Providence City Council, Facing Contentious Crowd, Votes for 20-Year Tax Break for Downtown Hotel

Providence City Council, Facing Contentious Crowd, Votes for 20-Year Tax Break for Downtown Hotel

The Providence City Council on Thursday voted 8-6 -- on first vote -- in favor of a twenty-year tax stabilization agreement for “Westminster Partners, LLC” — Washington D.C. developer Jim Abdo’s vision for a hotel, shared workspace, and restaurant at the location of the former Providence Journal building adjacent to City Hall. 

The City Council chamber was filled with neighborhood activists, Democratic Socialists, and tradespeople demanding that there be worker guarantees — and opponents at times were vocal against council members who expressed their support for the tax break. 

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VIDEO: See Council President Sabina Matos Speak in Support of the TSA BELOW

Councilman John Igliozzi likened the vote, which would allow Abdo to pay $5.5 million in taxes on the property over 20 years, as opposed to $8.3 million he would pay if without a tax break, to the one the City Council took 20 years ago — for a TSA for the Providence Place Mall. 

“All the things you see down here didn’t exist," said Igliozzi, pointing out the windero. That tax treaty - that we voted 8-7 -- started the ball rolling. IGT, Blue Cross, none of that would exist."

 “There were pros and cons," said Igliozz. “Nothing’s perfect." 

Councilwoman Carmen Castillo refuted Igliozzi’s words when she took the microphone next. 

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“That’s nice and sweet,” said Castillo to the roar of the crowd. “[But] we have to support people of Providence. That money is for the people of Providence. Of course we need to raise money. But how many times [do developers] ask for the same thing. And we are still in the same place, doing the same thing. 

The proposed $39 million project has secured $6 million in state tax increment financing (TIF), which it would receive only if the hotel generates expected tax revenue. Abdo, who purchased the properties for $4 million, is expected to pursue $4 million to $6 million in federal historic tax credits.

First Vote

Voting in favor on the first vote were Council President Matos, Councilwoman Helen Anthony, Councilman Michael Correia, Councilwoman Mary Kay Harris, Councilwoman Nirva LaFortune, Councilman Nick Narducci, and Councilman Seth Yurdin, and Councilman Igliozzi. 

Voting against were Councilwoman Castillo, Councilwoman Kat Kerwin, Councilwoman Rachel Miller, Councilwoman Jo-Ann Ryan, Councilman Pedro Espinal, and Councilman Jim Tayler.

Councilman David Salvatore was absent from the meeting.