Tag Archives for Hope Artiste Village

Fund the Historic Tax Credit Program

Published in Pawtucket Times, June 13, 2014

With November’s election cycle looming, state lawmakers are moving quickly to finish the people’s business. Once the session ends they will begin their political campaigns to garner votes to retain their seats. .Yesterday evening the House began its floor debate on the House Finance Committee’s $8.7 billion 2015 budget proposal. At press time, this columnist has no knowledge of the outcome. But, when the dust settles late Thursday evening, if a budget amendment to fund the HTC program is defeated or even if supporters are successful in getting one passed, the Senate chamber becomes the next battle ground to fund the tax credit program.

Last week, the House Finance Committee declined to recommend funding for this program, despite Governor Chafee’s inclusion of $52 million for the Historic Tax Credit (HTC) program in his FY 2015 Budget proposal. As a result, Grow Smart Executive Director Scott Wolf and his fellow Historic Tax Credit advocates are running a full court press to push House and Senate leadership to include funding for the popular economic-development and neighborhood-revitalization program in the 2015 Budget.

In the lobbying blitz, Wolf is telling lawmakers and everyone who will listen that the HTC program has successfully transform older cities and towns in the Ocean State, by spurring reinvestment, revitalization, and job generation. These programs provide an incentive in the form of a tax credit, to property owners to renovate old historic buildings. These state credits can be and often are paired with the federal historic preservation tax credit to renovate commercial properties.

Historic Tax Credit – Great Economic Development Tool

It’s a success in the Ocean State, too, notes Wolfe. Rhode Island’s HTC program has stimulated more than $1.6 billion of investment in more than 250 projects within less than 7 years. For every dollar the state invests, there is a more than five dollar return in economic activity based on a study Wolf’s organization, Grow Smart Rhode Island, commissioned several years ago.

Wolf adds, “The evidence that the historic tax credit makes a real positive difference can be seen on the ground in communities throughout the state – in bustling commercial properties like Hope Artiste Village in Pawtucket and along Westminster Street in Providence, in new apartments for urban workers and new affordable housing units. It can be seen in increased property tax revenues from rehabbed buildings. It can be seen in neighborhoods that have been rescued from the blight of vacant, derelict buildings.”

According to a media release issued jointly by Grow Smart Rhode Island and Preserve Rhode Island, $52 million in bond authorization remains in reserve from the total bond authorization approved in 2008 by the General Assembly for the original HTC program, which was discontinued in 2008 for any new projects but maintained for many other projects already under way at that time.

The General Assembly in 2013 reinstated the program, using $34.5 million in unclaimed tax credits from the prior program and, Wolf says, “The new program has ignited 26 new projects that will pump nearly $180 million into the Rhode Island economy, but 27 additional projects are waitlisted and in jeopardy if additional funding is not provided to sustain the program. By not including an extension of historic tax credit funding in the upcoming budget, the state risks forgoing up to $160 million in construction activity alone. Significant sales and employment taxes also will be lost.”

Preserve Rhode Island Executive Director Valerie Talmage says, “Our Historic Tax Credit program has an outstanding track record. From 2002 to 2008, it generated $1.3 billion in new private investment in Rhode Island’s real-estate economy, which resulted in 22,000 construction jobs, 6,000 permanent jobs, and total wages of more than $800 million. Our state cannot afford to shut this program down.”

Wolf added that suspending the HTC program again would be harmful because “We’d be ceding the competitive advantage provided by our world-renowned collection of distinctive historic buildings and neighborhoods to nearby states such as Connecticut, Massachusetts, Maine, and New York, each of which has ongoing and robust state historic tax credit programs.”

Finally, Wolf emphasized that another HTC program suspension would “Send a bad signal to investors and entrepreneurs about Rhode Island’s business climate and economic development credibility.”

Wolf and Talmage, together with their organization members, partners, and fellow advocates are calling on the General Assembly to “Continue the Historic Tax Credit program because it is a sound and critical investment in Rhode Island’s cities and towns and a proven job-generator and revenue producer, which our state sorely needs.”

