PROVIDENCE – General Dynamics Electric Boat and North Kingstown have reached an agreement that will result in the town receiving millions more in funds from the company as payment in lieu of taxes over the next 18 years, according to the Quonset Development Corp., which helped broker the deal.
The current agreement was projected to net the town $689,302 in PILOT money this fiscal year and was set to expire at the end of this month. The town had separate agreements for Electric Boat-owned land and leased land – the latter of which had been covered by a QDC PILOT agreement. The new agreement now covers Electric Boat’s expansion, including its leased land.
The new agreement will see Electric Boat pay North Kingstown nearly $78 million from 2020 through 2038. The deal’s first payment, for fiscal 2021, will total $1.7 million and scale up to $6.3 million by fiscal 2039.
“A strong relationship between North Kingstown and all the companies at the Park has been a key to Quonset’s success,” said QDC Managing Director Steven King. “We look forward to continuing to be a good neighbor in any way we can far into the future.”
QDC also announced Tuesday that it had negotiated a new municipal-services agreement with North Kingstown that will remain in effect through 2038. The deal includes QDC covering 50% of the cost to dredge the Allen Harbor access channel, as well as an increase to QDC’s annual budget to maintain roads in the Quonset Business Park. QDC said the new agreement will result in “significant cost savings” for the town.
A spokesman for QDC said the previous agreement was due to expire soon, and discussions about the PILOT payments led to a new municipal-services deal being reached.
QDC noted that the business park currently generates $7.8 million per year in property taxes and PILOT payments to the North Kingstown.
Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.
