Gov. Raimondo & RI Commerce Corp. Announce New Construction Projects
GoLocalProv Business Team
Gov. Raimondo & RI Commerce Corp. Announce New Construction Projects
“These programs are working together to put shovels in the ground, reenergize vacant developments, and bring more high-skill, high-wage jobs to our state. We provided vital funding for three construction projects that wouldn’t have been able to move forward otherwise and awarded almost half of a million dollars in R&D grant funding, which will strengthen our growing innovation economy. Rhode Island has momentum again – we are showing we are competitive with other states and back in the game," said Raimondo.
Rhode Island Secretary of Commerce, Stefan Pryor added, "we are very pleased with the response to these new investment and incentive programs. In the past month, we have approved applications to four key programs: the Qualified Jobs Tax Credit, the Rebuild Rhode Island Tax Credit, the Tax Stabilization Incentive and the Innovation Voucher Initiative. As a result, we're growing well-paying jobs, catalyzing construction, lowering municipal tax burden, and fostering innovation in Rhode Island. We're also helping our capital city create a more vibrant 24/7 live/work environment – one that’s more attractive to business. And we're just getting started; we look forward to authorizing more investments in the coming months – investments that enable us to advance our economy.”
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTTax Stabilization Agreement
Providence agreed to a tax stabilization agreement (TSA) with PRI, a division of Procaccianti Group, for a proposed internationally-branded, upscale, 154-room extended-stay hotel at the site of the Fogarty Building located in downtown Providence.
“The Tax Stabilization Agreement (TSA) recently approved by the City of Providence is a mission-critical component, without which, redevelopment of the former Fogarty Building at 111 Fountain Street to a new hotel would not be possible. It is extremely encouraging to see city and state governments embrace private real estate investment via innovative programs that help pave the way for future economic development and jobs growth,” said Ralph V. Izzi Jr., Vice President of Corporate Marketing & Public Affairs.
The Tax Stabilization Incentive provides reason for Rhode Island municipalities to enter into TSAs by reimbursing municipalities as much as ten percent of tax revenue foregone due to the completion of a TSA that spans at least 12 years. To qualify, projects must be at least $10 million and create 50 jobs, or at least $5 million and 25 jobs in Hope Communities.
For more information on the incentive programs, click here.
5 Economic Projects - Can Raimondo Get Them Done?
#5 Wexford-CV Properties
The Raimondo administration continues to work with the 195 Commission to seal the deal with the Baltimore-based Wexford Science and Technology for development of prime real estate on the former highway land. While a proposal was made back in June for a mixed-use project, the negotiations between the state and the life sciences have been mostly behind the scenes, with a key vote taken on the proposal taking place Monday night -- in closed session.
"It is important to note that a P&S while an important milestone, is still just a step in the development process," said Commission spokesperson Dyana Koelsch. You can see the plan as presented on the Jewelry District's website HERE. Will we see shovels shortly?
#4 General Electric
Reports that the Connecticut giant is eyeing a move elsewhere — with Rhode Island on that short list — has many a Ocean Stater excited at the possibility. The Boston Globe not surprisingly made the case that their state should top the list (taking a dig at the others), saying that the "Boston area is on the short list of contenders for the headquarters and its 800 people, as GE’s search focuses on high-cost states in the Northeast. In relation to those states, Massachusetts compares favorably on its business tax climate."
However a Connecticut State Rep told the Hartford Courant a month earlier that Rhode Island as an option “wouldn’t surprise him.” Said State Rep John Frey in November, “It's been expressed to me by a couple of people at GE that they've been impressed by what the governor has done with state employee liabilities." To say a GE coup by Raimondo would be monumental for Rhode Island would be an understatement.
#3 Citizens' Campus
The Rhode Island-based banking powerhouse has indicated that is looking for a vacant location state as a potential new campus for 4,000 + of its employees — while maintaining its headquarters downtown at One Citizens Plaza. There is little indication at this time however of consideration of a vacant parcel of prime Providence real estate just to its HQ's south (that being the Industrial National Bank “Superman” building); the bank is indicating that keeping its support facility in Cranston is still an option.
“The lease for our service and support facility in Cranston expires in 2018. We are exploring several opportunities ranging from renewal to potentially consolidating some of our staff and back office functions at a new location in Rhode Island," said Citizens spokesperson Jim Hughes. Watch to see how Citizens moves forward -- and what, if any, role Raimondo has in the process -- and outcome.
#2 Superman Building
The arguably most iconic building in Providence — and Rhode Island’s - skyline lost its last tenant in 2013, and a year later an appraiser deemed it to have “zero value.” A failed effort to utilized tax credits and public investment by High Rock Development has left watchers asking if and when anything is going to move into the historic (if slightly aging) building.
Former Mayor and real estate developer Joseph Paolino, who has been a vocal supporter of trying to get Citizens Bank into Superman, told GoLocal, “I think the biggest problem [in the city] is Superman, because it depresses everything around it. Paolino, who bought three properties nearby downtown back in 2014 — said the revelation that the Industrial National Bank building was empty had cost him a mortgage with a major lender.
Whether there is an opportunity for a Citizens Bank move, or a new developer to re-package a viable mixed-use proposal, if the Superman building is still empty in several years' time, that is not a win for anyone -- not the city, not the state, and not the Governor.
#1 195 Rollout
When Raimondo took office, she understandably made a number of changes on the 195 Commission. A tax stabilization agreement (TSA) structure was finalized this past summer, and the Commission has the Wexford biotech proposal moving forward — but how much more development, and how soon, will the Raimondo administration be able to accomplish what it pledged it would do?
Raimondo called for the 195 land to be a manufacturing hub during her campaign — and while year one might have been setting the stage, the next years are critical for the state — and Governor. Will she usher through her proposed Innovation Institute?
