5 Big Stories in Rhode Island This Week - February 24, 2024

#5

$2 Billion Investment Cleaning Up Narragansett Bay Hits Milestone

Rhode Island lives, plays, eats, and attracts visitors because of the beauty and bounty of Narragansett Bay. Critical to Rhode Island’s environment and economy has been the nearly 30-year effort to build the three-phase Narragansett Bay Commission’s (NBC) Combined Sewer Overflow (CSO) project.

“By the time everything is said and done, NBC ratepayers will have made a nearly $2 billion investment in the health of the bay. Along the way, the projects have created over 2000 direct and indirect jobs and the clean water that has resulted economically boosts our fishing and tourism industries,” said NBC Chair Vincent Mesolella.

The project ranks as one of the biggest public works investments in Rhode Island's history. This phase creates approximately 1,700 direct and indirect jobs.

After centuries of mistreatment of Narragansett Bay - the Industrial Revolution, untreated waste, and the discharge from the plating process in the jewelry industry adversely impacted Narragansett Bay for more than a century.

“It’s certainly exciting to know that we are undoing centuries of pollution with the CSO project and ensuring that our children and grandchildren will only ever know a healthy bay,” said Mesolella.

The NBC has now completed the excavation and lining of the 2.2-mile Pawtucket Tunnel. The project is Phase III of the CSO project known comprehensively as RestoredWaters RI. It features a deep rock tunnel 125-feet below the surface.

The tunnel will store and transport storm-related combined sewer and stormwater overflow to NBC’s Bucklin Point Wastewater Treatment Facility for full treatment before discharge into Narragansett Bay – all leading the way for cleaner waterways throughout Rhode Island.

#4

Washington Bridge Report: Bridge Danger to Gano Street, Decay Has Gone on for Years and Not Detected

The draft VN Engineers report on the Washington Bridge raises significant questions about the stability of the structure even while it is not in use and raises disturbing questions about the Rhode Island Department of Transportation’s (RIDOT) bridge inspection program, as it cites the decay to the core of the bridge taking place over the years.

In addition, the report raises questions about the ongoing $78 million design-build contract that is now being worked on by the McKee administration and whether the repairs will do anything to stabilize the bridge in the long term.

Specifically, the report identifies that there is a "risk to Gano Street."  

The report examination shows damage to nearly every aspect of the critical structure -- decay and damage to the bridge that, in some cases, has clearly taken place over multiple years.

It raises serious questions about the state's inspection program.

The report flies in the face of the claims made by RIDOT Peter Alviti, who in recent weeks said that his department thought that a heavy truck may have caused the failure of the bridge, as well as claims by Alviti that this damage took place since an inspection of the bridge in the summer of 2023.   

Alviti has repeatedly made false statements as RIDOT director.

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#3

Print Circulation of ProJo Falls Under 20,000 a Day During the Week

Newspapers are seeing dramatic declines in circulation  — and the Providence Journal is being hit as hard as any.

According to the Alliance for Audited Media, the print circulation of the Providence Journal has now fallen below 20,000 a day Monday through Saturday.

Just 1.8% of Rhode Islanders subscribe to the print version of the paper.

Only on Sundays, does the Providence Journal exceed 24,000 in print — totaling just 24,417.

Nearly 90% Decline in 20 Years

In less than 20 years, the Providence Journal’s weekday papers have declined by 88%. On Sundays, that drop off has been 89%.

In 2005, circulation was 164,000 on weekdays and over 231,000 on Sundays.

The digital version of the paper, during the work week averages just 5,500 per day and the digital Sunday version is 5,400. The data is as of October of 2023.

The decline of the once “newspaper of record” is dramatic. The paper is often the last to report important stories and the paper contains more and more wire stories from outside the market.

#2

EDITORIAL: McKee-Enomics

It seems impossible, but Governor Dan McKee found what may be the most expensive way to fund the state’s share of the minor league soccer stadium.

It is a project that is 100% privately owned by California resident Brett Johnson and a group of investors who have never been made public. The public has no idea who is going to own this project.

That is right. Rhode Island taxpayers investing $27 million will own zero, nothing, and nada.

It is called Mckee-Enomics.

Then there is the cost to put the money in. Despite Rhode Island having $1 billion of federal funds, McKee went for a bond via the Pawtucket Redevelopment Agency.

To finance the $27 million, the state decided to use bonds that cost $54,285,000. Then, paying off the bonds will cost taxpayers $140 million over 30 years.

It is called McKee-Enomics.

Then, there were the red flags raised by news organizations like GoLocal, investment advisors, and researchers. (GoLocal loves a good soccer match but hates a financial boondoggle.)

McKee ignored it all. The City of Pawtucket’s financial advisor resigned over the deal. Financial advisors rarely resign; they feast on fees. But Hilltop stepped down over concerns about this project.

By the way, Hilltop is the successor firm that advised the state of 38 Studios.

And the firm was forced to pay millions to the state for its role.

Under the McKee scheme, the state has few protections. If the team shuts down, there is no protection.

Now, we are making global business news on the project.

This week, Bloomberg wrote about McKee’s financing scheme: "Taxpayers are paying dearly to bring a pro-sports team back to the faded industrial city of Pawtucket, Rhode Island.”

Wow, little Rhode Island makes the big time. It's too bad it was not a good story.

“There will be little benefit for the surrounding community, according to J.C. Bradbury, an economics professor at Kennesaw State University. ‘These are people who are already spending their money in the community, and when they’re going to a minor league soccer match, they’re not going to local restaurants, going to movies and engaging in other types of local purchases,’ he said,” reports Bloomberg.

Despite all the warnings, the Governor moved forward.

It is called McKee-Enomics.

We will all be paying for it for the next 30 years. And, we will own none of it other than the debt.

#1

ORGANIZED INFLUENCE - ALVITI: The Keys to the Scheme

Over the past decade, four transformations in Rhode Island's multi-billion road and bridge building program have impacted the state.

The components of the scheme are:

1) The appointment of former Laborers' International staffer Alviti to serve as RIDOT director.

2) Awarding contracts, not to the lowest bidder, but directed instead to the "winner" of the "design-build" process.

3) Under Alviti, many of Rhode Island's largest RIDOT contracts have gone to Massachusetts-based contractor Barletta Heavy Division — now under indictment by Rhode Island Attorney General Peter Neronha's office.

4) Barletta has a labor-management agreement with the Laborers' International union — which has shifted work from other unions, according to multiple industry leaders.  

Laborers' Get Their Man

Prior to the appointment of Alviti, RIDOT awarded contracts, all things being equal, to the lowest bidder.

It all changed when Alviti was named Director of RIDOT in 2015 by newly elected Governor Gina Raimondo. Raimondo had a union problem and barely won the Democratic primary and the governorship. She won the Democratic primary with just 42% of the vote and the general election with just 40% of the vote — both three-way battles.

Raimondo had infuriated state workers and public school teachers by freezing their COLAs as part of her pension reform program.

Her pension reform was selective.

But Raimondo had a couple of strong union friends: Armand Sabitoni — the then-General Secretary-Treasurer of the Laborers’ International, and his cousin Michael Sabitoni. While Armand Sabitoni was a national leader — the number two man in the union in the U.S. and Canada, Michael Sabitoni was the “local guy.”

According to those with direct knowledge who were interviewed for the series of stories — the Sabitonis wanted their man to head RIDOT.

That was Alviti.

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