Senate passes bill aiding development of distressed properties

Offers incentives for rehab projects in ‘micro-zones’

WEST WARWICK — Sen. Adam Satchell ( D-Dist. 9, West Warwick) wants to make it easier for developers to rehab distressed areas of town in need of major upgrades.

Satchell’s bill, S2068, was approved by the Senate last week and would create “micro-zones” in sections of town to encourage revitalization through expedited permitting and tax and fee waivers, specifically sections of town with blighted and vacant buildings, high unemployment and dilapidated structures. Cities and towns, through the Commerce Corporation, will be able to designate one or more areas as micro-zones, meaning those areas will receive special consideration for rehabilitation projects. The bill would specifically target vacant buildings and would put incentives in place to entice developers to renovate and/or fill them. Towns would be able to offer builders tax credits to reimburse them for the state sales tax they will pay on all building materials, furnishing and fixtures.

The town has been lamenting the loss the old Holmes Jewelry building on Washington Street which was torn by last month after being uninhabitable for several years. Micro-zoning might make similar properties in town more enticing for rebuilding.

Owners of properties in micro-zones will also be eligible for a 10-year property tax stabilization agreement with the town. For smaller communities like West Warwick, individual zones will be limited to 20 acres. For municipalities with more than 125,000 residents, the total combined area of all micro-zones cannot exceed 40 acres.

Satchell says the designation would allow the town to better market itself as an attractive location for opening businesses.

“We have plenty of buildings that could be viable locations if we offer the right incentives,” said Satchell. “But we need to make sure the programs allow for redevelopment, as opposed to just new construction, because that’s the sort of opportunity we have in West Warwick.”

The program differs from the Municipal Economic Development (MED) zone program. The Arctic Village section of town falls under the MED program and the intent is to encourage development. Micro-zones, however, can target smaller areas and sections of town, concentrating on the redevelopment of existing structures rather than new builds.

“The buildings are already there,” said Satchell. “And if we help entrepreneurs make the changes they need to use them, and give them incentives to want to be part of West Warwick, we’ll be laying out the welcome mat for the new businesses and jobs we need in our town. West Warwick once had a retailsection in many of its villages, but today, despite attempts in the past to reinvigorate it, many of its buildings remain empty and derelict, shadows that suggest a prosperity that once was, but is now frustratingly out of reach.”

He said establishing micro-zones would be one way to lure in new business to other parts of West Warwick in addition to Arctic, which itself has the Arctic Redevelopment Agency and Arctic Village Association regularly working to draw new business in.

“The status quo isn’t doing much for our town,” said Satchell. “I hope that these new incentives will help bring developers to our town and add some much-needed economic development in villages like Phenix and Crompton, as well as Arctic.”

According to the legislation, any person, group, association or corporation can petition the legislative body to designate areas as micro-zones. Zones would be designated by ordinance after a public hearing.

Satchell co-sponsored a similar bill alongside Sen. Harold Metts (D-Dist. 6, Providence) in 2016 which did not pass the House. The current bill is co-sponsored by Metts and Sens. Marc A. Cote (D-Dist. 24, North Smithfield, Woonsocket), William J. Conley Jr. (D-Dist. 18, East Providence, Pawtucket) and Roger A. Picard (D-Dist. 20, Cumberland, Woonsocket).