SECTION 1. Title 37 of the General Laws entitled "Public Property and Works" is hereby amended by adding thereto the following chapter:

CHAPTER 22
THE I-195 REDEVELOPMENT ACT OF 2002

37-22-1. Short title. -- This chapter shall be known as "The I-195 Redevelopment Act of 2002".

37-22-2. Legislative findings. -- (a) The general assembly finds that:

(1) The realignment of Interstate Route 195 through the City of Providence provides a unique opportunity to advance public purposes by transforming a major transportation project into an important economic and civic development opportunity;

(2) Said opportunity arises, in large part, from certain land to be made available for redevelopment due to the relocation of Interstate Route 195 and its access roads;

(3) The clearance of highway structures, replatting, redevelopment and improvement of such land shall spur economic development and, as such, is in the public interest;

(4) In addition, such a unique opportunity can be utilized to advance the state's ability to improve public education, public services and infrastructure, thus, furthering an even more critical public purpose;

(5) The state would greatly benefit from the participation of private institutions in the improvement of public education, public services and infrastructure.

37-22-3. Declaration of purpose.--(a) It is declared that there exist certain state-owned properties which shall become available by relocation of Interstate Route 195 and its on and off ramps. The abandonment of said properties shall create substandard areas for appropriate urban planning and development purposes. Said urban planning and development shall be consistent with and subject to the City of Providence comprehensive plan, pursuant to R.I. General Laws section 45-22.2-1 et seq., City of Providence Zoning Ordinance, pursuant to R.I. General Laws section 45-24-27 et seq. and the I-195 Old Harbor Plan (October 1992). As consistent therewith, said properties can then be utilized for the expansion of institutional use. The clearance of highway structures, replatting, redevelopment and improvement of such land in recognition of the I-195 Old Harbor Plan (October 1992) shall spur the economic development and the improvement of public education, public services and infrastructure. Thus, said clearance of highway structures, replanning, redevelopment and improvement is hereby declared a public purpose. Therefore, the general assembly hereby establishes the I-195 redevelopment board to be responsible to supervise the replanning, replatting, redevelopment and improvement of such land through the solicitation, negotiation, execution and enforcement of comprehensive agreements for the redevelopment of such state-owned property through privately-funded qualifying projects. The board is hereby further authorized and directed to take advantage of private sector efficiencies in designing, developing and constructing qualifying institutional projects, which include components that specifically improve public education, public services and infrastructure. The board is hereby further authorized and directed to ensure that the state and its agencies permit and approve qualifying projects in an expedited fashion. In turn, the board shall exercise its authority in recognition of the plan objectives set forth in the I-195 Old Harbor Plan (October 1992).

37-22-4. Definitions. - As used in this chapter, the following words and terms shall have the following meaning:

(1) "Acquiring authority" means an acquiring authority as defined in R.I. General Laws Title 37, Chapter 7.

(2) "Board" means the I-195 Redevelopment Board.

(3) "Comprehensive agreement" means a comprehensive agreement between the board and those persons obligated to undertake a qualifying project as set forth in section 27-22-7 of this chapter.

(4) "Material default" means any default by the private entity in the performance of its duties under a comprehensive agreement of section 37-22-10 of this chapter that jeopardizes adequate service to the public from a qualifying project and remains unremedied after the board has provided notice to the private entity and a reasonable cure period has elapsed.

(5) "Permits and approvals" means all permits, licenses, variances and/or approvals to be issued by state and/or local agencies as necessary for the development, construction and/or operation of a qualifying project.

(6) "Plan" means the I-195 Old Harbor Plan (October 1992) adopted by the State of Rhode Island, City of Providence and Providence Foundation, a nonbusiness corporation.

(7) "Private entity" means any person, institution and/or entity proposing to undertake a qualifying project and to enter into a comprehensive agreement for the development, construction and/or operation of a qualifying project.

(8) "Project area" means that area which is bounded by Pine Street, Chestnut Street, Clifford and Foster Streets.

