Facing Providence's challenges, envisioning its future | Opinion – Providence Journal
Local leaders often say, “As Providence goes, so goes Rhode Island.” Why should Rhode Islanders take interest in what happens in Providence? Representing almost one-fifth of the state’s population with nearly 190,000 residents, Providence is essential to R.I.’s economic well-being.
Thousands of businesses, including Textron’s headquarters and those in the health care and service industries, employ tens of thousands. Eight colleges and universities call Providence home. Award-winning art institutions, local restaurants, shops and makers create a cultural center. Seven million visitors to Providence inject $2 billion into the state’s economy annually, according to the 2022 Census.
Providence is a wonderful place, yet like other urban areas, it has challenges.
In our previous commentary, we noted those who came together in past decades to turn downtown’s challenges into opportunities. The Providence Foundation is proud to be part of this history, including moving the rivers and the train tracks.
As today’s Providence Foundation leaders, we identify the challenges here to harness our collective energy and once again, envision Providence’s future.
The Superman building in downtown Providence.
1. The Superman building sits empty. Creating hundreds of housing units would serve the community. It’s a costly endeavor. We don’t have all the answers, but not addressing this for another decade will be detrimental to downtown’s future. It is time to move forward, together.
2. The fiscal 2023 Lincoln Institute of Land Policy’s study of the largest city in each state found Providence has the highest effective tax rate on commercial property after Chicago and Detroit. Providence will not attract or retain businesses with this rate. By ensuring taxes are competitive, Providence will promote its location between Boston and New York.
3. We have a housing crisis. Living in Providence is more affordable than Boston, and mid-sized cities earned favor during and after the pandemic. Yet, Providence needs thousands of housing opportunities to meet demand. Statistics show building in Providence costs as much as building in Boston. Providence’s tax rate is 40 percent more, while its rents are far less. These factors make many housing proposals and business recruitment efforts untenable. Developers and businesses may look elsewhere.
To spur housing production, Providence must address the effective tax rate. Landlords are taxed at the commercial rate, equal to any business. Boston’s separate rate for residential units encourages development. Providence should consider a separate rate, as well.
We thank House Speaker Joe Shekarchi for focusing on a smart housing package and Senate President Dominick Ruggerio, the General Assembly and Gov. Dan McKee for making it law. More units must be a priority, as an increase in available units will reduce costs for renters.
4. On the state level, replenishing RebuildRI and the R.I. Historic Tax Credit will encourage housing development and preservation. Projects across the city would benefit, including Providence Place mall. Programs crafted by CommerceRI to attract investment and reinvigorate downtown are also needed.
5. A smart-transit bus hub will attract business, grow our economy, increase ridership and provide an environmental benefit. Thanks to RIPTA for partnering with the city, state and stakeholders on a solution. We look forward to bringing this project to fruition.
6. Providence’s downtown is safe, yet as other cities, it struggles to help people in crisis. How can we work with the nonprofit community and public servants to provide meaningful, long-term outcomes? The Providence Foundation, Rhode Island Foundation and Downtown Improvement District (DID) established a Healthy and Safe Fund to support this effort. We will look forward to helping provide consistent and compassionate assistance.
7. We list this last, but it is far from last on the list of challenges facing the city. Our school children need a quality education, and the city and state must make this happen. We are not the experts, yet we acknowledge the voices of the Foundation’s business and nonprofit leaders are important. We will be present and supportive of smart solutions.
As a community, we know how to turn challenges into opportunities. The Foundation is committed to be a convener and roll up our sleeves. Experience tells us downtown will have a bright and prosperous future and evolve and grow if we address key issues. Let’s all do our part.
David Salvatore is executive director of The Providence Foundation and a former Providence City Council member and president. Christopher Marsella is chair of The Providence Foundation and president of Marsella Development. The Providence Foundation is a 501(c)3 representing 120 business and nonprofit members focused on building the success of downtown.