Ruggerio sponsors legislation for tax stabilization standards for I-195 land

STATE SEN. Dominick J. Ruggerio has announced that he plans to submit legislation that will establish tax stabilization standards for land located within the I-195 Redevelopment District. / COURTESY R.I. GENERAL ASSEMBLY
STATE SEN. Dominick J. Ruggerio has announced that he plans to submit legislation that will establish tax stabilization standards for land located within the I-195 Redevelopment District. / COURTESY R.I. GENERAL ASSEMBLY

(Updated 3:02 and 4:51 p.m.) PROVIDENCE – The Senate majority leader said he plans to introduce legislation Thursday that will create a tax stabilization standard for the Interstate 195 redevelopment corridor, one that would provide a 20-year phase-in for taxes.
In a news release, state Sen. Dominick J. Ruggerio, D-North Providence, said the bill will create clear and predictable tax rates for developers who want to bring business to the I-195 Redevelopment District.
“We cannot afford to wait any longer,” he said. “The development of I-195 is critical to Rhode Island’s economic recovery and this legislation will encourage investment, job creation and economic growth.”
The I-195 district commission earlier this month agreed to a third time extension for a developer of private student housing, which has been unable to reach agreement with the city of Providence on a tax stabilization plan.
Ruggerio characterized the pattern as “stagnation.”

“Every developer who has expressed interest in a parcel on I-195 land has indicated they will need to secure a tax stabilization agreement with the city of Providence,” he said, in the statement. “This stagnation cannot continue as it has become an obstacle to job creation and development in Providence.”
Ruggerio said Thursday the state has the authority, because it owns the land, to enact a tax deferral affecting Providence property taxes. “The 195 land is not Providence land, it’s state land,” he said. “The state has control over that land.”
The 20-year term is based on agreements that the city had previously arranged with other businesses, he said.
“What I’m trying to do here is I want a predictable method for developers looking at the I-195 land, to know what their expectations are for paying taxes.”
Providence has a tax rate that is not competitive with many other cities, he noted, including Boston.
Ruggerio said the level of interest in the I-195 land has increased in recent months, and the lack of an agreement policy is causing delays. “That costs those companies money.” He said he had spoken about the issue to the previous city mayor and council leaders, as well as the current administration. It’s time for a policy, he said. Preparation of the land began four years ago, but now interest has increased among developers. All of them are seeking tax stabilization.
“It’s been four years and now there’s an uptick in the interest for the I-195 land. Something has to happen and something has to happen soon.”
Mayor Jorge O. Elorza did not specifically address the legislation in a statement that he released Thursday afternoon when asked by a reporter to comment on Ruggerio’s proposed legislation.

“From the day I took office, I have said that we need a standardized, predictable and streamlined tax stabilization agreement process in Providence. I am working with City Council leadership to develop the ordinance that will allow us to facilitate and encourage development and am committed to seeing this plan introduced very soon,” Elorza said.

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