Providence council to review proposal for I-195 land tax deals

PROVIDENCE CITY COUNCIL PRESIDENT Luis A. Aponte, center, wants to continue discussions with the state before council signs off on proposed legislation to create a standardized tax stabilization regime for land in the former Interstate 195 corridor downtown. / PBN FILE PHOTO/MICHAEL SALERNO
PROVIDENCE CITY COUNCIL PRESIDENT Luis A. Aponte, center, wants to continue discussions with the state before council signs off on proposed legislation to create a standardized tax stabilization regime for land in the former Interstate 195 corridor downtown. / PBN FILE PHOTO/MICHAEL SALERNO

(Updated, 8:30 p.m., March 18)
PROVIDENCE – An ordinance that proposes a uniform approach to tax stabilization agreements for projects in the former Interstate 195 corridor will be introduced to City Council this week.

But given the $25 million proposed for state incentives to draw businesses to the redevelopment district, under Gov. Gina M. Raimondo’s fiscal 2016 budget, Council President Luis A. Aponte said Tuesday he wants more discussion about what projects should be eligible for city tax agreements.

When the ordinance is introduced Thursday, it will be referred to the council’s Finance Committee, he said.

“Given recent developments, there are more conversations to be had,” Aponte said in a telephone interview. The city should be focused on tax incentives that encourage developments that lead to careers, rather than construction jobs, he said. “We want to be a little more intentional.”

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Last week, Raimondo unveiled a budget that proposes a dedicated, $25 million fund for the I-195 district, intended to attract “world-class institutions, employers and other assets” to the former highway lands. The money will support infrastructure and other incentives, according to budget documents, and would not support any proposed athletic venues.

The ordinance, introduced by Councilman David A. Salvatore, would establish a uniform phase-in for the property taxes generated by improvements to properties in the I-195 district. He was a member of a city task force on economic development that last year recommended a more uniform approach to tax incentive agreements.

In a phone interview, he said businesses are looking for predictability when approaching the city.

With respect to Aponte’s comments, Salvatore said the council has had ample time to discuss the issues. The bill was first introduced last year, he said, but a vote was delayed because some of the council felt it should wait until a new administration stepped into office.

“We have to start creating jobs for Providence residents,” he said. “I don’t think we have years to do this.”

In the section describing its purpose, the ordinance states that Providence needs a “predictable, tax phase-in plan that will encourage investment” and increase the pace of economic development.

Under the ordinance, eligible projects would be located on land under the authority of the I-195 Redevelopment District Commission, and could include new construction or rehabilitation of existing multi-family or commercial buildings. The project must provide at least $1 million in improvements, excluding land costs.

All projects that qualify would get a 15-year stabilization period, with a base tax paid for the first five years. Beginning in the sixth year, the city assessor would begin to phase in the cost of the new assessed value. Every year thereafter, the property would be billed for another 10 percent increase, until full taxation at the 15th year.

Jan Brodie, executive director of the I-195 district commission, could not be reached Tuesday for comment. Through a spokeswoman, she said she had not yet had a chance to review the proposal.

But Brodie has said several times that she supports a districtwide approach for tax stabilization agreements for the I-195 lands.

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