Providence council unsure whether to fight tax breaks granted to developer
PROVIDENCE – City Council members are continuing to weigh whether to act against tax breaks for 10 downtown buildings controlled by developer Arnold "Buff" Chace.
On Thursday, the council did not vote as expected on whether to move forward with legal action, but has scheduled a special meeting for Tuesday to consider the option. Some members did express skepticism about the tax breaks and whether they were legitimately granted – an investigation that lawyer Max Wistow has spearheaded.
The move comes days after the Finance Committee voted in support of acting against the 2021 consent decree that allowed Chace to save around $42.5 million over 30 years with special treatment under the 8-Law provision, which is intended to promote affordable housing. It's not clear Chace's buildings qualify for such treatment. According to the city's internal auditor, Gina Costa, parts of the buildings are being used for commercial purposes and do not fall under the federal Department of Housing and Urban Development's definition of affordable.
In December 2022, Costa authored a memo detailing issues with the tax breaks, emphasizing that City Solicitor Jeff Dana entered into the agreement without approval from the tax assessor, the Board of Tax Assessment and Review, the City Council or the Committee on Claims and Pending Suits.
Chace even managed to get his property taxes abated back to 2020, the year before the agreement was made. (Chace's company is a part owner of 75 Fountain St., which houses The Providence Journal, though that is not one of the 10 buildings under scrutiny.)
More: Buff Chace's tax breaks for 10 downtown buildings could be in jeopardy
Although the tax breaks have generated sharp criticism, Councilwoman Jo-Ann Ryan is hesitant to proceed on legal action, fearing a lawsuit could be risky.
"We are not doing our due diligence. We listened to an attorney who wants to sue the city," Ryan said, arguing that Dana also needs to be heard.
Others, including Councilman John Goncalves, were troubled that Chace's properties had received 8-Law treatment, which Goncalves called a "sweetheart deal."
"This isn't right for the taxpayers," Goncalves said.
Council members will have the opportunity to speak with Dana and ask questions at Tuesday's meeting.
More: Providence City Council hires law firm to review tax breaks for 'Buff' Chace buildings downtown
This article originally appeared on The Providence Journal: City Council to meet Tuesday, debate recourse over tax breaks for Buff Chace
