The Providence City Council Finance Committee approved the passage of an ordinance establishing a new 30 year tax exemption agreement (TEA) for ProvPort, Inc, a non-profit operator in the Port of Providence on the city’s south side.

The ordinance and an earlier passed resolution are a package of new agreements expected to position ProvPort for expansion and growth, with a focus on offshore wind. It is also hoped that the deal will generate more revenue for the city, and ultimately provide greater public input for the neighborhoods surrounding the port.

The new agreement is an improvement over the one the previous City Council tried to impose in late November/early December when an agreement between the City and ProvPort was announced, rushed through the committee process and brought to the floor of the Providence City Council, only to be stopped by community outrage and opposition. The deal was opposed by Providence’s own Sustainability Commission, the People’s Port Authority, community members and environmental groups in part because there had been no community engagement ahead of the deal.

An 11th hour agreement halted the process long enough for the community to be properly engaged and for a new City Council to be sworn in, with new leadership and a new sense openness and community engagement. Advocates did not get everything on their wishlist, but the nature of being at the bargaining table means compromise. It is hoped that many of the things the community wants will be hashed out in both the Master Planning process and during the formation of the City’s Comprehensive Plan.

New amendments to the tax agreement

• Master planning process – includes greater community input (minimum of four community meetings and a public hearing before the city council)
• Fossil fuels – no further expansion of fossil fuel usage in ProvPort by terms of the lease to 2052. [The language in this section is being revised and will be presented as a “friendly amendment ” to the deal when the Providence City Council takes up final passage of the deal on Thursday.]
• Leases – ProvPort will provide the city council with a complete list of all active and new tenant leases (new leases and renewals will require compliance with all federal, state, and local environmental laws, proactive reporting of environmental violations, and reporting of all chemicals stored on the property)
• Sustainability Projects include air quality testing, environmental remediation, or projects to advance climate adaptation and mitigation infrastructure

Univar

Rhode Island residents were surprised to learn in early January that the United States Environmental Protection Agency (EPA) had fined ProvPort leasee Univar $800,000 to “resolve alleged violations of industrial accident-prevention requirements at five facilities located in Rhode Island, Pennsylvania and Colorado.”

Finance Chair and Councilmember Helen Anthony (Ward 2) brought the subject of Univar and the fines directly to William Brody, General Counsel for ProvPort Inc during last night’s meeting.

“We had no knowledge or notice of the situation or investigation that was going on by the EPA until it hit the newspapers,” said Attorney Brody. “We were really surprised.

“We have advised the tenant that they are potentially in violation of the lease because the lease requires that they operate in compliance with all EPA regulations. If in fact the tenant was not in compliance, that well may be – and this is a fact question for the appropriate forum – the may well not be in compliance with their lease, which would technically put them into default.

“That’s an area that we’ve been exploring,” continued Attorney Brody. “We’ve requested from them a full explanation of the situation, including copies of all their compliance orders and compliance efforts and the full record of what’s going on. That has yet to be delivered to us…

“It is my understanding that they have a position that there were no dangerous activities – there was no leakage, no spillage,” said Attorney Brody. EPA required no notices because. “their transgressions, if you will, are more in labeling and having exit doors and matters like that, [but] I’m not comfortable dismissing it as lightly as that.”

In the EPA consent order, it is mentioned that complying with the consent order may take three or four years, noted Attorney Brody, meaning that Univar may be out of compliance as you are reading this. Until Univar responds to ProvPorts request for documentation, we will not know. When that information is presented, ProvPort will notify the City, Attorney Brody assured the Council.

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Both the ordinance and resolution (which created a new lease extension and bond for the Port) passed before the full city council in December. However, a second passage of the ordinance iss required. In 2023, the ordinance was referred to the finance committee. After passing out of committee with changes, the ordinance will again go before the full council, likely on February 2.

Details of the lease extension and bond include:

• Upfront one-time payment to the city of approximately $7 million from bond proceeds
• Increases gross revenue sharing agreement from 5.5% to 9%
• Establishes a sustainability projects reserve account with a minimum of $120,000 a year to support projects throughout the city
• Establishes a community benefits reserve account with a minimum of $120,000 a year to support projects throughout the city

“This council administration is focused on transparency and community engagement. The ProvPort agreement is a strong example of bringing all the parties together for a collaborative result,” said Chair Anthony in a statement. “This tax agreement is long-term. We needed to take the time to make sure it was thoroughly discussed. We owe that to our neighbors in south Providence and residents across the city.”

See also:

• November 23, 2022 ProvPort lease renewal appears to be fast tracked to avoid negative public input
• November 25, 2022 Providence Sustainability Commission opposes current ProvPort deal
• November 29, 2022 Providence Finance Committee ignores large outcry, passes ProvPort resolutions
• December 2, 2022 In victory for environmental justice, rushed ProvPort ordinances tabled indefinitely
• December 15, 2022 Providence City Council takes up ProvPort resolutions amid promises made to community