Council approves resolution asking state to allow tax stabilization agreements for Coventry developments

Coventry Town Council voted unanimously Wednesday to ask the Rhode Island General Assembly to amend state law so the town may negotiate tax-stabilization agreements with private developers for commercial, industrial, residential or mixed-use properties.

Solicitor Sir Angel, who presented the resolution, said the measure is "enabling legislation" that would permit Coventry to offer negotiated stabilization terms when needed to attract development. "This is state enabling legislation, it does not mean that if developers come to Coventry they automatically get some kind of a 20-year tax stabilization agreement," Angel said. The council passed Resolution 2025-62 with all members voting in the affirmative.

Angel and council members said tax-stabilization agreements are a common municipal tool that can help developers spread out infrastructure costs for large projects. The solicitor said other Rhode Island communities already have similar authority and that without the change Coventry cannot offer stabilization agreements for the types of mixed-use projects now being proposed at locations such as the Center of New England site.

Councilmembers asked for and received a distinction from the solicitor between tax-stabilization agreements and tax-increment financing; Angel said the two are separate mechanisms. Members emphasized that any future agreement would come back to the council for approval and that the resolution merely seeks state authorization to make such agreements possible.

The resolution notes Representative Naurey as the prime sponsor in the General Assembly with co-sponsors representatives Serpa and Reed, and the council vote was recorded as unanimous.