On Thursday, May 20th, the City Council voted to give final passage of the Tax Stabilization Investment Act. The ordinance now goes to the Mayor to be signed into law.
The Tax Stabilization Investment Act reforms the City’s Tax Stabilization Agreement (TSA) process by standardizing the tax stabilization benefit for all businesses who wish to take advantage of the development incentive. Key points of the legislation include:
Establishing standard tax stabilization periods based on the size and scope of the project, ranging from five-year stabilizations for $3million and under projects to twenty-year stabilizations for projects over $50million.
Streamlining and clarifying the citywide review and vetting process through applicable City departments including Inspections and Standards, Public Works, Planning and Development, the Tax Collector, Licensing, and the City Solicitor prior to review by the City Council.
Specifying area standard wages for construction workers on projects over $10 million.
Creating a commitment to ensure that post-construction jobs earn a wage twice the United States Department of Health and Human Services Federal Poverty Guideline for a family of three divided into an hourly wage at forty hours/week, fifty-two weeks/year on projects over $10 million.
Ensuring that the full taxes on the property become due should the property be transferred to a tax-exempt entity.
Specifying a “clawback” procedure that allows for the Council and the City to reconsider an existing agreement in cases of non-compliance.
Additionally, the ordinance maintains current TSA standards on minority- and women-owned business enterprises, First Source hiring, obligations to the Affordable Housing Trust, payments to the City of Providence Parks and Recreation Trust Fund, and apprenticeship utilization.
“With the passage of this Act, the City is making an investment in neighborhood residents when we support development via tax stabilizations. For too long, high-level publicly subsidized development, while increasing the tax base, has not resulted in opportunities for city residents to gain meaningful employment that has the capacity to break cycles of intergenerational poverty. This Act ensures everyone can share in the opportunities in our city,” said Councilor Rachel Miller (Ward 13), a co-sponsor of the legislation who led the reforms effort.
“The TSA program has resulted in millions of dollars of investment in downtown Providence. A recent report to the Finance Committee projected that the city’s current tax stabilized properties will generate an additional $454 million in revenue over the next two decades. The TSA Investment Act is an evolution of this economic development tool that continues to incentivize major projects downtown and throughout the city, creating jobs, and ultimately increasing our tax base. I’m grateful to my colleagues on the City Council who have the foresight to adapt our approach to supporting growth in Providence,” stated Council President John J. Igliozzi.
“The Act levels the playing field for businesses who follow the law, treat their employees fairly, and want to invest in the future in partnership with the City. Additionally, the ordinance creates crystal clear procedures for developers of any size to know exactly what to expect when they seek support from the City for their projects. This level of clarity around expectations and timeline will support further development, while also standardizing the community benefits provided through the tax stabilization process,” said Deputy Majority Leader Mary Kay Harris (Ward 11).
“The ordinance is a critical first step in updating the laws related to contracting with the City of Providence. TSAs are just one piece of the puzzle in how the City supports and promotes small businesses. I’m looking forward to working with my colleagues to review and update as necessary other key related ordinances, including the First Source Hiring Ordinance and the MBE/WBE ordinances,” said Finance Committee Chairwoman Jo-Ann Ryan (Ward 5).
The final passage of this ordinance is the culmination of several years of effort by the Council working in collaboration with stakeholders to revamp the tax stabilization process. The resulting Tax Stabilization Investment Act supports and incentivizes development, while also providing consistent and tangible benefits for local residents every time a stabilization agreement is approved by the City Council.
At last night’s City Council meeting, Councilman John Goncalves (Ward 1) proposed a change to the Providence Code of Ordinances which would require a building official to provide written notice to their City Council representative upon the issuance of a demolition permit. This ordinance was co-sponsored by Council President John J. Igliozzi Esq. (Ward 7), Council President Pro Tempore Pedro Espinal (Ward 10), Majority Leader Jo-Ann Ryan (Ward 5), Deputy Majority Leader Mary Kay Harris (Ward 11), Councilwoman Helen Anthony (Ward 2), Councilwoman Nirva LaFortune (Ward 3), Councilman James Taylor (Ward 8), Councilwoman Kat Kerwin (Ward 12), Councilor Rachel Miller (Ward 13), and Councilor David Salvatore (Ward 14).
“Recently, a beloved building in the Fox Point neighborhood was demolished, to the surprise of myself and the local community. Not only was this demolition project an inconvenience to residents of the area, it also was at the location of the former Duck & Bunny; a landmark of the Fox Point neighborhood,” stated Councilman John Goncalves (Ward 1).
