Corrente calls for fee moratorium, mayor questions plan

John Howell
Posted 5/28/15

Richard Corrente, who earlier this year declared as a Democratic candidate for mayor in the November 2016 election, has called on the administration to implement a two-year moratorium on building …

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Corrente calls for fee moratorium, mayor questions plan

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Richard Corrente, who earlier this year declared as a Democratic candidate for mayor in the November 2016 election, has called on the administration to implement a two-year moratorium on building fees as a means of stimulating the economy and bringing people and businesses back to the city.

“My desire is to repopulate Warwick and get back some of the people and businesses we’ve lost,” Corrente said in an interview Tuesday. Calling it “simple economics,” Corrente said the alternative is to continue taxing the same people and businesses, and as government costs increase they will pay more and more.

Mayor Scott Avedisian says Corrente fails to consider the budget hole a moratorium would create. He also took exception to some of the allegations Corrente makes in a news release about building fees.

“He fails to take into consideration that revenues generated from those fees are included in the annual general fund budget and help to reduce the tax impact on all taxpayers,” the mayor wrote in an email. He reported that the fees collected in fiscal year 2013 totaled $686,223 and in fiscal year 2014 $711,157.

Informed of those amounts, Corrente stuck by his assertion that Warwick has more to gain by eliminating the fees than it would lose.

As he sees it, a moratorium on fees would stimulate construction, resulting in taxable properties that would generate tax revenues for years to come. As an example, he uses a buildable lot he owns in Potowomut. He is now paying less than $200 in taxes, but if a house was built the property would generate as much as $4,000.

“City loses a few dollars but gains many. Now’s the time to build on buildable lots rather than leave it to the grandchildren,” he said.

In addition, he says, new homes would increase Warwick’s population, which has dropped by 5,800 in the last 10 years, according to the U.S. Census, and bring more customers to Warwick businesses.

Corrente said Warwick lost 4,666 businesses since 2007, according to the U.S. Census and the R.I. Secretary of State’s office data. He said the census shows 8,416 businesses in 2007 that drop to 3,750 in May 2015, according to the secretary of state.

He charges that Avedisian has “overpriced” building fees and points to a joint announcement made this winter by the mayor and the Rhode Island Builders Association. At the press conference it was announced the association was dropping its lawsuit and the city agreed to a reduction in fees, which would largely impact higher-priced developments.

Speaking of the impact on lower-priced developments, Corrente said the reduction in fees amounts to one percent.

“One percent, Scott, what were you thinking? He’s a man who has proven himself to have never been in business. Reducing the fees one percent won’t motivate anyone.”

In response, Avedisian said Corrente fails to mention a special committee he created to look at the fee structure and work with the RI Builders Association.

Avedisian said the association “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 fee structure that we both feel will benefit the city of Warwick economically.”

In terms of economic development, the mayor said more than 500 people came through the Chamber’s business information center last year.  In its FY13, the SBA approved 46 loans for Warwick small businesses totaling $10,781,500. In FY14, 56 loans for $9.5 million were approved and presently, in FY15, Warwick currently has 15 loans approved for $2.5 million.

 He said from 2010 to 2014, the secretary of state had more than 1,300 new businesses filing papers that listed a principal business address of Warwick.

“In addition,” he said “it is important to note that there are six major housing projects planned for this year: two on West Shore Road, one on Major Potter Road, one on Love Lane, one on Fair Street, and one on Church Avenue. All told, there are 150 housing units that will be created this year.”

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