Process for Preliminary Approval

(1) Within 30 days after receipt of the Preliminary Economic Development Proposal, the Secretary or his or her designee shall host a meeting with the Developer, Municipal Officers, the Commissioner and the Agency to review the proposal and identify any information required to be submitted by the Developer that was not previously submitted. At the meeting, the Developer will be informed whether, based on a preliminary review of the proposal and the criteria for approval of projects set forth in 801 CMR 51.00, the Secretary rejects the proposal and the reasons therefor, or whether the Secretary agrees to proceed with an evaluation of the Preliminary Economic Development Proposal before making a determination as to whether to grant a Preliminary Approval Letter. If the proposal is rejected at that time, the Application Fee will be returned to the Developer. If the Secretary agrees to proceed, the parties will agree at the meeting to a preliminary schedule for: (a) meetings; (b) submission of additional information or documentation by the Developer; (c) Independent Consultant Analysis; (d) issuance of the Preliminary Certificate of the Commissioner; (e) issuance of the Preliminary Certificate of the Agency; and (f) decision by the Secretary as to whether she will grant a Preliminary Approval Letter. (2) The Developer shall promptly provide any information required to be submitted to or reasonably requested by the Secretary in connection with the Preliminary Approval process. (3) An Independent Consultant Analysis of the Preliminary Economic Development Proposal shall be conducted. The Secretary shall engage the independent consultant for the Independent Consultant Analysis pursuant to state law, and the Developer shall be responsible for paying all costs of the Independent Consultant Analysis. The Secretary or a designee shall oversee the work of the consultant, with participation of the Commissioner, the Municipal Officers and the Agency. The Developer shall cooperate with the consultant and shall provide the consultant with such reasonable information regarding the proposed Economic Development Project as is necessary to inform and to expedite the Independent Consultant Analysis. Any previously commissioned independent consultant analyses or other market research information or financial analyses conducted by or on behalf of the Municipality or the Developer shall be provided to, and taken into by, account by the consultant retained by the Secretary. (4) If the Independent Consultant Analysis or other information results in a determination by the Commissioner that New State Tax Revenues will be materially different from the estimates included in the Preliminary Economic Development Proposal, the Secretary may request that the Developer, in consultation with the Municipal Officers, Secretary, Commissioner, Agency and independent consultant, submit a revised Preliminary Economic Development Proposal. (5) Based on the Preliminary Economic Development Proposal and the Independent Consultant Analysis, the Commissioner shall issue a Preliminary Certificate of the Commissioner regarding the estimated New State Tax Revenues that will result from the Preliminary Economic Development Proposal. The Preliminary Certificate of the Commissioner shall be prepared in accordance with the DOR Guidance and shall clearly identify, for each fiscal year of the Commonwealth through the expected final payment of the Bonds: the total state tax revenues expected to be generated from each Project Component; the portion of such state tax revenues that is expected to constitute New Revenues from each Project Component, including the information or assumptions about relocation of commercial activity, Eligible New Jobs, the Displacement Factors and the other relevant information upon which the estimate of New Revenues is based; the portion of any such projected New Revenues that constitutes Dedicated Revenue; the estimated New State Tax Revenues from each Project Component; and the estimated state tax revenues to be generated from construction activity related to the Economic Development Project. This Preliminary Certificate of the Commissioner shall state any conditions that must be satisfied or assumptions that must be confirmed prior to final certification, including the additional Commitments that will be required from prospective tenants or purchasers that will result in Eligible New Jobs. (6) Based on the Preliminary Economic Development Proposal, the Independent Consultant Analysis and the Preliminary Certificate of the Commissioner, the Agency shall issue a Preliminary Certificate of the Agency as to the estimated Project Costs for the Public Infrastructure Improvements and the portion of such Project Costs that can be supported by the estimated New State Tax Revenues identified in the Preliminary Certificate of the Commissioner, using a 1.5 times annual coverage ratio. The pro forma Debt Service on the Bonds shall be structured in a manner consistent with the requirements of 801 CMR 51.06(12). If the Developer is seeking approval of the Economic Development Project as a Phased Project, the Preliminary Certificate of the Agency shall also provide the same information with respect to the initial phase of the Economic Development Project for which the Developer is seeking approval. This Preliminary Certificate of the Agency shall state any conditions that must be satisfied or assumptions that must be confirmed prior to final approval of the Economic Development Proposal by the Agency.