Connect with us

Rhode Island

The state will ultimately pay $132m to build a soccer stadium in Pawtucket. How did it get so expensive?

Published

on

The state will ultimately pay 2m to build a soccer stadium in Pawtucket. How did it get so expensive?


play

The Tidewater Landing stadium in Pawtucket is on track to open early next year and, when it does, the 10,500-seat building is expected to be the most expensive minor league soccer stadium in the country.

Advertisement

That’s not a shock given the rising cost of construction, but even the state economic development officials who signed off on the project didn’t know just how steep the price of publicly financing the stadium would climb.

To channel $27 million to stadium developer Fortuitous Partners, Pawtucket earlier this month sold a $54.3 million tax-free bond. Under the terms of the bond, the state is projected to pay $132 million in total debt service over the next 30 years.

Those borrowing costs – which Bloomberg’s municipal bond reporter compared to the price of government debt in Pakistan – have triggered sticker shock in some quarters.

“My concern is how this got to be so expensive and such an enormous waste of taxpayer money,” said Michael McNally, a former member of the state Commerce Corporation Board who voted against the project in 2022.

But Rhode Island Commerce Secretary Liz Tanner, who has overseen the deal for the state for the last two years, on Monday defended the deal over the long term.

Advertisement

“Stadiums are expensive. We know that they’re expensive, and these dollars that we’re putting into it are going to have a nice infrastructure project for us when we’re done,” Tanner told The Journal Monday. “We know we’re going to have a stadium when we’re finished with a soccer team, and that’s good for Rhode Island.”

How did we get here? Shrinking project but expanding cost

The Tidewater Landing stadium plan first launched in December 2019, with the city still stinging from the loss of the Pawtucket Red Sox baseball team.

Initially the stadium was supposed to anchor a $400-million development spanning the Seekonk River and Interstate 95, containing hundreds of apartments plus shops, offices, a hotel and an event center.

Advertisement

The state first approved a $50-million public subsidy package for the development in February 2021 after the segment north of I-95 had been eliminated, slimming the project down to 25 acres.

But before work could begin, inflation spiked and the Federal Reserve hiked interest rates, sending the cost to complete the project soaring. The stadium is now expected to cost $137 million.

In the summer of 2022, Fortuitous shrank the project again, this time asking for the same public investment, but it would go to the stadium alone. On July 25, 2022, Gov. Dan McKee broke a tie on the Commerce Corporation Board to give almost all of the subsidy package to the stadium.

Public funds going to Fortuitous, once they finish the stadium, are made up of:

Advertisement
  • $27 million from the bond
  • $10 million in Pawtucket’s federal pandemic aid
  • $10 million from state tax credits. (The state is issuing $14 million in Rebuild RI tax credits to net $10 million.)

But the cost of the borrowing keeps going up. When the deal was approved, the state planned to provide Fortuitous $27 million for the stadium from a $37-million bond. By October, with higher interest rates prompting investors to demand ever higher yield, the principal on the bond grew to $54 million, including reserves and administrative costs.

The deal allows the state to make interest-only payments on the bonds for the first 10 years. There’s a $5-million reserve in place to make payments in any year the General Assembly were to decide not to appropriate the required funding. And there is an $11-million “capitalized interest fund” that will fund payments in the early years.

Of the $54-million principal borrowed, $6 million is set aside to pay middlemen, lawyers and other administrative expenses, according to a breakdown from Commerce RI.

Why didn’t the state just pay less two years ago?

Why didn’t the state just appropriate $27 million for the stadium two years ago and save the tens of millions required by this exotic financing?

“When this project started a couple of years ago, this was the deal that was made, as far as how it was going to unfold, and all of those conversations were based on far lower interest rates,” Tanner said. “The $27 million, if it had been done upfront, would have to had been General Assembly approved.”

More: Soccer stadium bond adviser cited ‘concerns’ about project before quitting. What we know.

Advertisement

Since authorizing this type of state financing for a proposed new PawSox ballpark, legislative leaders have been cool to the idea of a direct investment into the soccer stadium.

Why not change the deal as economic conditions changed over the years?

