880 R.I. Code R. 880-RICR-00-00-5.7

Current through November 21, 2024

Section 880-RICR-00-00-5.7 - Capital Investment in Enrolled Sites

5.7.1Eligibility for Capital Investment

A. For a Site to be eligible for capital investment, the authorized agents of the Site must submit a Capital Investment Application to the Corporation. If the Site is not already an Enrolled Site, the Site must submit the Capital Investment Application and Enrollment Application simultaneously. In such cases, the Site must become an Enrolled Site in accordance with these Rules prior to a vote of the Board on the Capital Investment Application.

B. The required forms and/or template for the Capital Investment Application shall be provided within the Program Guidance. The Capital Investment Application shall contain, at a minimum, a description of the work to be supported by the requested investment and the amount of money requested. Capital Investment Applications may also require submittal of the following information:

1. A business plan, market study and/or economic analysis for the Site;

2. A permitting and/or construction schedule for the Site;

3. A pro forma for the Site including a description of the financing for the Site, all sources and amounts of funding, projected internal rate of return, net margin, return on investment and cash on cash yield;

4. A list and status of all required Federal, State and/or municipal approvals and/or permits required for the Site; and

5. Such other information as the Corporation deems appropriate or necessary in connection with a particular Site.

C. Each Capital Investment Application shall be reviewed by the Program Staff to confirm compliance with the Act, the Enactment, these Rules and the Program Guidance, and the Managing Director may reject any incomplete or deficient Capital Investment Application.

D. The Managing Director may require the submission of additional information in connection with any Capital Investment Application or the revision of a Capital Investment Application, and may, in such Managing Director's sole discretion, permit the resubmission of a Capital Investment Application that was rejected for being incomplete or deficient.

E. Capital Investment from the Rhode Island Ready Program is intended to support activation of Sites for the uses outlined in the Enactment. Without limiting the generality of the foregoing, capital investment may be proposed for the following types of activities, among others:

1. On-site land improvements, including without limitation grading, excavation, soil supplementation, and environmental remediation;

2. On and off-site infrastructure improvements, including without limitation water, sewer, electric, natural gas, telecommunications, and transportation improvements;

3. Upgrades to community infrastructure;

4. Property acquisition; and

5. Facility development.

5.7.2Review of Capital Investment Applications

A. Once an Enrolled Site has submitted a complete Capital Investment Application to the Corporation, the Managing Director and the Program Staff will review the Capital Investment Application and assign eligibility points to the Enrolled Site based on the Capital Investment Criteria. The Capital Investment Criteria shall be outlined and described in the Program Guidance, and shall at minimum, be based on the following Program goals:

1. Job creation;

2. Private investment; and

3. Tax revenue generation.

B. The Managing Director shall present all Capital Investment Applications to the Board at a public meeting of the Board, including, without limitation, the review of the Application against the Capital Investment Criteria and the Managing Director's recommendation of whether Capital Investment should be provided to an Enrolled Site.

C. At a public meeting of the Board, the Board will determine whether to provide capital investment to an Enrolled Site, how much capital investment to provide, and any conditions or terms that are to be placed on such investment. To determine whether to provide a capital investment to an Enrolled Site, the Board shall consider the overall purpose of the Program, the eligibility points awarded based on analysis of the Capital Investment Criteria, the findings specified in R.I. Gen. Law §42-64-10(a)(1) and other factors as the Board may deem necessary to enhance the economy of the State of Rhode Island.

D. If the Enrolled Site does not have a Pre-Permitted Certificate at the time the Board is considering the Enrolled Site's Capital Investment Application, the Board shall condition the grant of a capital investment and the subsequent disbursement of the capital investment funds upon the Enrolled Site's receipt of a Pre-Permitted Certificate.

E. The Corporation shall not have any obligation to provide a capital investment to an Enrolled Site under the Act, the Enactment, or these Rules.

F. A review of a Capital Investment Application and the Board's decision to provide capital investment or not provide capital investment shall not constitute a "contested case" under the Administrative Procedures Act, R.I. Gen. Law § 4235-9, and no opportunity to object to a Capital Investment Application shall be afforded, nor shall judicial review be available from a decision rendered by the Corporation, Board, Managing Director or Program Staff in connection with any Capital Investment Application.

5.7.3Rhode Island Benefits Agreement

A. If the Board votes to provide a capital investment to an Enrolled Site, the Corporation and the Applicant will enter into a Rhode Island Benefits Agreement for the Enrolled Site prior to the issuance of any funding of such capital investment. At minimum, the Rhode Island Benefits Agreement shall describe the amount of capital from the Program that will be invested in relation to a specific Site, the benefits to Rhode Island that will accrue as a result of the capital investment, and the financial and other conditions or terms of the capital investment, including without limitation, events of default, remedies and reporting requirements.

B. It is the intent of the Corporation to recover investments from successful projects, as appropriate, in order to continue making capital investments under the Act, the Enactment and these Rules. The conditions under which capital investments may be recovered shall be set forth in the applicable Rhode Island Benefits Agreement. In some instances, the applicable Rhode Island Benefits Agreement may specify conditions under which, if a Project demonstrates performance as set forth in the applicable Rhode Island Benefits Agreement, recovery of investment may not be required.

880 R.I. Code R. 880-RICR-00-00-5.7

Adopted Effective 11/7/2021