Urban Planning and Transportation Issues in Biggest Little State in the Union
Urban Planning and Transportation Issues in Biggest Little State in the Union
ProJo.com: Taking Credit - The renaissance is being financed with historic preservation tax credits
Huge front page article in today's Providence Sunday Journal about how new (2002) tax credits offered by the state have been more successful than anticipated, leading to maybe $50 million dollars in investment in RI brought in by the new credits.
There's a lot of praise for the state credits, which, when coupled with federal historic building credits make some normally unfinancable projects feasible. The best example of this is the Masonic Temple renovation (can it be a renovation if it was never finished in the first place?) which is finally, honest-to-god going forward. Providence gets a much needed hotel and a beautiful building that would never be built nowadays. Even if the state lost money on those credits it would be worth it. Here's a building, owned by the state, often perilously close to the wrecking ball, that was paying no taxes anyway. If the tax credits gave away any income the state would get from the hotel itself, the city would still win with increased tourism and investment momentum, not to mention the intangible benefits of FINALLY fixing up a landmark of futility.
Cost-benefit analyses are in the works to make sure that the state doesn't lose too much revenue, but I'd argue a program like this, especially now, would be a success as a money loser (though breaking even or better is obviously preferred). There's no push to dismantle the program, of course, just scale it back. We'll be watching, but for now, kudos to the RI Lege.
RELATED: The Providence City Council gets in on the tax break action - Foundry wins tax break from council.
Great Projo article. Some people would conclude this development isn't really a renaissance, but is "manufactured" (didn't the Phoenix have an article with this tone?), but I say, "Good for the tax credits!" That's exactly what such credits are designed to do! How many tax credits are really, really effective like this one?
Some good trends recently, most of which should be completed in the next three years...
1) Masonic Temple --> hotel and better VMA
2) Downcity renovations --> urban village
3) Likely Duncan Donut center renovation with merger with convention center --> more competitive for conventions
4) RISD and Brown expanding into Downcity --> stronger and more stable economics in city
5) Mill projects moving forward
6) Parcels 2 and 9 moving forward
7) Recent sale of Prov Place to prominent national malling company
8) Brown Medical School/Hospitals (RIH) about to embark on major efforts to raise profile
9) Highway 195 being relocated
10) RISD to build prominent Chase center on Main St.
11) RI Philharmonic building music school in old Kathy Gibbs building in Wayland Square
12) Neat RI Credit Union building redo
13) Police substations everywhere
14) Hotel Providence work continuing in downcity
15) Great restaurants continue to open...
What I would like to see...
1) Something done with the old Police/Fire headquarters (hotel is planned now)
2) A critical mass of retail and restaurants in downcity (kinda sporadic right now)
3) Washington Street buffed up somewhat (it looks pretty run down now...)
4) The Westminster (?) bridge shops over 95 idea from the charette recently
5) Someone needs to clean the Arcade's facade...
6) The Jewelry district and Davol square move out of neutral gear... The long discussed Eddy street upgrades need to happen for that...
7) Ship street canal...
Ok, enough off topic for 'ya?
Garris
May 10, 2004 12:53 AMI like Cicilline and all, but I wouldn't mind having Garris for Mayor.
The Jewelry District is right in the verge. Brown will be moving a lot of people into 70 Ship Street later this summer (early fall). That and a few loft renovations should be the critical mass to get other things to follow. There's a nice saturation of restaurants, but nothing much for the daytime office crowd. Brown's people will want to have what they are used to on the East Side. Everything else will follow them off the hill.
May 10, 2004 09:41 PMOh and on topic... I think the tax credits are doing a wonderful job. We can't lose sight of the balance between development created and tax credits given away though. I think the Maryland model of reevaluating the credit program periodically is wise.
May 10, 2004 09:43 PMPlease do educate us on the Maryland model. How does it work to recheck the credits?
Garris
May 11, 2004 09:47 AMI'm not sure how it works in Maryland. It just mentioned in the article that Maryland is constantly reviewing their program, whereas the Rhode Island program was set up and has kind of been let to run as it will. I assume there is somesort of audit, where the state determines how much it has given away in breaks and contrasts that with how much new taxes the redevelopment will generate. Then the program is ammended to make sure it all balances out if needed.
May 11, 2004 06:25 PM