Under current City law, building officials are not required to notify the City Council or the local neighborhood when a demolition permit has been issued. The proposal would require that written notice be given to the Council representative. This will allow for proper communication to be made between various City Departments, and ensure that residents and businesses surrounding the demolition site are made aware of the upcoming operations in their neighborhood.
“As a City, we work best when communication is open and reliable. As a City Councilman, I know I can better serve my constituents when I am aware of all developments in our Ward. Residents of any neighborhood deserve to know about major plans for construction or demolition which could affect their property, quality of life, safety or the integrity of our neighborhood. Moving forward, I hope this ordinance will encourage an open line of communication between building officials, City operations and residents,” added Councilman Goncalves.
The ordinance has been referred to the Committee on Ordinances for further review.
The facility will be a new state-of-the-art school for the City of Providence,
and will be a significant investment in the Broad Street corridor.
Tonight, the Council’s Committee on Ordinances chaired by Majority Leader Jo-Ann Ryan (Ward 5) approved a zoning change to the former St. Joseph’s Hospital. The property is currently owned by Paolino Properties, and it will be donated to the City of Providence. The building will be transformed into a state-of-the-art school as part of the City’s $300 million rehabilitation and reconstruction of the City’s school infrastructure. The new school will span across seven acres at 21 Peace Street, and the development is expected to become an economic catalyst for the South Providence neighborhood.
“First and foremost, I want to express my thanks to former Mayor Paolino for his generous donation to the City of Providence. This project will be a significant economic stimulus for the Broad Street corridor, and this is a great collaboration between the community and the petitioner. I want to also commend my colleague, Deputy Majority Leader Mary Kay Harris, for her dedication and advocacy in making sure that this project was done right and has the best interest of the neighborhood and our students in mind. As we work to turn our 20th-century schools into 21st-century places of learning, we must ensure that our students are top of mind. We can use this property as a template for what a 21st-century school can become. With this kind of neighborhood activation – the possibilities are endless for new development,” stated Chairwoman of the Committee on Ordinances and Majority Leader Jo-Ann Ryan.
After a public meeting in January of this year, and after several committee meetings where neighbors raised concerns regarding how the building will be used, the City and the petitioner worked to create changes to the original plan. The changes address those concerns and codify uses for the property. The property will be zoned to accommodate housing, educational facilities, office spaces, or recreational facilities. Former Mayor Paolino is donating the East Building, the chapel, and parking lot to the City of Providence, and the value of his generous donation is estimated to be approximately $7 million.
Deputy Majority Leader Mary Kay Harris (Ward 11) and a member of the Committee on Ordinances shared, “I am thankful to former Mayor Paolino and Paolino Properties for listening to the concerns of my community. For too long, South Providence residents have not had a seat at the table when it came to redevelopment and other important building initiatives in our neighborhood. With the support of Majority Leader Ryan and my colleagues on the Committee on Ordinances, we made sure that we addressed the residents’ concerns, and I thank all those who participated in this process. There is no doubt that we need this space to provide an amazing new school for South Providence residents. I am pleased that the commitment to the building’s uses alleviates much of my neighbors’ concerns expressed over the past several months. I look forward to seeing the building in use and to what the future holds for our neighborhood.”
The 8-story building is located in South Providence and will become a state-of-the-art dual-language school for students in pre-K through 8th grade. The property reconstruction is scheduled for completion in time for the start of the 2024-2025 school year. The zoning change will be sent to the full City Council for vote and passage.
“Every Providence student deserves a high-quality education in a modern, safe school building, and today’s vote brings us one step closer to making that goal a reality,” said Harrison Peters, superintendent of Providence Public Schools. “I appreciate the City Council’s commitment to working in partnership with the community as we move forward with this exciting project and want to again thank former Mayor Joseph Paolino for his generous donation.”
The estimated cost for the transformation of St. Joseph’s Hospital is estimated at around $75 million and will be funded through bonding initiatives previously approved by the Providence City Council. The first being a $160 million bond approved in 2018 and the second approved in 2020. Both bonds were voted and approved by the residents of Providence.