“So we had committed to a deal at that point and we were in a contractual relationship to commit to following through with what we had done,” Tanner said. “And if you had changed the course of the transaction, there would’ve been a level of uncertainty without knowing whether the legislature was going to pass those dollars or not. So we continued on the path that we had set up originally.”

Although the Pawtucket Redevelopment Agency issued the stadium bonds, they are to be repaid with state tax revenue generated in Pawtucket, supplemented if need be by appropriations from the Assembly.

Advertisement

Because of the money set aside, state lawmakers won’t have to appropriate any money for the stadium until 2027.

Tanner said if interest rates rise again, the 8.24% rate the state is paying will end up looking like a bargain. If they fall, it is likely the state will be able refinancing after 10 years at a lower rate.

Is this 38 Studios all over again?

The complicated financing structure of the stadium bonds recall the $75-million 38 Studios deal.

Unlike the 38 Studios bonds, which were supposed to “pay for themselves” through revenue from the company that ended up folding, the stadium bonds are intended to be repaid by state tax dollars.

The risk to the state lies in what would happen if Rhode Island FC, the team slated to play in the stadium, folds, something not uncommon in professional soccer.

Advertisement

As it awaits the construction of the soccer stadium, Pawtucket is planning to tear down McCoy Stadium, which assumed negative value once the PawSox left.

More: Pawtucket soccer stadium’s financing is complete. Here’s what’s behind the $137M project

“[Rhode Island FC] did commit to a 30-year relationship with us,” Tanner said. “If they don’t, there’s liquidated damages that they would have to pay.”

Asked what those damages would be worth if the team goes bankrupt, Tanner said the state would get the stadium as an asset.

What would the empty stadium be worth?

Advertisement

“Again, we’re doing speculation on so many ifs,” she said.

To encourage Fortuitous to finish the residential and commercial development that initially attracted the state to the project, Commerce RI is providing the developer $1.5 million to start working on that next phase.

There is still no timeline on when any plans for stadium-adjacent development will be drawn up or cost estimates formulated.

Tanner said, if anything, she is “far more optimistic” about the residential/commercial development happening “because they have their investors all gathered to work on the stadium project and so we know there’s more people who have already committed the stadium that could be potentially partnering with them.”



Source link

Advertisement

Rhode Island

Women’s Fund of Rhode Island, leaders celebrate Women’s History Month with panel event

Published

on

Women’s Fund of Rhode Island, leaders celebrate Women’s History Month with panel event


Women’s Fund of Rhode Island and U.S. Sen. Jack Reed celebrated Women’s History Month in Cranston with a panel discussion on Monday.

The event was held at the Cranston Public Library at 9 a.m.

Reed and other leaders of WFRI hosted a panel discussion with women leaders in environmental and agricultural advocacy, education, community resilience, housing, finance, workforce development, and more, officials said.

Women’s Fund of Rhode Island and U.S. Sen. Jack Reed celebrated Women’s History Month in Cranston with a panel discussion on Monday. (WJAR)

Advertisement

“Women have played a critical role in this process, most often without any recognition,” Reed said. “Today’s panel brings together an extraordinary group of women who are addressing the challenged of sustainability from various angles and I want to thank you all for your great efforts.”

The panelists highlighted their experiences, shared insights and tips on lifting up women’s voices, provided strategies for sparking change and more.

Comment with Bubbles

JOIN THE CONVERSATION (1)

According to officials, some of the panelists included Executive Director of the Rhode Island Food Policy Council Nessa Richman, Executive Director of Strategic Initiatives at Rhode Island College Kim Bright, Newport Housing Authority Executive Director Rhonda Mitchell and more.

Advertisement



Source link

Continue Reading

Rhode Island

Man allegedly kills man in R.I. before causing car crash that killed 2 in Mass.

Published

on

Man allegedly kills man in R.I. before causing car crash that killed 2 in Mass.


Local News

“On behalf of the Cranston Police Department, I want to extend my deepest condolences to the family and loved ones of Javon Lawson and the two individuals who were killed in the crash in Swansea,” Col. Michael J. Winquist said.

A Seekonk man is accused of murder after he allegedly shot and killed a man in Rhode Island before causing a car crash in Swansea that killed two people last week, police said.  

