City Council to consider tax agreement for new WaterFire headquarters

PROVIDENCE — The Providence City Council on Thursday is expected to consider a tax agreement to encourage the redevelopment of the former U.S. Rubber Co. storage building, which was purchased by WaterFire Providence and is being renovated into a venue for its headquarters and as an arts and education center.
The 38,000-square-foot property, at 475 Valley St., was purchased by the nonprofit in December 2012 for $425,000, according to online city property records. The proposed agreement to be introduced to the City Council would require WaterFire to pay property tax to the city of no more than $1,000 for 10 years, beginning with the 2018 tax year.
As a nonprofit, this is a voluntary payment beyond the two years required by the State Historical Preservation Tax Credit agreement, according to the city overview.
As the ordinance states: “The city of Providence is in a fiscal crisis and … the City Council and mayor have asked the tax-exempt property owners to do more. Petitioner is voluntarily agreeing to pay taxes even after the two-year period required by its receipt of State Historic Tax Credits.”
The design of the new WaterFire Arts Center is by Durkee, Brown, Viveiros & Werenfels Architects, with construction by TRAC Builders. Originally built in 1929, the facility is on the National Register of Historic Places.
The renovation will include its adaptation to a multiuse arts center to host events, performances and exhibitions.
In addition to $2.25 million in State Historic Preservation Tax Credits, the funding sources include $5 million in New Markets and federal Historic Tax Credits purchased by Bank of America Merrill Lynch, a state cultural grant, bridge financing from a nonprofit Finance Fund and an EPA brownfield grant.

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