Client Bylines
March 2019
Leveraging RI C-PACE in opportunity zones
Opportunity zones are new economic development tools designed to stimulate investment in distressed and underutilized areas. Investment in an opportunity zone provides a federal tax incentive for private investors to direct capital gains as equity investments into qualifying projects. Opportunity zones in Rhode Island are designated in 25 census tracts across 15 municipalities. As redevelopment accelerates in these neighborhoods, including Rhode Island Infrastructure Bank’s Commercial Property Assessed Clean Energy (RI C-PACE) financing in the capital stack can unlock additional value for investors, while building greener, more efficient buildings in the state.
RI C-PACE provides long-term, fixed rate, 100% financing for clean energy and energy efficiency projects. Financing is secured through a property tax assessment reflected on the tax bill and recorded on the title, so the assessment stays with the property. The non-recourse financing is more cost effective than traditional forms of mezzanine financing.
A recent example of a RI C-PACE project in action can be seen at Mirror Image Inc., a Pawtucket, R.I. screen-printing and embroidery company – best known for printing Super Bowl shirts – that is upgrading the property’s roof and installing a mounted solar array. The business will save over $530,000 over the life of the project and increase the value of their property by $317,000.
The Providence Public Library has recently embarked upon Rhode Island’s largest-ever library renovation through a variety of financing sources, including RI C-PACE. The 83,000 s/f $25 million redevelopment project will transform the library’s 1950s wing, auditorium and special collection areas to provide 21st century library services. The $1.6 million in C-PACE financing will include the installation of energy-efficient windows and building envelope improvements; updated rooftop units for heating, ventilation and air conditioning; an energy recovery unit; and computer-room air conditioning.
Investing in opportunity zones and utilizing C-PACE financing is the perfect opportunity to support long-term, climate-conscious investments while driving higher pre-tax IRR. Developers will breathe new life into buildings that once sat dormant. Projects will spur job growth and economic development, while significantly reducing costs through clean energy usage. As one of the Infrastructure Bank’s C-PACE clients recently said, “C-PACE just makes sense!”
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February 2019
Annual report highlights Quonset’s 2018 successes
Quonset is the leading engine of economic development in Rhode Island and home to over 200 companies and nearly 12,000 full and part-time jobs. We recently submitted our 2018 annual report that highlights the past year of successes and developments at the park. The business park saw significant growth in 2018 with investments in essential infrastructure and the construction of new company facilities.
2018 was another record-breaking year for Quonset’s Port of Davisville. Consistently named a Top Ten Auto Importer in North America and gateway to markets throughout southern New England, the port has seen unprecedented growth in recent years. The Port of Davisville achieved the seventh automobile import record in eight years, with 241,851 cars passing through the Port throughout the year via a record-breaking 225 ship calls. The ongoing modernization of the Port’s ‘workhouse,’ Pier 2, will position Port of Davisville for further success in 2019, including a greater role in imports for the Rhode Island wind energy industry.
In April, U.S. Sen. Jack Reed announced that the Port of Davisville was selected by the U.S. Department of Transportation’s Maritime Division (MARAD) to join a new maritime highway initiative between the ports of Brooklyn, N.Y. and Newark, N.J. The Marine Highway Project will allow the Port of Davisville to begin a container shipping operation, facilitating the port’s role on the new marine highway.
2018 by the Numbers
• 225 ship calls at the Port of Davisville – a new record
• 241,851 cars imported – a new record
• $56 million invested in park infrastructure
• $340 million in private investment by Quonset companies for 655,180 s/f
of new building construction
At Quonset, we provide world-class infrastructure to each company that makes their home here – it is one of the secrets of our success. Quonset Development Corp. (QDC) invested $56 million in infrastructure projects throughout the park in 2018. These upgrades included new gateway office buildings, renovations underway to Pier 2 at the port and the development of our new flex industrial campus. Building one is now fully leased, with construction of the second building in progress. Quonset also looked to lower its carbon footprint in 2018 – QDC offices are now powered 100% by renewable energy.