In their lobbying Wolf, Talmage and their network of approximately 90 organizations who support the HTC program are quick to identify its positive impact. State officials will see higher state revenues through construction and other jobs generated by the HTC projects. In addition, job creation and increased employment taxes are derived years in advance of any outlay of state funding because Historic Tax Credits are not released for any enrolled project until the project is completed. Sales-tax revenues result from construction materials and other goods purchased for HTC projects also benefit the state in advance of any outlay.

Wolf and others also note that The Budget Office forecasts no fiscal impact to the state budget from the proposed $52 Million in debt service until FY ’19 because bonds won’t need to be issued until the projects have been completed and the tax credits have been claimed.

In an Op Ed in the Providence Journal, Pawtucket’s Mayor Donald R. Grebien and Central Fall’s Mayor James Diossa, support Wolf’s assessment of its impact in the state’s cities and towns. The Mayors say that their fiscally stressed communities benefit from Historic Tax Credits through increased property assessments.

Developing an Old Mill in Pawtucket

Antique Dealer and entrepreneur Scott Davis knows a good program when he sees one. The Eastside resident is planning to develop his old Fuller manufacturing mill on Exchange Street into a combination of commercial and residential space, but any state backpedaling of funding the HTC program will make it difficult to get his project off the ground.

An inquiry by Davis to Chairman Raymond Gallison of the House Committee on Finance, about the suspending of funding for HTC program resulted in an email explaining the decision. The chairman noted that a primary reason for rejecting Governor Chafee’s proposed additional $52 million HTC funding was based on the assertion that there were already sufficient funds in place in the existing program to meet current demand.

Davis disagrees. “My project, which is a rare and historically significant wooden mill built in a prominent Pawtucket city location alongside the Blackstone River is Number 65 in the queue,” he says, noting that he believes that none of the current funds in place will ever be allocated to his project.

“Financial assistance is essentially the only way that my mill project will ever be able to developed, says Davis, who notes that the cost to restore the historic structure versus the prevailing rental rate for space in Pawtucket simply doesn’t work out.

Chairman Gallison also noted that issues with tax credit brokers are a stumbling block for the program,” says Davis. “It is unimaginable that the resulting (legislative) decision] would be akin to ‘throwing out the baby with the bathwater”. If there is a problem with the brokers, Davis calls on lawmakers to fix it, but threatening so many important buildings, jobs, and resulting tax revenues in the process just doesn’t make sense to him.

Davis says that previous HTC funds have made 8 major Pawtucket projects possible. According to the Pawtucket Foundation, the tax incentives were the catalyst for $150 million in local investments that increased property values by 728 % and increased Pawtucket tax revenues by over $1 million annually.

“Keeping these historic buildings intact while awaiting funding assistance is extremely expensive and no doubt we will lose many of them if we can’t save them promptly,” predicts Davis. “ I can tell you from personal experience that just keeping my small 26,000 sq. ft. mill ‘on hold’ costs me several thousand dollars per month just for taxes, insurance, utilities, fire safety, security and basic upkeep,” he says.

HTC is No 38 Studios

Some speculate that recent headlines about 38 Studios and tax credits in general may have spooked House and Senate Leadership to back away from funding the HTC program. Ultimately, the ball is in the court of Senate leadership who must respond to the budget proposal submitted by the House. How can lawmakers fear another 38 Studio debacle when the Historic Tax Credits are only issued upon completion of the project? In other words, after construction workers have laid the last brick – only after new residential and office space is actually available.

But, Gregg Paré, the Rhode Island’s Director of Communication, says don’t expect any action in the Senate to fund the state’s HTC program this year if the House fails to act. “The Senate is in agreement on the budget with the House,” he says, noting that Senate leadership usually iron out any differences before the budget reaches the House floor.

Paré says that the Senate has only once modified the House budget proposal in decades. But, now it’s time for this legislative action to happen again this year especially if the House budget does not include funding for the HTC program.

