PROVIDENCE – The City Council is reviving efforts to create a more-streamlined and objective process for when and how it gives tax breaks to development projects.
The Tax Stabilization Investment Act was recently introduced by Council President Sabina Matos with support from a majority of the council members, according to a news release. As proposed, the legislation would “increase transparency, simplify and streamline” the application process and more clearly define the requirements for developers seeking tax-stabilization agreements with the city, the release stated.
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The city currently has 67 TSAs worth nearly $796 million of property value on its books, according to Billy Kepner, the council’s deputy chief of staff. The agreements have been reached under a range of policies, PBN previously reported. Some require council authorization, while others only need administrative approval. Enforcing contractual requirements to meet minimum standards for involvement of women and minority business owners have proven difficult to track or enforce.
As proposed, the length of agreed-upon tax breaks would be set based on the cost of the commercial projects, with those costing less than $3 million subject to a five-year TSA, all the way up to a 20-year agreement for those with a price tag of $50 million or more.
The act also condenses the prior array of policies into a single section of the city code, and standardizes the review and approval process to include both relevant city departments and the City Council. Developers seeking TSAs must meet requirements for inclusion of women-owned and minority-owned businesses in their projects, as well as paying prevailing wages and meeting specific reporting timelines.
The legislation is not expected to change city revenue but rather streamline the process, Kepner said.
Nancy Lavin is a staff writer for the PBN. Contact her at Lavin@PBN.com.
