Mayor sees reduced fees as stimulating construction

John Howell
Posted 3/10/15

Building permits for projects costing $250,000 and more will cost about 20 percent less than they currently do under a new fee schedule worked out by the mayor and the Rhode Island Builders …

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Mayor sees reduced fees as stimulating construction

Posted

Building permits for projects costing $250,000 and more will cost about 20 percent less than they currently do under a new fee schedule worked out by the mayor and the Rhode Island Builders Association and jointly introduced as legislation by City Council President Donna Travis and Ward 1 Councilman Steven Colantuono.

Mayor Scott Avedisian announced the new fee schedule last Wednesday at the Iron Works Tavern on Jefferson Boulevard. John V. Marcantonio, executive director of the Builders Association, joined him.

The tavern was chosen because it is within City Centre Warwick, which Avedisian hopes will see a spurt of development projects that will bring in new businesses, generate jobs and, eventually, additional tax revenues. He noted that Michael Integlia, who acquired the 80-acre former Leviton Manufacturing property, has plans for $76 million in office and mixed-use developments, and that Joseph Piscopio, who built the Hilton Garden Inn and redeveloped offices of the former Malleable Iron as the Iron Works Tavern, is proposing another major development on Jefferson Boulevard.

“This gives us the ability to jump start City Centre Warwick,” Avedisian said.

But the reduced fee schedule is more than an incentive for developers. It also represents the settlement of a lawsuit brought by the builders association in 2010 claiming permit fees charged by several communities were not linked to the cost of providing plan review and inspection services.

“We’ve known each other a long time,” Marcantonio said, “and it blew my mind how cooperative that [arriving at an agreement] was.”

The mayor formed a committee, chaired by engineer Eric Wishart, to look at the fee structure and work with the builders association. The suit was dropped last spring.

In a statement Marcantonio said, “The mayor and his appointments to this special committee worked openly and cooperatively with us, and as a result, we as a group, were able to find mutual areas of agreement, and from that, we were able to create a new structure that we both feel will benefit the City of Warwick economically.”

The committee found that most building permits related to projects costing $15,000 or less, such as kitchen and bathroom renovations and small building additions. Under the new schedule, those fees would range from $30 for projects of $500 or less to $225 for projects up to $25,000, which is unchanged from current rates. The schedule represents a reduction of about 1 percent from current fees, the mayor said.

“The high end [of the fee schedule] was out of whack,” the mayor said.

Travis expects the legislation, which was to be introduced last night, should gain approval in April.

Avedisian said reductions of about 18 percent come into play for projects costing $100,000 and more. The new fee for a $250,000 project would be $1,625, a reduction of $255 from the current schedule. At the top end, there is a base fee of $3,250 for a $500,000 project, plus $5.50 for every $1,000 above that. Presently, it is $3,980 plus $9 per additional $1,000.

Avedisian said there is latitude within the agreement for the city to request a developer to retain outside consulting services to analyze plans for complex developments.

Asked if revisions in fees in any way relate to the economic development “tools” Gov. Gina Raimondo said she is looking to provide municipalities, the mayor said he would leave that up to the governor to disclose. Those proposals are expected to be a part of her budget, which she will present to the General Assembly Thursday evening.

The mayor observed that by the end of the year, the city – along with Cranston, Pawtucket, Newport, North Kingstown, West Warwick, North Providence, Westerly, North Smithfield and Woonsocket – will provide online building permit services. This feature is the first of a two-phase initiative launched by former Gov. Lincoln Chafee to automate and streamline the process.

Chafee provided $900,000 over three years in general revenue to fund the first phase of the e-permitting pilot program. In the second phase, additional communities would acquire the capability for e-permitting.

While the fee schedule will most directly affect higher-end developments and what the administration is looking to achieve at City Centre, Avedisian pointed out, “we need growth in every sector.” He said the city does not have enough rental property. He was also complimentary of the work done with the builders in arriving at the new fee schedule.

“We need strong relationships with builders,” he said.

Comments

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  • JohnStark

    If you reduce the cost of economic activity, you get more economic activity. Not a hard concept. Next up, elimination of the state's capital gains tax.

    Tuesday, March 10, 2015 Report this

  • RoyDempsey

    Interesting, if the goal is to stimulate construction, and all agree that that is a good idea, why did it take legal action on the part of the builders to get it accomplished.

    Tuesday, March 10, 2015 Report this

  • StaciaClueless

    Roy, you have contributed nothing to this city you little pee brained nitwit. You were a loser growing up and are an even bigger loser now. Do this city a favor and leave it. One way or another if you catch my drift. And take your little 3 cent whore stacia with you when you go.

    Friday, March 13, 2015 Report this