Governor Gina M. Raimondo and the Rhode Island Commerce Corporation Board of Directors last evening approved incentive agreements for over $9 million in tax credits and grant funding to spur new construction and support research and development. These include: one Tax Stabilization development, two Rebuild Rhode Island Tax Credit projects, and 11 Innovation Vouchers.
"These programs are working together to put shovels in the ground, reenergize vacant developments, and bring more high-skill, high-wage jobs to our state," said Governor Gina M. Raimondo. "We provided vital funding for three construction projects that wouldn't have been able to move forward otherwise and awarded almost half of a million dollars in R&D grant funding, which will strengthen our growing innovation economy. Rhode Island has momentum again – we are showing we are competitive with other states and back in the game."
"I am pleased that the incentive programs are being provided to Rhode Island companies to grow businesses and jobs that will help keep moving our economy forward," said Speaker Nicholas Mattiello.
"These incentive programs will bring innovative companies and well-paying jobs into Rhode Island, which in turn will advance our economy. Incentives like these are a win-win for the state and for the firms they attract," said President of the Senate M. Teresa Paiva Weed.
"We are very pleased with the response to these new investment and incentive programs," said Rhode Island Secretary of Commerce Stefan Pryor. "In the past month, we have approved applications to four key programs: the Qualified Jobs Tax Credit, the Rebuild Rhode Island Tax Credit, the Tax Stabilization Incentive and the Innovation Voucher Initiative. As a result, we're growing well-paying jobs, catalyzing construction, lowering municipal tax burden, and fostering innovation in Rhode Island. We're also helping our capital city create a more vibrant 24/7 live/work environment – one that's more attractive to business. And we're just getting started; we look forward to authorizing more investments in the coming months – investments that enable us to advance our economy."
The City of Providence agreed to a tax stabilization agreement (TSA) with PRI, a division of the Procaccianti Group, for a proposed internationally-branded, upscale, 154-room, extended-stay hotel at the site of the Fogarty Building in downtown Providence. The TSA qualifies Providence for a reimbursement from the Commerce Corporation valued at up to 10% of the projected foregone revenue attributable to the TSA. Based on the financial estimates provided by the city, the total reimbursement available under the act is $246,597.
"This project creates jobs, revitalizes a blighted portion of our downtown, and helps spur economic growth," said Mayor Jorge Elorza. "As one of the largest development projects this City has seen in years, moving this project forward is important to the development of our downtown landscape."
The Tax Stabilization Incentive provides an incentive for Rhode Island municipalities to enter into TSAs by reimbursing municipalities up to 10% of tax revenue foregone due to the completion of a TSA that spans at least 12 years. Qualifying projects must be at least $10 million and create 50 jobs (or at least $5 million and 25 jobs in Hope Communities).
"The Tax Stabilization Agreement (TSA) recently approved by the City of Providence is a mission-critical component, without which, redevelopment of the former Fogarty Building at 111 Fountain Street to a new hotel would not be possible. It is extremely encouraging to see city and state governments embrace private real estate investment via innovative programs that help pave the way for future economic development and jobs growth," said Ralph V. Izzi Jr., Vice President of Corporate Marketing & Public Affairs.
The Commons at Providence Station is a proposed development including 160 market-rate, residential units to be located at Canal and Smith streets in Providence. The Commerce Corporation approved $5.5 million in Rebuild Rhode Island Tax Credits over the five-year eligibility period. The credit amount represents just over 10% of the total project cost of $54.1 million.
"We recognize the promise of market rate residential units near a transit hub in the heart of a city that has significant growth opportunity," said Richard J. High, President of John M. Corcoran & Company. "We have been looking for a partner in Providence to make this development possible. It's because of the Rebuild RI Program that this has been made possible."
The second project awarded a Rebuild Rhode Island Tax Credit is a proposed, newly constructed, mixed-use development at the site of the former Louttit Laundry complex at Hoyle Square in Providence's West End neighborhood. The site will consist of two buildings that will contain 39 low-income and workforce, multifamily, residential units; 8,000-square-feet of ground floor commercial space along Cranston Street; and parking. The commercial space is expected to be leased to the Urban Greens Food Co-Op and will operate as an organic grocery store that will address the lack of fresh food alternatives in the area. The Commerce Corporation approved $2.7 million in Rebuild Rhode Island Tax Credits over the five-year eligibility period.
"It is gratifying that the Rhode Island Commerce Corporation shares our vision for this important project. The Louttit Laundry site has languished in blight for twenty years. As a result of the Rebuild RI Tax Credits, my partners and I will be able to clean up a brownfield site and create a sustainable, mixed-use project. The much needed grocery co-operative, Urban Greens, will not only create jobs, but will create a community, where neighbors come to shop for healthy foods and connect with one another. The workforce housing and affordable housing that we build is essential to the continued growth of the Providence economy. We hope that this project becomes a model for inclusive development in Providence and throughout the rest of Rhode Island," said Ethan Sluter, Director of Development of Bourne Avenue Capital Partners.
In the Innovation Voucher initial call for applications, the Corporation received over $1.4 million in requested funding from 34 applicants for a diverse portfolio of innovation R&D projects. The approved projects represent a variety of industry sectors important to the state, including aquaculture, defense, advanced manufacturing, biomedical engineering and technology, pharmaceuticals, and green industries. The grants enable each company to partner with a local university, research center or medical center for R&D assistance with a specific project.
Eleven of the applicants for a total of $451,897.25 • Agcore Technologies LLC, $50,000.00 – Cranston, RI • Applied Radar, Inc., $10,000.00 – North Kingstown, RI • CBC, LLC, $50,000.00 – Warwick, RI • EpiVax, Inc., $50,000.00 – Providence, RI • Full Measure, LLC, $48,814.00 – Bristol, RI • HMSolution Inc., $20,000.00 – Providence, RI • Materials Science Associates, LLC, $50,000.00 – North Kingstown, RI • Pilgrim Screw Corporation, $49,921.25.00 – Providence, RI • S2S Surgical, LLC, $37,613.00 – East Greenwich, RI • Vitae Industries, Inc., $40,000.00 – Providence, RI • Yushin America, Inc., $45,459.00 – Cranston, RI
For more information on these, and all of our, incentive programs, visit the Commerce Corporation website at http://commerceri.com/services/taxes-incentives.