PROVIDENCE -- The new state fire laws enacted in response to The
Station nightclub tragedy could cost private industry statewide $100
million, Governor Carcieri estimated yesterday.
Carcieri signed "The Comprehensive Fire Safety Act of 2003" on Monday.
Both houses of the General Assembly unanimously approved the legislation
in the closing hours of the legislative session.
Melanie R. Sabelhaus, the deputy administrator of the U.S. Small
Business Administration, said at a media event yesterday at the State
House that the SBA is cooperating with local lenders to help business
owners who will be required to update their buildings under the new
regulations.
She estimated that 2,000 to 3,000 businesses could be affected.
In addition to banning pyrotechnics in most indoor venues and empowering
fire inspectors, the new law repeals the grandfather exemptions from
modern fire code, and installs new standards from the National Fire
Protection Association.
Code experts have predicted that some Rhode Island building owners will
have to install "active" fire protection, such as fire alarms, in some
older buildings.
The Station had no sprinklers to put out the fire when a rock act's
pyrotechnics ignited flammable packing foam used as soundproofing during
a concert last February. The new law reclassifies nightclubs as "special
amusement buildings," a designation that requires a number of new safety
measures, including sprinklers.
Nightclubs with maximum occupancies from 150 to 300 must install
sprinklers by July 1, 2006. Larger establishments have until July 1,
2005, to install them.
Sabelhaus said the SBA is working with 10 local lenders committed to
providing 10-year low-interest loans to businesses seeking capital to
adapt to the new regulations. Interest rates will be "very favorable,"
she said.
"We are going to make sure we offer the capital to small businesses,"
Sabelhaus said. The SBA and the Rhode Island Hospitality Association
have tentatively planned two workshops -- July 30 in Providence and July
31 in Newport -- to explain to business owners how to get the loans and
technical assistance.
The local lenders are: Citizens Bank, Fleet Bank, Bank Rhode Island,
Sovereign Bank, The Washington Trust Co., Home Loan & Investment Bank,
Business Development Company of Rhode Island, First Federal Savings
Bank, Pitney Bowes Small Business Lending Corp., and UPS Capital Corp,
according to the SBA.
