As RhodeMap RI plan heads to vote, mayors give their take

Daniel Kittredge
Posted 12/9/14

As a planned vote on the Economic Development Plan created through RhodeMap RI approaches, local mayors have offered their perspective on what has become a hotly debated proposal, most specifically …

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As RhodeMap RI plan heads to vote, mayors give their take

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As a planned vote on the Economic Development Plan created through RhodeMap RI approaches, local mayors have offered their perspective on what has become a hotly debated proposal, most specifically in terms of its social component.

“There are elements of this proposal that would be beneficial to the city’s future,” Warwick Mayor Scott Avedisian said in a statement. “The RhodeMap RI plan emphasizes social equity as a key component of the economic development strategy; whether this theme should be part of the state’s economic development plan is up for debate.”

“I recognize that there [are] a lot of good recommendations in the document that would assist our business climate in the state,” Cranston Mayor Allan Fung said in recent letter seeking a delay in the plan’s approval. “However, I share some of the same concerns as previously expressed by the Rhode Island Public Expenditure Council at an earlier hearing about some policies that are contained within the document and question how it relates to economic development.”

The plan, developed over the last 18 months by Commerce RI and the state’s Division of Planning, lays out a 20-year guideline for the state’s future. It is set for a final vote before the Statewide Planning Commission at 9 a.m. Thursday, Dec. 11, during a public meeting in Conference Room A on the second floor of the William E. Powers Building at One Capitol Hill in Providence.

According to Grow Smart RI, more than 1,000 people were consulted and a range of data analyzed in the formulation of the document, and forums hosted by Commerce RI and the Rhode Island Foundation, during which feedback was garnered from approximately 200 business leaders, led to many of the recommended policies and strategies.

It is focused on six broad goals, which include supporting industries and investments in line with the state’s strengths; fostering a business climate that offers competitive advantages to companies and the state on the whole; offering education and training opportunities to create a 21st century workforce; promoting an “inclusive economy that targets opportunity” for populations that are typically underserved; creating “great places conducive to economic growth” by coordinating investments in economic resources, housing and transportation; and building a “stronger and more resilient state through investment in critical infrastructure.”

The plan asserts that its successful implementation is dependent upon strong leadership from the governor and General Assembly, the collection of data to track progress, work to ensure accountability, an efficient and coordinated state government and “mindfulness of the interests and concerns of all Rhode Islanders.”

Supporters say the document – the creation of which was funded through a Sustainable Communities Regional Planning Grant from the U.S. Department of Housing and Urban Development – serves as a guide to addressing the state’s economic woes in a comprehensive and inclusive manner.

“People have been yearning for a plan for years; we have not had one,” said Neil Steinberg, president of the Rhode Island Foundation. “We also want a sustainable economy with smart growth that includes everyone and preserves the environment. The key is to now start doing some of this.”

Steinberg and Marcel Valois, executive director of Commerce RI, defended the plan in a recent op-ed piece published in the Providence Journal.

“RhodeMap RI provides a baseline upon which we can all build,” the men wrote. “This is just one step, we hope, toward robust and action-oriented economic development for our state.”

In the piece, Steinberg and Valois point to several specific recommendations within the document, including the implementation of a uniform, electronic system for local building permits, a focus on pursuing manufacturing opportunities, and a full review and update of the state’s food safety, production, processing and sales regulations.

Opponents argue the plan would have harmful effects for the state’s economy and that it would infringe on the property rights of individuals. They also say it would increase the property tax burden through mandates forced on cities and towns.

“For a program intended to help businesses grow, the RhodeMap RI plan spends in inordinate amount of engagement in implementing ‘social justice,’ designing communities and guiding community members toward smaller homes in mixed-use transit-oriented urban centers,” the Rhode Island Center for Prosperity & Freedom, one of RhodeMap’s foremost opponents, said in a statement. “The plan attempts to mitigate the effects of climate change, using social engineering techniques mandated in the HUD grant that have had nil to adverse effects on communities that have employed them.”

Mike Stenhouse, the Center for Freedom’s CEO, in another statement cited the experiences of other areas with similar plans.

“So outraged are residents that both liberals and conservatives are working together to stop these out-of-control planners,” he said. “We are not being told what comes next, but fortunately our center has done the research. RhodeMap RI itself must be stopped at next Thursday’s vote of the state planning council, so that this tragedy never happens to Rhode Islanders.”

Fung, in a Nov. 19 letter to Statewide Planning Associate Director Kevin Flynn, wrote of his concerns with the focus on the economic development plan.

“My main concern is with respect to the social equity principles…I personally believe in limited government intervention and free market principles,” he wrote. “I have tried to foster a better business environment in Cranston based upon partnering with businesses and developers and getting out of their way so that they can open or expand. I believe the results in Cranston speak for themselves as we have seen new developments and business open as well as numerous existing companies expand or develop.”

Later in the letter, Fung continues, “With this backdrop in mind, I don’t see how we as a state should mandate the social equity principles outlined in Appendix A as part of economic development projects for business owners or developers. This is a big concern to me especially since it is ‘expected that these principles will be followed and adhered to in all RhodeMap RI committee work and activities.’ As outlined in the draft plan itself, there are already numerous burdens that businesses and developers already encounter and have expressed complete frustration about the process. What business would consider relocating here if there are further social equity mandates that would be imposed on their potential project? If anything, this should be a consideration that the companies, as good corporate citizens, make consciously themselves.”

Fung later takes issue with portions of the plan that question the use of public funds to finance projects beneficial to businesses, particularly when doing so results in fewer resources directed toward other programs and services – such as those aimed at marginalized populations.

“Are the committee members truly suggesting that government should never help a private sector company, particularly big businesses that could employ hundreds if not thousands of Rhode Islanders? We need to consider a smart business growth strategy and keep open the possibility of all economic development tools, including but not limited to loans, tax incentives or the like to keep businesses here or attract them to our state,” Fung wrote. “This should be done without regard to the size of the business. What I will say is that we must be smart and careful in how we invest our taxpayer dollars so that we do not fall into another risky investment like 38 Studios.”

Fung in his letter also takes issue with the plan’s focus on promoting a “living wage” and controlling housing costs as part of the development process, and expresses concern that the economic development plan will ultimately increase the burden on taxpayers.

“While there are some steps that municipalities can take to reduce or mitigate our risks, I am extremely concerned about the overall costs. I must reiterate that our local funding is mainly from the local property tax, which is already a high burden in this state,” he said. “Many of the mandates that you are considering must not impose more financial burdens on the local taxpayers.”

Avedisian, in an email statement, offered a more favorable perspective on the plan. He said “many of the Smart Growth policies that we adopted in the master planning process for City Centre Warwick dovetail with parts of [RhodeMap RI’s economic development plan]. There are many elements of the plan that mirrored what we heard from residents when we toured the city during the comprehensive plan update hearings and meetings.”

While Avedisian said social equity being tied into the economic development plan is a matter of debate, he did note that Housing and Urban Development funds have long been used for socially focused projects and initiatives. Warwick, he said, has been receiving funding toward such efforts for four decades.

“In those 40 years, Community Development Block Grant funds have been used to protect victims of domestic violence, get treatment for people suffering from addictions, revitalize neighborhoods, build affordable housing, establish and enhance early childhood intervention programs, and the like,” he said.

In terms of the potential threat to personal property rights, Avedisian said his administration “consistently opposed the use of eminent domain and condemnation in the intermodal district and abolished the redevelopment agency in favor of the master plan for City Centre Warwick.”

“I think that property owners know that this city protects their personal property rights,” he said.

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