PROVIDENCE – Gov. Daniel J. McKee and the R.I. Commerce Corp. on Wednesday announced new support for entities impacted by the partial closure of the Washington Bridge by redirecting existing funds toward a marketing campaign, while asking the General Assembly to greenlight grants to business owners.
The up to $400,000 marketing push will be paid for with hotel tax revenue. McKee said he has been in discussions with business owners affected by the crisis and that the campaign will “provide some relief but also help spread the message that East Providence and the East Bay are open for business.”
In addition, the administration says R.I. Commerce will be sending a proposal to the state legislature requesting to tap federal State Fiscal Recovery Funds, including $300,000 for direct grants to eligible small businesses and $800,000 for technical assistance, special events “and placemaking activities for eligible businesses.”
The agency also seeks to make up to $1 million in Main Streets RI Streetscape Improvement Fund revenues “to support signage, beautification and infrastructure improvements in impacted areas.”
The House Small Business Committee is holding a public hearing Wednesday to hear directly from residents and businesses still being impacted by the bridge crisis.
“The closure of the Washington Bridge has disrupted the lives and livelihoods of thousands of Rhode Islanders, and it has been particularly difficult for us in East Providence. Small businesses here have faced especially difficult challenges in the last several months, and many are struggling to stay afloat," said Senate Majority Whip Valarie J. Lawson, D-East Providence, adding that direct grants are a more attractive alternative for many who have already taken on disaster loans through the U.S. Small Business Administration.
The McKee administration is also considering redirecting future funds to support impacted businesses depending on the results of first-quarter tax collections, according to the announcement.
During the hearing, the committee heard testimony from Pot au Feu owner Bob Burke, who unleashed a litany of data points for both the city and his popular French eatery.
Citing the most recent monthly tax collections through January issued by the R.I. Department of Revenue, Burke said total restaurant collections of the local food and beverage tax were down 5.6% in Providence, or more than $3.2 million, which translates roughly to $600,000 in lost tips for servers and bartenders.
At his restaurant, sales on his usually busy Friday nights since the bridge was closed are down between 30% to 50%. He has employees whose commute has increased to up to two hours.
“As a result, we are reducing workers' schedules, which is something we never want to do,” Burke said.
(UPDATE adds paragraphs 8-11 with comment from Pot au Feu owner Bob Burke.)
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com
