Fiscal 2023 DIF Account

Phase I and Phase II Approach Has Been Scrapped

Remember Zimbalist in the Telegram 
The project was sold as costing the taxpayers nothing due to Phase I development.
Here is a section from the Telegram:

Mr. Zimbalist, the city’s consultant, said his projection that the project pay for itself counts on the $90 million in private investment anticipated in Phase I. It does not count on the development envisioned in Phase II, which includes an office building, residential development and retail.

April 1, 2021 projected completion of Phase 1:
  • Consists of $90 Million and approximately:  
  • 450,000 square feet of development:  
  • $40M - 2 hotels; approximately 250 rooms in total 
  •  $40M – residential; 250 market rate apartments  
  • $10M - ~65k SF of retail
On this blog we have been asking for a private developer agreement (not an LOI) with penalties for missed deadline to ensure Phase 1 is completed and the taxpayers are not stuck with the bill.  

Flash forward to City Council next Tuesday night
Click here

Page 63-64:   
We now have another LOI (Letter of Intent).   LOI is completely different than a Private Developer Agreement with deadlines and penalties.   It is only what is says "intent"?     

Now we are doing away with the Phase 1/Phase II approach.   In other words no way could Phase I be done by April 1st, 2021, so we need to change to plan.       Put another way, the whole way this was sold to the taxpayers that Phase I developed by April, 2021 would pay for Polar Park is not going to happen. 

Should we have Zimablist come back and look at the numbers now without using the Phase I/II approach and a $20,000,000 cost overrun and explain how this will still not cost the taxpayers nothing??   

More posts coming this weekend


Common Sense said…
What happens if the economy turns south in two years and they're only able to draw 2,000 per game or concerts? That would mean much less in ticket and parking surcharge revenue that they're expecting to help cover the cost overruns. I still support this project, but maybe the only smart ones in this equation are the taxpayers of RI that refused to be raped by the wealthy Pawsox owners. Can't wait until Tuesday night to see how Joe Petty tries to put a positive spin on this. Bring back that fiscal hawk Konnie!!
Anonymous said…
So, when there are more cost overruns and the promised ancillary development doesn't happen, the WooSox keep all of their free tax breaks and next November we pit homeowners and commercial property owners against weach other again in the yearly suicide pact that we call tax rating to come up with the tens of millions of dollars that the City will be short.

Great. I can't wait to see that tax hearing.
Reply to common sense said…
That's why we make sure the economy stays prosperous and re elect president Trump!!!!