ProvPort tax deal gets final council approval after environmental concerns

PROVIDENCE — The City Council has given final approval to a 30-year tax deal for ProvPort, which operates Providence's deep water port, after much debate about whether the agreement was moving too fast.

"Late last year, the City Council heard from community groups concerned that the ProvPort negotiations were moving too quickly with minimal conversations happening with neighbors," council President Rachel Miller said. "The council listened, paused and re-engaged with the community and environmental advocates to come up with a better solution."

The tax exemption agreement, approved Thursday night, would require ProvPort to pay 9% of its revenue to the city in addition to a roughly $7-million up-front payment on a one-time basis. The operator would also have to avoid expanding fossil fuel usage.

The passage of the agreement, which now heads to Mayor Brett Smiley's desk, comes after revelations that one of ProvPort's tenants, Univar Solutions, was hit with $600,000 in fines as part of a federal settlement for alleged safety violations in Rhode Island and two other states.

According to the Environmental Protection Agency, inspections from 2016 to 2019 in Providence, Pennsylvania and Colorado showed that Univar failed "to comply with industry standards of care … for hazardous and/or regulated chemicals such as anhydrous ammonia, aqueous ammonia … chlorine and formaldehyde."

At the time, ProvPort spokesman Bill Fisher said the that the operator expects "all of our tenants to comply with state and federal safety regulations, so we are pleased with this outcome."

Environmental advocates such as the Providence Sustainability Commission criticized ProvPort, concerned about the potential health risks presented by port industries to neighborhoods near the water.

In January, when news of the Univar fines became public, Julian Drix, the commission's chair, called it "a prime example of why the ProvPort deal needed more scrutiny instead of being fast-tracked under the last council."

Some council members also thought it was rushed initially, including Councilman Pedro Espinal, whose constituents are near the port area.

As a result, instead of pushing the deal through last year when many council members were serving out their final terms, the body waited until the current year when newly installed council members had a say.

Espinal, now applauding the deal, called it a "significant victory" for those he represents.

"My concern always centered around public health, safety and the welfare of our residents," Espinal said. "My council colleagues and ProvPort listened to the community, and this legislation is the direct result of working together."

More:The EPA fined a ProvPort tenant for how it handled chemicals. Now its tax deal may be at risk.

More:Allegations, complaint follow ProvPort deal discussion. What to know.

More:'Why now?': New ProvPort deal closer to approval despite vocal opposition

This article originally appeared on The Providence Journal: ProvPort tax deal gets final Providence council OK after health concern