Seven Hills heads for new HQ
Nonprofit group moves out of former Blockbuster building; officials silent on RISE Prep school’s potential relocation
WOONSOCKET – After RISE Prep Mayoral Academy made an offer of approximately $3 million on its landmark building in the Social Flatlands, Seven Hills Rhode Island yesterday was in the process of relocating its entire workforce next door, to Plaza Center, 68 Cumberland St.
Seven Hills, a nonprofit behavioral healthcare organization, is still the owner of record of 30 Cumberland St. – also known as the Blockbuster Building. But Vice President and CEO Joseph Tosches declined comment yesterday – for the third time since March – on the prospective deal with RISE Prep, a division of Rhode Island Mayoral Academies whose governing body is led by Mayor Lisa Baldelli-Hunt.
When asked about the prospective sale in the past, Tosches has said the transaction is protected by a confidentiality agreement until it is concluded.
“I’m still not able to discuss this,” he said via e-mail Monday. “We are still negotiating with no updates to share.”
Nor were efforts to reach Baldelli-Hunt about the status of the possible sale fruitful. The message box on her answering machine was full, and when The Call sent her a text requesting comment on the issue, she did not respond. Also, Stephen Izzi, a lawyer who serves as the official spokesman on the deal for RISE Prep, did not return a telephone call.
However, Tosches did confirm that Worcester-based Seven Hills will now lease space in 68 Cumberland St. – another eye-catching piece of real estate in the Flatlands – for the Rhode Island branch of its operations.
A visit to the two sites yesterday found a six-man crew remodeling space in 68 Cumberland St. One worker said Seven Hills was moving because 30 Cumberland St. was to be converted into “a private school.” He said Seven Hill would occupy most of the west wing of Plaza Center, with suites on all three stories – or about half of the building. City records say there’s about 52,000 square feet of usable space in the site – often called the “Mirror Building” because of its reflective, angular facade.
Seven Hills had a number of tenants at 30 Cumberland St. – among them, the Woonsocket Teachers Guild. The union that represents teachers and other support staff in the Woonsocket Education Department, however, has also relocated to 68 Cumberland St.
Union President Jeff Partington and other WTG personnel were already at work in their new quarters Monday. Partington said he has known since late winter that tenants of 30 Cumberland St. had been instructed to vacate the premises no later than May 31 – tomorrow – due to the impending sale.
The sale comes after a push by city officials to begin requiring nonprofit organizations that were previously exempt to pay taxes for the first time. Seven Hills’ obligation was phased in at some 35 percent of its full bill in 2014, but that arrangement was modified in 2016. It’s currently in a three-year pact with the city that raises its burden by an additional 5 percent annually from fiscal year 2017 to 2019. This year, Seven Hills was billed $35,394 in property taxes on an assessment of $2.1 million, according to city records.
As a lessee, it won’t pay taxes any longer – its landlord will. According to the assessor’s database, 68 Cumberland St. is owned by Primco Woonsocket LLC, which is based in East Providence. Built in 1984, the structure is currently taxed on a value of $2.3 million.
Meanwhile, across the street at 30 Cumberland St., the doors were open but nary a soul could be found in the building yesterday. The halls were strewn with boxes full of files and there were rooms full of empty furniture pushed into haphazard arrangements. Strangely, a carnival-size popcorn machine was situated in the lobby.
According to its official records, on file with the Secretary of State’s Office, RISE Prep’s governing body voted in November to make an offer not exceeding $3.25 million for 30 Cumberland St. – a four-story, 39,908-squarefoot structure that originally housed a Blockbuster video rental store on the ground floor.
According to minutes of a Nov. 20 meeting, RISE’s board voted unanimously to make the offer. Those on hand to vote were Baldelli-Hunt; Chris Gruttadaria, a human resources business partner at CVS Health; Donna Stone, CEO of Rhode Island Mayoral Academies; former North Smithfield Town Administrator Paulette Hamilton, municipal liaison at the Office of Lieutenant Governor; Jerry Leveille, a former vice president of Greenwood Credit Union; Steven Pontbriand, an exempt officer revenue agent for the IRS; and Christopher Beauchamp, a superintendent for Narragansett Improvement Company who also serves on the Woonsocket City Council.
While RISE Prep won’t publicly confirm that it’s in negotiations with Seven Hills, Izzi has said previously it’s well known that RISE is looking for a new location because the fledgling mayoral academy is outgrowing its existing location at 1 Social St.
Founded in 2015, RISE Prep started out with just a kindergarten, but plans are to add another grade every year until it’s a completely populated K-Grade 8 school. RISE Prep recruits exclusively from Burrillville, North Smithfield and Woonsocket.
Since mayoral academies are considered public schools – which are exempt from taxation – it’s unlikely RISE Prep would pay any taxes to the city if it becomes the owner of 30 Cumberland St. and uses it for educational purposes.