misterchlo, on Apr 19 2007, 10:20 AM, said:
Too bad..this news is really a "net zero" for the city...a wash. A shiny new corporate headquarters would be great in that location, but from a company perhaps relocating from Boston or elsewhere (or even from the suburbs). But this just isn't real economic development. A publicly funded state health care provider, taking advantage of unique tax breaks for that site to build a shiny new headquarters on some of the most prime real estate in town. I don't entirely disagree with the governor on this (which surprises me as I don't often like what he has to say!). And it is just sucking life out of the opposite end of downtown and leaving some big holes over on Empire Street and elsewhere. I really wish Providence would be able to attract a real company to build a headquarters on that site..
We can't rely on stealing companies from Boston to drive our economic development. It is imperative to the health of the region that Boston not start losing businesses. It would be a short term gain for RI, but an ailing Boston would hurt us in the long run. Now if companies from outside the region are looking at us and Boston, by all means we should do what we can to try to land them over Boston.
However, we also can't rely on companies from outside the region, with all the positives we could all list about Providence, one fact remains when looking at it nationally, it is expensive. Regionally we are still a bargain compared to Boston, but nationally, we're crazy expensive from cost of living to taxes. We need the legislature and the Governor to work on that, with our positives I think we can still remain more expensive and compete nationally, but we are too expensive right now (and it's still really hard to do business here from a red tape perspective).
Providence currently has the tightest office vacancy in the region, but even so, there is little pressure on the market. We're almost full, but no one else is looking to come in. It seems what we mostly have a need for is small offices, less than 200 people. What we really have is a lot of really small firms, 5 people or so, looking to expand, to maybe become 20 person operations. These firms are not going to be building new towers downtown, and may not even be looking for Class A space (as they can't afford it). There are plenty of people who own or work for these small firms right here on UP who might be able to speak about their searches for space.
I think with BCBS vacating their Empire spaces, it gives an opportunity for us to create more space for these smaller firms in space that is not necessarily Class A. This move could even prove a positive for the Empire area as we will see one monolith leaving with the possibility of lots of smaller firms moving in. It will make the area more dynamic, and could bring in an intangible energy with these small start ups.
With all the positives BCBS is listing about this space, from construction costs being lower due to the pad already being ready to go, to the tax stabilization deal I'm having a hard time thinking of where else in the city they could go for the amount of space they need. Maybe someplace like ALCO would be cheaper than being Downtown (maybe not) but does ALCO even have the space for them, and if so, wouldn't it be kind of sad to see ALCO basically taken over by one firm? Also, we aren't lacking for places to build Class A offices, it's not as if this is the
last developable parcel in Providence, its not even the last developable parcel in Capital Center. Plus we have all of the 195 land to develop in a few years, and holes in the fabric all throughout the Downtown and the Jewelry District. Providence is not lacking for interesting and valuable spaces to develop.
I suppose one could look at the glass as half empty as far as this being a net zero on bringing jobs to the city, but one could also look at the glass as half full in that we won't being seeing 1,100 jobs move to the suburbs and we won't see a sprawling 300k+ sq. foot campus built in some office park somewhere surrounded by parking. We keep jobs in the city, and we dodge a sprawl bullet for the rest of the state (though I'm sure there are suburbs that would be more than happy to pave themselves over for the tax money, so they will be seeing this as half empty).