McKee’s Economic Promises Are Unraveling
Thursday, May 16, 2024
Dan McKee’s 2022 campaign website promised that if he were elected governor, he would be “investing in projects that create construction jobs, put Rhode Islanders to work and improve the basic infrastructure that residents, communities and businesses rely on.”
But to date, a growing number of economic development failures are piling up for McKee. Besides the adverse economic impact caused by the Rhode Island Department of Transportations's failure to maintain the Washington Bridge, many of Rhode Island's business sectors are in a period of disruption.
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The Losses Are Mounting
Fane Tower — After nearly seven years of frustration in working in Providence, Jason Fane canceled a $500 million development in 2023.
According to the developer and the building trades, the project would have created 420 units, about $300 million investment, and over a three-year construction cycle, the project would have spurred an estimated 1,200 to 1,500 jobs.
“I came to Providence with a vision for a great and iconic project that would provide much-needed housing, quality jobs, and revenue for local government and have worked long and hard to make it a reality," said Fane Organization President Fane announcing that he was leaving Rhode Island and abandoning the project.
Superman Building — Two years after McKee hosted a press conference announcing that a development deal had been reached between the state, city, and developer, the project saw little action. Now, the developer has admitted that the project is nearly $100 million short.
As GoLocal reported in late April:
GoLocal has learned that the cost to transform the Superman Building from a vacant office building to apartments has jumped 43% since state leaders and the developer announced the deal in April of 2022 in the Stateroom of the State House.
The increased price of the project is driven by additional construction and financing costs, according to those directly involved in the deal.
The McKee Administration announced at the time, “The $220 million project announced today will convert the long-vacant, yet iconic, tower into 285 residential apartments, 20 percent of which will be affordable to low- and moderate-income Rhode Islanders, 8,000 square feet of commercial office space, and a mix of retail, event, and community uses in the 26,000-square foot banking hall.”
Now, the cost of the project is pegged at $315 million — a 43% increase.
Hasbro: The Rhode Island-based toy company has slashed hundreds of jobs in Rhode Island over the past two years and has closed its Providence campus.
Cranston Street Armory — When McKee became governor in 2021, the Raimondo administration had developed a strategy to redevelop the historic Cranston Street Armory in Providence. Under McKee, two top staffers caused a national scandal, triggered resignations, ethics complaints, and a self-inflicted political black eye.
Rhode Island State Senator Sam Bell and State Representative Enrique Sanchez “decried” the McKee administration's decision to cancel the contract with Scout — the Philadelphia-based urban design firm.
The legislators said in a statement that the move by McKee to negate the consulting agreement, after Scout had reported extortion and sexual harassment by McKee Administration officials, was pure political payback.
They also separately report that the McKee administration has broken their commitment to a community meeting with the neighborhood around the Armory.
“Retribution on this scale makes my stomach churn,” said Bell. “The culture where state contractors got extorted for kickbacks and would lose the contract if they even dared to speak up about it was one of our state’s greatest shame. That it continues to this day embarrasses not just Governor McKee but the state as a whole.”
CVS — The company has cut hundreds of jobs in Rhode Island and thousands across the country. Woonsocket-based CVS is one of the top retailers in America, and in 2022, reported the 6th highest revenue in the country with $322 billion. McKee however got into a war of words with former top company executives during the 2022 campaign. His opponent in the Democratic primary was former CVS president Helena Foulkes.
Citizens Bank — The super regional bank opened Its $285 million corporate campus in 2018. Now, it Is threatening to move jobs out of Rhode Island.
In 2016, Citizens CEO Bruce Van Saun and then-Governor Gina Raimondo broke ground on one of the state’s biggest private development projects in Rhode Island’s history. The gleaming campus opened in 2018. It was a Rhode Island success story.
McKee is scrambling to offer the bank more incentives. Speaker of the House Joseph said in a statement:
“The Governor’s two budget amendments will be reviewed by the House Finance Committee in a public hearing on Thursday night. I will wait to review the testimony and keep an open mind before taking positions on the proposals.”
Small Businesses Closing by the Day
The Governor's campaign for election in 2022 also promised to support small businesses, but the impact of the closure of the westbound lanes on Washington Bridge, McKee's failure to address the transportation system upheaval, and the lack of support has led to the closure of businesses and the cancelation of events ranging from the state's marathon to a leading East Providence church's annual feast.
"Rhode Island is a small business state – Governor McKee will make sure it stays that way," said McKee's campaign website.
GoLocal first reported the closure of three businesses in the Wayland Square retail area of Providence.
Iconic small businesses like Minerva's Pizza, top-tier restaurant Salted Slate, and retailer FatFace have all closed recently. The owners of Minerva's and Salted told GoLocal that their business was off 20% or more due to the failure of the Washington Bridge.
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