195 Commission Blasted for Raiding Downtown Businesses, Paolino Calls on Members to Resign
Wednesday, October 05, 2022
One of downtown Providence’s largest real estate developers is blasting the 195 Commission for its decision to award two prime parcels of land that will be used for developing a new headquarters for BankRI and to build additional housing. The new headquarters will receive a major tax subsidy from taxpayers.
As a result of the move by BankRI, the Turks Head will lose its signature tenant that presently leases two full floors. BankRI also operates a branch on the first floor.
Joe Paolino, the former mayor of Providence and the largest developer downtown, but does not have any financial interest in the Turks Head, said this is one of the worst planning decisions and is calling on the members of the 195 Commission to resign.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST“We are incenting businesses to move out of one building to another area and giving the significant financial incentives funded by the taxpayer to move,” said Paolino.
"It is the stupidest decision," said Paolino.
He said he does not blame the bank. "They are making a business decision," said Paolino.
BankRI is a subsidiary of Brookline Bancorp, Inc., located in Boston.
“The 195 land was intended to be used to attract life science companies, but instead, we are just moving business from fully taxed properties to properties that receive major subsidies and tax stabilization agreements,” said Paolino.
Paolino warns that this will have a negative impact on the remaining restaurants, cafes, and retailers downtown. "Businesses like the cafe in the Turks Head, Starbucks, Circe and the rest will all be hit by the bank moving out of downtown," said Paolino.
BioTech and Tech Was the Goal, Apartments and Trader Joe's Is the Reality
Moving Interstate-195 in Providence and the creation of the 195 Innovation District was designed to be a game-changer for Providence and the Rhode Island economy.
The project, which began in the 1990s, was the second phase of transforming Providence. It was to build off the success of moving the rivers and the creation of Waterplace Park.
The 195 district was to be the economic engine. It promised new companies in key growth sectors like technology and biotech. It was the opportunity to modernize the RI economy.
But now, decades later the development to date has been primarily residential upscale apartments -- with average rents of $2,000 for a one-bedroom apartment.
The New York Times hyped the impact of how the new land opportunity would transform Providence in 2009.
“The surplus parcels are situated between the city’s hospital district, its downtown and its educational institutions, and the vision is for a mix of uses that will foster a new ‘knowledge-based economy’ centered on Providence’s educational and medical institutions," wrote the Times.
The then-Mayor David Cicilline said the 195 land was a game-changer for the future of Providence.
“‘This is an extraordinary, once-in-a-lifetime opportunity for our city,’" said Cicilline in an interview with the Times.
By 2014, 195 lands were branded the LINK. "Life sciences, information technology and digital media are currently the fastest-developing sectors in the state, with enormous potential for even more growth. Rhode Island offers business development assistance for these companies, including tax credits, as well as assistance with site selection, relocation, and workforce training," wrote "The Link."
But 195 Commission for the most part has only been able to build apartments, hotels and a Traders Joe's. The state's other Trader's Joe is located in a strip mall in Warwick.
Financial District Exodus
BankRI is the Financial District’s last remaining major financial firm. Over the years, Amica, Citizens, Fleet, and others have left the district for the suburbs or due to mergers.
The BankRI departure is the latest blow to the Financial District and has a major impact on restaurants, coffee shops and remaining retailers downtown.
“The recent news of 195 is not thought out. It is not good economic development planning,” said Paolino. He cites that the 195 Commission simply has not done its job in attracting business and is instead raiding other areas of the city.
“Law firms are moving into the CIC Innovation Center, that building received tens of millions in state support in order to be a tech and bio-tech hub,” said Paolino
The irony is that across the street from the Turks Head building, the Superman building has been vacant for eight years. Now the state is poised to pour tens of millions of dollars into the rehab of the building. Between federal and state historic tax credits, state and local subsidies, and a tax stabilization agreement, the Boston-based developer will David Sweetser will receive in excess of $80 million to rehab the former office building into apartments.
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