EAST PROVIDENCE — The council, at its March 15 meeting, gave the second of two required approvals to an ordinance authorizing a Tax Incremental Financing agreement, a “TIF,” between the city and the developers of the long dormant former heavy industrial property at Roger Williams and Bourne Avenues in Rumford adjacent to Phillipsdale Landing.

The council, following an advertised public hearing that included another presentation on the matter by Director of Planning and Economic Development Bill Fazioli and a representative of the developer, voted unanimously, 5-0, to move the act. It took up the initial approval a month ago to the day at its February 15 meeting.

The ordinance was proposed by Ward 1 member and council president Bob Britto, in whose district the parcel is located. The Waterfront Commission, which holds most of the jurisdiction on the project, spent the better part of 2021 reviewing and ironing out the parameters of the deal.

All in, Noble Development LLC, a subsidiary of the Churchill & Banks realty firm that owned and developed the Kettle Point land off Veterans Memorial Parkway, and the city agreed to a total TIF in the amount of $22,250,000 to help repurpose the former Washburn Wire/Ocean State Steel property abutting the Seekonk River and Omega Pond into a residential development known as “East Point.”

Noble will use the bulk of the TIF monies ($17,245,108) to build and install all of the necessary infrastructure. The largest single cost is for the construction of a 30-foot wide main entry way into the parcel off Roger Williams Avenue ($4.5 million) over the still active Genesee & Wyoming Railroad (formerly Providence & Worcester) line that bisects the location.

The TIF monies will also be used to install the necessary streets, sidewalks, lighting, utilities, landscaping, etc. ($1,945,108). Another roughly $4.6 million will be used on various elements involved in allowing for community access, like parking ($750,000), improvements around Omega Pond ($750,000), a pathway/patios ($1,800,000) and a public park ($350,000).

A TIF functions in the following manner: A municipality issues bonds in lieu of tax receipts at a lower interest rate than can be procured in the private sector. Then a larger portion of the property taxes initially collected from the location is used to pay off the bonds with the remainder going into the city’s general fund. As the bond payments decrease and the project moves towards completion, the city’s revenue share grows commensurately.

Joshua Berlinsky, a Managing Partner is DarrowEverett LLP of Providence representing Noble Development, said a peer-reviewed traffic study found there would little to no significant impact to the area. Fazioli said the study found the surrounding roadways could “support the increase in traffic flow.”

Also, Fazioli, who doubles as the Waterfront Commission chairman, said the city has already been in contact with the Rhode Island Transit Authority (RIPTA) about increasing the number of stops in the Roger Williams Avenue area. Though there currently isn’t one, the director said RIPTA would “love” to put an enclosed stop at the location.

Other notes of interest, in response to a question posed by Ward 2 Councilor Anna Sousa, Berlinsky said the expected duration of the project would be over a five-year construction period, which would closely coincide with the completion of the new Henderson Bridge project. Berlinsky said the earliest residents would likely occupy any completed housing is in the next 18 to 24 months.

Fazioli, answering an inquiry from At-Large Councilor Bob Rodericks, told the council the development is expected to add minimal students to the East Providence School System. Fazioli explained rental and/or owner-occupied units of this order typically don’t attract school aged children, adding, “We don’t expect a significant number of young families” to purchase many of the residences.

And as was discussed over the course of numerous Waterfront Commission meetings during the last 18 months, Fazioli responded to a question from Ward 4 Councilor Ricardo Mourato about the need for such a large TIF number by telling the body it would not be financially viable for any developer to pay for the required infrastructure (roadways, sewers, etc.) upfront.

The incarnation of East Point approved by the commission would include a total of 384 units, broken into two sections called “inland” and “coastal” bisected by the Genesee & Wyoming Railroad line and abutting the Seekonk River.

The clusters would include a mixture of structures: single-family, townhouses or duplexes, smaller apartment buildings and one large apartment complex composed of 136 units. Some 18 single-family homes would be situated near the shore of the river in the coastal portion, the larger of the two adjacent to the rear of the Phillipsdale Landing site.

The design calls for private parking for all of the single-family and townhouse/duplex units and “car barn” garages for some of the smaller apartment buildings. The inland, also known as “Omega,” would have predominantly rental units. The coastal, or “Seekonk” side, would be mostly owner-occupied single-family residences.

Coastal greenways are part of both clusters and portions of the property include environmental land use restrictions, areas that will be kept as “green” spaces. There would be public access to portions of the coastal cluster, including walkways and sitting spots.