Did Pawtucket Chase the Wrong Ball — Memorial, Gamm, and Potentially Hasbro All Gone
Friday, October 27, 2017
While Pawtucket officials have been chasing the proverbial bouncing PawSox ball, offering millions in public funds and providing the financial backstop for millions in financing to the collection of team owners worth billions, the city has lost of some of its most important assets, and may lose even more.
In the past couple of months, The Gamm Theatre announced it is moving out of Pawtucket, Memorial Hospital will be closed, and Hasbro is looking to consolidate its operations to a Providence campus.
If Hasbro follows The Gamm, coupled with the demise of Memorial, the City of Pawtucket will have lost upwards of 1,500 workers. The PawSox employ approximately 20 full-time employees.
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The PawSox ownership group — collectively worth an estimated $6 to $8 billion — is demanding Pawtucket provide a $15 million subsidy and the State of Rhode Island, $23 million.
Moreover, the PawSox owners are refusing to guarantee the deal. “This is not a demand that has been specifically asked of the Team, nor do we think it is appropriate. Such a “backstop” would be anomalous (and probably unprecedented) among publicly-owned Minor League Baseball ballparks," the ownership group stated in a letter to Senate Finance.
Thus, a failure of the project would be assumed ultimately by taxpayers.
A recently released poll conducted by John Della Volpe of Harvard found that the PawSox funding scheme had little public support.
The poll asked the following question -- and got the following results:
Recently, a proposal has been made to permit the issuance of $81 million in bonds by the State to build a new stadium for the Pawtucket Red Sox. If there was an election today on this issue, would you vote to approve or reject issuing $81 million in financing supported moral obligation bonds to build the stadium?
Approve 28%
Reject 67%
Don't know 4%
Residents in the Blackstone Valley oppose the project at an even higher rate. Just 26 percent of Blackstone residents support the proposal and 71 percent opposed.
The Gamm
In just the past few months, the award-winning Gamm Theatre announced that they are leaving Pawtucket to Warwick.
"The Gamm has emerged as ONE OF THE MOST DYNAMIC THEATER COMPANIES in New England,” wrote the Boston Globe.
The Gamm was the backbone of the restored Pawtucket Armory Arts Center.
In announcing the departure from Pawtucket, Managing Director Oliver Dow said, "Our primary goal was to find a space that could improve the conditions for our artists while maintaining the theatrical experience to which our audience has become accustomed. This is a once in a lifetime opportunity for The Gamm to re-light an existing dark theater while making a substantial capital investment in our artistic mission.”
The loss of The Gamm impacts the rest of the arts community and the reneging Pawtucket restaurant industry — the city loses thousands of visitors and spenders looking for a night of high-quality theater.
Memorial Hospital Closure
Then, Care New England announced that it was closing the financially struggling Pawtucket-based Memorial Hospital. The impact is the loss of 827 employees and 603 full-time equivalents. In all likelihood, doctors and nurses will find positions with other healthcare facilities, but hundreds of others from maintenance workers to administrative staffers are likely to be seriously adversely impacted.
At the announcement of the closure, Pawtucket Mayor Don Grebien said, "I am extremely disappointed in this decision by Care New England to abandon our community hospital during their transactions, putting their agreement with Partners above the one with Prime Healthcare. I think closing Memorial could have been avoided, rather than giving up on an urban community and the Blackstone Valley.”
The frustrated Grebien added, “Our community needs are important and should not be dismissed for profit. Memorial Hospital provides access to quality care for our residents and is one of our largest employers.”
Hasbro Consolidating in Providence?
As GoLocal first reported in late September, Hasbro — the global entertainment and toy company — is looking to consolidate its multiple locations in the region and create a next-generation creative campus for its headquarters and is actively eyeing Providence. Some of the options that Hasbro is considering include the Superman Building.
A consolidated Hasbro campus in Providence would be a devastating loss of prestige and a substantial financial hit to Pawtucket.
Presently, the global headquarters for the 5,000 employees publicly traded company is Newport Avenue in Pawtucket. The appraised value of the 312,000 square foot building is more than $17 million according to the Pawtucket Tax Assessor database.
The Hasbro Pawtucket location has been visited by everyone from Michael Jackson to Steven Spielberg. The headquarters is home to a reported 600 employees.
If Hasbro follows The Gamm coupled with the demise of Memorial, the City of Pawtucket will have lost upwards of 1,500 workers.
The worst-case scenario
Reality is that Pawtucket's obsession with a new PawSox stadium may have consumed the City's attention -- and efforts -- to develop and retain the city's existing assets.
Related Slideshow: GoLocal: Benchmark Poll, October 2017
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