To Wolf, Talmage, and Davis, and to municipal leaders in a number of Rhode Island’s cities and towns, it is obvious that the program works and serves as an important tool for community revitalization and economic development.

For this columnist, funding the HTC program is just the right thing to do, for the economy and most importantly, for the tax payer.
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Herb Weiss is a writer covering health care, aging, medical issues and the economy. He can be reached at hweissri@aol.com.

RI Music Hall of Fame is Poised to Honor the Best

Published in Pawtucket Times, April 18, 2014

Arthur “Pooch” Tavares, with nearly 60 years in the music business, continues to reach out to his old fans and to new generations as well. The 70-year-old Tavares is still performing about 75 concerts a year all over the world with three of the brothers (Perry “Tiny,” Antone “Chubby” and Feliciano “Butch”) who made up the original quintet which became know worldwide as simply Tavares. (Fifth brother Ralph retired from the road in the 1980s.)

The brothers grew up in the Fox Point and South Side neighborhoods of Providence and Tavares says, “The good lord has seen fit to keep us all together.” The most notable moment he remembers from his long career is when The Bee Gees gave his group “,” one of the key songs in the score to Saturday Night Fever, for which they won a 1977 Grammy Award. But running a close second is being inducted into the Rhode Island Music Hall of Fame.

“It’s quite an honor to be recognized for your music in the place where you were born,” states Tavares.

With just two weeks to go until the induction of this year’s class into the Rhode Island Music Hall of Fame (RIMHOF) on May 4, at The Met at the historic Hope Artiste Village, Vice Chair Rick Bellaire gives this columnist the details about those who are being recognized as Rhode Island’s best.

In announcing the RIMHOF Class of 2014, Bellaire says, “This initiative provides a great opportunity to acknowledge Rhode Island’s musical greats and celebrate their achievements and now we finally have an organization whose primary goal is to promote and preserve our state’s rich musical heritage. With actual exhibit space, coupled with our online archive, we have in place the tools to curate and showcase the best of Rhode Island’s musical artistry.”

Bellaire notes that it’s sometimes easy to forget, and even hard for some to believe, that such world-acclaimed artists actually have roots right here in Ocean State. “For the smallest state, Rhode island has produced an inordinately large number of truly great, successful and important artists and their devoted local fans helped to place them on the world stage. Tavares is a case in point.”

According to Bellaire, from their earliest days in the Fox Point neighborhood of Providence, it was clear the seven Tavares brothers were born to make music. They are recognized as pioneers in the evolution of R&B from the Soul era into the modern Funk and Disco movements of the ’70s and ’80s. They had over a dozen major hits and won a Grammy for “More Than A Woman,” their contribution to Saturday Night Fever. “But,” says Bellaire, “the best part of the Tavares story for me is not about how great they are or how successful they are. Everyone knows that. For me it’s about their journey. They worked really hard to get to the top. Their story will continue to inspire young musicians for decades to come.” Tavares will appear in concert on May 3 at Lupo’s Heartbreak Hotel.

Bellaire provides some background on the other new RIMHOF inductees:

The Castaleers are recognized as the state’s Rhythm & Blues trailblazers. They came together in the mid-1950s when members of various groups formed a permanent lineup consisting of Richard Jones (later replaced by Joe Hill), George Smith, Dell Padgett, Ron Henries and Benny Barros. In partnership with songwriters/producers Myron and Ray Muffs, they had four national releases and paved the way for the rest of Rhode Island’s R&B greats.

Paul Gonsalves of Pawtucket started out playing tenor sax in big bands including Count Basie’s. As a master of many styles, he became a pivotal figure in the evolution of post-war modern jazz. He joined Duke Ellington in 1950 and provided a crucial ingredient in the modernization of Duke’s sound. His place in the history books was guaranteed by his famous 27 chorus improvisation on “Diminuendo and Crescendo In Blue” at the 1956 Newport Jazz Festival.

