by Dylan McGuiness, Associated Press
PROVIDENCE, R.I. (AP) — Lawmakers expressed preliminary support on Thursday for what they said was a more expensive but less risky plan to replace the Pawtucket Red Sox’s aging stadium.
“I’m excited and hopeful more now than ever,” Democratic Pawtucket Mayor Donald Grebien told the House Finance Committee, which was considering the revised proposal.
Commerce Secretary Stefan Pryor said the new plan amounted to a “promising framework” that needed to be fleshed out.
The old plan, passed by the Senate in January, would contribute $23 million in state money to the $83 million stadium. The city would pitch in $15 million and the team, a Triple-A affiliate of the Boston Red Sox, would provide the rest.
The new House framework, announced by Democratic House Speaker Nicholas Mattiello on Tuesday, largely mirrors the Senate plan expect for one key aspect: It eliminates the state’s guarantee of $23 million. Mattiello said that makes the deal less risky for taxpayers, who would have been on the hook if the stadium floundered.
“The state of Rhode Island taxpayers will not be responsible for any of the debt associated with that project,” Mattiello said.
In the new plan, the Pawtucket Redevelopment Authority would use so-called special revenue bonds to help fund the project.
Those bonds allow the city and state to set up an account for tax money raised directly by the new ballpark and the area surrounding it, which would go toward repaying the bonds. Mattiello said that would amount to a couple million dollars per year.
If revenues fall short, there is no further obligation to pay the bonds.
“There’s not a default. You get paid if the money is there,” said Sharon Reynolds Ferland, the House fiscal adviser.
But because there is no recourse, the financing costs are more expensive. Reynolds Ferland said it was too early to estimate how much more expensive the new plan would be.
“You do have to demonstrate that you’re a good enough risk for them to give you the money,” she said.
Pawtucket Rep. Mary Messier, donning a PawSox pin, and Sen. Donna Nesselbush, both Democrats, also voiced support for the plan.
“It appears there’s a path forward,” Nesselbush said, “and I couldn’t be happier and more heartened about that.”