Tonight, Councilman Pedro Espinal (Ward 10) introduced a resolution, which was passed, calling for more environmental controls and compliance in the Port of Providence after last week’s fire. The resolution is co-sponsored by Council President Sabina Matos (Ward 15), Majority Leader Jo-Ann Ryan (Ward 5), Deputy Majority Leader Mary Kay Harris (Ward 11), Senior Deputy Majority Leader Nicholas J. Narducci Jr. (Ward 4), Councilman John Goncalves (Ward 1), Councilwoman Helen Anthony (Ward 2), Councilman Michael Correia (Ward 6), Councilor Rachel Miller (Ward 13), Councilman John J. Igliozzi Esq. (Ward 7), Councilwoman Carmen Castillo (Ward 9), Councilor David Salvatore (Ward 14), Councilwoman Nirva LaFortune (Ward 3) and Councilman James Taylor (Ward 8).
“After the fire at the scrap yard on Allen’s Avenue last week, it has become even more pressing that we need to have better environmental controls and compliance by the businesses who are working in the Port of Providence. Last year, I introduced and passed an Ordinance to protect the Port and other areas of the City from becoming a wasteland. Yet, these existing businesses continue to pollute our neighborhoods and potentially our waterways. I want these businesses to do better, be safer, and to transition as best they can to cleaner and safer practices,” stated Councilman Pedro Espinal.
The Port of Providence and Allens Avenue neighborhoods have the highest asthma rates in the state and are ranked ninth in the Country. According to the Rhode Island Department of Health, these neighborhoods have some of the highest emergency department visits among children on Medicaid with asthma in the City of Providence.
“One of the greatest crises that we are facing as a society is climate change, and the damage that is being done to the environment by businesses like scrap yards and other ‘dirty’ businesses. As a city and state, we want businesses to operate and flourish here, but we can’t have that at the expense of our residents and our natural environment. I share my colleague’s concerns and hope that we can move to more environmentally friendly business practices in the Port,” shared Councilman John Goncalves.
Through this resolution, the Council is calling on the Rhode Island Department of Environmental Management, who is tasked with ensuring compliance with State and Federal environmental regulations at the Port, to provide them a copy of all Notices of Violation issued to businesses and property owners located in the Port of Providence for the past ten years.
“Thankfully, last week’s incident did not result in any injuries or damages, and it should serve as a wake-up call to the entire City. The scrap yards and other businesses located around the Port can cause significant negative environmental and health impacts on the community, which is why my colleagues and I call for better oversight of the businesses around the Port. It is only a matter of time before the surrounding communities are put in jeopardy due to a lack of environmental compliance,” continued Councilman Espinal.
Copies of the resolution will be sent to Mayor Jorge O. Elorza, Rhode Island Attorney General Peter Neronha, Director Janet Coit of the Rhode Island Department of Environmental Management, and the members of the Providence Delegation at the Rhode Island General Assembly.
Providence City Council to Limit the Jurisdiction of the Housing Court as it Pertains to Receiverships
The City Council passed for the second and final time passed an Ordinance that would limit the Providence Housing Court’s jurisdiction pertaining to receiverships. The ordinance was introduced by Councilor Kat Kerwin (Ward 12), Council President Sabina Matos (Ward 15), Majority Leader Jo-Ann Ryan (Ward 5), Senior Deputy Majority Leader Nicholas J. Narducci Jr. (Ward 4), Deputy Majority Leader Mary Kay Harris (Ward 11), and Councilors Nirva LaFortune (Ward 3), Helen Anthony (Ward 2), Rachel Miller (Ward 13), Pedro Espinal (Ward 10), and John Goncalves (Ward 1).
The receivership program was initially started to address blighted and neglected properties throughout the City of Providence. However, in the years since that implementation private entities have begun to use the program as a way to displace homeowners and cause further inequities in our housing market.
“As councilors, it is our duty to protect our neighbors from predatory private interests whose goal is to profit off of those most vulnerable in our community. I am proud that our Council is taking a stand and refusing to allow these interests from taking homes away from hard-working residents, and I hope the state will follow suit and pass legislation that prevents this same predatory behavior in Superior Court,” stated Councilor Katherine Kerwin
This ordinance addresses the Providence Housing Court’s authority to hear receivership cases by limiting the Court’s jurisdiction to only those that have been filed by the City of Providence or the Providence Redevelopment Agency. Private actors such as abutter’s and non-profits will still have the opportunity to pursue receivership cases; however, they will now be required to utilize the Rhode Island Superior Court to do so. Receivership cases in the housing context may be filed pursuant to Rhode Island General Law §34-44, the Abandoned Property Act, and it is this state law procedure that allows private actors to petition abandoned properties into receivership for purposes of rehabilitation. This ordinance will ensure that the Providence Housing Court’s review of receivership cases will only occur in instances where the City of Providence or the Providence Redevelopment Agency have deemed it necessary to pursue such an action.
