Providence City Council Approves Three New Tax Stabilization Agreements
Providence, RI (November 16, 2017) – Chairman of the Providence City Council Finance Committee, Councilman John Igliozzi, Ward Seven brought three tax stabilization agreements to the floor of tonight’s meeting which was passed by the Providence City Council.
“I’m thrilled that we can help these organizations create jobs and grow their businesses here in Providence. More cranes in the city skyline mean two things – more jobs, and growth – and that’s a good thing for all of us,” stated Councilman John Igliozzi. “They will approximately add a combined $5.7 Million in tax revenue to the City over the term of the TSA.”
These three successful TSA’s were brought through the City Council in a transparent and an open, predictable process. The projects approved at tonight’s meeting are for the construction of a new nine-story upscale extended-stay hotel at 111 Fountain Street; the creation of retail space along with self-storage spaces at 345 Harris Avenue; and the building of Providence Community Health Centers at 335R Prairie Avenue.
The Residence Inn by Marriott will have 168 guestrooms and will include 5,400 square feet of pedestrian-level retail space. This TSA was an extension due to a delay in construction, and the percentage of abated tax was compressed but will still be only 12 years. The abated tax was changed from roughly $2.4 Million to about $1.8 Million. Over the 12-year term, the tax revenue will be estimated at just over $3 Million. Over the same period, the city will collect around $2.3 Million in tax revenue that it would not have collected if the property had been left vacant.
Providence Community Health Centers’ stabilization will contribute nearly $1.5 Million in tax revenue.
Projected tax revenue for retail and self-storage spaces at 345 Harris Avenue will be just over $1.2 Million.