195 land can help R.I. boom

The parcels of the 195 land represent a unique opportunity to demonstrate Rhode Island's ability to renew and revitalize itself by creating a vibrant urban mixed-use environment that will stimulate employment growth and economic development beyond the bounds of the 195 sites.

The time to act is now. The national economy is strong, interest rates are low, the state and city have new administrations able to make a fresh start, and local companies are looking for opportunities to upgrade or grow their businesses.

Experience has demonstrated that successful urban redevelopment and revitalization require a collaborative public-private partnership, with the active participation of the state and the city governments, local business, educational and medical institutions, and community groups. Each has a role to play. Success also requires the participants to have a sense of urgency to get things done.

The General Assembly wisely formed the 195 Redevelopment Commission to oversee the process and to inject this sense of urgency. Let’s seize the moment, form the necessary partnerships, and get shovels in the ground at this critical location.

Gov. Gina Raimondo and Providence Mayor Jorge Elorza have articulated a vision of innovation and economic activity on the Route 195 land that stems from partnerships with existing knowledge-based institutions as well as new enterprises. Key universities, medical centers and businesses have already made significant investments in the area. Successful redevelopment initiatives in other metropolitan areas have demonstrated that economic development builds upon the strengths of local stakeholders.

We are in the process of analyzing our assets and developing a strategy regarding the innovations, institutions and industries we should attract to this corridor of land. We also aim to create a bustling 24/7 live/work/play environment in this promising location.

A key element is having the tools to form these partnerships, to expand our employment base and attract investment and development capital. In this regard, the economic tools in the budget proposed by Governor Raimondo, now under consideration by the General Assembly, are absolutely vital to our success. In a similar vein, it is important to the success of the commission and the city’s development efforts that Providence establish an efficient process for the consideration and approval of tax stabilization agreements with prospective developers, and that the terms of such agreements be competitive with property tax rates in other markets vying for private investment capital.

The governor proposes a $25 million 195 Development Fund and a Rebuild Rhode Island tax credit, which could provide real-estate developers with enough assistance to cover up to 30 percent of the cost of their projects.

The key to the successful use of the proposed state incentive pool will be to use it to attract other capital to the available land. Other cities have been able to take a certain amount of money and use it to attract many multiples of the initial capital amount to the targeted area. Such funds supplement other sources of capital such as private mortgage debt and equity investment, real estate tax-credit financing, tax increment financing and other funding. We believe that a public-private mix of funding will help us attract anchors to the site as well as fill project gaps to get construction going. We also need to focus on spending the money to create a catalytic effect that stimulates additional development and economic activity.

We are fortunate to have the Route 195 land, which is "shovel ready." On the approximately 20 acres of developable land, we have the potential to build millions of square feet over time. That's a lot of space, and it can accommodate corporate or institutional tenants and a mix of exciting uses. Thus, we have the land, we have a great "keystone" location in the center of Providence, we have local businesses and institutions that need to grow in knowledge-based industries.

With the passing of the governor's budget, including the economic incentives package, we will be in a strong position to work with the mayor and City Council to compete for new development and employment opportunities.

 Joseph Azrack is chairman of the 195 Redevelopment Commission.