“I would like to applaud Councilwoman Kerwin for her swift action and attention to this matter. Her advocacy and determination are what public service is all about. During our Committee on Ordinances meeting on this matter, we had a robust and productive discussion about how we preserve our housing stock and ensure that our residents are being treated fairly. I would also like to thank the City Solicitor’s office for its guidance. This ordinance is all about protecting residents from unintended abuse of the cities streamlined receivership program,” shared Majority Leader and Chairwoman on the Committee on Ordinances Jo-Ann Ryan.
The Housing Court enforces the municipal ordinances and state laws governing minimum residential requirements, lead paint abatement, zoning, and building requirements to the end that all the people in the City of Providence be housed in dwellings that are safe, sanitary, and fit for human habitation and that all structures be utilized per state and municipal lead, code, zoning, and building laws, in the belief that such enforcement will protect and promote the health, safety and general welfare of the people of the City of Providence and fulfill the City’s Mission of creating and maintaining healthy neighborhoods. In fulfilling its mission, the Housing Court will seek to achieve enforcement and safeguard public health and safety without impairing property ownership.
“As elected officials, we must work to protect our residents in all ways, and this ordinance will make it the purview of the State Superior Courts to award receiverships by private entities. Our community is hurting financially because of the ongoing pandemic, and we need to act to protect our homeowners and housing stock in the City. I want to thank Councilor Kerwin for her leadership and all my colleagues who co-sponsored this important legislation,” stated Council President Sabina Matos.
Tonight the Providence City Council passed two resolutions, sponsored by Councilor Rachel Miller (Ward 13), to support several initiatives before the Rhode Island General Assembly to reduce Perfluorinated and Poly-Fluorinated Alkyl Substances (PFAS) in Rhode Island’s water supply and in food packaging in our state. The resolutions were co-sponsored by Council President Sabina Matos (Ward 15), Majority Leader Jo-Ann Ryan (Ward 5),Deputy Majority Leader Mary Kay Harris (Ward 11), Chairman John J. Igliozzi Esq. (Ward 7), Councilors Helen Anthony (Ward 2), Carmen Castillo (Ward 9), John Goncalves (Ward 1), and Kat Kerwin (Ward 12), Pedro Espinal (Ward 10), James Taylor (Ward 8), and Nirva LaFortune (Ward 3).
The first resolution supports and urges the passage of House Bill 2021 H-5523 and Senate Bill 2021 S-107, which will require the RI Department of Health to set a Maximum Contaminant Level for PFAS and requires that our public waterways and drinking supply be sampled and monitored for PFAS contamination. The second resolution supports and urges the passage of House Bill 2021 H-5356 and Senate Bill 2021 S-0110, which eliminate the manufacture, sale, and distribution of food packaging to which PFAS have been added.
“These initiatives in our General Assembly and State Senate are significant steps in the effort to improve food and water safety in Rhode Island. PFAS are persistent chemicals that are known to cause harm to humans and the environment. It is time for the Department of Health and the Department of Environmental Management to take action to set standards and testing protocols to protect the health and safety of Rhode Islanders. I know that my colleagues in government trust science and believe that we should do everything we can to protect and care for the health and safety of Rhode Islanders and our environment. PFAS have been linked to cancer, developmental issues in children, problems with fertility and pregnancy, and a host of other serious health problems. That is why we must act now to reduce these harmful chemicals from our food and water,” stated Councilor Rachel Miller.
PFAS are highly persistent chemicals that have been widely used in consumer products since the 1948. They are often used in food packaging to prevent grease and other fats from sticking to the paper packaging. However, PFAS are released during production processes and remain in the environment for long periods, entering the air and bodies of water. Because of this widespread contamination, PFAS can often be found in the blood of both humans and wildlife. Over the years, concern has grown regarding the health consequences of frequent exposure to PFAS.
“One of the most precious resources we have in the State of Rhode Island is the Narragansett Bay, and we must do whatever we can to protect this natural resource. Further, PFAS that end up in our water inevitably end up in our sea life. As a state with a robust seafood industry, we have to protect and preserve the catch’s quality. Doing so will protect jobs and this important economic generator. I applaud Councilor Miller for working to ensure that we are supporting important green and healthy initiatives at the General Assembly, and I too add my voice to the chorus of my colleagues who want to see these bills pass and enacted,” stated Majority Leader Jo-Ann Ryan.
The resolutions passed, and copies will be sent to the Rhode Island General Assembly and the Providence Delegation.
