ALCO Is An Important Part of Providence's Future
For the past 2 years or so, I have been following the ALCO project closely. For those of you who aren't familiar with ALCO, it is a large development that involves a mix of commercial and residential development on land between Valley St. and the Woonasquatucket River in Providence. Besides new construction, the project will utilize several existing buildings, and will improve the area around the development by also creating a river walk. The project has already begun to pay dividends by attracting United Foods, which will soon locate their corporate headquarters in Providence.
The project was originally supposed to have 9 phases, but has been scaled down to six. To continue, it will need to utillize Tax Increment Financing (TIF), which is essentially a loan taken out by the City and repaid with tax revenue that wouldn't have existed otherwise. From the beginning, the project has been controversial, despite its many positive benefits. Some are concerned about using TIF's, neighbors complain that the project will gentrify the area, and now we are hearing that the 300 apartments and condominiums should be discouraged because there is a glut of housing on the market.
I'd like to take a moment to address this last point. When home prices were rising, politicians were tripping over themselves finding a way to address the shortage of affordable housing. Correct me if I'm wrong, but if the supply of housing rises substantially and the demand remains steady, won't prices ultimately fall resulting in housing that is more affordable? ALCO will also include housing for low and moderate income familes. In a way, ALCO is creating a brand new, mixed-income neighborhood in a 19th century setting. Adding new, modern, lead-free housing should be a priority and not be discouraged. This is the time for the City of Providence to invest in its future. I'm sure there is more than enough waste that can be cut in other areas.
For those of you who own rental property, as I do, you may think projects of this nature will eventually hurt your bottom line. There is certainly a chance it will, but let's not forget that ALCO is more than just residences. If this project is allowed to prosper, it will transform the Valley St area, and attract businesses and other development. If these developments do occur, our population will grow and the housing will be necessary. I would rather focusing on finding ways to grow the economy and tax base, rather than spend our time running in place.
The project was originally supposed to have 9 phases, but has been scaled down to six. To continue, it will need to utillize Tax Increment Financing (TIF), which is essentially a loan taken out by the City and repaid with tax revenue that wouldn't have existed otherwise. From the beginning, the project has been controversial, despite its many positive benefits. Some are concerned about using TIF's, neighbors complain that the project will gentrify the area, and now we are hearing that the 300 apartments and condominiums should be discouraged because there is a glut of housing on the market.
I'd like to take a moment to address this last point. When home prices were rising, politicians were tripping over themselves finding a way to address the shortage of affordable housing. Correct me if I'm wrong, but if the supply of housing rises substantially and the demand remains steady, won't prices ultimately fall resulting in housing that is more affordable? ALCO will also include housing for low and moderate income familes. In a way, ALCO is creating a brand new, mixed-income neighborhood in a 19th century setting. Adding new, modern, lead-free housing should be a priority and not be discouraged. This is the time for the City of Providence to invest in its future. I'm sure there is more than enough waste that can be cut in other areas.
For those of you who own rental property, as I do, you may think projects of this nature will eventually hurt your bottom line. There is certainly a chance it will, but let's not forget that ALCO is more than just residences. If this project is allowed to prosper, it will transform the Valley St area, and attract businesses and other development. If these developments do occur, our population will grow and the housing will be necessary. I would rather focusing on finding ways to grow the economy and tax base, rather than spend our time running in place.
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