Guest MINDSETTER™ Kinch: PawSox Must Put Up More Money for Deal to Work
Thursday, September 28, 2017
$158 million is the expected final cost over 30 years for the proposed baseball stadium on the Apex site in downtown Pawtucket.
We all want the PawSox to stay! We don’t need a bunch of hired PR guns to tell us about the contributions it has made to our state - we know that. I’ll be jubilant if the numbers add up and the team stays in Pawtucket.
I want to thank Senate President Dominick Ruggerio and Senate Finance Chairman William Conley for finally giving Pawtucket taxpayers a chance to finally be heard on this issue. Speaker Nicholas Mattiello has scheduled hearings in October. He also deserves thanks.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe proposal involves three partners -- the PawSox, State of Rhode Island, and City of Pawtucket (City). My concern is the financial issues that may impact the City taxpayers, and the fact that the proposed legislation makes the City the only partner responsible for ‘land costs’ and ‘related infrastructure.'
Costs to Pawtucket in Focus
It is worth noting here that City officials are asking us to believe that there will be no need for new exits or access routes to the site. That is preposterous and not credible. Of course, there will be. Especially, considering that there is no direct access to Apex from 95 South.
The City's contribution is to be $15 million ($29 million counting debt service). The first $5 million must go directly to the construction of the stadium, which leaves $10 million to pay all other costs.
There are estimates that land acquisition costs by eminent domain are ‘in the range of $10 million.’ That eats up what is left of Pawtucket’s bond money. What costs are included in the $10 million?
Eminent domain laws entitle the landowner to pay for all costs, including replacement costs for the business. Those costs, which could be in the millions, are not funded in the legislation.
And the Environment
Media outlets have reported that Apex has a $6.5 million environmental cleanup problem of ‘toxic materials.’ That needs to be addressed before any construction could begin. All the partners are aware of it, but none has spoken publicly about it. Why? These costs are also not funded in the legislation.
So, who pays for all these additional costs? The legislation points the finger directly at the taxpayers of Pawtucket!
Pawtucket's share of the bonds is to be paid by some very questionable revenues, specifically “donations.” There may well be an ethics issue with soliciting donations from local businesses.
Additionally, General Treasurer Seth Magaziner has expressed serious doubts about Pawtucket’s ability to pay its bonds. He also asserts that State of Rhode Island may still be responsible for Pawtucket’s debt which contradicts other state officials.
Our mayor admits there is no definite plan to acquire the Apex property. Its acquisition price must be determined, including toxic clean-up costs and all replacement costs, before the General Assembly approves the legislation. The risk is too great to Pawtucket taxpayers.
Lacking at Backstop
Yet another risk is that City officials also admit that there is no definite plan to pay down Pawtucket’s bonds, at least short term. Pawtucket’s non-education state aid is a backstop for those payments. Pawtucket is a distressed community, and it needs every penny of that money.
Personally, I believe the PawSox must put up more upfront cash than the $12 million they have pledged. That would reduce the bond debt for Rhode Island and Pawtucket. The lease at McCoy should be extended, and the stadium financing plan should be placed before the voters in 2018. The team won't allow that. Make no mistake; the team is driving this bus.
However, I think the team gives up its right to dictate the timeline of this proposal when asking for $72 million of state and local money.
As background, Mr. Larry Luccchino, PawSox Chairman, while an owner of the San Diego Padres supported a public vote in 1998 prior to building a new stadium (Petco Park). The Padres also opened up its books prior to the vote. Why aren’t we afforded the same courtesies?
Petco Park has not been revenue neutral, as promised! Have we learned anything from our past follies?
Pawtucket does not have the money to make up any shortfalls. The land costs must be spread more evenly between the partners. The risk is too great for Pawtucket.
Related Slideshow: 7 Things to Know About the Newest PawSox Public Financing Scheme - June
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