Randy Hien of Woonsocket entered the music business in 1971 when he took on the job of reopening the old Loew’s State Theatre as The Palace in downtown Providence to present Rock ’n’ Roll concerts. When the Palace closed 1975, Randy purchased the original Living Room on Westminster Street by trading the keys to his Jaguar XKE for the keys to the club and the liquor license. He kickstarted Rhode Island’s original music scene by instituting a policy which welcomed bands who performed their own music. The club became the center of the state’s music scene and Randy its biggest supporter

Rhode Island Philharmonic Orchestra founder and conductor emeritus Francis Madeira initially came to Providence to teach music at Brown University in 1943. Finding no professional symphonic orchestra, he created one bringing together a 30-member ensemble that would bring the music of the European masters to the Ocean State. Maestro Madeira will be inducted into RIMHOF on May 10 during a performance by the Philharmonic at Veterans Memorial Auditorium in Providence.

Winston Cogswell of Warwick,was literally present at the birth of Rock ’n’ Roll after moving to Memphis, Tennessee in 1954. At Sun Records, as a guitarist, pianist, songwriter, arranger, producer and recording artist under the name “Wayne Powers,” he collaborated with some of the most important figures in music history including Johnny Cash, Jerry Lee Lewis and Roy Orbison. He returned to Warwick in 1960 and began working with pianist/composer Ray Peterson. The duo formed Wye Records with a third partner, engineer Ken Dutton, and their debut release as The Mark II, “Night Theme,” became a national hit. Wye remains the only Rhode Island label to score a Hot 100 hit.

By the end of the 1960s, Duke Robillard of Woonsocket had already earned a reputation as one of the finest blues guitarists in the state after stints with the short-lived original lineup of Roomful of Blues and Ken Lyon’s Tombstone Blues Band. In 1970, he reformed Roomful with a three-piece horn section to play jump blues and under his leadership, the band practically single-handedly revived the genre with two albums for Island Records. In the early 1980s, Duke began to pursue a solo career at Rounder Records. His jazzier side emerged with the release of “Swing” in 1987 to critical acclaim. “Duke recently told me he feels that, in music, blues is the universal language,” says Bellaire. “So I say, Duke Robillard is fluent in many languages!”

Freddie Scott of Providence moved to New York in 1956 and began his career as a songwriter for Don Kirshner working alongside to Carole King, Neil Sedaka and Paul Simon. His songs from this period were recorded by Ricky Nelson, Paul Anka, Tommy Hunt and Tommy Hunt. Freddie entered the charts as a singer himself in 1963 with “Hey Girl” written by his friends Carole King and Gerry Goffin. It hit Billboard’s Top 10 and is considered a classic today. In 1966, he scored a #1 R&B song with “Are You Lonely For Me.” His last album was “Brand New Man” in 2001.

In 1976, Cheryl Wheeler moved to Rhode Island to pursue a career in music on the Newport folk scene. She was quickly recognized as one of the finest songwriters and singers to surface in a decade or more. In 1986, her first album brought her national attention. Her song “Addicted” was taken all the way to #1 on Billboard’s Top 40 Country chart by superstar Dan Seals in 1988. Since then, she has released a series of albums of her comic and emotionally intense songs
which are considered singer-songwriter classics around the world. Says Bellaire, “Cheryl is a treasure. Her songs are perfect – every note and every word propels the story forward. She’s also a masterful performer. She can have you in tears one minute and rolling in the aisle the next. Every show is magical.”

RIMHOF Chair Bob Billington says, “This year’s honorees are amazing. Their histories in music are superior. Rhode Islanders should meet and greet them in person at our events. They will not be disappointed.”

Tickets for the Saturday, May 3 Tavares concert at Lupo’s and for the induction ceremonies and concert on Sunday, May 4 at The Met can be purchased at
http://www.rhodeislandmusichalloffame.com.

Herb Weiss, LRI ’12, is a Pawtucket writer who covers aging, health care and medical issues. He can be reached at hweissri@aol.com. He also serves on RIMHOF’s Board of Directors.

Raising Minimum Wage Reveals Partisan Divide

Published in Pawtucket Times, January 31, 2014

On January 28, 2014, President Barack Obama gave his 2014 State of the Union (SOTU) a whopping  6,778 word speech, calling on both Chambers of Congress to either work with him to move the country forward or forcing him to use his presidential powers to enact  policy.

