(Editor’s note: This is the third in an occasional series focused on questions from Providence Business News readers for R.I. Secretary of Commerce Stefan Pryor. See the others here.)
Real estate transfer taxes are proliferating largely because they do not require voter approval, and they generally do not have immediate impact on taxpayers so they are under the radar screen. But most of the state's residents will pay big-time someday. They just do not know it yet. Are they even legal since the state and municipalities provide zero services in return for the money received?
Yes, roughly three-quarters of states impose some form of state-level real estate transfer tax, making this a form of taxation that is widely accepted as legal in the U.S. That said, beyond this particular source of revenue, the Commerce team works every day to support small businesses, to land and expand companies in Rhode Island, and to promote real estate development through investment in catalytic projects – all of which help to drive revenue growth in our state.
Can we satisfy the need for state historical records space with the need for additional "Superman" building funds by creating storage space in the reconstructed "Superman" building? Doing so would both satisfy the need for additional reconstruction funding and eliminate the need to build a new archives building. Too, placing the archives in the heart of the city would bring R.I. history and its public presentation closer together.
As a proponent of the "Superman" building's revitalization, I very much appreciate the creativity of this idea. And, like you, I believe this landmark is too important to Providence, and to Rhode Island, to remain vacant.
That’s why we on the state team helped to introduce the building’s ownership to the U.S. Department of Transportation’s Railroad Rehabilitation and Improvement Financing program, which provides low-interest loans to transit-oriented development projects – including residential and mixed-use conversions of office complexes – within a half-mile of passenger rail service. (The "Superman" building’s distance from the Providence train station is within that range.)
The building’s ownership has been pursuing a RRIF loan in order to turn 111 Westminster St. into a predominantly residential building, creating hundreds of apartments for Rhode Islanders. Such a conversion would breathe new life into this signature tower – and would also bring needed feet to the street in Providence’s downtown, helping to drive customer traffic to our capital city’s shops and stores.
In 2025 the federal administration initiated a review of the TOD-related policies pertaining to the RRIF program nationwide, which took some time. Our understanding is that review has now been completed, with new USDOT guidance out for public comment. Therefore, the building’s ownership is once again pursuing a federal loan in order to move the project forward.
(Do you have a question for R.I. Commerce Secretary Stefan Pryor? Send it to PBN editor Mike Mello at mello@pbn.com.)
