

July 1, 2017-June 30, 2018

$7,760,000.00

2017

2018

July 1, 2018-June 30, 2019

$7,860,000.00

2018

2019

July 1, 2019-June 30, 2020

$7,810,000.00

 

2.              Section 3 of the TSA is hereby deleted in its entirety and shall be null and void and of no further effect. 

3.              Section 2.9 of the TSA is hereby modified by deleting the words "Section 3.7" from Section 2.9.

4.              Section 7.2 of the TSA is hereby modified by deleting the words "Section 3.7" from Section 7.2.

5.              Section 7.4 of the TSA is hereby modified by deleting the words "Section 3.7" from Section 7.4.

6.              Except as modified by this Agreement, all other provisions of the TSA shall remain in full force and effect.

              In the event any of the terms of this Agreement conflict with or are contrary to the terms of the TSA, the terms of this Agreement shall govern.  Capitalized terms not otherwise defined in this Agreement shall have the same meanings set forth in the TSA.

              Upon the execution of this Agreement and after ratification by the City Council, the Property Owner shall record this Agreement, at its expense, in the City's official public land evidence records within thirty (30) days of such ratification.

 

              IN WITNESS WHEREOF, the provisions of this Agreement shall only take effect upon approval by Providence City Council.
 

DOMINION ENERGY  MANCHESTER STREET, INC.

CITY OF PROVIDENCE

By: ____________________________________ Authorized Signature

By: ____________________________________ Authorized Signature

Print Name:  Keith Windle

Print Name: _Jorge O. Elorza_____________

Title: VP Business Development and Merchant Operations

Title: Mayor of Providence_______________

Address: ___Dominion Resources_____              __120 Tredegar Street_______              __Richmond, VA  23219_____

Address: City Hall______________________                 25 Dorrance Street___________                 Providence, RI 02903____________

Date: ____________________________________

Date: ____________________________________ Approved as to form and correctness:  ___________________________________ Jeffrey Dana, City Solicitor

 

Meeting History

Apr 19, 2018 7:00 PM Audio/Video City Council Regular Council Meeting
draft Draft

COUNCILMAN IGLIOZZI Moves to Dispense with the Reading of the foregoing matter, Seconded by COUNCILWOMAN RYAN.

COUNCIL PRESIDENT SALVATORE Refers the Ordinance to the Committee on Finance.

RESULT:REFERRED
Jun 27, 2018 6:30 PM Audio/Video Finance Committee Regular Meeting
draft Draft
RESULT:SET UP PUBLIC HEARING [UNANIMOUS]
MOVER:Jo-Ann Ryan, Councilwoman Ward 5
SECONDER:Sabina Matos, Councilwoman Ward 15
AYES:John J. Igliozzi, Sabina Matos, Jo-Ann Ryan
ABSENT:Terrence M. Hassett, Carmen Castillo
Jul 23, 2018 5:00 PM Audio/Video Finance Committee Public Hearing
draft Draft
RESULT:PUBLIC HEARING HELD