Introduction
This article is a continuation of Part I.
The EGO Vision and Power of the Salt Box
When I was Chair of the EDC, I compiled a vision for two areas of the EGO. The two largest contiguous EGO properties are a) northeast of Route 116/Route 7 (behind the 280 Washington Highway) and b) southeast of Route 116/Route 7 (the area of the hotel, restaurant and gas station).
My vision was in two stages:
- Behind 280 Washington Highway area: This area could also be developed with mixed-use development consisting of businesses (cafes, shops, restaurants, etc.) and housing either intergrated into the same buildings or segregated. An opportunity to ask for small footprint retail (pharmacy, grocery) to anchor in that area. This development would attract people working at businesses like Fidelity, Navigant and Rubius.
- Hotel/Restaurant area: The area could have been marketing by the Town for mixed-use development per the ECO template definitions. However, opening up additional road "cuts" either on Route 7 or 116 would create more issues; especially with the increased traffic caused by the new businesses. More imporantly, the Salt Box property at the corner could have been developed by the Town as a "Smithfield Center"; owned by the Town but managed either by a private management company or Town employees. This Center would be able to be generate revenue from a ground floor setup with events and training scheduled for Town activities (farmer's markets, etc.) or for events for the businesses of that EGO parcel.
Now, the interesting component of this proposal is a traffic plan. There is no question that additional development (business or residential) will increase traffic. How can we mitigate this? Another component of the vision.
That property directly abuts Route 295 south. An exit/on ramp could be built off Route 295 south onto West Reserviour Road. The feasibility of similar could be built on the north side.
When discussing this with a Town official, the idea was scoffed. Saying that they planned a similar junction behind the hotel/restaurant area. However, I conveyed that could not be done with the Federal regulations requiring a minimum of one mile between interstate exits. Then, the conversation moved to that there was not enough distance for my vision. I had already calibrated the distance between the Route 7 exit; it was 1.2 miles.
The conversation ended.
Wonder why the sports complex and bank headquarters were never built in that area?
Zoom Ahead to 2021
Considering the vision, the Salt Box property is valueable and once sold, cannot be gained back.
Now, the Town wants to sell the Salt Box property to a developer. It is common knowledge that the developer has a business that is interested in building an office on Route 7 in one of the EGO districts.
Why? It's going to be a cash bonanza for the Town. To repay the purchase price (from the State) out of Town reserve funds.
Will the selling price provide a value to include the original purchase price PLUS the opportunity costs of interest gained through the Town's investment of the purchase price? We are "converting" a liquid into a fixed property asset.
How about another reason? We want to build a sports complex at the High School. So then you ask, "Why can't we bond for this complex?". Our bonding numbers may not allow that since the last bond approved (for School and Fire) placed Smithfield at a high-level of debt.
The Conclusion
I am a pro-business type of professional. However, this must be done in a careful, methodical manner. Devoid of politics, favoritism and in a responsible manner. Sure, it is more tax revenue. I understand. However, there is a concept called "tradeoffs".
What 'price' do we pay as residents for the stabilization of our taxes? Or maybe less increases? Or maybe it's just more revenue to spend for the Town without tax increases?
And without the strategic chess games (as outlined earlier) and 'negotiation' that occurs behind closed doors.
More to come!
