Council wants oversight on tax breaks

BY NANCY LAVIN | Lavin@PBN.com

(Editor’s note: A version of this story was first published on PBN.com on Oct. 2.)

PROVIDENCE – After failed attempts to remove politics from the city’s process for giving tax breaks to developers, the City Council appears to be moving in the opposite direction.

The Tax Stabilization Investment Act, recently introduced by Council President Sabina Matos with support from a majority of the council, calls for all proposed tax stabilization agreements, except those in the I-195 Redevelopment District and in Capital Center, to go before the council for review and approval. Existing policies allow for administrative approval of certain smaller projects, including those that renovate historical properties or revitalize neighborhoods.

The resolution marks an about-face from prior attempts to expand the administrative approval process and remove the council from considering all but the largest projects.

Matos said the new legislation will benefit developers by creating a clear, predictable process for applications, approvals and enforcement. The current array of policies do not specifically lay out requirements and the flexibility of when developers can apply for a TSA – anytime until a certificate of occupancy is issued – which Matos said makes it difficult for the city to ensure they are meeting requirements such as using minority contractors and paying adequate wages.

She defended increasing the council’s power in reviewing and approving agreements as a part of their responsibility as elected officials beholden to their constituents.

“This is what we were elected for: to make sure we are looking out for the taxpayers of Providence,” she said. “Why are we going to abdicate our responsibility to someone else?”

Matos also spoke to the importance of public comment on these agreements, which can only happen if there is a council hearing and approval.

City Councilman David Salvatore offered a different take. Salvatore was among those to introduce the resolution, but disagreed with the expansion of council approval in TSAs. Salvatore previously introduced legislation that would have eliminated the council from all but the largest TSA applications, but his proposal has languished in a subcommittee for several years.

Salvatore said he has not changed his mind about the need to take the City Council out of the process, but he liked other parts of the new legislation such as the streamlined application process and ability to enforce requirements that accompany the tax breaks.

Salvatore referenced prior projects, including the $39 million Hotel Hive project planned for the former Providence Journal building on Westminster Street, as an example of how the City Council has “gotten in the way of good, smart development.” While the council eventually approved a TSA for the project, its approval was held up in committee, causing the developer to threaten to withdraw the project.

Patricia Socarras, a spokesperson for Mayor Jorge O. Elorza, said in an emailed statement, “The administration sees this new TSA process as a step in the right direction to making a more predictable and streamlined process for development.” n

MORE SAY? The Providence City Council is seeking to expand its authority in approving tax breaks to developers, such as the tax stabilization agreement granted to the Hotel Hive project downtown.

COURTESY ABDO DEVELOPMENT

CORONAVIRUS CRISIS

productivity. We’re dealing with that the best we can.”

At Advertising Ventures Inc., a full-service advertising agency that does business as (add)ventures, the company has entered what one executive described as a “pop-in” phase. Employees can work from the office and video production center if they’d like, or they can go home. It is flexibility designed to keep people working at their highest levels.

It’s not spontaneous, however. Anyone who wants or needs to work at the East Providence office, or even to stop in, has to check with the chief operating officer ahead of time to ensure people are adequately separated, said Mary Sadlier, executive vice president and chief strategy officer.

Through the summer, she estimated only about 10 to 15 of the 80 employees were coming into the office. So far, it’s worked well, although the company will reevaluate early next year.

“We’ve gotten really good feedback that they appreciate it,” Sadlier said. “It’s that flexibility. There is a sense of comfort for a lot of people to be in the office and there are people who love to be at home all the time.” Sadlier’s own preference is to work from the office. “I like the separation, the little bit of drive time to decompress before I get home,” she said.

Meanwhile, in the midst of the pandemic, a new office-based business, specializing in flexible space, is trying to get off the ground in downtown Providence.

The Westwey Club LLC is owned by a New York company that has two successful shared workspaces in the Albany region. The company is pushing forward with plans to offer open, shared workspaces, as well as private offices, on the 11th floor of the Turk’s Head Building.

The timing is challenging, acknowledged Charles Wiff, vice president of Aurelius Coworks, the parent company. Wiff has yet to sign any members.

But Westwey Club is in it for the long game. The company is confident that after the pandemic, companies will be more interested in flexible workspace than they are now.

“We think a lot of companies will shift to some sort of hybrid model that fits their needs,” Wiff said. “It may be that part of your team is co-located, part are remote workers. Whatever fits the business. But there will be shifts across the board. We’re really bullish on flexible workspace. What organization wouldn’t want greater flexibility at this point in time?” n

DOGGIE PAUSE: Robert Wheeler, president of Friends of Toto LLC, says his dog boarding, grooming and day care business in Pawtucket has dipped during the pandemic because some clients who are working from home don’t need day care and boarding services for their dogs.

PBN PHOTO/MICHAEL SALERNO