Elorza signs TSA for cement facility at ProvPort

THIS AERIAL photograph shows ProvPort, with Save The Bay located south of the property, and Johnson & Wales University Harbor Campus located to the southwest. A Canadian company that wants to import cement through the Port of Providence was granted a tax stabilization agreement by the mayor this week. / COURTESY PROVPORT
THIS AERIAL photograph shows ProvPort, with Save The Bay located south of the property, and Johnson & Wales University Harbor Campus located to the southwest. A Canadian company that wants to import cement through the Port of Providence was granted a tax stabilization agreement by the mayor this week. / COURTESY PROVPORT

PROVIDENCE – A tax stabilization agreement was signed by Mayor Jorge O. Elorza on Wednesday enabling McInnis Cement USA Inc. to establish its cement distribution facility at the Port of Providence.

For the first three years, McInnis will pay $50,000 annually in property taxes, according to information from the mayor’s office. Then it will make payments on an assessed property value of $5 million and a real property tax rate of $36.75 per $1,000 for years four through six. For years seven through 12, it will pay taxes based on the then current evaluation of the property and applicable tax rates.

Tangible property taxes will phase in during the fourth year and follow an agreed upon tangible property value, percentage and payment schedule. After the conclusion of year 12, the company will make full tax payments, a press release from Elorza’s office stated.

The company, which will lease and rehabilitate the ProvPort land for its facility, will “ultimately contribute millions in tangible and real estate taxes,” the release stated.

- Advertisement -

According to a spokesman for the mayor’s office, McInnis is projected to pay $1,351,871.06 in tangible taxes and $1,482,043.75 in real property taxes for a total of $2,833,914.81 over the 12-year period. The property also was tax exempt under ProvPort, he noted.

McInnis Cement USA is a subsidiary of Montreal-based McInnis Cement; it is entering the U.S. market and plans to make the $22 million distribution center at New York Avenue its Northeast hub. If everything goes according to plan, cement shipments could begin this fall, a company representative has said. The center is expected to employ approximately 40.

“Our port offers ample opportunity for economic growth, especially with the resources it offers industrial businesses,” Elorza said in a statement. “This agreement with McInnis USA, Inc. is a perfect example of the city working to attract quality businesses which will add to the city’s industrial sector, create job opportunities for locals, rehabilitate city property and expand our tax base.”

Under the agreement, the release said that McInnis will “make a good faith effort to purchase construction materials locally, involve minority and women business enterprises as well as trade construction subcontractors with apprenticeship programs, and comply with the city’s First Source requirements to expand employment opportunities for residents.”

No posts to display