November 28, 2022
Contact:
Parker Gavigan, Director of Communications
PROVIDENCE, RI – Tonight, the City Council Finance Committee voted 4 to 1 to approve a new tax exemption agreement and lease extension for ProvPort, Inc. on the south side of the city. The vote followed a lengthy public hearing at city hall.
Key details of the extension and refinancing of bonds include:
- Upfront one-time payment to the city of approximately $7 million
- Increases gross revenue sharing agreement from 5.5% to 9%
- Establishes a sustainability project fund with a minimum of $120,000 a year to support projects throughout the city
- Establishes a community benefit project fund with a minimum of $120,000 a year to support projects throughout the city (amendment specifies $25,000 to be used for Ward 10 projects and the remainder of the funds to be distributed by the Board of Parks Commissioners for parks and recreation infrastructure projects)
- An amendment calling for no further expansion of fossil fuel industries in ProvPort by terms of the lease to 2052
The ordinance establishing a tax exemption agreement for ProvPort can be found here. The resolution authorizing a lease extension and bond for ProvPort can be viewed here.
“These financially responsible agreements position ProvPort for long term growth and much-needed clean energy expansion opportunities on the Providence waterfront,” said Councilwoman Jo-Ann Ryan (Ward 5) and chair of the finance committee. “More importantly, the agreements allow ProvPort to immediately attract critical green energy tenants and businesses in competitive industries like offshore wind development.”
The tax agreement and lease extension now move to the full council for a vote and requires two passages.