investing in economic development an innovative approach for cash-strapped municipalities moderator:...

Investing in Economic Development An Innovative Approach for Cash-Strapped Municipalities

Moderator:Scott Wolf, Executive Director, Grow Smart Rhode Island

Panelists:Thomas Kravtiz, Director of Planning and Economic Development, Town of BurrillvilleSamuel J. Bradner, Partner, The Peregrine Group, LLCRep. Jeremiah T. O’Grady, District 46 - Lincoln/Pawtucket

www.GrowSmartRI.org

Leveraging Rhode Island’s Place-Based Assets

Rhode Island’s cities, town centers and Main Street districts are vitally important to the economic well-being of municipalities and to the State as a whole.

Across Rhode Island, cities and towns have developed forward-looking plans for public improvements that attract private investment and that revitalize downtown and Main Street districts.

But they increasingly lack the fiscal capacity to implement these plans.

Need for Targeted Investments in Economic Development

RIGL 44-5-2 a barrier to Municipal Investment in Economic Development

More commonly known by its 2006 bill number: S-3050

Caps the growth of a municipality’s total tax levy. Disincentive for promoting economic growth – especially if it requires investments in planning or infrastructure.

RIGL 44-5-2 a barrier to Municipal Investment in Economic Development

Source: Division of Municipal Finance, Dept. of Revenue Annual Reports on the Property Tax Levy Cap, Fiscal Years 2009, 2010, 2011

A concept for amending, not ending RIGL 44-5-2

Allow municipalities to capture a portion of levy growth within targeted “growth centers” (prior to levy cap) solely for reinvesting in economic development within those districts.

Burrillville “growth centers”Burrillville “growth centers” Branch Village, Branch Village, North Smithfield North Smithfield

History

2009 REGULATORY REVIEW TASK FORCE COMMISSIONED BY GOVERNOR CARCIERI

History

A proposal for amending, not ending RIGL 44-5-2

Keys to the success:

Must be meaningful enough to warrant municipal participation and to achieve results Must be measurable and accountable Must include a not-to-exceed cap Must restrict the use of funds to qualified economic development uses Must be consistent with goals and objectives of Rhode Island’s State Guide Plan Must reward communities that use land, resources and infrastructure most efficiently Must not be overly burdensome to administer by municipal officials Must not be overly burdensome to administer / certify by State Dept. of Revenue

Development of Proposal

Order of Magnitude

History

Tom KravitzDirector of Planning & Economic DevelopmentTown of Burrillville

Mill ComplexMill Complex

60’ RR ROW

60’ RR ROW

Pascoag Pascoag

Samuel BradnerPartnerThe Peregrine Group, LLC

ALCO Site Improvements

Priority Funding Areas

Jeremiah O’GradyState RepresentativeLincoln/Pawtucket