To draft new economic plan, R.I. picks man who wrote the last plan

PROVIDENCE — Gov. Gina Raimondo is turning to a familiar face for advice on Rhode Island's economic future, former Brookings Institutions fellow Bruce J. Katz, coauthor of the state's last economic plan.

Katz's New Localism Advisors, which he launched after leaving Brookings, was hired by Raimondo's state Commerce Corporation on Monday to update the "Rhode Island Innovates" economic development plan he wrote with Brookings four years ago.

The new report is expected to cost $750,000 with Commerce committing $200,000 to the project, the state Department of Labor and Training and Statewide Planning chipping in "nearly $200,000," and private donors funding the balance, Commerce Secretary Stefan Pryor said.

It's due by the end of the year.

"This team came out very clearly on top," Commerce economic analyst Nick Autiello told the board about the hire. Three other firms bid for the contract: Camoin Associates, TIP Strategies and The Research Associates.

"Some of the other proposals were kind of cookie-cutter, and we felt this had the most potential to inject new ideas into our process," Autiello said.

The earlier Brookings report, which Katz coauthored with Mark Muro, called for, among other things, a push to commercialize academic research, boosting computer science teaching in public schools, improving job training programs and for the state to cultivate a network of high-powered local CEOs.

It identified a series of target industries the state should try to try to invest in: biotech, information technology, data analytics, maritime, business services, design, food and custom manufacturing.

The Brookings report formed the basis for many of Raimondo's economic policies in her first term.

So will the state be getting new ideas or an objective analysis of how well the current policies are working from someone who helped come up with them?

Pryor pointed out that Katz had brought in two firms — Qvartz and City Facilitators — that were uninvolved in the Brookings report to work on the update.

"In retaining this team we are aiming to simultaneously bring the perspective of someone who dug deep in the first round and learned about Rhode Island and made recommendations; and several other participants who were not involved and bring in fresh eyes."

He said Commerce staff and advisors such as Bryant University Professor Edinaldo Tebaldi would be overseeing New Localism.

Raimondo: "They ran a process. Four applied and the team felt Bruce's group was far and away the best."

Katz, a Brown University graduate who worked in the Clinton and Obama administrations, describes himself and New Localism cofounder Jeremy Nowak as "urban experts." Their recent book "The New Localism" argues for city-focused economic policy designed to work around hyper-partisan national politics.

The 2015 Brookings report cost $1.3 million and was funded entirely by private donations.

Autiello said this update would cost about half as much partly because a lot of research had already been done by Brookings.

In other business Monday, the Commerce Board approved up to $800,000 in tax credits for Aretec, a Virginia data-science consulting firm looking to open an office with 40 employees in Providence.

Aretec co-founder Roby Luna told the board he grew up in South Providence, graduated from the University of Rhode Island, and now wants to return to grow the business in Rhode Island.

Aretec plans to open an office in the Cambridge Innovation Center's space in the new Wexford building in the Jewelry District, starting with 20 workers before doubling to 40 by 2022.

Eventually Luna said he could move the company headquarters to Rhode Island.