House passes enabling legislation to allow public financing of ballpark for Pawtucket Red Sox
MARY DUFFY MESSIER
STATE HOUSE ??? The House of Representatives today passed enabling legislation introduced by Rep. Mary Duffy Messier (D-Dist. 62, Pawtucket) that would allow public support for a new baseball stadium in downtown Pawtucket. The stadium would be the future home of the Pawtucket Red Sox.
After months of deliberation and public input, the House Finance Committee recommended passage of legislation (2018-H 7290A) that allows the state to enter into lease and financing agreements in connection with a ballpark. The legislation reconciles the concerns that sprang from the original proposal by removing the financial risk to taxpayers.
The construction would be financed by combined contributions from the Pawtucket Red Sox Baseball Club as well as bonds to be issued by the Pawtucket Redevelopment Agency.
???After reviewing all the details of the plan, it???s plain that this is a good deal not only for the city of Pawtucket, but the state of Rhode Island as well, now that we have further mitigated the risk to the taxpayers,??? said Representative Messier, whose district includes the current McCoy Stadium. ???The stadium will pay for itself from revenue from the team and the stadium???s visitors.???
As the deal now stands, the $83 million project would be funded by all three partners (the PawSox, the city of Pawtucket and the State of Rhode Island) and a team equity contribution. The team would cover the majority of the costs, contributing $12 million in equity and principal debt of $33 million. The state and city would provide the difference from special revenue bonds.
???This legislation takes away the risk to the taxpayers that was in the original proposal,??? said Speaker of the House Nicholas A. Mattiello (D-Dist. 15, Cranston). ???This new proposal will segregate revenues generated in a new Tax Increment Financing District to ensure that revenues from the project will be directly tied to the debt payments, and the project will stand or fall on its own.???
Under the provisions of the legislation, the state would contribute State Economic Activity Taxes ??? existing tax revenues realized from activities at McCoy Stadium and tax revenue in the Ballpark District of the Downtown Pawtucket Redevelopment Area ??? to support bonds issued by the agency.
Pawtucket would contribute city Tax Increment Revenues ??? incremental real estate property taxes, special assessments on real property and betterment fees generated in and around the Downtown Pawtucket Redevelopment Area ??? and City Economic Activity Taxes ??? in order to support bonds of the agency.
As part of the project, the city is developing a plan that includes public uses of the ballpark and a mixed use real estate development in an adjacent area which may include retail, entertainment, restaurant, public park, civic space, hotel, office space and residential components as part of a larger redevelopment of downtown Pawtucket.
Under the agreement, the ballpark, which will operate and be utilized as a public park and will create public 5 recreational, social, and communal benefits, would be owned by the Pawtucket Redevelopment Agency and leased to the ball club.
Also, advance ticket prices for children, senior citizens, and general admission would not increase from the cost of those tickets in the 2017 regular and post-season for a minimum period of five years from the opening of the ballpark.
The legislation now heads to the Senate for consideration.