Rhode Island Gov. Gina Raimondo said Monday that she supports new legislation to be introduced Tuesday about how the state, city and Pawtucket Red Sox would finance a new baseball stadium because it addresses her concerns about whether Pawtucket would backstop its financial commitment if anticipated revenues fall short.
"I'm very pleased to say that Mayor [Donald] Grebien has listened to my concerns," Raimondo told reporters. "He has addressed those concerns and gotten this to a place that I will be able to support it as being a good deal for Pawtucket and a good deal for the taxpayers of Rhode Island."
Raimondo spoke after the chairman of Rhode Island's Senate Finance Committee told The Providence Journal he's ready to introduce legislation Tuesday with "significant improvements" over proposed legislation Grebien released last month.
Raimondo had objected to Grebien's proposal, which was never introduced at the General Assembly, for the state to "backstop" the city's portion of bonds issued to raise money to finance a new $83-million stadium. In other words, if projected revenue from the stadium were to fall short, state taxpayers would be responsible for the city's portion of the bonds.
Raimondo said the legislation now makes it clear Pawtucket would pay its portion of principal and interest on the bonds if revenue falls short. Grebien declined interview requests.
On Monday, Sen. William J. Conley Jr., a Democrat who represents East Providence and Pawtucket, said he doesn't expect debate now, but he expects his Senate Finance Committee to delve into details in the fall.
"On the Senate side, this will be the most publicly, fully transparent vetting of a financing program in the history of the state of Rhode Island," Conley said. "That's our goal. We're going to have extensive public hearings that will examine this bill completely -- look at all of the dotted 'Is,' crossed 'Ts,' have extensive and open public hearings."
Although the team and city had pushed to finalize a deal this legislative session, which is poised to adjourn as early as this week, Senate President Dominick J. Ruggerio quashed that notion last month. As Raimondo and House Speaker Nicholas Mattiello appeared locked in a political tussle -- he wouldn't examine legislation without her support; she wouldn't personally submit legislation -- Ruggerio insisted it was too late to dig into the proposal this spring.
On Monday, Raimondo said she and Mattiello have spoken at length, but she did not say she has directly asked him to consider this legislation.
"My position is: Pawtucket deserves this," Raimondo said. "It's a deal I support. It's a good deal for taxpayers. Taxpayers are protected. At the end of the day, I don't think it's going to cost Rhode Island anything, so they deserve a chance."
Raimondo and Commerce Secretary Stefan Pryor, who spoke after leading the R.I. Commerce Corporation's monthly meeting on Monday, said the state's analysis shows revenue generated by a new ballpark would cover bond payments. The Pawtucket Redevelopment Agency would issue those bonds.
Here's how the three entities have said they'd pay for a new $83-million stadium at the Apex department store site:
- The PawSox would pay $45 million, including an early $12-million cash outlay;
- The state would pay $23 million from tax revenue generated in and around the stadium;
- The city would pay $15 million, also with tax revenue generated in and around the stadium.
Those amounts remain the same, Pawtucket Director of Administration Antonio Pires said Monday.
The team has agreed to pay any cost overruns for stadium construction costs, PawSox Chairman Larry Lucchino has said.
The stadium, like the team's 75-year-old McCoy Stadium, would be owned by the city, leased to the state and subleased to the team.
Asked who would repay the team's bond, Raimondo deferred to Pryor, who said the state is confident the team's lease payments will be enough to cover bond payments.
Pires, a former House Finance Chairman, said if the team can't make its payments, the Triple-A franchise is owned by baseball's International League, which "would be responsible for the indebtedness of the team."
Pires said the state would still be asked to "backstop" its portion of the bonds.
