5Q: Michael Sabitoni | President, Rhode Island Building and Construction Trades Council | Chairman, Providence Rises Together Coalition
1. What is the Providence Rises Together Coalition and why was it formed? The Providence Rises Together Coalition includes a growing number of community groups, janitors, security guards, hotel workers, construction workers and other professionals advocating for reforms to city tax-stabilization agreements.
2. Why is the city’s existing tax-stabilization agreement policy a problem? What are the top changes you would like to see made? One of the key problems with the current TSA policy is developers are ignoring their reporting requirements. A 2017 audit uncovered a history of “widespread noncompliance” among the 54 developers who were TSA recipients, as well as reporting errors, wage theft, worker misclassification, missed administrative payments and dismal reporting practices.
The proposed reforms will create stronger reporting requirements; require investments in minority and women-owned businesses; start a career-building apprenticeship program; and guarantee livable wage standards during and after construction.
3. Developers are pushing back against the proposed policy changes as making their projects too costly and say it will dissuade development. What is your response? Those opposing these common-sense reforms to protect taxpayers and workers want all the benefits of TSAs with little accountability. Profiting at the expense of working families on projects financed with taxpayer money is simply bad public policy.
4. The city has tried several times to reform its TSA policy in recent years without much success. Why do you think this latest effort will be different? There is strong support on the [City Council] for reforms, a coalition that is broader than ever and the community at large is committed to reform these agreements for the greater good. Practical reforms like those proposed will continue to allow TSA policies to benefit developers but in a more equitable way benefiting the public good.
5. Do you see a need for tax breaks to incentivize development? What is the right balance between incentivizing economic development and protecting taxpayers’ dollars and workers’ rights? We absolutely support tax breaks to [incentivize] development. However, we need to ensure those tax breaks benefit workers, the community and businesses equally and transparently. We must prioritize the public interest and the public good anytime we issue tax incentives to spur economic development.
Nancy Lavin is a PBN staff writer. Contact her at Lavin@PBN.com.
