Horowitz: Raimondo is Putting Rhode Island on the Right Economic Path
Rob Horowitz, GoLocalProv MINDSETTER™
Horowitz: Raimondo is Putting Rhode Island on the Right Economic Path
Seizing on the momentum and extra tax revenue generated by the national economic recovery, Governor Raimondo began smartly putting the building blocks in place to make Rhode Island more economically competitive for the long-term. Raimondo was successful in convincing the General Assembly to adopt her sound economic development strategy—one that is based in large measure on evidence and best practices, rejecting Rhode Island’s often insular parochialism and drawing on policy approaches that have succeeded in other states. These include targeted tax incentives to encourage businesses to locate here, an overhaul of job training, and long-overdue investments in infrastructure.
And her strategy is already producing concrete signs of success, some of which you can count on hearing about tonight. Chief among them is Wexford-CV Properties commitment to build a life-sciences complex on Providence’s 195 land, the manufacturing firm, Greystone, choosing to expand in Rhode Island instead of Virgina, two new hotels moving forward in Providence, and Electric Boat adding 4,000 jobs in Quonset and Connecticut close to the RI border.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThese successes, of course, are not the result of Raimondo’s efforts alone. Other elected officials, past and present, have played a role. Most importantly, the Governor is getting a timely boost from a better performing national economy. Rhode Island’s unemployment rate is now at its lowest at any point since before the Great Recession and the State added more new jobs last year than any year since 2000.
As the old saying goes in politics or in life in general, "it is better to be lucky than good.” But Raimondo is making the most of her luck, delivering positive economic changes that will pay long-term dividends.
This can be seen in her re-tooled proposal to fix Rhode Island bridges in part by charging tolls to mainly out-of-state big trucks. With a larger than expected recent infusion of federal transportation dollars, this re-worked proposal, now agreed to by the leadership of both houses of the General Assembly is designed to soften the opposition, by reducing the toll amounts, requiring less borrowing, and specifying the need for a referendum, if the tolls are to be expanded to cars. While the opponents are continuing to put up a spirited fight, this ambitious proposal is now very likely to pass.
Count on Raimondo to continue her proactive and aggressive approach to economic development in year two. A recent comprehensive Rhode Island economic strategy prepared by the Brookings Institution, in close coordination with the Governor, outlines the need for more strategic investments and public-private partnerships. It is a safe bet that a substantial number of these recommendations will be incorporated into the Governor’s speech tonight and reflected in the proposed state budge to also be unveiled this evening
While there is much more to be done for Rhode Island to stop under-performing economically and realize its true potential, Governor Raimondo’s vision and dogged implementation has put us on a promising path, one that can eventually lead to prosperity. After one year, that is about all any of us can ask.
Rob Horowitz is a strategic and communications consultant who provides general consulting, public relations, direct mail services and polling for national and state issue organizations, various non-profits and elected officials and candidates. He is an Adjunct Professor of Political Science at the University of Rhode Island.
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?