(9)_ "Public-private partnerships" means prearrangements between the public and private sectors for the delivery by the private sector of certain sector of certain public infrastructure and/or public services, which traditionally would have been provided by the public sector and funded by property taxes.

(10) "Qualifying project" means the privately funded redevelopment, construction and operation of a project within the project area and in furtherance of the plans planning principals as provided in the Old Harbor Plan (October 1992). Qualifying projects shall include, but not be limited to, institutional uses.

(11) "State-owned property" means property to which title is vested in the State of Rhode Island and located in the project area.

37-22-5. Board. - (a) There is hereby established a board to take custody, control and supervision over certain real property, title to which is vested in the State of Rhode Island, to review applications for qualifying projects, to approve or reject said applications, to negotiate and enter into comprehensive agreements, to assist in expediting all permits and approvals pursuant to the comprehensive agreements, to administer and enforce comprehensive agreements, and to exercise the authority necessary to accomplish the purposes of this chapter. However, no real property currently within the freeway line of the interstate shall be transferred to the board for sale, lease, or utilization pursuant to a public-private partnership, until the project area becomes available for redevelopment pursuant to the plan.

(b) The board shall consist of nine (9) members as follows: two (2) public members to be appointed by the speaker of the house for a term of four (4) years; two (2) public members to be appointed by the majority leader of the senate for a term of four (4) years; two (2) members to be appointed by the Governor of the State of Rhode Island, one (1) such member being a public member and the other such member being the director of the Rhode Island department of transportation, for a term of four (4) years; two (2) public members to be appointed by the Mayor of the City of Providence, one such member being the City of Providence's director of planning, for a term of four (4) years; and one (1) public member to be appointed by the Providence Foundation, a nonbusiness corporation for a term of four (4) years. All members shall serve until successors are appointed. A member shall be eligible to succeed himself or herself.

(c) Board members shall select a chairperson and vice chairperson. A quorum necessary to conduct business shall consist of five (5) members of the board. A majority vote of the quorum present shall be required for action.

(d) The members of the board shall not receive any compensation. The members of the board shall be reimbursed for their actual expenses necessarily incurred in the performance of their duties. The board may engage professionals and consultants as it deems necessary.

(e) The board shall promulgate rules and regulations pursuant to the Rhode Island Administrative Procedures Act, section 42-35-1 et seq. The general assembly shall provide meeting space for the board.

(f) The board shall be authorized to establish reasonable application fees. Said fees shall cover the estimated expenses of reviewing the applications and the execution of the comprehensive agreements.

37-22-6. Powers and duties of the board. - (a) The board is hereby authorized and directed to entertain, solicit, evaluate, negotiate, execute, administer and enforce comprehensive agreements for the redevelopment of the project area by and through privately-funded qualifying projects in recognition of and consistent with the plan. The state department of transportation shall develop a legal description of said property for the board. Upon completion of the legal description, custody, control and supervision of the underlying property shall be transferred to the board and a certificate shall be filed with the secretary of state notwithstanding the requirements of R.I. General Laws sections 37-7-6 and 37-7-7. The board shall then be authorized to sell, lease and/or enter into public-private initiative agreements with regard to such property notwithstanding the requirements of section 37-7-1 et seq.

(b) If comprehensive agreements are entered into pursuant to the provisions of this chapter, the board is hereby authorized and directed to expedite the consideration and issuance of permits and approvals necessary for development, construction, and operation of qualifying projects.

(c) The board is hereby authorized and directed to administer and enforce all comprehensive agreements entered into pursuant to the provisions of this chapter.

(d) The board shall annually submit a written report of all its activities to the Governor, the General Assembly, and the Mayor and City Council of Providence.

