Controlled Environment Agriculture (CEA) Tax Exemption is Flawed

CEA Flawed Tax Exemption

As an Exeter resident and former member of the Exeter Town Council & Planning Board, I am an advocate of blending traditional farming and technology. However, I am alarmed that our Comprehensive Plan and zoning regulations so frequently circumvented by the state is now being circumvented by our own town officials in the following instances:

• Application procedure violations by Councilwoman Diane Allen.
• Notification violations for both the February 27 and March 9, 2023 Public Hearings.
• Circumventing the Planning Board review procedures and determination of compliance with the Comprehensive Plan.
• Defective and Premature Zoning Certificate issued by the Zoning Inspector for RI Grows, LLC on January 19, 2023.
• Statutory violations as related to payment in-lieu of taxes (PILOT).

In a previous letter I briefly described each of these concerns and the dangerous precedence it set for potential future misconduct by our elected town officials. However, I would like to expand upon my concerns with respect to just the payment in-lieu of taxes (PILOT) and its negative impact on the economic viability of Exeter. The payment in-lieu of taxes (PILOT), in my opinion, is flawed and should be considered invalid.

First: All real property in the state, are liable to taxation unless otherwise specially provided as stated in RI State Statute § 44-3-1Real and personal property subject to taxation.

Second: The proposed payment in-lieu of taxes (PILOT) is also in violation of RI Statute 44-3-9 for exempting or stabilizing taxes for manufacturing, commercial or residential properties. The taxing authority of the town council must first be authorized by the electors and then included in a publicaly advertised notification. This did not happen.

Third: The payment in-lieu of taxes (PILOT) does not belong in a Zoning Ordinance, especially specific without Public Notification.

Fourth: The payment in-lieu of taxes (PILOT) should have included the Tax Assessor in any discussion and decision, not the Town Council President alone.

Fifth: A payment in-lieu of taxes (PILOT) as opposed to a fair property tax evaluation is a give-away to RI Grows, LLC and is unfair to the taxpayers of Exeter.

A Greenhouse as a commercial structure, excluding the ancillary support structures, would pay an annual property tax based on an estimated property value of $20 per sf to as high as $32 per sf. According to the CEA zone amendment a Tier III CEA Greenhouse would pay a one-time payment in-lieu of taxes (PILOT) of $250,000 as opposed to an estimated minimum property tax of $303,313 or potentially as much as $485,781 annually depending on the assessed property value.

Exeter is a rural town with no infrastructure and very limited potential for commercial or industrial growth to increase its tax base. Two Economic Development Task Forces, approximately 20 years apart have been unsuccessful in achieving the goal of expanding our tax base beyond just residential properties. A properly developed CEA ordinance that is fairly taxed can help provide the necessary expansion of our tax base beyond just residential properties. Why is the Town Council so eager to exempt RI Grows, LLC from their legally obligated and fair taxation?