NEWS

WARWICK – A standardized tax stabilization agreement that could attract developers to the largely untouched City Centre Warwick district has the support of the city’s leaders, according to an announcement Wednesday. The city, the second-largest in Rhode Island, has previously resisted using tax incentives to attract new businesses. On Wednesday, Mayor Scott Avedisian outlined an ordinance that would create a 15-year phase-in of real estate or personal property taxes in the City Centre district for developers who plan new construction or rehabilitation of existing properties. The ordinance, which has the support of all nine City Council members, would require an investment of at least $5 million to qualify for the tax incentives. After an initial five years of paying a “base tax,” or one based on the existing conditions, the developer would pay an increasingly larger portion of the full tax load, reaching the market rate after 15 years. City Centre Warwick is a nearly 96-acre area near T.F. Green Airport that was rezoned several years ago to accommodate mixed-use development, an effort to take advantage of its transportation resources, including the state’s largest airport and the InterLink train and bus station. The location of the district, near an intermodal transportation hub, would also make it eligible for Rebuild Rhode Island tax credits. The new state program will provide developers with a tax credit worth up to 30 percent of a project’s cost if it is located near a transportation hub. The city’s ordinance, initially introduced by council members Steve Merolla and Joseph Solomon, was forwarded by the Avedisian administration to the R.I. Commerce Corp., to make sure it complements state redevelopment incentives. “State legislation has been approved to give incentives to this district,” Avedisian said, in a news release. “We are looking to leverage the state’s work and further the development and redevelopment of City Centre Warwick.” If the council approves the TSA for the zone, Warwick will join both Providence and Pawtucket, which have created uniform tax stabilization agreement processes for areas poised for redevelopment. In Providence, the city has approved standardized plans for builders who want to construct new buildings or renovate existing structures in the I-195 Redevelopment District, as well as the Capital Center. These standardized tax breaks, which do not require City Council approval, would be triggered by at least $10 million in investment. Like the Warwick proposal, the length of the TSA is 15 years. Projects in Providence of $50 million or more would be eligible for a 20-year tax incentive plan. In Pawtucket, the state’s fourth-largest city, a standardized TSA is available citywide for any project of at least $250,000. Larger deals, of $5 million or more, require, council approval. http://pbn.com/Warwick-adds-TSA-plan-for-development-in-City-Centre-district,113521