East Providence Waterfront Series: An initial status report

The first installment of a coastal overview from The Post

By Mike Rego
Posted 7/9/16

EAST PROVIDENCE —

Motorists who often travel Veterans Memorial Parkway in city or enjoyers of the East Bay Bike Path have readily noticed the substantial change in the terrain of the area over …

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East Providence Waterfront Series: An initial status report

The first installment of a coastal overview from The Post

Posted

EAST PROVIDENCE — Motorists who often travel Veterans Memorial Parkway in city or enjoyers of the East Bay Bike Path have readily noticed the substantial change in the terrain of the area over the last several weeks as work has accelerated on two developments at East Providence's coastline — Kettle Point and Village on the Waterfront.

It's just the latest movement in what has been a concerted effort over the last 12 years to bring the once moribund area back to life, an effort where hundreds of millions of dollars have or are planned to be spent by the private sector.

In a series of articles here in The Post over the coming weeks, the various components of East Providence's coastal development will be discussed with many of those contributors, beginning with the projects on the Parkway, which are at differing stages of progress. Kettle Point, adjacent to Squantum Woods, is farther along, according to East Providence Waterfront Development Commission Acting Chairman Bill Fazioli. The recent removal of brush and trees at Village on the Waterfront is another sign that plan is moving forward, though Mr. Fazioli noted it trails Kettle Point at the moment.

"The Kettle Point project will be probably be vertical by the end of the summer," Mr. Fazioli said two weeks ago, during an extended on-site interview. "They're still doing a lot of site work and getting the property ready, but by year end 2016 at Kettle you'll start to see foundations and structures being built.

"Village on the Waterfront, we're probably looking some time in 2017. But people don't realize the amount of money that needs to be put in just to have access to the properties at this point. At Village on the Waterfront, for instance, already (property owner) Chevron has put in $30 million in remediation, grading of the property and bringing the property environmentally in line. So there's already been a substantial upfront investment in those properties. And frankly they weren't going to start the process until they knew it would financially viable to them."

The financial viability of East Providence's waterfront, the commercial and residential potential stretching basically the entire length of the city, has been a source of conversion for many and consternation for some ever since the Waterfront Commission was established back in 2004.

Since, the endeavor to revitalize the city's coastal area has run in fits and starts mostly due to the world financial downturn in 2007-08, but also because of the land's modern history of use as a repository by the petroleum industry. As Mr. Fazioli noted, the costs of the environmental clean-up alone have or can be prohibitive to potential developers and investors.

But many factors have changed in the favor of both sides in recent years, specifically the access to capital and the city's willingness to think outside the proverbial box when it comes to enticing development, specifically the introduction of Tax Increment Financing, which is being used to construct the infrastructure necessary to lure potential investors.

"The Tax Increment Financing (TIF) is what is financing the road and the water/sewer lines," Mr. Fazioli explained. "People think that's a tax break, but actually it's not. The properties here are paying taxes right away, it's just that for a period time the taxes will be used to pay off the infrastructure improvements. Then after that is paid off, it will go into the city's budget. So it's really not a tax break at all. It's just being directed towards the infrastructure improvements.

In essence, the TIFs used on projects like those at Kettle Point, Village on the Waterfront and other areas of the city are a benefit to both sides from the start through completion. In fact, Mr. Fazioli said the TIFs were a vital component at both Parkway locales.

"The projects couldn't have happened without the Tax Incremental Financing," he continued. "There are a lot of misconceptions about that even within the industry. I've been in the municipal bond industry for about 30 years, and if you're not familiar with it (TIF) you might see it as a tax break or a tax deal. It's not that at all. In fact, all of the financing for these projects are 100 percent private. The public component doesn't come in until after the fact, when everything is all in place and the projects are completed.

"It's difficult for developers to get the financing because of the environmental issues related to the property. They can't just go to a bank and get a mortgage or a commercial loan because frankly until the property is cleaned up and has the environmental sign off on they're not going to be able to get the financing. So the Tax Increment Financing allows the public to come in. Any neighborhood needs a road, access to the water and sewer, and that's what the TIF is paying for. So it's not a tax break to the developer or the people who are moving in here. It's a way of paying for the infrastructure improvements necessary for any new neighborhood to be established."

When some in East Providence hear the term "new neighborhood" they cringe, believing an influx of residents or businesses to the city will put unnecessary pressure on services. Some also don't believe they'll have access to the new properties, thinking it will be cordoned off from general use. Mr. Fazioli, who was City Manager here when the Waterfront Commission was formed as has served on the body for its duration, while appreciation the apprehension dismissed those notions.

"Any type of change, people are uncomfortable about it. There's some uncertainty. And they might be a little nervous about what's going on. They don't know what the actual end product will be. But if people have a little patience, they'll be very excited to see what takes place. Essentially, they're going to see a complete transformation of the waterfront.

"At Kettle Point and at Village on the Waterfront, over the next five years it's basically going to be two new neighborhoods, public neighborhoods that the people of East Providence will be able to come into. They'll be access to the bike path, the waterfront and other amenities. It's really going to bring in a sense of vibrancy to the city.

"And they're not going to be gated communities. It's absolutely going to be public. The road that is being built right now is a public road and there is actually going to be a parking lot at the site where people can drive in and where they'll have another way to access the bike path. The idea was to make it another neighborhood of the city, not a distinct, separate area.

"And so we've done some fiscal impact studies, which is required by the developer and we also do our own peer review of the impact, and the type of dwelling being built is mainly one bedroom and some two bedroom units going up. And that's not really attractive for raising a family. The rents are going to be market-rate rents, so it would be difficult for a large family to get themselves involved, so the impact on services and schools we believe is going to be minimal. We've run the numbers and frankly East Providence does have some capacity with enrollment being fairly flat anyway, so we don't think there's going to be an impact. The existing schools could absorb an increase."

Above all else, Mr. Fazioli emphasized the waterfront development should be looked upon with a sense of excitement about the possibilities.

"One of the primary goals when the city decided to do this was recognize we needed to come up with a game-changer. And I know it's taken some time, but leveraging this asset that makes East Providence so unique from other places has been the key to reenergizing the city," he added. "You look at the population from 1960, 70, 80 we were losing people. This will sort of bring back a new aspect of the city that's been lost for a long time. And I know some people might feel uncertain about what the status is. Any construction site doesn't look good until the end product. But I think once it's up and running, within five years, people are going to be pleased. This is going to be completely unrecognizable to them."

Next, more about the impact on the city's profile by Kettle Point and Village on the Waterfront.

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MIKE REGO

Mike Rego has worked at East Bay Newspapers since 2001, helping the company launch The Westport Shorelines. He soon after became a Sports Editor, spending the next 10-plus years in that role before taking over as editor of The East Providence Post in February of 2012. To contact Mike about The Post or to submit information, suggest story ideas or photo opportunities, etc. in East Providence, email mrego@eastbaymediagroup.com.