TSAs Designed to Provide Predictability for Developers, Expedite Projects, and Create Jobs
Mayor Jorge Elorza, City Council President Luis Aponte, Governor Gina Raimondo, Speaker Nicholas Mattiello, Senate President Teresa Paiva-Weed, Senate Majority Leader Dominick Ruggerio, and House Majority Leader John DeSimone and the I-195 Commission today announced an amended city ordinance to provide for standardized Tax Stabilization Agreements that will foster development and create jobs in the former I-195 corridor.
The following joint statement was issued:
“We all agree that the I-195 land is a once-in-a-generation opportunity for both Providence and Rhode Island, and we need to work together to foster investment and put people back to work. This ordinance provides powerful tools that will encourage development, drive our economy forward, and help get shovels in the ground soon. These TSAs will offer a streamlined and predictable process for developers and will open opportunities for companies across the globe to invest and create jobs in Providence.”
The collaborative proposal calls for a two-tiered TSA for projects above $10 million and $50 million respectively. Officials expect the new proposal to be introduced as an amendment to the Mayor and City Council leadership’s current proposed ordinance during tonight’s TSA public hearing.
Under the agreement, projects over $10 million will be eligible for a 15-year tax stabilization agreement that will see no taxes in the first year, base land tax only in years 2-4, a 5% property tax in year 5 and then a gradual annual increase for the remainder of the term.
Officials also announced five 20-year TSAs for which projects over $50 million will be eligible on a first come, first served basis. Offering this limited number of 20-year agreements for large projects will provide incentive for early and expeditious development.
The agreements include women and minority business enterprise incentives as well as apprenticeship requirements for construction and use of the City’s First Source requirements to encourage employment for Providence residents.