EAST PROVIDENCE – Blue Cross & Blue Shield of Rhode Island will move its customer service operations, approximately 15 percent of its workforce, from its 500 Exchange St. property in Providence to 50 Jordan St. in East Providence, a spokeswoman said Wednesday.
According to data from Providence Business News’ 2017 Book of Lists, that could mean 127 jobs are moving out of Providence.
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The spokeswoman, Jill Flaxington said that the move should take place in late 2017 or early 2018, but did not specify a reason for the move, or what would be done with the space left unoccupied by the customer service operation.
Joseph R. Paolino Jr., managing partner at Paolino Properties and former mayor of Providence, said the move is against the spirit of the tax stabilization agreement that Blue Cross signed when developing the building.
“I think Blue Cross is taking advantage and violating the tax stabilization agreement,” he said, adding that it “was designed to keep 1,100 jobs in Providence” and that the “City Council should call them in and remind them why they received the tax stabilization agreement and suggest they should reverse their move.”
Blue Cross disagrees. Flaxington said, “The tax stabilization agreement referenced predates our decision to build on the plot that we are on. That was a deal with the owners of the land, not with BCBSRI. Additionally, there is nothing in the TSA that requires a certain number of jobs stay in the city. That said, BCBSRI remains a leading employer in the city of Providence and we are committed to keeping our headquarters in the city.”
Currently, Blue Cross does rent space out in the 500 Exchange St. office building. No indication was given if more room is being cleared out to rent or being repurposed. In 2007, a Blue Cross economic impact analysis estimated it would have 1,124 employees in the headquarters, although the most recent estimate of employees statewide is closer to 850, according to the PBN Book of Lists. Paolino had brought a lawsuit against the city and against the TSA in February 2015. The case was dismissed in December of that year.
Providence City Council President Luis A. Aponte issued a statement Wednesday afternoon in response to the news that Blue Cross would be moving workers to East Providence.
“I am extremely disappointed in this news and will seek an immediate meeting with the president of Blue Cross Blue Shield to discuss the company’s recent decision to deplete employees from its downtown Providence campus. The city provided to Blue Cross an attractive Tax Stabilization Agreement based on the understanding that the company would be a highly active participant in the city, make improvements to the building, and maintain a significant employee base that would contribute to the vibrancy of the city by eating in its restaurants and shopping in its stores. The city did not enter into this sort of a generous TSA only to have Blue Cross slowly but surely become a glorified landlord. It would appear as though they have broached the spirit of the agreement, if not the actual legality of it, and this is deserving of the council’s immediate attention.”
