Businesses support E.P. commission

‘Any increase in my business goes to paying higher taxes’

It isn’t easy doing business in East Providence, says Allan Gilmore. He should know: His business has been there for 75 years. More

To continue reading this article, please do one of the following.


Businesses support E.P. commission

‘Any increase in my business goes to paying higher taxes’

THORNY ISSUE: Allan Gilmore, owner of Gilmore's Flower Shop, said that many business in East Providence are displeased with the city's treatment of its commercial tenants.
Posted 1/9/12

It isn’t easy doing business in East Providence, says Allan Gilmore. He should know: His business has been there for 75 years.

He owns Gilmore’s Flower Shop, a family-operated concern on Taunton Avenue, opened by his father during the Great Depression in 1936. “City Hall has never had open arms when it comes to business. The problem in my case is the continuous increase of taxes puts a burden on my net profit at the end of the year. Any increase in my business goes to paying higher taxes,” he said. As an example, Gilmore said his parking lot was once assessed at $90,000. Within a three-year period that figure escalated to $214,000 last year.

Things are so bad that he’s started to hear rumors about some businesses investigating a five-year strategy to leave. “You hear about it in social circles, of people thinking of selling their business and property to get out of, not only East Providence, but the state,” he said.

With that in mind, he welcomes the financial commission appointed by Gov. Lincoln D. Chafee that’s taken on the task to straighten out the city’s budget and finances. “Someone has to come in here that isn’t obligated to special interests or by campaign promises and do what’s right. Tough decisions have to be made and no one in this city is willing to do it,” he said.

The city’s fiscal plight, which includes debt of more than $10 million in fiscal 2012, has clearly left many in the business community worried about their financial futures. But Gilmore and other business owners are hoping the commission can help the city follow the lead of Pawtucket and Central Falls, two other financially ailing communities working through budget woes.

In December, Moody’s downgraded East Providence’s general-obligation bond rating from Baa1 to Ba1, affecting approximately $22.4 million in outstanding debt. The downgrade reflects the recent appointment of a fiscal overseer and the budget commission by the state.

Conversely in Pawtucket, its neighbor to the north, Fitch Ratings upgraded the city’s outlook from “negative” to “stable,” last month, welcome news for city officials and business leaders.

Although the bond-ratings company did not raise the BBB- rating for the city’s $20 million in outstanding general-obligation bonds, Pawtucket is expected to have an operating surplus this fiscal year.

Like Fitch, Moody’s, another bond-rating company, had also given the city negative outlooks over the last two years. But now, with an affirmed bond rating and a stable outlook, city officials, businesses and community organizations hope it’s a sign of better days.

Next Page
PBN Hosted

Join PBN for the best networking event and party of the winter - January 15, 2015 - the Book of Lists Party at the Providence Public Library. Reserve your spot by December 31st and get a holiday gift from PBN!
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
  • Manufacturing Awards
    Applications are now being accepted for the 2nd Annual Manufacturing Awards. Dea ...
Purchase Data
Book of Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  • Purchase an e-File of the entire Book of Lists database
  • Purchase a printed copy of the Book of Lists
    Latest News