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16th of January 2018

Economy



Commerce Corporation to weigh incentive packages for Infosys at Monday meeting

Approximately $10 million in financial incentives will be considered for the Indian company Infosys, which last month announced its intention to build a Providence design and innovation hub and hire 500 American workers over five years.

Kate Bramson Journal Staff Writer journalkate

PROVIDENCE, R.I. — The R.I. Commerce Corporation and its investment committee are poised Monday to consider approximately $10 million in financial incentives for the Indian company Infosys that last month announced its intention to build a Providence design and innovation hub and hire 500 American workers over five years.

Commerce is also expected to consider granting incentives to a sixth hotel project in the state and an amendment to increase an incentives package approved in January for a residential and commercial project in Providence by Cornish Associates.

The board also expects to consider giving a $100,000 grant to Bioinnovation Labs; to vote on whether to issue bonds on behalf of the Ocean Community YMCA and Providence Country Day School; and to consider implementing a program to encourage Rhode Island companies to buy local.

The board's investment committee meets at 4 p.m. to consider the incentive packages, and the full board meets at 5 p.m.

When Infosys announced its intentions to develop its design hub, Commerce Secretary Stefan Pryor said anticipated incentives would include up to $8.5 million in Qualified Jobs tax credits; and up to $1.5 million, which would include Rebuild tax credits and money from the First Wave Closing Fund, intended to help convince companies to stay in or relocate to Rhode Island. The board agenda says the Rebuild credits would be for a maximum of $750,000.

Infosys has not said where it will build the design hub. A spokesman did not answer questions Saturday about whether the company has chosen a location and signed a lease. However, the Commerce board agenda, posted Saturday, says the company's development project is expected to cost $8.5 million.

The Cornish Associates' redevelopment of four downtown Providence buildings, along Westminster and Clemence streets, was approved in January for a Rebuild R.I. loan of $7.3 million, with an additional $500,000 sales-tax exemption on construction materials. At the time, projected costs to create 65 apartments and 26,000 square feet of commercial space was $29.5 million.

Now, the Commerce agenda says the $40-million project is seeking a maximum loan of $10.3 million to develop about 54 residential units and 30,000 square feet of commercial space.

In South Kingstown, Southern Rhode Island Hospitality (whose principal is Thomas H. DiPrete) is seeking to build a 100-room hotel at the Village at South County Commons, at a cost of $18.7 million with requested incentives of $1.8 million. DiPrete is seeking a tax-increment financing deal, which allows the state to pay some of the collected hotel taxes back to a developer.

The meetings will be in Commerce offices, 315 Iron Horse Way, Suite 101, Providence.

— kbramson@providencejournal.com

(401) 277-7470

On Twitter @JournalKate

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