Leaders’ Reactions Mixed to Providence Sox Stadium Proposal
Monday, April 20, 2015
The new owners of the Pawtucket Red Sox have announced their proposal to build a $85 million stadium in Providence -- and while many Rhode Island elected officials and leaders have taken a wait-and see approach, a number have voiced their outright opposition to the plan as presented.
SLIDES: See Leaders' Positions on the Providence Stadium Proposal BELOW
"This is a bad deal for Providence, the state's taxpayers, the economic progress of the state and creating new permanent jobs in Providence and Rhode Island. Placing a stadium that would be utilized less than six months a year in a location designated for economic development and as a job multiplier is a mistake when there are other places available including keeping the stadium in Pawtucket or locating it somewhere else in the state or Providence," said URI Distinguished Professor of Business Edward Mazze.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST"The real question is who will "blink first" - the governor, the mayor, the leadership of the legislature or the owners of the team," continued Mazze. "And, most importantly, what will be their justification for accepting the current proposal. Unlike previous bad economic development deals, where everyone claimed some degree of ignorance, this time there will be no excuse."
The plan put forth by the new PawSox owners touts $12.3 million in annual economic impact -- and calls for a thirty year lease deal at the cost of $120 million to Rhode Island taxpayers that needs legislative approval to move forward.
"It is still in the early innings. The chamber was briefed on the proposal on Friday and we expect that it is subject to change," said Greater Providence Chamber of Commerce President Laurie White. "Conceptually, it is very exciting. [We're] awaiting further details."
Elected Officials Voice Opposition
"I do not support the current proposal. Of course we want to keep the PawSox in Rhode Island. The vision that's been painted of the project is really exciting, and I would be very open to the give-and-take of a reasonable deal. But this proposal is not reasonable," said State Representative Aaron Regunberg (D-Providence). "The owners are asking for free land, zero property taxes, $120 million in direct public subsidies for an $85 million development project - and, of course, they get to keep all the profits from this stadium that the state will have (in the long run) paid for."
New Providence City Councilwoman Jo-Ann Ryan said that she does not support the project in its current form.
"While many might agree that a ballpark in downtown Providence is exciting, we need to complete a cost benefit analysis. The owners proposal, released last week at a press conference, is too costly," said Ryan. "Now that an offer has been made, our financial review can begin in earnest. We will need to see a significant positive financial impact for this project to move forward."
Councilman Terry Hassett said that while he supports a stadium in Providence, he has concerns.
"My general concern is the public funding participation or concessions that have been presented. The Providence tax base has waned over time and potentially adding more exposure in property tax revenue remains a focus for me," said Hassett. "I believe this can happen and I'm in favor of it. I remain concerned about the amount of financial obligations taxpayers will have should this development proceed as proposed. I think taxpayers are in favor but they remain concerned of what it will cost us to build and operate it. I'm optimistic but I need more information from the owners."
Taxpayer Groups Raise Issues
Since its unveiling, a number of taxpayer organizations in the state have begun voicing concerns about the Providence baseball stadium proposal as put forth.
"Remember that this would be a project with a very seasonal use. So it would have a much more restricted capacity to generate economic activity," said RI Taxpayers' Monique Chartier. "Other uses of the stadium that the new owners of the Paw Sox have said they will pursue, including Brown and Bryant sports activities as well as concerts, are duplicative and would largely not generate new economic activity: Brown has its own sports facilities and concerts would mostly draw events away from existing venues, such as the Convention Center."
"The owners of the Paw Sox have asked state and Providence taxpayers to pay a very high price for the stadium. They want use of the land rent-free, effectively. On top of that, they want state taxpayers to pay four million dollars a year for thirty years to the stadium. They project - on the basis of data that they have yet to share - that half of this amount, two million dollars, will be offset by tax revenue generated by the stadium," continued Chartier. "But how realistic are these revenue projections? And what if they are wrong? Tax revenue back to the state is only a projection but the taxpayers would be committed to paying a very real four million dollars per year for thirty years."
An investigation by GoLocal showed attendance projections done by consultants Brailsford and Dunlavey when they wrote the business plan for the URI Ryan Center were ultimately overinflated.
Former Red Sox and PawSox player Mike Stenhouse, who is the CEO of the Rhode Island Center for Freedom and Prosperity, said he believes the state should be open to working out a "better deal."
"I do not believe the proposal should be viewed as a take it or leave it proposition, and I disagree with the knee-jerk reactions pro and con, because an opportunity this important for our state deserves intense negotiation, and ultimate compromise," said Stenhouse. "I would love to see a beautiful downtown ballpark. However, as head of a public policy think tank, I do not support large taxpayer handouts or special interest giveaways. But still, there may be a better deal to be struck, if our political leaders and the team owners roll up their sleeves and work it out."
Additional groups questioned the role of public dollars in the process.
"The proposal is incredulous. The owners want the land, they want a 30 year exemption on Providence property taxes, they think they can move the underground utility infrastructure for $5 million (what happens when that number is underestimated), they want part ownership of the parking garage and then, after all of that, they want $120 million," said Pam Gencarella with OSTPA. "It is clear that these owners do not care about Rhode Island's economy or the ability of taxpayers to carry this financial burden. This state cannot afford “nice to haves” anymore. We are still reeling from the 2008 crash along with insider deals like 38 Studios. If this proposal, in any form other than a private venture, is approved, it will be nothing more than an insider deal."
City Officials Split
Following the owners' unveiling of their economic impact study, the City of Providence announced that it will be conducting its own analysis. According to Mayor Elorza's office, the administration will guide its review efforts according to the use of park space, infrastructure requirements, environmental impact, urban design and integration, multi-use feasibility, public, traffic, and economic impacts, and a cost/benefit analysis.
"The state, city and fans have given millions of dollars to make McCoy the historic venue that it is today at its current location. Their support throughout the years has made the organization as valuable as it is today. Walking away from that commitment is wrong for everyone involved," said Pawtucket Pawtucket Mayor Donald Grebien. "From the beginning, the new business group unfortunately came in and without any discussion determined that Pawtucket was no longer good enough. It appears they have changed the model from one where families can afford to go and enjoy, to one that is purely based on business."
Baseball phoo: JMR78
Related Slideshow: Leaders React to PawSox Owners’ Providence Stadium Proposal
The new owners of the Pawtucket Red Sox presented their vision for a new $85 million stadium in Providence -- including a lease agreement from the state that would require the owners be paid $4 million a year for the thirty year duration.
Now, elected officials and business leaders are weighing in on the initial proposal by the ownership group -- see below.
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