PROVIDENCE – His background includes involvement in the ill-fated 38 Studios deal a decade ago, but luring major companies to Providence with multimillion-dollar offerings is not Keith Stokes’ focus – or even part of his job description – in his new role as the city’s business and development director.
In an interview with Providence Business News on Monday, Stokes said small businesses and workforce development are two of his main focuses in helping the capital city get back on its feet after the pandemic, which may include providing small businesses access to capital, and easing of licensing and permitting requirements, among other initiatives.
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Having just started his new gig on Oct. 12, Stokes was reluctant to offer prescriptive answers on programs or policies.
But based on his more-than-30-years experience in economic development across the state, he has seen how small business success is vital to a strong and prosperous economy. “They are the backbone of the city,” Stokes said.
That includes making sure there is a workforce trained and ready to help these employers grow, especially amid the tight labor market that continues to strain the post-pandemic economy.
Stokes has seen the benefits of helping the “little guy.” As former executive director for the Newport County Chamber of Commerce, he led the charge to create the Broadway Main Street program that has led to a thriving business district. In his time as a consultant for Providence-based Mayforth Group, he helped create the country’s first and only offshore wind training certification for high school students, known as WindWinRI, to serve what is expected to be a huge source of jobs and economic growth for the state and region.
When he hired Stokes, Mayor Jorge O. Elorza touted his experience in “community and business relationships” in government and private sectors.
That experience includes a two-year stint as head of the R.I. Economic Development Corp. – now RI Commerce Corp. – when the state negotiated a $75 million loan guarantee for former Boston Red Sox pitcher Curt Schilling to relocate his video-game company, 38 Studios, to Providence. State taxpayers were left on the hook for millions of dollars after the company went bankrupt. In the aftermath of the scandal, Stokes resigned, striking a settlement deal with the U.S. Securities and Exchange Commission. But he maintains he did not commit fraud, as was alleged at the time.
Asked about lessons learned from that deal, Stokes said, “There are opportunities you greatly succeed in and opportunities you greatly do not.”
He added that he did not walk away from his mistakes, nor did he fault those who criticized him or any other public servant whose salaries are paid by taxpayers. However, he also said that except for that one failed deal, his legacy includes many more successful projects and programs around economic development.
Among his proudest accomplishments, he said, is the affordable housing he helped design and build during his time as executive director of Omni Development Corp.
Indeed, Stokes sees the need for housing across the city at various levels of affordability as crucial to solving present and future workforce shortages.
How best to achieve this remains an open question, though Stokes recognized the role the city can play in “flexible” land-use, planning and zoning regulations that encourage higher-density and efficient development projects.
That does not mean luxury skyscrapers, though. Stokes specifically said he was not interested in “megaprojects” and “high-rises” that inherently serve and promote a “homogeneous population.”
Instead, he wants to see more mixed-use-style projects that incorporate first-floor retail with residential options above. Especially in the city’s downtown, now-empty office buildings may be better repurposed to these kinds of developments, though Stokes welcomed feedback from area property owners.
Also, there are still-undeveloped pieces of land within the I-195 Redevelopment District, which offer the city an advantage at a time when room to build across the state and nation is hard to come by, he said.
As a Black man whose recent work included co-authoring a comprehensive report for the city on the history of racial discrimination in Rhode Island, Stokes sees inclusion and diversity as critical to economic development.
“It is not only a social goal, it’s simply a good business practice,” Stokes said.
Stokes said it was important for the city to understand how its economic future depends on this population – as business owners, residents and workers. According to the U.S. Census Bureau, Hispanic residents are the fastest-growing population at both the state and city level.
“If you’re delivering a service or practice to a market, you have to have an understanding of who that market is,” Stokes said.
Part of his new job is to oversee the city policies around contracting with women and minority-owned businesses. The state has come under fire for its own lack of compliance with its MBE program. Whether the city faces the same compliance issues, Stokes was unsure but said the scrutiny and studies of the state program offer an opportunity to improve the city version of the program as well.
Stokes’ salary is just over $136,000, according to Andrew Grande, a spokesman for Elorza.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
Stokes should set his sights on moving to Providence. Wonder what Stokes is planning for an encore to 38Stupidios? Just another bad move by Elorza.