EDITORIAL: McKee-Enomics

Monday, February 19, 2024

EDITORIAL

 

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Governor Dan McKee PHOTO: GoLocal

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.

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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.

 

Editor's Note: Hilltop was previously First Southwest. 

An editorial is the opinion of a publication — specifically, the ownership.

While based on facts and news reporting, it is an opinion intended to discuss critical community issues. Often, the opinion is written with the intention of positive change.

GoLocal editorials have sparked conversations, change, and even the naming of a bridge.

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