On Monday, October 22, 2007, Council Majority Leader Terrence M. Hassett and Council President Peter S. Mancini were joined by Capitol Cove developer Bob Roth; Build RI representatives Greg Mancini and Michael Sabitoni; and Bill Holmes of the RI Carpenter’s Union at a news conference in the Providence Aldermen’s Chamber.
The purpose of the news conference was to announce a formal agreement among the parties to ensure that the Capitol Cove development adheres to the provisions of its tax stabilization plan with the City. Recently, trades groups, union representatives and city council members became aware that while the tax stabilization plan called for the developer to employ local residents and establish an apprenticeship program, those requirements had not yet been met. In response, the city council last month approved a resolution requesting the City’s Law Department and Internal Auditor to review the compliance and terms of the stabilization plan.
Councilman Hassett called a meeting with the developer and the local trades group representatives to determine if the could reach an agreement. He said the council was very aware that all parties had legitimate concerns and “recognized that in order for the development to succeed, it had to achieve two main objectives: 1) hiring local residents and 2) making the project work financially in a rapidly changing market.”
Council President Mancini said that, “This is a great moment for the City of Providence, because it highlights the truly great impact tax stabilizations can have in our city…. The true purpose of tax stabilizations is to allow development of properties that otherwise would be difficult—if not impossible—to develop, and that will result in a long-term economic benefit to the City.” He noted that Capitol Cove certainly will have a long-term positive impact on Providence.
Hassett said that the agreement was, “a testament to the people standing here today and their commitment to finding a resolution that benefits not only this development, but the entire city.”
