House OKs $20M bond for ProvPort

IF APPROVED by voters, state bonds would purchase up to 25 acres of land and facilities between Allens Avenue and the Providence River. / COURTESY PROVPORT INC.
IF APPROVED by voters, state bonds would purchase up to 25 acres of land and facilities between Allens Avenue and the Providence River. / COURTESY PROVPORT INC.

PROVIDENCE – A $20 million state bond issue that would expand the terminal capacity of ProvPort Inc., by adding more land and water acreage at the Port of Providence, is expected to be presented to voters in November.
The ProvPort request, introduced late in the legislative session, was added to the fiscal 2017 state budget by the House Wednesday in a 57 to 15 vote.
If approved by voters, the state bonds would purchase up to 25 acres of land and facilities between Allens Avenue and the Providence River. The ballot question would seek $70 million for port improvements, by including the amount for ProvPort in the same question with $50 million for improvements and pier rehabilitation at Quonset Point.
Advocates say the action will strengthen the state’s economy by allowing ProvPort to expand its acreage in Providence and accept cargo from ships that require ports with refrigeration capacity.
A recent economic-development impact assessment, commissioned by ProvPort, found Providence could benefit from the expansion of the Panama Canal, which is expected to result in an influx of larger ships to U.S. ports by the fourth quarter of 2016. Although the Providence port cannot accommodate larger ships, it could receive smaller ones displaced at deeper ports.
Under the proposal the state, rather than Providence, will purchase the land, according to William Fischer, a spokesman for ProvPort. A plan for revenue sharing from the increased port operations will be negotiated, he said.
Several House Republicans were critical of the proposal, including the idea that the state would acquire land in Providence.
Rep. Daniel Reilly, R-Portsmouth, repeatedly questioned why the state is getting involved in a city property. “Why would the state be floating the debt as opposed to the city?” he said.
Rep. John DeSimone, D-Providence, responded by explaining the ProvPort area is filled, and the state has an opportunity to expand jobs. “The port is sold out,” he said. “They need the land to grow. This is a very good investment by the state … and the city.” All of the businesses at the port pay property tax, he said, under agreement with the city.
Although the port has not settled or negotiated for specific properties, seven parcels on the waterfront could be acquired, Fischer said Thursday, in a message emailed to Providence Business News.
The parcels are: 4.3 acres of land and 3.54 acres of water owned by Northland Environmental; 2.1 acres of land and 5.25 acres of water owned by ANM Realty; .84 acres of land owned by Red Bridge Properties; 3.62 acres of land and 4.77 acres of water owned by Lawrence T. Perera; 9 acres of land and 8.6 acres of water owned by Cumberland Farms; .51 acres of land and 1.5 acres of water owned by the city of Providence; and 5.27 acres of land and 6.42 acres of water owned by ACR Realty (RIRecycled).

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