“America does not stand still, — and neither will I,” the President told a jam packed Chamber.  If Congressional gridlock continues, the President warned, “So wherever and whenever I can take steps without legislation to expand opportunity for more American families, that’s what I’m going to do.”   This would be accomplished by using executive orders, presidential memorandums to enact policies if lawmakers choose not to act on.

Congress to Debate Merits of Minimum Wage

            In a little over an hour, Obama rattled off dozens of policy initiatives for Congress to consider this session, including immigration, emergency unemployment, manufacturing, trade, environment, education, closing Guantanamo Bay, closing tax loop holes, job training, family policies, and retirement savings.  But the President also called for an increase in the nation’s minimum wage to provide America’s worker’s a living wage.  With Democratic and Republican gubernatorial candidates gearing up their campaigns to take the Ocean State’s top General Officer seat, look for ratcheting up the state’s minimum wage to hotly debated throughout the nine month political campaign.

             While Obama’s push to raise the minimum wage was derailed last year by the GOP House and its Tea Party Faction, the Democratic president noted that five states have already passed laws to raise theirs (including Rhode Island).

             With corporate profits and stock prices climbing, average wages “have barely budged,” observed the President.  “Inequality has deepened. Upward mobility has stalled.  The cold, hard fact is that even in the midst of recovery, too many Americans are working more than ever just to get by – let alone get ahead.  And too many still aren’t working at all,” he said.

             The President used his speech as a very visible bully pulpit to call on States to not wait for Congressional action to raise the nation’s minimum wage, to give people a living wage.

              Until Congress acts, it is up to businesses to voluntary give their employees a living wage or State legislators to mandate an increase.  Obama urged the nation’s business leaders to follow the lead of John Soranno, the owner of Minneapolis-based Punch Pizza, who has given his employees a raise to $10 an hour.  Large national corporations, should join profitable companies like Costco, the President urged, that “see higher wages as a smart way to boost productivity and reduce employee turnover,” he said,

             Through an executive order the President announced in his SOTU address last Tuesday evening that he would ratchet up the minimum wage of federal contractors to $10.10 per hour, “because if you cook for our troops’ meals or wash their dishes, you shouldn’t have to live in poverty.”  

             “Today, the federal minimum wage is worth about twenty percent less than it was when Ronald Reagan first stood here,” the President quipped, noting that legislation to increase the nation’s minimum wage to $10.10 has been introduced by Senator Tom Harkin,  a Iowa Democrat who is retiring after serving almost 40 years in Congress, and Democratic Congressman George Miller, from California, also leaving office after 20 terms.

 Two Sides of the Coin          

            Although creating jobs will be one of the top campaign issues that must be addressed by the State’s gubernatorial candidates (Clay Pell was not available for comment by press time), look for the minimum wage issue to pop up for political discussion with the Democratic and Republican views being like two sides of a coin.

            When he announced his bid for governor, Providence Mayor Angel Taveras he told his supporters that increasing the minimum wage is a step in building an economy that supports higher paying jobs, puts people back to work and gives Rhode Island families the opportunity for a better life. There was a time when his mother worked at the minimum wage to support three children so he knows firsthand how much raising it can help a family, he stated. He is also pushing for statewide universal pre-kindergarten.

            Tarveras quoted from a recent study by the Economic Policy Institute that indicated that increasing the minimum wage to $10.10 an hour would increase the wages of 65,000 Rhode Island workers and indirectly benefit an additional 26,000 more, totaling nearly 20 percent of the work force.  He cited another study that found that moving to a higher wage would boost the national economy by as much as $22.1 billion, creating as many as 85,000 new jobs.”

            “I’m a Democrat who believes in raising the minimum wage and indexing it with regular cost of living adjustments,” noted Treasurer Gina Raimondo, in her announcement to run for Governor at Hope Artiste Village in Pawtucket.

