By: Laurie White, president, Greater Providence Chamber of Commerce and Dan Baudouin, executive director, Providence Foundation

 

Carpe diem.

 

Those of us who are passionate about the spectacular potential of the knowledge economy in Providence believe we have upon us a once-in-a century opportunity to fundamentally reshape our physical and economic infrastructure and to do it in a smart, orderly and strategic fashion.

 

The General Assembly is presently considering legislation that would turn a haphazard swath of abandoned land in the heart of the city into a formal knowledge district, brimming with excitement and new potential. The legislation would allow two of our most venerable Rhode Island institutions -- Johnson & Wales University and Brown University -- to purchase roughly five acres of fallow land and act as lead developers and anchor tenants in a multi-year $1 billion building project.

 

And here’s the good news: they are ready, willing and able to invest. Today!

 

We believe passage of this legislation would dramatically catalyze the development of the knowledge economy in Providence and throughout Rhode Island. And none too soon.

 

The rationale for using the legislative process is well grounded.

 

First, the legislation requires Brown University and Johnson & Wales University to pay "fair market value" to the State for the designated parcels being freed up by the relocation of I-195. Those funds, in turn, would be paid to the Federal Highway Administration to reduce our debt to the Federal Highway Administration. "Fair market value" would be determined according to procedures established by FHWA, as noted by Rhode Island Department of Transportation Director Mike Lewis.

 

The legislation also requires the buyers to negotiate payments in lieu in taxes with the City of Providence prior to sale.

 

The public hearings and the open debate associated with the legislative process are highly transparent.

 

The potential timetable for “shovels in the ground” would be greatly accelerated by acting during this session of the Rhode Island General Assembly. Given the anemic economy, a protracted process makes no sense.

 

The legislation specifically incorporates language that gives the City of Providence authority over zoning, permitting and other key issues. Utilizing the State Properties Committee, for example, would likely diminish the city’s role.

 

The relocation of I-195 was financed by the State's issuance of Grant Anticipation Revenue (GARVEE) Bonds. Rapid payment on the GARVEE bonds frees up funds for other projects and reduces the overall interest expense to the State.

 

Brown University and Johnson & Wales University would be required to immediately landscape and beautify the parcels once they are purchased. PBN has described these sites as "extremely attractive" but absent a quick sale to Brown University and Johnson & Wales University, they are not likely to be physically attractive for quite a while into the future.

 

Johnson & Wales has already demonstrated the significant benefits to be derived from beautifying abandoned sites. The development of the site of the former Outlet Building in Downtown Providence is widely cited as having “jump started” the revitalization of Downtown Providence.

 

In summary, we have a very exciting vision for this area. We see a vibrant, mixed-use knowledge district. We see the area teeming with people. We see entrepreneurs who have spun their product discoveries out of the research labs of our hospitals, universities and colleges creating jobs and investing in the area. We see lots of young people living and working in the district, engaging as active members of the community, adding to the tax base, and infusing a new sense of vibrancy to the area. We see new opportunities for our workforce at all points on the economic spectrum.

 

With our economy in the highly fragile condition that it is today, the willingness of these institutions to play a lead development role is highly commendable and builds upon the enormous contributions that Johnson & Wales University and Brown University already make to the economic well being and reputation of Providence and all of Rhode Island.

 

 It is a very compelling story. And we’re anxious to start telling it! Let’s seize the moment.