Horowitz: Raimondo’s Economic Development Strategy Paying Big Dividends
Rob Horowitz, GoLocalProv MINDSETTER™
Horowitz: Raimondo’s Economic Development Strategy Paying Big Dividends
This trifecta of great economic news comes on top of General Electric’s(GE) decision earlier this year to open a Digital Technology Center in Providence and bring an initial 100 high technology jobs with the potential for hundreds more.
Of particular note is Wexford Science and Technology moving forward with its robust first phase, a nearly 200,000 square foot “Innovation Center, whose largest tenant will be Cambridge Innovation Center a highly regarded incubator of new technology and biotechnology companies, along with a nearly 80,000 square foot hotel and retail shop area. This substantial $158 million investment in the 195 zone does include $32 million of public subsidies-a combination of money from the 195 fund and state tax credits. But the estimated benefits to the state far outweigh the initial costs and establish a strong foundation to attract other companies and talented entrepreneurs. To compete with other states in the economic development arena today, unfortunately, requires state economic incentives.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThese impressive results are being generated by a sound economic development strategy—one that is based in large measure on evidence and best practices, drawing on: policy approaches that have succeeded in other states, including targeted tax incentives to encourage businesses to locate here, an overhaul of job training, and long-overdue investments in infrastructure.
Governor Raimondo is leveraging our State’s strengths, including our top-flight universities, strong medical community, excellent location between New York and Boston and our high quality of life in a highly focused effort that is bearing major fruit.
Further, Governor Raimondo’s strongly positive national reputation is a door opener for conversations with CEO’s and others. Contrary to those parochial voices that have actually attempted to argue that she gets too much national publicity, Raimondo is using her national profile to deliver jobs to our state.
There is still much more to do to make our state economically competitive for the long-term, beginning with substantially improving our public schools. But give credit where credit is due. Governor Raimondo is movingRhode Island in the right direction.
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?
