Unions Battle Taveras Over Development in Providence
Wednesday, January 22, 2014
Members of the building trades community are saying the Taveras administration is going back on its previously pledged support for 100% apprenticeships on developments in Providence with tax stabilization agreements, as the Providence City Council has begun considering changes to TSAs on new -- and possibly old -- developments.
Recent proposals before the City Council for TSAs for the Kinsley Building downtown -- as well as another project -- are looking at tax stabilization proposals with 50% apprenticeship requirements, to none at all, according to Providence Council member Luis Aponte. "It will be interesting to see how the building trades will proceed," said Aponte.
"We'd been given assurances by Mayor Taveras when he took office -- and as recently as last year -- that he would continue to support 100% apprenticeships on TSAs," said Scott Duhamel, with the International Union of Painters and Allied Trades, as well as Secretary-Treasurer for the Rhode Island Building and Construction Trades Council. "The Mayor made a huge political mistake. The one thing we can't handle is when someone goes back on his word."
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Duhamel addressed what he saw as the benefits of apprenticeships to the community -- and where the opposition to them could be coming from.
"Apprenticeships get young people on a path to career," said Duhamel. "We have an aging, baby boomer workforce -- our average age is 48. We've known that we need more youth than ever before coming into the trades. The industry has been historically white males, but that's changing. We're expanding our diversity, and apprenticeships bring on local youth. Building Futures is a great example."
"Every day you see people talking about workforce development. We're not lacking workforce development in the trades, we're lacking places to put people," said Duhamel. "And we don't need any help in workforce development, we spend our own dough."
Duhamel explained that "100%" meant that 100% of sub-contractors on the job had to have apprencticeship programs -- and that 50% meant that only 50% of the subcontractors would have to have them.
"Apprenticeships are a union-neutral policy. We have great programs, but there are many open shop (non-union) contractors and sub-contractors with apprentice programs," said Duhamel. "Apprentice programs mean that you hire someone younger and cheaper and equip them with the skills to be a journeyperson."
Duhamel spoke to the impact that having 50% apprenticeships could have on the industry. "We told [the City] 50% apprenticeship? We'd rather have zero. 50% puts us in a tough position," noting that laborers and carpenters would fill the need, and then leave other trades behind.
According to the Building Trades Council, which includes 15 trades -- including carpenters and laborers, who could still benefit from the 50% requirment -- Duhamel says that they "don't want it watered down."
The City of Providence did not respond to request for comment.
Impact on Projects?
The City of Providence, along with the City Council, had begun discussions last fall to examine TSAs and their fiscal impact on the city. Duhamel said the at the end of December, he met with members of the Mayor's staff, who informed him of the proposed changes to apprenticeship requirements.
Duhamel said that he was told in that meeting that "7 different developers came to the city, and said they wouldn't work here because a TSA with 100% apprenticeship would be too costly."
"We said this makes no sense," said Duhamel. "Right off the bat, there's a savings with apprentices, they're paid less. Anyone developer talking about "price difference" is a thinly veiled way of saying "anti-union."
"So I sent a FOIA to the city asking for those seven developer names," said Duhamel. "What I got was two new projects currently in negotiation -- the West End affordable housing development, and the Kinsley Building. No mention of who those seven other developers supposedly were."
See public records request here; see City response here.
One developer, Gilbane Development, who had negotiated for a TSA for its project currnetly underway off of Thayer Street which was ultimately wasn't agreed to by the City Council in 2012, ultimately went forth with their project without a TSA.
However, a pending TSA proposal by Gilbane Development is still sitting in the City Council Ways and Means Committee.
"Gilbane Development had originally wanted a no apprenticeship requirement on the job as part of the TSA," said Michael Sabitoni, President of the Rhode Island Building and Trades Construction Council. "It's possible they could be waiting for the dust to settle here now."
Gilbane did not respond to comment as to whether they are still seeking a tax stabilization agreement with the City.
Sabitoni added that he was hearing of proposed tax rate changes on existing TSAs, which would have an impact on developers.
"Prior commitments under TSAs -- now the city has revised those numbers, those pro-formas no longer work," said Sabitoni. "I know there's a $35 million project hanging in the balance. If you're a developer in the city right now, you're not sure what is going on."
Ordinance Challenges Affordable Housing Tax Stabilization
In January, GoLocal reported on an affordable housing development in the West End proposed for Dexter Street that was seeking the 8% tax treatment for deed restricted -- i.e. affordable housing -- properties, but instead was offered by a TSA by the city. The move was met with opposition by a number of housing and community groups, arguing the developer could back out under the new tax proposal the tax rate uncertainty.
Last week, a proposal was introduced in the City Council to see that the property receives the 8% treatment as originally anticipated.
"It's been introduced, and we have 13 cosponsors," said Councilman Aponte. "This reaffirms the council's support for the development and sustainability of affordable housing in the city."
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