2007 -- H 6491

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LC03159

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2007

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A N A C T

RELATING TO THE RITCHIE BROS. PROPERTIES, INC. HEAVY EQUIPMENT AUCTION

PROJECT

     Introduced By: Representatives Sullivan, and Watson

     Date Introduced: June 06, 2007

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Definitions. For the purposes of this act, the following terms shall have the

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meanings ascribed to them herein:

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     (1) "Ritchie Bros. Properties, Inc. Heavy Equipment Auction Project" or the "Project"

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means the regional heavy equipment auction facility to be developed and constructed in West

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Greenwich, Rhode Island.

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     (2) "Ritchie Bros. Properties, Inc." or "Ritchie Bros." means the developer intending to

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develop, construct and operate the Project.

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     (3) "Public Investment Agreement" means the agreement between the EDC and Ritchie

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Bros. providing for the investment by Ritchie Bros. in the Project and the commitment by the

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EDC for the payment of a portion of the sales tax revenue generated from the Project back to

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Ritchie Bros.

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     (4) "Economic Development Corporation" or "RIEDC" means the Rhode Island

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economic development corporation created under chapter 64 of title 42 of the general laws of

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Rhode Island as amended.

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     (5) "Town" or "town of West Greenwich" means the town of West Greenwich, Rhode

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Island.

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     (6) "State" means the State of Rhode Island and Providence Plantations.

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     (7) "Project Site" means all tracts or parcels of land situated in the Town of West

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Greenwich, County of Kent, State of Rhode Island and identified as Assessors Plat 13, Lots 15-1

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through and including 15-8, Assessors Plat 14, Lots 5, 7, 8, 9, 10 and 16.

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     SECTION 2. Findings. The general assembly hereby finds and declares that:

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     (1) The town desires to expand its commercial tax base to ease the tax burden on its

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residents. The project will expand the town's commercial tax base without placing additional

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pressure on town schools or infrastructure.

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     (2) The project is consistent with the town's community master plan and brings an

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international, publicly traded company committed to sound environmental practices, is active in

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community affairs and is supportive in sponsorship of youth and elderly activities and local

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events.

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     (3) The project will cause the world's largest industrial auctioneer and publicly traded

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company to locate a regional auction center in the town and state.

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     (4) The project will create significant job opportunities during the construction phase of

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the project.

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     (5) Ritchie Bros. will create 15-25 full-time permanent jobs and 45-75 part-time jobs in

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the state.

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     (6) Ritchie Bros. facility will generate additional employment in the ancillary services

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that customers need upon a purchase of heavy equipment. Examples of such services are trucking

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companies and freight forwarders. Approximately 40-50 full-time permanent jobs will be created

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in these companies.

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     (7) Ritchie Bros. auctions will attract 15,000-24,000 visitors to the town and state. These

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visitors stay in local hotels and will use approximately 45,000 room nights generating substantial

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revenue from the existing hotel tax. These visitors will dine in town and state restaurants

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generating substantial revenue from the existing food and beverage tax, as well as visit the other

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tourist areas of the state.

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     (8) Ritchie Bros. Properties, Inc. will pay substantial municipal property taxes and

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corporate taxes to the state.

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     (9) Auction sales from the project will generate substantial sales tax revenue which will

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benefit the state.

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     (10) Ritchie Bros. Properties, Inc. will invest approximately thirty million dollars

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($30,000,000) in private funds in the construction of a heavy equipment auction venue.

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     SECTION 3. Public Investment Agreement. Notwithstanding the provisions of any other

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general or special law, and subject to the approval of and upon terms acceptable to the RIEDC,

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said approval shall not be unreasonably withheld, the public investment agreement shall provide

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for, among other things, payment to Ritchie Bros. of an annual sum payable in such a sum to be

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calculated in accordance with the following provisions. The annual payment due under the public

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investment agreement shall be equal to two thirds of the actual amount of sales tax generated

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from auction sales transactions occurring at or within the project site during such year until the

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aggregated amount of all such payments fully repay the principal sum of $12,600,000 with

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interest at 7.5% on the unpaid balance to Ritchie Bros. Subject to annual appropriation by the

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general assembly, the state shall pay to the RIEDC an amount equal to the annual payment which

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the RIEDC is required to make to Ritchie Bros. pursuant to the public investment agreement.

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     Notwithstanding the provisions of any other general or special law to the contrary,

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including without limitation the provisions of section 42-64-18 of the general laws, the RIEDC

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shall have no obligation to repay to the state any amounts paid to Ritchie Bros. under the public

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investment agreement.

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     SECTION 4. General assembly approval. The approval of this act by the general

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assembly constitutes full compliance with the provisions of chapter 18 of title 35 of the general

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laws, including but not limited to, any approval required pursuant to section 35-18-3.

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     SECTION 5. This act shall take effect upon passage.

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LC03159

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO THE RITCHIE BROS. PROPERTIES, INC. HEAVY EQUIPMENT AUCTION

PROJECT

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     This act would authorize certain payments to be made to Ritchie Bros. Properties, Inc. to

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promote the development of a regional heavy equipment auction facility in West Greenwich.

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     This act would take effect upon passage.

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LC03159

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