37-22-7. Comprehensive agreement. - (a) Prior to developing, improving, constructing, maintaining, and/or operating a qualifying project, the private entity shall enter into a comprehensive agreement with the board. The comprehensive agreement shall establish:

(1) A specific narrative and description of the qualifying project, including consistency with the plan and identification of those components of the project which result in the direct improvement to public education, public services and infrastructure;

(2) The terms of sale, lease, or public-private initiative. A public-private initiative shall establish user fees. User fees shall be set at a level that takes into account: (i) fair market rental value of the real property; (ii) the improvements of or the benefits directly resulting to public education, public services and infrastructure from the qualifying project; (iii) payments in lieu of taxes and/or payments under the host community agreement subject to approval by the Providence City Council; and (iv) the services to be provided by and through the board. All such revenues shall be deposited in the Intermodal Surface Transportation Fund, as defined in section 35-4-11, to be used for activities eligible for funding under title 23 (Highways) - United States Code;

(3) The comprehensive agreement shall address payment in lieu of taxes, or a host community agreement subject to approval by the City Council of the City of Providence. All such revenues may be pledged by the City of Providence pursuant to R.I. General Laws section 45-33.2-1 et seq.;

(4) Reimbursement to be paid to the board for expenses incurred and services provided by the board;

(5) With regard to a public-private initiative, the comprehensive agreement shall also address:

(i) The duties of the private entity under this chapter and may contain such other terms and conditions consistent with this chapter. Without limitation, the comprehensive agreement may contain provisions under which the board agrees to collateral assignment provisions, notice of default provisions, and cure rights for the benefit of the private entity and the persons specified therein as providing financing for the qualifying project;

(ii) The schedule for completion of the qualifying project;

(iii) Delivery of performance and payment bonds in connection with the construction of, or improvements to, the qualifying project, in the forms and amounts satisfactory to the board;

(iv) The review of plans and specifications for the qualifying project;

(v) The inspection of construction of, or improvements to, the qualifying project to ensure conformance with the approved engineering standards;

(vi) The maintenance of a policy or policies of public liability insurance (copies of which shall be filed with the board accompanied by proofs of coverage), self-insurance, in form and amount satisfactory to the board and reasonably sufficient to insure coverage of tort liability to the public and to enable the continued operation of the qualifying project;

(vii) Monitoring of the maintenance practices of the private entity by the board and the taking of such actions as the board finds appropriate to ensure that the qualifying project is properly maintained;

(viii) Filing of appropriate financial statements on a periodic basis; and

(ix) The date of termination of the private entity's authority and duties under this chapter and dedication to the appropriate public entity.

(b) Any changes in the terms of the comprehensive agreement, as may be agreed upon by the parties from time to time, shall be added to the comprehensive agreement by written amendment.

(c) Each comprehensive agreement may provide for state indemnification of the contracting party for design and construction liability where the state has approved relevant design and construction plans.

37-22-8. Application process. -- (a) Persons may apply to the board for the development of privately-funded qualifying projects within the project area. All applications shall be accompanied by the following material and information, unless waived by the board, with respect to the project that the private entity proposes to operate as a qualifying project:

(1) A topographic map (1:2,000 or other appropriate scale) indicating the location of the project;

(2) Description of the project, including the conceptual design of such project;

(3) A statement setting forth the specific improvements to public education, public services and infrastructure;

(4) The projected total life-cycle cost of the project, tax payments, payments in lieu of taxes or including reimbursement for host public services and the proposed date for the beginning of and the planned completion date for the construction of, or improvements required by the project;

(5) A statement setting forth the method by which the private entity proposes to finance, develop and operate the project;

(6) A statement setting forth the private entity's general plans for financing and operating the project;

(7) The names and addresses of the persons who may be contacted for further information concerning the request; and

(8) Such additional material and information as the board may reasonably request.

(b) The board may grant approval of a qualifying project and enter into a comprehensive agreement, if the board determines that it is consistent with the plan's principles for the expansion of institutional use and said project includes component(s) that improve public education, public services and infrastructure. The board shall also consider fair market value as defined in 23 U.S.C. section 156 and 23 CFR section 710.403. The director of the Rhode Island department of transportation as a member of the board shall issue a report to the board on this subject relative to each individual application.

(c) The board may charge a reasonable fee to cover the costs of processing, reviewing and evaluating any application, including without limitation, reasonable attorneys' fees and fees for financial and other necessary advisors or consultants.

