The West Side Arts District
Tax Exemption Act
June 2005
Background
MAP
The
West Side Arts District Tax Exemption provides relief
from Sales
& Use Tax and State Income Tax for
artists who are living and working in the
Valley, Olneyville and West Broadway neighborhoods.
It is modeled after similar districts in cities throughout
Rhode Island as well as the Providence DownCity district
and requires certification by the RI State Council on The
Arts (RISCA) for artist eligibility.
Why the West Side? This
legislation creates a district that is in line with the
current demographics of the artist community in Providence and is located in neighborhoods
where economic revitalization is ongoing through the
direct impact and vision of the artist community. As
code required improvements, rising real estate costs and the subsequent
gentrification are displacing some of our most established
artisans in the city's mill districts and their surrounding
areas, the proposed tax incentives will encourage their inclusion.
They offer incentive for artists to live in these
neighborhoods and help contribute to their economic
revitalization amidst these successful preservation projects being driven by our State Historic Tax
Credit program. The
WSAD Exemption Act is an effort to provide economic
incentives that make it more affordable for artists to
rent or purchase space and to encourage
artist groups to obtain ownership of some of these buildings.
It is an important step towards keeping the existing artists
as a part of the community in this economic development zone.
Through
preservation developments, the City of Providence stands
to gain a substantial increase in property taxes and the
State has seen the creation of thousands of jobs and other
construction related revenue. However, hundreds
of artists and small businesses are being displaced from
these buildings to make way for residential conversions.
Through a grant from the RI Foundation, PCIS performed a
recent survey of these buildings and found there to be an
estimated 1,261 Businesses providing 15,672 jobs in
industrial mill buildings within the newly designated
artists district. Of these small businesses (as has been the case since
the mid 1960's), artists comprise a significant portion.
The
Arts Investment: Our
vibrant artist community is an economic stimulus for the
City and the State through tourism and the relocation of
residents from across the country to this area.
As you may have heard, based on RISCA's grant
reports, for every $1 invested in the Arts by the State,
there is a $14 return.
This legislation solidifies our city's national
reputation as a leader and advocate for preserving our
creative community.
The West
Side Arts District: The eligible Artist Tax Exemption
District is
made up of Industrial Mill sites as well as residential
buildings bounded by streets within a specific area.
See the map
here.
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