Providence City Council considers tying TSAs to wage and labor requirements

THE PROVIDENCE City Council is considering two ordinances that would strengthen regulation of developers and contractors. / PBN FILE PHOTO/CHRIS BERGENHEIM
THE PROVIDENCE City Council is considering two ordinances that would strengthen regulation of developers and contractors. / PBN FILE PHOTO/CHRIS BERGENHEIM

PROVIDENCE – The City Council is considering legislation that will tighten requirements for developers to make sure large commercial projects are following state and city standards for paying and employing workers.

If not, they risk losing tax incentives that reduce the property tax burden on new construction and significant redevelopment.

Two new ordinances, introduced on Thursday, are aimed at practices within the construction industry that worker advocates say have put laborers at risk.

The first would require contractors involved in commercial projects over $100,000 to register with the city and follow measures to prevent illegal misclassification of employees as temporary workers.

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The second would amend existing tax-stabilization policy to require developers of projects of $10 million or more to, among other things, make sure their general contractors are paying workers appropriately.

If compliance becomes a problem, the developer or contractor could suffer damages, including fines or retroactive loss of tax incentives awarded by the city.

On the large commercial projects that qualify for a tax-stabilization agreement, all construction workers would be paid prevailing wages and benefits, as provided by a Rhode Island state law.

The measures were introduced by Council President Sabina Matos, and council members David A. Salvatore, Michael J. Correia and Rachel M. Miller.

In a news release, Miller said regulating contractors with a registration process will protect the “physical and economic health of our city residents.”

The registration fee of $100 would be used to support enforcement and monitoring, according to the city. Contractors who register with the city’s Board of Licenses under the requirement would have to document that wage and hour and health and safety standards were followed on their past projects. Taxes also must be up to date.

Matos, in a released statement, said the proposal is a commitment to both private developers and residents of the city.

“This is an opportunity to continue to strengthen our TSA policy to ensure that we are getting a return on that investment, in the form of new development and revitalized buildings, and also an investment in our workforce,” she said.

Mary MacDonald is a staff writer for the PBN. Contact her at macdonald@pbn.com.

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