Providence council passes TSA plan for I-195 and Capital Center land

PROVIDENCE CITY COUNCIL passed a tax stabilization ordinance that is designed to help development projects such as this one be completed in the former Interstate 195 land as well as the Capital Center district in the capital city. / COURTESY WEXFORD SCIENCE & TECHNOLOGY
PROVIDENCE CITY COUNCIL passed a tax stabilization ordinance that is designed to help development projects such as this one be completed in the former Interstate 195 land as well as the Capital Center district in the capital city. / COURTESY WEXFORD SCIENCE & TECHNOLOGY

PROVIDENCE — The City Council has established a uniform tax incentive policy for the lands being marketed for development along the former Interstate 195 corridor, as well as undeveloped land in the Capital Center district.
In a special meeting Wednesday, the I-195 tax stabilization agreement ordinance found universal support.
Under a two-tiered process, five development projects of at least $50 million in either of the two districts will qualify for a 20-year phase-in of property taxes, approved administratively. After the initial five projects, the remainder seeking 20-year agreements would require City Council and mayoral approval.
Once approved, the developer will pay no taxes for the first three years, followed by payments of only the existing land value for the next two years. Taxes on the improvements would begin to kick in in the sixth year of the agreement.
A second program would allow smaller projects, those of $10 million or more, to receive a 15-year TSA, also approved administratively.
Mayor Jorge O. Elorza already has indicated he supports the ordinance, and is expected to sign it soon.
Attending the council meeting Wednesday was state Sen. Majority Leader Dominick J. Ruggerio, who had proposed state legislation to impose a tax treaty on the I-195 lands, when it appeared the Providence council and mayor were not moving forward with a plan.
Following the vote, he said he was pleased with the final ordinance, and predicted it would spark new interest in the I-195 properties.
The commercial tax rate in Providence is high enough to act as a discouragement to development without a tax agreement to phase in taxes, he said. In addition, the straight-forward approval process will attract development, he said. “It’s a great idea, because of the expedited permitting process.”

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