NEW: Providence Councilman Calls for More Oversight of City Loan Fund
Friday, October 28, 2011
Following two GoLocalProv reports this week about the number of past-due Providence Economic Development Partnership (PEDP) loans and the decision to convert a loan for the Bank of America Skating Center to a grant, City Councilman David Salvatore is calling for greater City Council oversight of the PEDP loan program.
Salvatore said the City Council should have to approve any decision to convert a PEDP loan to a grant, since the move essentially makes Providence taxpayers an investor in the business.
“I think there is a good case to be made for turning the skating rink loan into a grant, given the important role the facility plays in drawing people downtown during the winter,” said Salvatore. “But people are rightfully upset when they find out this decision wasn’t made in a transparent manner. I believe there needs to be a greater role for the City Council in terms of approving those kind of decisions and making sure the grants being given out are going to create meaningful benefits for the city.”
On Monday, GoLocalProv reported that a quarter of the PEDP’s loans were at least 90 days past due. On Wednesday, it was reported that the $500,000 loan the city used for the Bank of America Skating Center was converted to a grant.
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City Council President Michael Solomon serves on the PEDP Board of Directors and Salvatore said he is confident that the Council President and the city’s new Economic Development Director Jim Bennett will strengthen the PEDP and make sure it is moving in the right direction. But allowing for a more robust City Council oversight role will help make sure that decisions being made by the PEDP are getting a full public discussion and review.
“Whether the PEDP is making grants or loans, Providence taxpayers have an interest in knowing what the agency is doing and making sure the businesses receiving financial assistance are going to generate jobs and contribute to the quality of life in our city,” said Salvatore. “The best way to make that happen is to be sure that all the decisions related to the PEDP funds are being made in the light of day, with the opportunity for public input along the way.”
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