Home Economy Government Providence considers 10-year tax deal for 133-unit Fox Point apartment complex

Providence considers 10-year tax deal for 133-unit Fox Point apartment complex

Correction at 6:30 p.m. on Jan. 5

By

Christopher Allen

-

01/05/2024

159-Gano — THE CITY COUNCIL ON THURSDAY unanimously approved a 10-year tax stabilization agreement the developer seeking to build a 133-unit apartment complex on the corner of Gano and Power street./COURTESY SWEENEY REAL ESTATE & APPRAISAL

PROVIDENCE – City officials are considering giving a 10-year tax stabilization deal to the developer building a 133-unit apartment complex on the corner of Gano and Power streets in the city’s Fox Point neighborhood. On Thursday, the City Council took a unanimous vote to forward the proposed tax stabilization agreements to the council’s finance committee.

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PROVIDENCE – City officials are considering giving a 10-year tax stabilization deal to the developer building a 133-unit apartment complex on the corner of Gano and Power streets in the city’s Fox Point neighborhood. On Thursday, the City Council took a unanimous vote to forward the proposed tax stabilization agreements to the council's finance committee. The ordinances outlining the agreements were sponsored by Senior Deputy Majority Leader John Goncalves. Local developer and business owner Bahman Jalili, under a business entity named Power 250 LLC, is planning a four-building, five-story complex with 133 apartments located at 153-165 Gano St. The company has dedicated $4 million to the project, according to the proposed agreement. The terms state that “notwithstanding the value of the property,” for the first two tax years of the term, Power 250 LLC will make tax payments equal to the current assessments In the following years, it will pay a progressively higher percentage of the tax rate until 2033, starting with 12.5% in 2026. While the structures have already been razed, construction is required to start within 12 months and a certificate of occupancy from the Providence Department of Inspections and Standards acquired within 36 months. Other requirements include using “best efforts” to ensure construction materials are purchased from qualified vendors located in the city of Providence. One of the buildings, located at 159 Gano St., was the former location of the Holy Rosary Band Society, a nonprofit community band associated with Our Lady of the Holy Rosary church, which sold the 5,760-square-foot masonry building for $1 million in 2021. The council on Thursday also received the final report from the Special Commission for Taxation and Revenue, charged with issuing recommendations for restructuring the city's tax system. One of the recommendations included in the report, which has been endorsed by Mayor Brett P. Smiley, was to find ways to "return vacant and underutilized properties to productive use." (CORRECTION: An earlier version of this story incorrectly said the Providence City Council had voted to approve the tax stabilization agreements for the Gano Street apartment complex on Thursday. The council had only voted to refer the proposed agreements to the council's Finance Committee. If the committee OKs them, the council will then have to take two votes for the agreement to be approved.) Christopher Allen is a PBN staff writer. You may contact him at Allen@pbn.com.