(d) The board shall approve all comprehensive agreements with the private entities.

(e) In connection with its approval, the board shall establish a date for the beginning of the qualifying project. The board may extend such date from time to time.

37-22-9. Permits and approvals for a qualifying project under a comprehensive agreement. -- (a) The board shall, with the mandatory assistance of all applicable state and municipal agencies and departments, control the schedule for the processing and issuance of all necessary permits and approvals for qualifying projects under this chapter. The board shall seek the cooperation of all such agencies to expedite all necessary permits and approvals for the qualifying projects; provided, however, that the comprehensive agreement shall provide for reimbursement for those accelerated services being rendered by any state or local agencies or departments. Qualifying projects shall remain subject to the I-195 Old Harbor Plan (October 1992), the City of Providence's comprehensive plan, zoning ordinance, the plan and design review.

(b) Within thirty (30) days of entry into a comprehensive agreement, the board shall require that all applicable state and local agencies and departments, meet with the board and establish an accelerated time frame for the consideration of and decision upon permits and approvals. The board shall have authority to approve and/or mandate an accelerated process, which may include the implementation of phased and/or fast-track development, which is defined as the initiation of development prior to final issuance of all permits and approvals and/or the completion of final project design and construction plans.

(c) All appeals timely filed with the Rhode Island superior court relative to permits and approvals shall be accelerated and given priority and advanced on the calendar of the Rhode Island superior court. Appeals shall be subject to de novo review.

37-22-10. Material default -- Remedies -- Public-private initiatives. -- (a) Except upon agreement of the private entity and any other parties to the comprehensive agreement, providing for public-private initiatives, the board shall not exercise any of the remedies provided in this section, unless the Providence county superior court, after notice to the private entity and the secured parties (as may appear in the private entity's records) and an opportunity for hearing, shall first issue a declaratory judgment that a material default, as defined in section 37-22-4, has occurred and is continuing.

(b) Upon entry by the superior court of a declaratory judgment order pursuant to subsection (a) above, unless such order is stayed pending appeal to the Rhode Island supreme court, the board may exercise any or all of the following remedies:

(1) The board may solicit other private entities to take over a qualifying project and in such case it shall succeed to all of the right, title and interest in such project, subject to the secured interests of any person providing financing therefor in accordance with the comprehensive agreement.

(2) The board may terminate the comprehensive agreement and exercise any other rights and remedies which may be available to it at law or in equity.

(3) The board may make or cause to be made any appropriate claims under the performance and/or payment bonds required by subparagraph 37-22-7(a)(6).

37-22-11. Sovereign immunity. -- Nothing in this chapter shall be construed as or deemed a waiver of the sovereign immunity of the State of Rhode Island, any responsible public entity or any affected local jurisdiction or any officer or employee thereof with respect to the participation in, or approval of all or any part of the qualifying project. A city in which a qualifying project is located shall possess sovereign immunity with respect to its construction and operation.

37-22-12. Procurement. -- The State Purchases Act, Rhode Island general laws section 27-2-1 et seq., the Management and Disposal of Property Act, Rhode Island general laws section 37-7-1 et seq., and the Municipal Award Act, Rhode Island general laws section 45-55-1 et seq., shall not apply to this chapter. However, notwithstanding any provisions of this chapter, the sale, lease or agreement for any real property subject to control by the board shall secure an advisory opinion from the office of the attorney general.

37-22-13. Construction. -- This chapter is deemed necessary for the welfare of the state and its inhabitants and shall be literally construed so as to effectuate its purposes. Insofar as the provisions of this chapter are inconsistent with the provisions of any law or ordinance, general, special or local, the provision of this chapter shall be controlling.

37-22-14. Severability. -- If any clause, sentence, paragraph, section or part of this chapter shall be judged by any court or competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder thereof, but it shall be confined in its operation of the clause, sentence, paragraph, section or part directly involved in the controversy in which that judgment shall have been rendered.

SECTION 2. This act shall take effect upon passage.