Citizens object to plans for big-box retailers
The idea behind the legislation that created Municipal Economic Development (MED) Zones, first passed in 2002, was to bring relief to “deteriorated and blighted” areas.
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Woonsocket and West Warwick were quick to jump on the designation, which allows businesses to pay a reduced sales tax rate of 3.5 percent for 10 years – and have all the money go to the municipality, rather than the state.
But faced with opposition from citizens and snags in the processes, both communities have yet to get their plans past the design phase.
Woonsocket’s vision for a MED Zone was the latest to die, with the developer and the city parting ways earlier this month. Mayor Susan D. Menard and developer Bucci Development both acknowledged that legal, procedural and political obstacles could not be overcome.
In an interview last week, Menard said the project faced opposition from a citizens group and issues with the R.I. Department of Environmental Management. As a result, it was unlikely the project, dubbed Dowling Village, could proceed in a timely manner.
Dowling Village was originally slated to be built entirely in North Smithfield, off Route 146A (Eddie Dowling Highway), on the Woonsocket line. The city persuaded Bucci to extend the project over the border, taking advantage of the MED Zone designation.
“As a result of [the severance of the agreement], Bucci Development is now free to complete the construction of the original Dowling Village master plan previously approved by the town of North Smithfield,” a news release from Menard’s office said.
Four months ago, it was West Warwick throwing out its MED Zone plans. The legislation was actually passed specifically for that town, to help it revitalize Arctic, its downtown village, once considered one of Rhode Island’s shopping hubs.
A contracted planner’s vision of the town called for a mixed-use, village-style project with housing and boutique-type shops. But when the town solicited proposals from developers, the two projects submitted to the Town Council called for big-box developments that would essentially level Arctic.
Residents fought the proposals, which were the subject of public hearings, eventually winning. Town Manager Wolfgang Bauer said in an interview last week that the town erred by considering the big-box developments.
Difficult to access from Route 95, Arctic would likely be unable to draw the 3,000 to 4,000 cars needed daily to support those types of stores, he said. Shoppers also have the option of going to Warwick, where many of the big-box chains already have stores.
In addition, town officials didn’t consider what would happen to the community if the big-box stores supplanted the existing retailers and houses and then failed, something the citizenry was all too happy to tell them.
“We didn’t look at the practical issues,” he said. “All of the developments hinged on our ability to attract people to the town.”
With both the planned projects killed, Menard and Bauer said their communities will move along with other ideas for the proposals.
Menard said Woonsocket is looking at abandoned mills for the MED Zone. The city has put out requests for bids to tear down two that it owns itself. In West Warwick, Bauer said the town is looking into redeveloping existing buildings in Artic.
Meanwhile, West Warwick is taking steps to improve downtown without utilizing the MED Zone designation. A new senior center is being constructed in Arctic, and an elderly housing complex is slated to follow.
“As more people get into the area, there will be more of a need for shops,” Bauer said, adding the tax breaks would likely be triggered then.
Menard said she felt that despite the setbacks, it was still worth pursuing the development of the zone. “I think they’re very viable,” Menard said. “What I think is difficult about them is finding a location.”
But the legislation creating MED Zones in Rhode Island has faced attacks before. Last year, the state House of Representatives passed an amendment that would have prohibited municipalities from putting a MED Zone on land parcels that hadn’t already been developed.
That amendment would have effectively killed the Dowling Village plan.
The bill was sent to the Senate at the end of the session and was never voted on by the chamber. A separate amendment proposed by a Woonsocket representative also failed to pass last year, but has been introduced again this session.
Sponsored by Rep. Roger Picard, a Democrat, the amendment sought to repeal the tax breaks offered to communities under the legislation. Instead of a 3.5-percent sales tax rate, businesses in the zones would charge the regular 7-percent rate, and the municipalities and the state would split the money.
A second bill, which would change the MED Zone tax rate to 5 percent, also with a 50-50 split of revenue, has also been introduced. Picard said that bill is meant to help keep the communities competitive with neighboring Massachusetts.
Picard, who said he recognizes the intent of the legislation and thinks Woonsocket could benefit because of the MED Zone distinction, said the amendment was introduced because nearby businesses worried that a reduced tax rate would draw their customers away.
“The idea was equity, with a twist,” Picard said.
