PROVIDENCE – After years of debate and failed attempts to reform the tax deals for Providence development projects, change is coming with the City Council’s approval on Thursday.
The 14-2 vote, the second of two needed to pass the Tax Stabilization Investment Act, came minutes into the meeting and with no discussion. As with the first vote taken earlier this month, Councilwomen Helen Anthony and Nirva LaFortune voted against the ordinance.
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The original policy, introduced by former Council President Sabina A. Matos, aims to streamline and standardize the process by which the city gives property tax breaks, known as tax stabilization agreements, to major development projects. Key changes include setting new or more-stringent standards for wages, apprenticeship program participation and use of women and minority-owned contractors.
The final version approved Thursday strikes a compromise on the wage requirements for construction and post-construction jobs by exempting smaller-dollar projects under $10 million.
The legislation expands the council’s purview of these agreements, requiring its review and approval of all deals except for the first five projects over $50 million in the I-195 Redevelopment and Capital Center districts.
Developers and business groups, including The Providence Foundation, warned against imposing these requirements, which they said would create additional burdens that ultimately dissuade developers from building or redeveloping in the city limits, in turn costing the city much-needed economic growth.
Proponents, including a number of labor unions, say more-stringent standards were justified to ensure adequate pay and safety standards for the workers involved in these projects, many of whom are city residents.
Nancy Lavin is a PBN staff writer. You may contact her at Lavin@PBN.com.
Ugh! Another sop to the unions! We already have wage laws, this is NOT needed.
The City Council needs to STOP demonizing developers, ESPECIALLY ones who are redeveloping existing buildings that can otherwise fall quickly into disrepair and possible demolition – losing a critical part of Providence history and culture!