Senate passes PawSox bill
After months of hearings and public debate, State Senate affirms deal to build new ballpark in Pawtucket
PROVIDENCE – The Senate on Tuesday night voted 26 to 9 to approve a pair of bills regarding the $83 million Pawtucket Red Sox ballpark proposal, advancing the bills through the chamber after months of discussion and vetting at a series of hearings.
But while the Senate and its nine-member Finance Committee gave the bills their blessing, the legislation now lingers in uncertainty as it awaits a hearing with the House Finance Committee. Larry Berman, the director of communications for House Speaker Nicholas A. Mattiello, said a timetable has not yet been set for the bills in the House.
Bill no. 2001 is a joint resolution that authorizes the state to enter into finance and lease payment agreements in connection with the construction of a ballpark on Apex land in downtown Pawtucket. Bill no. 2002, meanwhile, is an act relating to towns and cities, permits redevelopment agencies to finance the construction of projects for residential, recreational, commercial, industrial, institutional, public, or other purposes contemplated by a redevelopment plan.
Both bills were brought to attention by Conley and a pair of Pawftucket-based state senators – District 16 (Pawtucket, Central Falls) State Sen. Elizabeth Crowley and District t15 (Pawtucket, North Providence) State Sen. Donna Nesselbush.
Nesselbush said she is working to recreate the glory days of Pawtucket’s booming metropolis past and this project is a key to seeing the evolution of the city.
“With this opportunity knocking now, how will you answer the clarion call? Will you vote yes on Pawtucket’s future, the state’s future, the PawSox’ future, and the future of Triple-A baseball in Rhode Island? Or with opportunity knocking, will you demand and require a lock on the door, a deadbolt ... before you have the courage to open the door and answer the door?” Nesselbush asked her fellow senators prior to voting.
“This proposal before us is not wild risk and it is not a longshot...” Nesselbush said, dismissing comparisons to the failed 38 Studios video game venture. “This is baseball, America’s pasttime, and this is the Pawtucket Red Sox, one of the iconic jewels of the state of Rhode Island.”
District 19 (Cumberland, Lincoln) State Sen. Ryan W. Pearson said he supported the legislation after initially walking into the discussion as a skeptic.
“My sole barometer was is this a good deal for the state ... After many hours of review, the math does work and we should support this deal,” Pearson said. Pearson further called the stadium a “catalytic investment opportunity” that could drive growth for Pawtucket in a section of the city that serves as “the gateway for our state for people driving from the north.”
“We must not and cannot make decisions by falsehoods promulgated by those misinformed or seeking a political angle ... All sides of this argument have come in for those who have looked at the facts,” Pearson said, citing the 233 people - 72 percent - who spoke in support of the proposal during various hearings last fall.
District 11 (Bristol, Portsmouth, Tiverton) State Sen. James A. Seveney, like Pearson, said he started out skeptical because there were concerns he had about future attendance figures, but his fears were assauged over the course of the various hearings thanks to testimony from experts.
“While I started out skeptical because there were so many concerns about the attendance, this appears to be a good, low-risk business where the state continues to reap the rewards,” Seveney said.
District 36 (Narragansett, North Kingstown) State Sen. James C. Sheehan, one of the nine senators who voted no, said the fate of the team would determine ultimately whether the taxpayers will be “left holding the bag.”
“Let’s not forget that baseball is a sport that can rise or fall or stay the same. Attendance needs to increase at this new stadium and this must be sustained over 30 years...” Sheehan said. “The owners of this particular franchise are very well-to-do individuals.” He added that he has con- cerns that the public would be left to shoulder the risk.
District 27 (Cranston, West Warwick) State Sen. Hanna M. Gallo said stadiums today are not built without some semblance of public financing, saying “that’s economic reality.” Failure to see the legislation through and losing the PawSox to another state, she said, will cost Rhode Island part of the cultural fabric of its community.
“This is the legislation that we should support. It is a revenue positive for the state and it is by far the best deal for any such ballpark in the country. It is a partnership from which our state truly benefits,” Gallo said.
The $83 million project will be paid for through a combination of borrowing on behalf of the city, state, and ballclub’s ownership and a team equity contribution. The PawSox would cover the majority of the costs, contributing $12 million in equity and principal debt of $33 million. The state and city would provide $23 million and $15 million in principal debt, respectively.
The terms of the borrowing are estimated to be between four and five percent interest for 30 years. Annual debt service payments are estimated to be $2.3 million for the PawSox, $1.5 million for the state, and $963,000 for the city based on interest rates as of Sept. 25, 2017.
The debt will be issued in three series of bonds. The PawSox would be responsible to pay for Series A bonds, with payments coming from revenue associated with increased attendance and ballpark naming rights. The state would pay for the Series B bonds through revenue generated from ballpark users, visitors, the team, ancillary development, and a premium ticket surcharge. The city would pay for the Series C bonds with revenues from increased property taxes generated from the new ancillary development.
District 18 (East Providence, Pawtucket) State Sen. and Senate Finance Committee Chairman William J. Conley Jr. noted how “deliberative” the process was, mentioning over 30 hours of hearing and testimony, more than 300 people who spoke at the hearings, more than 350 submitted comments online, and 19 experts who testified.
“Every detail of the legislation was subject to public comment, reviewed by experts, and debated publicly by the Senate Finance Committee,” Conley said.
The House Finance Committee has yet to schedule a meeting to discuss and vote on the bills, which would then go before the full House for approval. Mattiello last Wednesday said he had “no timeline” on advancing legislation and that for the legislation to gain his full favor, it would require the support of the public, which he believes is still largely opposed to the proposal.