The Covid economy has developers all over rethinking construction plans, especially office projects, since it seems pretty likely not nearly as many people will be going in to the office in our future. And so it goes with Fortuitous Partners’ soccer stadium project for a USL team in Pawtucket, which was going to involve $360 million in apartments, shops, offices, and a hotel and conference center to go along with the $40 million stadium, and which now will include something less than that:
Brett Johnson, one of the cofounders of Fortuitous told the Pawtucket City Council on Wednesday night that the project was being scaled back. The former Apex site — the centerpiece of the project due to its highway visibility — is now being eliminated.
Johnson, who is also owner of the Phoenix Rising USL team, told the Providence Journal that his new price tag was “likely in the ‘low $300 million’ range.” The pandemic, he explained, has reduced demand for office space, though he could still add more offices later if those become a thing again.
But at least if the project is slimmed down, it won’t need so much in public tax subsidies, right? Hahahahahaha, no:
The project is still looking for $70 to $90 million in public financing. The company has hired high-powered Rhode Island lobbyists to try and secure the funding.
Or as the Journal says, in a sentence that manages to contradict itself in a single clause:
Johnson said Fortuitous still intends to privately finance the project using Opportunity Zone investments aided by tax increment financing with the city and state.
Kicking back $70-million-plus in tax revenues to get a $40 million minor-league soccer stadium (and a pile of other stuff) never seemed like the best idea, but it’s singularly worrisome at a time when minor-league sports is reeling and may never fully recover. Here’s Holy Cross economist Victor Matheson back in April on Pawtucket’s USL plans:
“This is a league with 100 teams and different tiers. Minor league sports are above everything the sort of thing to get crushed by coronavirus — everything they do is about getting people into the stadium. That’s not going to be happening with this team,” said Matheson.
“And this isn’t Lucchino — this isn’t John Henry, or Bob Kraft. These are often shoestring operations. [Coronavirus] could bankrupt a reasonably large number of teams in that league and suddenly this isn’t the league it was before,” added Matheson.
The tax increment financing plan still needs to be approved — I think by the state legislature, though it already approved a Pawtucket TIF district, so maybe just the city or the governor needs to okay it, really the reporting on this has been terrible — so there’s still time for things like public hearings, if anyone believed in those anymore. Maybe I’ll see if I can ask Matheson about it when he and I join up as part of this big Zoom get-together on the Los Angeles Angels stadium deal tonight at 9:30 Eastern/6:30 Pacific. I’m told it’s going to be broadcast live on the Voice of OC’s Facebook page, so check that out if you’re interested — I anticipate being very active in the comments…