The Tragedy of a Halted Development in Providence

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There may be no better illustration of Rhode Island’s central problem than the foolish people celebrating the halt of a redevelopment project in Providence:

[Jim] Abdo’s request for a tax stabilization agreement, or TSA, was met with opposition from labor unions and progressive groups. Members of the groups applauded when the plan was tabled Tuesday night.

“I know Mr. Abdo is going to make out tremendously from his investment, with or without the TSA,” Nancy Iadeluca, the Rhode Island director for UniteHERE Local 26, said at a hearing about the TSA earlier this month. “What are we getting back?”

Mr. Abdo is looking to develop the former Providence Journal building and another next door, but he says he can’t secure financing for the project, pegged at $39 million, unless there’s a $2.7 million tax break.  According to the developer (who has reason to present his case in the best light, of course), property taxes resulting from the project would have been $5.7 million, anyway, in addition to more than $20 million in various state taxes.  All that comes with jobs and economic activity.

The article does not say, but one wonders, given labor’s involvement, if Mr. Abdo declined to promise to use union shops for his project.  Be that as it may, he says he’s going to hold on to the asset, undeveloped, whether or not it takes 20 years for him to do something with it.

Many Rhode Islanders oppose these special deals that make an inhospitable economic climate tolerable for hand-picked investors, but even we might see this outcome as tragic — if only as an indicator of things we don’t see.  Imagine how many deals are not being done in the Ocean State because of the environment progressive policies have created!

This is more than just tragic, though; it’s frightening, because under the progressives’ glee is the expectation that this is a step toward their “progress,” not an obstacle.  Note this comment from the Providence Preservation Society’s director, who supported the deal:  “These two buildings are eyesores in the core of downtown. They drive down the sense of positivity.”

Abdo says he’s patient, but his patience might be misplaced.  What the progressives may understand is that an “eyesore” is “blight,” and our society has given the government authority to confiscate properties on which they can pin that tag.  As Providence’s economy gets worse and worse, it may be that progressives are counting on being able to take Abdo’s property away from him, using public dollars to redevelop it into some delusional hipster dream (with expensive union labor), and taking the money to do it from the rest of us suckers who haven’t fled the state.



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