NEWS
The ICBD Tenant Relocation Ordinance
is now law! A key policy item for PCIS,
the Ordinance was spearheaded in City Council by Councilman
Luis Aponte, and developed in collaboration with the
City of Providence's Department of Planning. Recognizing
the importance of small businesses and the creative
community to Providence's long-term economic growth,
the Ordinance was signed into law by Mayor Cicilline
at a press conference on April 10, 2008.
This ordinance - a call to developers
of rehabilitation projects to recognize the hardship
of tenant displacement and the negative impact on the
local community and economy - will enact a policy within
the ICBD where commercial tenants can receive a financial
stipend and at least 90 days notice of termination regardless
of the terms of a lease.
This ordinance recognizes the importance
of the existing small business and creative community
to Providence's long-term economic growth. It places
value on the need to retain these jobs and businesses
and offers some means of support for their disruption
and involuntary loss of space. Finally, it prompts a
building owner to consider the affect to this community
and take action towards an honorable resolve.
While the historic preservation of many
of these commercial buildings (fueled by the State Historic
Tax Credit and other development incentives) has yielded
a positive impact on Providence, the negative results
of involuntary displacement has been felt by many small
businesses and artists over the past 6 years. This ordinance
is a first step towards stemming the loss of small neighborhood
businesses to other cities that have been effective in
relocating these jobs from Providence.
Articles
The Providence Journal, Relocation,
Relocation, Relocation. March 13, 2008
Providence Business News, New
Providence Ordinance Helps Displaced Tenants, April 10, 2008
Providence City News, Landmark
Ordinance Designed to Assists Small Businesses & Artists Signed
Into Law, April 10, 2008
The Providence Journal, Ordinance
Protects Artists, Small Businesses. April 11, 2008
Providence Business News, Group’s
Effort to Protect Mill Tenants Paying Off, April 21,
2008
The
ICBD Tenant Relocation Ordinance 2008
The Tenant Relocation
Ordinance is a long time PCIS policy agenda item. It
is modeled after similar ordinances in Seattle,
WA with consideration of the SBER/ALCO Tenant
Relocation Program implemented by PCIS in 2006 and 2007
as a successful pilot program.
The ordinance makes a building owner consider the impact
of rehabilitation efforts on existing commercial tenants. The
compliance of this ordinance is necessary for the building
to be eligible for any city subsidy.
| 1. Requires a 90 day notice to
all tenants, regardless of current lease |
| 2. Pays a 'stipend' based to help
businesses with relocation based on number of employees: |
| |
1-2 employees: $2500 |
| |
3-5 employees: $5000 |
| |
6-9 employees: $7500 |
| |
10 employees or more: $10,000 |
Employees must be full time (minimum of 30 hours a week)
and employed by the business for at least one year.
Businesses
must be renting at the time of eviction, or within 12 months
prior to the sale of a building for redevelopment or the
issuance of a building permit for redevelopment. This
is intended to prevent owners from evicting tenants before
they move forward with redevelopment plans, and thus
circumventing the intention of the ordinance.
While the compliance of a 90-day notice is mandatory,
the payment of a relocation stipend to the tenants is
voluntary. If the building owner chooses not to
do this, the building will be ineligible for any city
subsidy, such as tax incremental financing, a tax stabilization
or grant (whether Federal, state or municipal) that is
administered by the city.
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