East Providence enters 10-year treaty agreement with ExxonMobil
EAST PROVIDENCE, R.I. (WLNE) – The City of East Providence announced Tuesday it has entered a tax treaty agreement with ExxonMobil Oil Corp. after 13 years of appeals.
The agreement centers around property located on Wampanoag Trail that is owned by ExxonMobil. The treaty includes an adjustment of assessments, tax credits, and future sales and developments of the property. According to a release from the City of East Providence, these adjustments include:
- Reducing assessment from $39.43 million to $29 million for a 10-year period starting in December 2020 and ending December 2029, with flexibility to increase assessment if needed each revaluation cycle.
- Payment for the eight years over assessment will be taken as a credit on Exxon Mobile’s tax bills from 2020 to 2029. It is a decrease of around $460K to the City annually.
- Exxon will put 80 acres of land behind the current Citizen’s Bank Operations Center on the market, as well as an additional 40.5 acres east of Wampanoag Trail.
- The City’s tax revenue for Exxon decreasing by roughly $260K
“This settlement was in the best short- and long-term interest of the City given the length of time the case had been pending and represents a fair compromise between the city of East Providence and one of its largest taxpayers,” East Providence Solicitor Michael Marcello said.
In its announcement, the City said without the treaty, it would have potentially faced a $5.8 million loss.