            According to Eric Hyer’s, Gina Raimondo’s Campaign Manager, “Gina strongly believes that we need to increase the minimum wage and she was pleased to see President Obama call for increasing the minimum wage to $10.10 an hour during the State of the Union this week.  No one who works full time should live in poverty.  As the President said, it is time to give America a raise.”

             “But let’s not wait for a dysfunctional Congress to act; we can take action right here in Rhode Island,” states Hyer.

            “Gina is calling for us to take action on this now and raise the minimum wage to $10.10 by 2015 and then index it to the cost of living so that politicians can’t play games with people’s lives. Two-thirds of minimum wage earners are women so a raise would immediately help women across Rhode Island and their families, adds Hyer, noting that people are really struggling and there is an urgency to help out working families.

             But, the Rhode Island’s GOP candidates, Cranston Mayor Allan Fung and Businessman Ken Block, are not buying the Democratic candidate’s solution that minimum wage is the way to go.

             “Democrats continue to recycle bad ideas. It’s time we consider some new ones so people have the opportunity to succeed and thrive, and not rely on government coercion to dictate wages. Increasing the minimum wage will result in higher unemployment, reduced job opportunities, reduced customer spending, and will reduce net job growth because of the effect on expanding companies,” says Mayor Fung

             Mayor Fung states “At a time when we are tied for the highest unemployment in the country, we cannot put more hurdles in front of the companies we have here in Rhode Island; we need to remove them. Further, Obama Care is already hurting workers because employers are transitioning employees to part time work because they cannot afford the healthcare premiums. An increase in the minimum wage would only increase the burden on small business owners who are already working on thin margins.”

             “The real issue in Rhode Island is unemployment and getting our workforce prepared with the necessary skill set for the ever changing workforce. It is quite evident that raising the minimum wage would not solve these problems,” adds Fung.

            Gubernatorial candidate Ken Block agrees with Fung, noting in a recent statement, “”As I said the other day when it was announced that Rhode Island has the worst unemployment in the country, raising the minimum wage is a job killer.”

            Block adds, “President Obama seems to believe that government can just order the economy to improve. Republicans and Independents know that government has a critically important, but limited role in the growth of jobs. Government’s role is to regulate fairly and only where necessary, and to control its spending so people and businesses are not taxed to death. President Obama continues on the wrong track to fix lagging employment, just as the Democratic leaders of our General Assembly continue on the wrong track to fix Rhode Island.”

            But Edward M. Mazze, Distinguished University Professor of Business Administration, at the University of Rhode Island, has entered the policy debate, too.

            On the one hand, “Raising the minimum wage does not create jobs and can reduce the number of hours worked for existing workers and the number of jobs for part-time workers. There could also be an impact on the number of internships offered to high school and college students.  And, just as important, raising the minimum wage will also raise the price of products and services, observes Mazze.

             “The minimum wage is not the entry point to middle class, it is the jobs that pay over $20 an hour and have a “career” future, says Mazze, noting that Rhode Island recently increased the minimum wage.

             But, Mazze believes that the state’s minimum wage should be adjusted every number of years to keep up with inflation and other economic events.  “The best way to create living wages in Rhode Island is to prepare workers for jobs for the future, have an economic development strategy that creates jobs and attracts businesses, and have affordable housing and a fair sales, property and personal income tax program,” he notes.

             With the Rhode Island General Assembly geared up to pass legislation to make the Ocean State an easier place to do business, lawmakers should not forget their constituents who cannot pay their mortgage, utility bills, or even put food on their tables.  Until the State’s tax and regulatory system primes the economic pump to create more jobs, giving a little bit more money, say $10.10 per hour, will go a long way for tens of thousands of poor or working poor Rhode Islanders who struggle to survive.

            How can Rhode Islander’s currently making a weekly paycheck of $320 (minus taxes), receiving a minimum wage, support their families?  This is not the American Dream they were brought up to believe in.

             Herb Weiss, LRI’12 is a Pawtucket-based writer who covers, aging, health care, medical and business issues.  He can be reached at hweissri@aol.com.