City to profit for providing property tax incentives

PROVIDENCE – The city will receive $246,597 in state incentives over a period of 12 years for providing its own property tax incentives for a new, extended-stay hotel on Fountain Street downtown.
The Procaccianti Group, of Cranston, is seeking city permission to raze the Fogarty Building and replace it with a mid-rise, upscale, 154-room hotel. City officials approved a 12-year tax stabilization agreement for the hotel in December.
On Monday, it became the first community to qualify for a new state incentive program aimed at encouraging cities and towns to foster development projects.
The program allows municipalities to reclaim 10 percent of the tax revenue waived through a tax stabilization agreement, which typically defers the full tax load on improved properties for a period of years.
Under the state guidelines, qualifying projects that trigger the 10 percent reimbursement must be at least $10 million and create 50 jobs, or be $5 million projects creating 25 jobs in economically distressed communities.
The hotel sought by the Procaccianti Group would involve a $40 investment. The company recently applied to city officials for permission to demolish the Fogarty Building.

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