Neighborhood Revitalization Act coming before City Council

PROVIDENCE – A tax incentive program designed to encourage economic development in the city’s low- to moderate-income neighborhoods will apply to 19 of 25 neighborhoods.
The proposal, called the Neighborhood Revitalization Act, is expected to receive initial approval from the City Council on Thursday.
The Finance Committee last week approved a revised version that identifies the eligible neighborhoods and clarifies the process through which developers can receive a tax stabilization agreement. Two votes of the full council would be required for approval.
The program would allow developers of commercial, multi-family housing or mixed-use projects – with values between $250,000 to $3 million – to qualify for an administratively-approved tax agreement, deferring full payment of property taxes for six years.
“It’s an important, compelling and innovative approach to economic development” in the city neighborhoods, said Council President Luis A. Aponte.
The eligible neighborhoods are: Charles, Elmwood, Federal Hill, Fox Point, Hartford, Lower South Providence, Manton, Mount Hope, Mount Pleasant, Olneyville, Silver Lake, Reservoir, Smith Hill, South Elmwood, Upper South Providence, Valley, Wanskuck, Washington Park and the West End.
The Downtown, including the Jewelry District, is excluded, as well as Elmhurst, College Hill, Hope, Wayland and Blackstone.
The city’s director of the Department of Inspections and Standards and the director of Planning and Development would determine whether projects qualify. Property owners would then apply using a standard format, and city departments would have 15 days to determine if the application and the property met the requirements.
City Council and mayoral approval would not be required.
Under the program, projects that qualify would pay a base tax, or the value of the unimproved property, for the first year, followed by payment of taxes in 20 percent increments based on the improved value. By the sixth year, full taxation would be in place.
Owners of eligible properties and projects would have to start construction within a year of the effective date of the TSA, and would have to complete the project within two years. Otherwise, they would be responsible for paying all retroactive taxes.
Initially, the ordinance specifically targeted “abandoned” structures for redevelopment, but the new version removes that restriction, allowing projects that are under-used to qualify. For example, Aponte said, a structure with occupants or tenants on the second floor, but vacant space at ground level could now be considered.
“We wanted to keep it sufficiently broad,” he said.
Since the proposal was first introduced, people have started contacting the City Council’s offices, asking for more information, he said. In the future, the city’s Planning Department may create a website page with information about the program.

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