Legal Fight Emerges Over Sale of Providence’s Humboldt Fire Station Between School and Car Collector

Legal Fight Emerges Over Sale of Providence’s Humboldt Fire Station Between School and Car Collector

The Providence City Council is slated to vote on the sale of the city-owned Humboldt fire station to developers on Wednesday night - and another bidder is threatening legal action.

As GoLocal was first to report last fall, the building that served the neighborhood for 100 years was finally up for sale, after 8 years of sitting empty. 

There was a request-for-proposals (RFP) process, and the Providence City Council Finance Committee approved the highest bid - to developers that want to house their cars on the first floor; the item is up for a vote before the full council on Wednesday. 

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Now, attorneys for another bidder - the Montessori Children’s House (MCH) - are threatening legal action against the city, questioning the veracity of the RFP process. 

 

City's RFP Questioned

GoLocal obtained a copy of a letter from MCH’s attorney Joseph Carnevale to Providence City Solicitor Jeff Dana, which warns of “risk of litigation” unless the city reissues an RFP. 

“As you are likely aware, MCH submitted an RFP response package where MCH graded out to 95% on the evaluative criteria and offered $1,100,000.00 for the purchase of the Property.  Richard Gavranich and Mark Albert submitted an RFP response where their proposed development for three units of residential and garage space for the vehicle collection graded out at 85% with an offered purchase price of $1,150,000.00,” said Carnevale.

The City Council is expected to vote on Gavranich and Albert’s RFP response on Wednesday night.

Carnevale continues:

“‘The RFP in the “Notice to Vendors’ section states: ‘The Board of Contract and Supply will award the property to the bidder or offeror who is not only qualified and responsible but also offers the most advantageous proposal, in writing, to the City, considering both price and the evaluation factors outlined in the request for proposals (RIGL § 45-55-6).’ (Emphasis added).”

“The RFP later states, ‘Among qualified Offerors, the proposed purchase price  will be the determining factor.’ Id. at p.16. R.I.G.L. § 45-55-5 provides that the invitation for bids shall state whether the award shall be made on the basis of the lowest price bid or the lowest evaluated or responsive bid price,” Carnevale continues. 

It is the duality that Carnevale then calls into question. 

“The RFP purports to do both – in one instance the RFP clearly indicates that both price and evaluation factors would be considered in making the award; on the other hand the RFP also indicates that the evaluative criteria is in essence a minimal qualification metric, and then out of the minimally qualified bids the price would be the sole determining factor,” the letter continues.

“MCH submits that but for this ambiguity, its RFP response submitted would have included an escalation clause attached to the purchase price offer that would have exceeded the value offered by the higher bidder. It is our understanding that based upon the recommendation of the City  Finance Committee, the City Council is prepared to award the RFP to the higher bidder. In all likelihood, that will result in a bid protest being filed by MCH. Conversely, given the ambiguity in the RFP, if the RFP were awarded to MCH based on the current documents, there could also be a bid protest filed by the higher bidder. 

Carnevale says MCH is requesting a new RFP - or it will look at legal action.

“MCH’s proposal brings with it significant community support, and the opportunity for MCH to develop a campus in the neighborhood. We suggest that the only way this RFP can proceed without the risk of litigation is for the City Council to table the vote, and for the Board of  Contracts and Supply to reissue an RFP for the property purchase that clearly and unambiguously puts prospective bidders on notice of what criteria the City will use to determine the award,” said Carnevale.

Finance Chair Responds
Providence City Council Finance Chair Jo-Ann Ryan defended the body’s vote, when reached for comment. 

“We heard this in Finance, this matter came before [us,]and I support it,” said Ryan. “Bottom line, it passed the Board of Contract and Supply. [It went out] for a request for proposal. They received the proposals and the city is recommending the sale to the highest qualified bidder.”

When asked if she believed MCH had standing for a legal challenge, Ryan responded, “I do not.” 

“It was a competitive and transparent process. And as you know, RFPs are designed to ensure fairness. And I think that's exactly what happened. I support this. It passed out of Finance; it passed the board of contractors supply,” said Ryan. “Do I appreciate Montessori School and the work that they do? Yes, but they were not the highest bidder. And we are compelled by [the City Charter] to award this to the highest bidder.”

“I can’t speak to a legal challenge; that’s not my expertise, but I can say we reviewed it and vetted it in Finance,” said Ryan.