video: Raimondo Refuses to Answer Questions About Leases at Wexford — Despite $40M in Taxpayer Subsidies
Tuesday, September 26, 2017
Raimondo lauded the project, but in an interview with GoLocal continued to refuse to answer questions about the leases between Wexford and Brown University, Cambridge Innovation Center, and Johnson & Johnson.
In January, a GoLocal investigation found that the permanent job claims for the Wexford project by the Raimondo administration were inflated.
Raimondo had repeatedly claimed that project will create 1,000 new permanent jobs in Rhode Island. After weeks of requesting information about tenants, rents, and job creation, GoLocal was finally able to secure actual job numbers for the project and then fact check those claims.
In fact, actual jobs created will be closer to 80 to 90.
Raimondo’s Jobs Numbers Inflated
As an example, the project claimed in 2016 that 706 permanent jobs will be created by building de facto spec space for Cambridge Innovation Center (CIC), but CIC itself promises only a handful of jobs.
CIC is a tenant of Wexford and CIC will be leasing the state-subsidized office space for lease. The practice of claiming tenant space as job creation is specifically flagged by federal watchdogs as improper (see below).
“Where's the due diligence that provides a basis for these estimates? Assuming fixed proportions based on square footage is almost certainly going to prove overly optimistic,” said URI Professor of Economics Len Lardaro, when alerted to the job claims last January.
“Of the 100 university positions expected at the Innovation Center upon its anticipated opening in early 2019, approximately 15 will be new jobs — our School of Professional Studies currently employs approximately 85 people and expects to grow to approximately 100 prior to the opening of the new space,” according to Brian E. Clark, the Director of News and Editorial Development at Brown University.
"For too long, the I-195 land was nothing but dirt," Raimondo said. "Today marks the start of something transformational, not just for this land, but for our state and its economy. This complex will become the epicenter of Rhode Island's resurgence, creating jobs at every rung of the ladder, from janitors to PhD computer scientists. We've worked hard for this, and we are finally seeing the results of our efforts.’
"The Providence Innovation Campus is now on the path to becoming a flagship Rhode Island institution," said U.S. Senator Sheldon Whitehouse. "It is my hope that this vacant land will be transformed into a launching place for Rhode Islanders seeking great jobs, boosted by the talent of our world-class universities and the energy of entrepreneurship in Rhode Island."
The entire federal delegation was in attendance. Mayor Jorge Elorza did not attend as he was reportedly in Washington, D.C.
- Raimondo Administration Refuses to Answer Questions About Wexford Deal and Brown’s Rent
- Wexford Asks for $32M for 195 Project, Tenant Says Might Not Work in Providence
- Wexford President Berens to Speak at Annual Prov Chamber Meeting
- Wexford Promising 40% Minority Jobs in Philadelphia, Zero in Rhode Island
- Raimondo Administration Criticized for Inflated Wexford Job Numbers
- Raimondo’s 195 Wexford Job Claims Are False, According to a GoLocal Investigation
- Chafee Says $40M for Wexford is the Wrong Priority, RI Commerce Votes for Funding
- Johnson & Johnson Heiress Caught Kicking Horse, Raimondo Has Provided $6M in Incentives to Company
- Dell and Johnson & Johnson Both Looking to Locate Offices in RI, According to Sources