Prov City Council Moves Forward With New ProvPort Deal - Newly Elected Council to Have Final Vote

Prov City Council Moves Forward With New ProvPort Deal - Newly Elected Council to Have Final Vote

The Providence City Council on Thursday night approved on first-passage a new 30-year revenue sharing agreement, bond, and lease extension for ProvPort.

The new agreements are expected to "position ProvPort for expansion and growth and allow the operator to attract new green energy industries, like offshore wind," according to the council. 

Following Thursday night's council meeting, more legislative action will be needed for complete passage by the 2023 council -- the resolution will become effective on the second passage of the ordinance at a later date.

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In 2016, GoLocal reported that when ProvPort, the non-profit operator of the Port of Providence, was seeking a $20 million taxpayer bond, that it paid management fees to a sister for-profit company of more than $11 million over the three previously reported years. The $11 million was approximately half of ProvPort's total revenue. 

That year, GoLocal also reported that two of the key players who helped create the Wyatt Detention Center and were ultimately tied to its financial collapse were poised to benefit again from public financing in the $20 million ProvPort bond which was ultimately approved. 

 

Details of Agreement 

Details of the agreements include:

• Upfront one-time payment to the city of approximately $7 million from bond proceeds
• 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)
• No further expansion of fossil fuel industries in ProvPort by terms of the lease to 2052

“As the Chair of the Finance Committee, this is likely the best tax treaty passed in the city of Providence. The city negotiated to receive more money in this agreement than we would get by taxing the property at its full taxation value,” said Jo-Ann Ryan, Councilwoman (Ward 5). The Port of Providence is a gem with the potential to become a vital economic engine. This agreement lays the financial foundation for the expansion of green energy in the capital city and future port development.”

"We are extremely pleased with last night’s outcome and thank all city councilors who took the time to thoughtfully analyze the agreement and understand its benefits to the City of Providence," said ProvPort spokesperson Bill Fischer. "The last couple of weeks have included productive dialogue with councilors as well as community members. The extension allows ProvPort to continue to be an economic driver for the city with a number of direct financial incentives and allows for a master planning process that will include rigorous public input. In particular, we want to thank Council President Igliozzi, Councilman Espinal and Councilwoman Miller for their thoughtful consideration and leadership as well as Mayor Elorza and the hard work of his staff."

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.