Demitri Sousa, 28, is charged with murder, using a firearm while committing a crime of violence, and carrying a pistol without a license, the Cranston Police Department said.

Advertisement

The shooting occurred Thursday night in Cranston, police said in a press release.

That night, Sousa allegedly arrived at the Cranston home of Javon Lawson, 35. Sousa began banging on the side door of the home, police said. 

When Lawson approached the door, he was hit by gunfire from outside, police said.

First responders transported Lawson to the Rhode Island Hospital, where he was pronounced dead, Cranston police said.

“Based on the preliminary investigation, the motive is believed to be a dispute between the suspect and the victim over a mutual female acquaintance. Detectives are continuing this investigation to gain more insight, as well as to collect and analyze evidence,” Colonel Michael Winquist, Chief of Cranston police, said in an emailed statement to Boston.com.

Advertisement

Neighbors gave police video footage that “showed a male subject wearing dark clothing and a mask walking toward the residence moments before the shooting and fleeing immediately afterward,” Winquist said.

The suspect was also seen running to a white Infiniti sedan which then drove off, the Cranston police chief said.

Shortly after the shooting, a license plate reader captured the vehicle driving southbound on Route 10, and then later in Fall River and Westport, Massachusetts. The sedan’s license plate was registered in Sousa’s name, Winquist said.

At around 12:18 a.m. Friday, Swansea police spotted Sousa’s Infiniti barreling down Route 6, Swansea officials said.

Just moments later, Sousa allegedly “crashed into the side of another vehicle, a blue 2022 Subaru Ascent that had been traveling southbound on Route 136,” Swansea Police Chief Mark Foley and Fire Chief Eric Hajder said in a joint press release.

Advertisement

Both vehicles had “catastrophic damage,” and the struck car was engulfed in flames, the Swansea officials said.

The driver and passenger of the hit car — a man and a woman — were declared dead at the scene, they said.

“Swansea Police had been alerted to be on the lookout for the suspect vehicle. However, Swansea Police were not involved in the pursuit and were not pursuing the vehicle at the time of the crash,” the Swansea chiefs wrote. Swansea official have not announced charges related to the fatal crash.

Sousa had been driving the Infiniti and appeared to be suffering from serious injuries, Winquist said. Inside the car, police found a pistol and “additional .22 caliber ammunition was recovered” from Sousa at Rhode Island Hospital, Winquist said.

Police arrested Sousa and transported him to Rhode Island Hospital. Sousa is expected to survive, Winquist said. Sousa will be held in Cranston police custody until he is conscious and medically cleared, Winquist said.

Advertisement

“On behalf of the Cranston Police Department, I want to extend my deepest condolences to the family and loved ones of Javon Lawson and the two individuals who were killed in the crash in Swansea,” Winquist said.

Sign up for the Today newsletter

Get everything you need to know to start your day, delivered right to your inbox every morning.





Source link

Advertisement
Continue Reading

Rhode Island

Rhode Island men’s basketball extends slide with loss to St. Joseph’s

Published

on

Rhode Island men’s basketball extends slide with loss to St. Joseph’s


play

SOUTH KINGSTOWN – Whatever hopes the University of Rhode Island harbored for a men’s basketball Senior Day upset of Saint Joseph’s disappeared on a rare made 3-pointer. 

Jaiden Glover-Toscano connected on just one of his eight attempts from deep, and it turned out to be a backbreaker. The Hawks mustered just enough offense to hold off the Rams at the Ryan Center in an Atlantic 10 rock fight that went to the visitors. 

Advertisement

Glover-Toscano hit from the left wing with 3:37 left, restoring a two-possession lead. Saint Joseph’s did just enough from there to finish a 61-55 victory on Feb. 28 and extend URI’s late-season slide. 

“We needed to get that stop,” URI coach Archie Miller said. “It was in the balance. Those last three minutes, whoever was going to make the play or get the stop was going to win.

“They made a big shot right there.” 

The Rams cut a 13-point deficit all the way to 56-55 when Tyler Cochran knocked down both ends of a 1-and-1 at the line with 3:54 left. The Hawks overloaded the right side on the ensuing possession, and Derek Simpson got a step on his man toward the paint. He fired a crosscourt pass to Glover-Toscano that caught URI’s defense rotating, and the air came out of the announced 6,391 fans in the building when the net rippled in front of the visiting bench. 

