Councilman David Salvatore
Ward 14

Councilman and Playground Photo

 

EVENTS 

 


My Time with Councilman Salvatore

(to schedule a meeting, call 401-484-8375) 

  

 

I hope you are enjoying the wonderful springtime weather our city has experienced during the last week.  After a long New England winter, it is well deserved!

 

This Thursday, May 14th at 6:00 P.M., the City Council Finance Committee will hold a public hearing on an ordinance related to a potential streetcar system in Providence. The proposed project has caught the attention of many of our neighbors, and I want to invite you participate in the public legislative process.

 

If passed, the proposed ordinance would authorize the City to use tax increment financing (TIF) to advance the implementation of a modern streetcar line, and cover the City's share of the $100.2 million project. The remainder of the funds is expected to be derived from the State and Federal government.

 

What is tax increment financing (TIF)? TIF is a mechanism commonly used by municipalities to pay for large projects from the proceeds of revenue bonds. The new or incremental taxes that are generated from development and increased property value in the designated district help finance the project. In the case of the proposed streetcar ordinance, the City's administration and some City Council members are asking us to authorize nearly $58 million in new debt service. In other words, the City would borrow $57.7 million to pay for the streetcar's upfront costs and will not be subject to taxpayer approval, unlike general obligation bonds.

 

Where will the streetcar line be located? The streetcar line would run for 1.6 miles traveling in both directions beginning at the Providence Train Station and making stops in the Downtown and Jewelry Districts and ending at Rhode Island Hospital.

 

While I am intrigued by the project's potential benefits and increasing public transit options for our residents, I am cautious about the timing and risk associated with a proposed streetcar. In a time when our schools and roads are in desperate need of infrastructure upgrades, it would be irresponsible for our City to add additional borrowing costs to the City's budget without a guaranteed return on investment.

 

As I have stated in the past, Providence must develop a more effective model for economic development, one that grows our tax base, stimulates our economy, and creates sustainable jobs. Moreover, there needs to be a concerted effort not only to draw businesses to Providence, but to keep them here.  Unfortunately, the proposed streetcar project does not include an effective financing methodology.    

 

Therefore, I am urging City residents to join me on Thursday, May 14th in City Hall for the Finance Committee Public Hearing, where the committee will be accepting public testimony relative to the proposed streetcar financing plan. 

In addition, there will be a relative discussion at the Special Commission to Study the City's Bond Finance Program meeting on Wednesday, May 13, 2015 at 6:00 p.m. at City Hall, 25 Dorrance Street, 3rd Floor.   

 

Sincerely, 

 

David


 

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