Over the last 30+ years, a total of $667 million in public investment at Quonset has generated over $2 billion in private investment, $113.1 million in annual tax revenue and $2.85 billion in economic output every year. These infrastructure upgrades position Quonset to generate additional tax revenues and reduce the environmental impacts of a major industrial park, while supporting an environment that allows great companies to succeed in Rhode Island.
Quonset companies invested $340 million in their state-of-the-art facilities at the park in 2018, a significant increase over the $16 million in private investment secured in 2017. The leasing of 50 acres of land and the construction of 655,180 s/f of new structures were key components in this influx of private capital.
QDC remains committed in 2019 to creating additional jobs, stimulating private sector investment and creating an additional tax base. Our 2018 annual report illustrates how Quonset Business Park continues to be a Rhode Island success story as the state’s leading engine of job creation and economic growth.
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December 2018
2018: Reflecting on a year of growth at Quonset
The continued success of the Quonset Business Park in 2018 is in part a testament to the broad range of businesses that call Quonset home. As the year comes to a close, Quonset is now home to over 200 companies and nearly 12,000 full and part-time jobs, including one out of every seven manufacturing jobs in Rhode Island. This year we welcomed two new exciting businesses to the park, another company with a long history at Quonset announced a major expansion, and 500 new full and part-time jobs were added, with many more planned.
This past April, Governor Gina Raimondo joined us at the ribbon cutting of Finlays USA’s new 28,800 s/f, state-of-the-art, global research and development center. Finlays is a global leader in the development and distribution of tea and coffee extracts, and owns the iconic local brand Autocrat coffee syrup. Finlays has committed to hiring additional employees by 2019 and maintaining these jobs in Rhode Island for at least 12 years.
Quonset also welcomed Infinity Meat Solutions, a subsidiary of Ahold Delhaize, parent company of Stop and Shop, to the business park with a groundbreaking this fall. The state-of-the-art 200,000 s/f protein packaging facility is slated to bring 700 new jobs to Rhode Island. Infinity Meat Solutions leads the market in providing pre-packaged deli meats to grocery stores throughout the country.
Meanwhile, Electric Boat broke ground on an expansion of their Quonset facility this past fall – a major step forward for both the Business Park and the Rhode Island economy. The ongoing $792 million expansion will create and support 1,300 new jobs in Rhode Island.
Another company on Quonset’s waterfront, J. Goodison Co., saw remarkable growth this year. The U.S. Department of Transportation’s Maritime Division (MARAD) provided the company with a $635,453 federal grant last year, facilitating the purchase of a new wastewater collection and treatment system for their shipyard here. The new system helps the shipyard operate more efficiently and is environmentally friendly.
U.S. Sen. Jack Reed (D-RI) announced in April that the Port of Davisville was selected by the U.S. Department of Transportation to join a new maritime highway initiative. This development represents a tremendous opportunity for the shipyard and our Port of Davisville. The Marine Highway Project will position Davisville to grow a container shipping operation and collaborate with the Ports of Brooklyn and Newark.
This year, we welcomed new companies to the Flex Industrial Campus at the business park, the first of its kind in the region. The building has three units, each around 10,000 s/f total including a state-of-the-art office – about 1,600 s/f, and commercial manufacturing and warehouse space – about 8,000 s/f. The first flex space building is now fully leased, and construction of the second building has begun. The flex campus will allow new companies to make their home at Quonset without the cost and time of developing their own facilities.
Quonset Development Corporation (QDC) was proud to affirm our commitment to clean energy this year. We received the Rhode Island Office of Energy Resources 2018 Leading by Example Energy Award for our efforts to implement energy efficiency measures. The QDC offices, as well as various facilities throughout the Business Park, are now 100% powered by solar energy.
In September, in collaboration with the Rhode Island Department of Environmental Management, we unveiled a 22-acre athletic field complex for the Town of North Kingstown. The fields, which reflect our commitment to our host community, are available for use now by North Kingstown residents and will be utilized by the town’s youth lacrosse leagues this coming spring.
Quonset’s successes this year reflect the Quonset team’s determination to continue our role as Rhode Island’s leading driver of economic development and job growth. We look forward to continuing this momentum in the year ahead.