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Stokes outlines 'game changers' to turn around state's economy
by John Howell
Feb 23, 2010 | 448 views | 2 2 comments | 7 7 recommendations | email to a friend | print
Keith Stokes
Keith Stokes
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Keith Stokes had reason to believe his message to transform the state’s economy would resonate with the Central Rhode Island Chamber of Commerce board of directors; after all, prior to his appointment as director of the Economic Development Corporation he was president of the Newport Chamber.

But Stokes had qualms over how the group would react to one of four “game changers” he sees as necessary for the state to progress – a longer runway at Green Airport.

“That airport is a central transportation hub and extension of the runway is a necessity for us to be competitive with Massachusetts and Connecticut. At some point we need to come to a consensus and move forward on this. We can’t afford to have Manchester [NH] and Connecticut pass us by,” he told the board Thursday morning.

Stokes said a longer runway is needed to make the airport efficient and to ensure that industry and jobs stay, as well as grow in the state. Stokes said he has talked with Scott Avedisian and understands the mayor’s concerns for the interests of Warwick and would hope that an agreement can be worked out.

The chamber has not taken a position on Rhode Island Airport Corporation’s proposal to extend Runway 5-23 from 7,166 to 8,700 feet with an extension to the south that would require the realignment of Main Avenue. And Stokes did not come to the board seeking endorsement of the plan currently under review by the Federal Aviation Administration.

Rather, Stokes was before the board to introduce himself in his new role as EDC director and to paint the big picture of what he believes should change for Rhode Island business to thrive in the global economy.

He categorized his strategy by shifts, low hanging fruit and game changers.

Generally, he said, state economic development policy hasn’t been state driven, but reactionary. He said there needs to be changes “structurally and functionally” to create a climate and culture that nurtures business. Taxes were on the top of his list, with municipal property and unemployment taxes on top of that list.

“The cost of government has become unsustainable,” he said. On the matter of property taxes he observed that in some communities as much as 80 percent of tax revenues go to pay for schools.

“How we deliver and receive public services is going to have to change dramatically,” he said.

Stokes is directing his sights at regulatory reform, noting the need for consistency in permitting between municipalities so that businesses know what is expected of them and can operate efficiently. He also cited the need for access to capital. Stokes talked of the importance of the Small Business Administration and how he is working with legislative leaders to increase the $20 million in bonding now being used to guarantee business loans to as much as $80 million. He would also like to see extension of that loan guarantee program to business sectors that up until now have been exempt.

On Stokes’ list of shifts is the need for workforce training. He said that 60 percent of the state’s workforce between the ages of 25 and 65 only have a high school diploma and that for the state to be a competitor to attract new industry, as well as for existing industries to grow, it must provide a better-trained workforce.

As it is, he said, much of the state’s workforce is commuting here from homes in Massachusetts and Connecticut.

“It’s time for the state to do its job,” he said. “We have to invest in our citizens; this is a critical issue going forward.”

Stokes cited the Community College of Rhode Island as playing a critical role in the development of the workforce.

As for game changers, in addition to the airport Stokes pointed to the development of deep water wind energy and the development of Quonset as the northeast manufacturing and staging site for that industry; the “knowledge district” of Providence with its educational and medical institutions; and Newport-based Naval War College and Naval Undersea Warfare Center, which he said is one of the few growing sectors of the state’s economy.

“It’s playing to our strengths,” Stokes said of the knowledge district citing how education and medical institutions have won research grants.

Stokes said the state has failed in the past to fully vet incentive programs such as historic tax credits, which he said in some instances, ended up being used by millionaires to make renovations to their homes. He aims to have an economist on staff who would examine both the short and long-term impacts of legislation.

Asked about the Weaver’s Cove Energy proposal for a liquefied natural gas terminal in Mount Hope Bay, Stokes said he hasn’t heard or read anything as how it would benefit Rhode Island gas supplies.

“It’s a hassle factor,” Stokes said of the proposal that would have LNG tankers offloading about 70 times during a year. Security measures, he said, require no marine activity a mile in front or behind a tanker, virtually shutting down Bay traffic. Both the Newport and Mount Hope Bridges would be closing during passages.

Stokes said cruise ships that presently visit Newport for one and two-day layovers would cancel Rhode Island as a stop. And LNG tankers would kill efforts to bring back the America’s Cup.

comments (2)
« Radar42 wrote on Thursday, Feb 25 at 02:25 PM »
Mr.Stokes will go down in history as another

"BUM" that was employed by the EDC.

When will our elected leaders learn and stop

giving this position to "Political Hacks" who

does not have a clue about business development.

« anonymous wrote on Tuesday, Feb 23 at 06:43 PM »
"Stokes said he has talked with Scott Avedisian and understands the mayor’s concerns for the interests of Warwick and would hope that an agreement can be worked out."

Here's a starter: Agree to pay the city for all lost property taxes! If this airport expansion is such a good deal for the state, then the Governor should be able to scrape together adequate payments in lieu of taxes for the hundreds of homes, hotels, etc that have been, and will be, crushed! How about $10 million per year?

Everybody knows that's not going to happen. Nor is the runway expansion because the state is broke. EDC, RIAC's parent, can't come up with $200 to $300 million needed beyond the FAA funds to start construction within the required three year window.

One would think that the Executive Director of the Economic Development Corporation, the man who understands how to float municipal bonds, could get that inconvenient fact!

 
 
 
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