“We weren’t able to convert,” Miller said. “That’s kind of the name of the game. You’ve got to have some plays go your way.” 

Advertisement

Myles Corey missed a 3-pointer at the other end, and Simpson played facilitator again to give Saint Joseph’s more of a cushion. He found Justice Ajogbor rolling to the rim for a slam with 2:36 left and it was a six-point game. Neither team scored again on an afternoon where they both shot under 40% from the field and went a combined 10-for-61 from deep. 

“The bottom line for our team today – and let’s just keep it simple – is we didn’t make a shot,” Miller said. “We really struggled to shoot the ball.” 

The Hawks built their largest lead with 13:53 to play, thanks to what was a major sore spot on the afternoon for the Rams. URI couldn’t inbound the ball after an Ajogbor free throw, and Jonah Hinton was called for an offensive foul. Simpson drove for a two-hand slam on the ensuing possession, part of a 13-0 shutout for the visitors on points off turnovers. 

Advertisement

“We have no room for error,” Miller said. “That plays a big role.” 

The Rams (15-14, 6-10 Atlantic 10) enjoyed their best stretch of the day after falling into that 44-31 hole. Alex Crawford offered some life with a couple of 3-pointers, and Jahmere Tripp buried another from the left corner to make it a 54-51 game with 5:10 left. Crawford’s hard drive down the right kept it a three-point game, and Cochran’s successful trip to the line put URI in position to steal it late. 

“I feel like we had open shots,” Crawford said. “We had a lot of good looks – shots we usually make.” 

Saint Joseph’s (19-10, 11-5) won its fourth straight and continued an impressive rally from an 0-2 start in league play. The Hawks are on course for a double bye in the upcoming conference tournament, while the Rams look increasingly likely to play on the opening day in Pittsburgh. A home date with Duquesne and a road trip to Fordham wrap the regular season this week, and URI hopes guard RJ Johnson (concussion protocol) will be able to return at some point. 

“It did hurt a little bit,” Crawford said. “You face adversity, you’ve got to find a way to make up for missed players.” 

Advertisement

SAINT JOSEPH’S (61): Dasear Haskins 5-11 4-5 14, Justice Ajogbor 4-5 1-3 9, Derek Simpson 4-10 4-4 13, Jaiden Glover-Toscano 3-14 0-1 7, Austin Williford 2-9 0-0 5, Khaafiq Myers 4-7 0-0 9, Jaden Smith 1-2 1-3 3, Anthony Finkley 0-2 1-2 1. Totals 23-60 11-18 61.  

RHODE ISLAND (55): Tyler Cochran 2-13 8-8 13, Keeyan Itejere 4-5 2-2 10, Jahmere Tripp 4-12 2-3 11, Jonah Hinton 2-11 0-0 5, Myles Corey 1-8 1-4 4, Alex Crawford 4-6 2-4 12, Jalen Harper 0-6 0-0 0, Drissa Traore 0-1 0-0 0. Totals 17-62 15-21 55.  

Halftime – SJ, 30-27. 3-point FG – SJ 4-28 (Haskins 0-3, Simpson 1-5, Glover-Toscano 1-8, Williford 1-8, Myers 1-2, Finkley 0-2), RI 6-33 (Cochran 1-9, Tripp 1-4, Hinton 1-7, Corey 1-4, Crawford 2-3, Harper 0-5, Traore 0-1). Rebounds – SJ 45 (Myers 8), RI 46 (Cochran 15). Assists – SJ 14 (Simpson 5), RI 12 (Corey 4). Turnovers – SJ 13 (Simpson 3, Myers 3), RI 13 (Corey 5). Blocked shots – SJ 7 (Ajogbor 3), RI 4 (Itejere 2, Tripp 2). Steals – SJ 8 (Simpson 3), RI 4 (Tripp 2). Attendance – 6,391. 

bkoch@providencejournal.com 

On X: @BillKoch25 

Advertisement



Source link

Continue Reading

Trending