City to mull tax plans for South Street Landing

Work is under way on the former power station that will make up one part of the South Street Landing project.
Work is under way on the former power station that will make up one part of the South Street Landing project.

PROVIDENCE – As construction continues on the former power station that will make up one part of the South Street Landing project, the city of Providence is reviewing two tax stabilization agreements for new construction associated with the development.
When completed, South Street Landing will house administrative offices for Brown University, as well as the new shared nursing education facility for Rhode Island College and the University of Rhode Island. The new construction involves student apartments, to be constructed in two towers over the existing parking area, and a new parking garage.
One tax stabilization agreement would create a 15-year phase-in for property taxes on the River House Apartments, the 174-apartment residential structures to house graduate students and professional students.
Another would create a 15-year phase-in for property taxes for the 744-space parking garage that will be built on a site on Eddy Street leased from Narragansett Electric Co.
Under both agreements, scheduled to reach the City Council this week, the developer will pay for the first three years’ taxes on the assessed value of the unimproved site, followed by a 12-year phase-in of taxes on the improved values.
By full taxation, in year 15, the project is expected to generate $568,348 in property taxes for the apartment buildings, and $191,173 annually for the parking garage.
Construction of the garage is expected to begin soon, according to a newsletter update on the project.

The update also reports that ongoing work to the interior and exterior of the former power plant building will soon become audible to residents and business tenants in the area.
“The work includes abrasive blasting of brick and steel, the cutting of existing concrete slabs and the use of an industrial jackhammer to break up concrete inside the former power plant,” the update reported.
Emailed updates are available by signing up for the project news at www.southstreetlanding.com.

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