PVD City Council extends tax break for Valley St. development


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risingsunmillsThe Providence City Council extended a tax break for the developers of a mixed use project on Valley Street because an anchor tenant relocated to Johnston.

“Do we really need another vacant or foreclosed property in our city,” said Council President Luis Aponte, who voted for the so-called tax stabilization agreement, after the meeting. He said the developers could have attained an administrative TSA for a smaller redevelopment had the council not awarded the tax break and that the city negotiated a good deal for residents by working with the developers.

Councilor Carmen Castillo was the only member of the elected board to vote against the TSA.

“We’re not a bank,” she said. “The neighborhood I represent never gets a tax break. We pay a lot in property taxes too.”

Councilor Sabina Matos said she supported the TSA because the council approved TSAs for downtown businesses so it was only fair that it do so for businesses in her district too. “We set a precedent,” she said. “We can’t give them to some developers and not others.”

Abacus Technology paid $1.8 million annually to rent 100,000 square feet of space in the Rising Sun Mills development on Valley Street but the company has decided to move to Johnston, said the developers.

“There’s no benefit to having Rising Sun Mills go dark,” said BJ Dupre, one of the developers, after the favorable decision from the Council. When asked if that would have happened if they didn’t get the tax break, another of the developers, Mark Van Noppen said it was a “distinct possibility.”

Aponte said the developers plan to reconfigure the commercial space into smaller offices. He said the TSA is void if they don’t pull all the requisite permits in 180 days.

“It’s hard to tell,” Aponte said when asked how much money the city budget would lose by extending the TSA to the Rising Sun Mills project. But, he added, “They are paying more than if they would have got a 5 year extension” as a result of the negotiations with city officials.

If you want change, don’t vote for the star


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Linda Finn
Linda Finn

Rhode Island is one of the most progressive states in the country, at least when it comes to the views of its citizens. Its residents vote Democrat by large margins and generally hold views that are in agreement with—or to the left of—the national Democratic Party. So why is our government so conservative? In my opinion, a big part of the problem is the structure of the state Democratic Party and its cynical endorsement process.

Many RI voters seem not to be aware of this, but the state Democratic Party’s formal endorsement process provides substantial resources to the officially endorsed candidates at all levels of the election. Unendorsed candidates are frozen out of a wide variety of party resources and can only obtain them at significant extra expense, if they can get them at all. In addition, “endorsed” candidates automatically get top billing on the ballot, and a star appears next to their name, as if to suggest that they are the clearly superior choice (even though, as a rule, the opposite is far more likely).

Mattiello at the Grange 001
Nicholas Mattiello

So how does one become an endorsed candidate, you may ask? Well, there are a vast number of local, district, and ward committees who typically award these endorsements (but not always—see below!). In theory, these various ward, town, and district committees serve as a way of ensuring that people who live in an area have the opportunity to endorse the candidate who is most in touch with the needs of their neighborhoods. In practice, however, these ward and district committees are invariably stuffed with the friends, relatives, and even employees of the incumbents. As a result, they serve as little more than a rubber stamp that inevitably endorses the incumbent or their hand-picked successor—even when evidence of their corruption is overwhelming. And if by some chance a new voice manages to impress their local committees and gain their support, the RI Democratic Party chair—a person who is not elected to fill this role, but is merely appointed by prominent insiders such as Speaker Mattiello—can simply overrule the local committees and impose his will on them by fiat, as he recently did to Linda Finn, who earned the endorsements of her local town committees but whose opponent has secured the official party endorsement as well as all the corrupt resources that come with it.

When my fellow Democratic primary voters show up at the ballot box in September, I hope they will remember that a vote for the star is a vote to maintain the status quo. It’s a vote for Speaker Mattiello, and for the anti-democratic, cynical, corrupt, and above all elitist political machine from which he and his ilk draw their power. If you want change from your state and local elected officials next year, the choice is clear: Vote for anyone who doesn’t have Mattiello’s star of approval.

With little notice, PVD City Council voting on controversial TSA Tuesday


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The Providence City Council has called a special meeting for Tuesday night and among the agenda items is tax stabilization agreements (TSAs) for 60 Valley Street, LLC and 166 Valley Street, LLC on behalf of the Rising Sun Mills Project. The ordinance is sponsored by Council President Luis Aponte. The details of the TSA can be found here.

The City Council unanimously rejected a similar TSA, for 100 Fountain St, in February, under intense public pressure. Aponte then said, given the city’s precarious economic situation, “It’s the right signal that the [Finance] Committee is sending to the public and to the [City] Council.”

The TSA being considered by the council notes that the “projects been suffered serious financial setbacks and hardships as a result of the collapse of the real estate and financial markets over the past several years” and hence a five year extension of TSAs granted in 2003 and 2006 is needed. In return, “the Project Owners of 166 Valley Street will make an additional investment of approximately $5 million which shall be used to convert approximately 85,000 square feet of the building from a single tenant space to multiple commercial spaces. This will assist in the Project Owners in attracting new tenants to the Project and will create new construction and potential permanent jobs at the Project Site.”

TSAs

The amount of revenue Providence will lose in this deal is unclear.

Stop Tax Evasion in Providence (STEP) released a press release Monday claiming that that the Providence City Council leadership is failing taxpayers.

“You would think that the Council would be in no rush to go handing out more of these questionable extensions to projects that have already been paying very little taxes for 15 years, but you would be wrong,” says the STEP press release. “While the… promise of new spending and jobs from Rising Sun Mill owners would seem welcome, there are absolutely no safeguards to ensure they will invest what they say. Thus the city can be certain of neither jobs nor permitting revenue.”

The special city council meeting was announced on Friday, July 29, as big news stories broke, such as Representative John Carnevale deciding not to appeal the Providence Board of Canvassers decision that ended his re-election campaign and Attorney General Peter Kilmartin announcing the non-results of his 38 Studios investigation. Technically, the City Council went on break for August and was not due to reconvene until September 1.

As a result, this important meeting was almost missed.

The city council will also be awarding hundreds of thousands of dollars in contracts at this meeting, according to the agenda.

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