NEW: RI Libertarian Party Urging City, Town Councils to Reject Public Financing for PawSox

The Libertarian Party of Rhode Island is urging city and town councils to take up resolutions against public funding for a new Pawtucket Red Sox stadium -- and first up is the Cumberland Town Council.

A resolution has been placed on the Cumberland Town Council meeting agenda for Wednesday, September 6, stating that a taxpayer-subsidized entertainment facility represents a direct economic threat to Cumberland businesses, according to LPRI Chairman Pat Ford, who introduced the resolution.

See Resolution BELOW

“The Libertarian Party of Rhode Island is taking the lead on this issue, standing against the use of any public money for this private investment. We are calling on city and town councils to take an official stand as well,” said Ford. “As a Cumberland resident, I find it unconscionable that our town’s businesses should be forced to support a competing business in a neighboring city. Where is the benefit to Cumberland businesses, or to Cumberland taxpayers?”

Hearings Ahead

The consideration of the Cumberland resolution comes a week ahead of the first public hearings being held by Rhode Island Senate Finance Committee.

View the Senate PawSox Hearings Site HERE

“There is a finite pool of disposable income available for entertainment purposes in any given city or town’s economy. Competition among businesses on a level playing field is one thing. However, government subsidies of some businesses at the expense of others create an unfair advantage, one our Cumberland businesses should not be coerced to support,” said Ford.

The resolution reads:

R-17-53

RESOLUTION: TOWN OF CUMBERLAND RELATING TO PAWSOX STATE SUPPORT



BE IT RESOLVED BY THE TOWN COUNCIL OF CUMBERLAND AS FOLLOWS:



WHEREAS: Taxpayer money has no place subsidizing private investments; and



WHEREAS: Voter consent must be obtained before agreeing to any relationship with the Pawtucket Red Sox; and



WHEREAS: Taxpayer subsidies are an affront to local, entrepreneurs, who would be forced to financially support enterprises they compete with; and



WHEREAS: Private investments must find support in private capital markets, where

arms-length industry expertise will analyze their potential; and



WHEREAS: The presence of a taxpayer subsidized entertainment facility represents a direct economic threat to Cumberland, Rhode Island, businesses.



NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF CUMBERLAND AS FOLLOWS:



SECTION 1. The Town Council of Cumberland, Rhode Island, rejects the State of

Rhode Island's proposed support of the Pawtucket Red Sox baseball team



SECTION 2.

This Resolution shall become effective immediately upon its passage.

Volunteers interested in being part of the LPRI’s coalition across Rhode Island are invited to register at lpri.us/pawsox.

Related Slideshow: 7 Things to Know About the Newest PawSox Public Financing Scheme - June

View Larger + Prev Next 1) Political Impact The backdrop of the entire discussion of the financing for a PawSox stadium is the 2018 election. According to private polling, the majority of Rhode Islanders believe that the owners of the PawSox should pay for their own stadium. How hard will Governor Gina Raimondo and Speaker Nick Mattiello push for a new controversial stadium? They both won by the thinnest of margins - Raimondo won the Governorship with just 40 percent of the vote and Mattiello won re-election on paper ballots by a margin of just 85 votes. View Larger + Prev Next 2) Moody’s Mixed Bag on Pawtucket’s Bond Rating According to the rating agency Moody's, Pawtucket's outlook is: Moody's does not typically assign outlooks to local government credits in the A rating category with this amount of debt outstanding. Factors that Could Lead to an Upgrade Sustained increase in reserve levels Improvement in wealth and income indices Reduction in pension and OPEB liabilities leading to greater operating flexibility Factors that Could Lead to a Downgrade Decline in reserve levels Significant increase in debt and pension costs Sustained contraction of the tax base View Larger + Prev Next 3) Len Lardaro Warns of Risk to RI Taxpayers URI economist and author of the Lardaro Report warns: "While there might not be direct risk to RI, there is indirect risk: If the deal collapses and Pawtucket absorbs the entire loss, their credit rating would definitely fall, and in a worst case scenario, they might flirt with possible bankruptcy. RI could never just allow them to fall. At any rate, our state's credit rating would clearly be negatively affected." View Larger + Prev Next 4) Just Like the Last Deal There is little difference between the May proposal negotiated between RI Commerce, the City of Pawtucket, and the PawSox ownership and the legislation introduced in the RI State Senate on Tuesday by Pawtucket State Senator William Conley. Ultimately, Rhode Island taxpayers will be on the hook if this deal goes sour. View Larger + Prev Next 5) Top Business Leaders Question Public Financing In May, Rhode Island business leader Angus Davis, who heads Upserve, talked about his company's growth and spoke out about the billionaire group of Pawtucket Red Sox owners who are asking for $38 million to build a new park. "If you have a good business, you have investors to back it," said Davis, who began his career by selling his company TellMe to Microsoft - for a reported $800 million. "And by the way, the people behind this team know a thing or two about business, about speaking with investors, and so on." In a wide-ranging interview, Davis took to task the approach of the PawSox ownership - in light of the state's bourgeoning fiscal needs. "I get that someone, whether with stadiums or public infrastructure investments, can spur development and economic growth, I get all that," said Davis. "OK, fine. How about, 'We'll build the ballpark -- we need the city or state to come in and give us a highway off-ramp or something like that,' so it's easier to get people to and from." "That's a little more understandable than, 'Hey, 'I'd like to leverage the taxpayers balance sheet so I can borrow money at 3%," said Davis. "To me? Come on." View Larger + Prev Next 6) Opponents are Mobilizing It did not take long for the old band of opponents of public financing to the stadium to mobilize - literally just hours after the new legislation was announced. .

Calling the latest Pawtucket Red Sox legislative effort -- which is expected to see a fall session for legislators to consider -- "insane," community organizer and Pawtucket resident David Norton appeared on GoLocal LIVE on Tuesday.

"People in Rhode Island, and Pawtucket, are upset regarding collective billionaires getting tax money. [Last night], Facebook and social media started to light up," aid Norton. "We fought this fight two years ago, we thought we won it, we kind of fought it this year, we thought we won it."

"It's upsetting to Rhode Islanders and people of Pawtucket," said Norton.

"We did a poll on the "you know you're from Pawtucket " Facebook page -- the sample size was 200 -- 160 or so were dead set against the PawSox getting $15 million from the City of Pawtucket."

View Larger + Prev Next 7) Millions in Environmental Contamination Costs, Who Pays? In May, GoLocal exclsuively reported that the owners of the Apex site in Pawtucket and the previous owners are battling in Superior Court over indemnification provisions from more than $6.4 million in environmental clean-up costs tied to the land being eyed for the new PawSox Stadium. Both lead and aresnic contaminate the site according to the suits. The two parties include Andrew Gates of Apex Development Company who purchased the property for $24 million and a number of members of the prominent Fain family, who previously had ownership interest in the property. Gates’ entity purchased the property in December of 1998 according to city tax records and the property is now assessed at just under $4.3 million — a drop of nearly $20 million in value. Legal Battle According to state records, Gates is the managing partner in Zargo, LLC, which filed the action in December of 2016. In the Zargo, LLC complaint against the Fain group (the previous owners), Zargo asserts in the fact section of their action that, ”Zargo and entities have become aware of liabilities, title issues, environmental conditions and safety issues (among other things), which include but are not limited to hazardous/toxic substances (including but not limited to polycyclic aromatic hydrocarbons, arsenic, and lead), toxic materials, and underground waste oil tanks on the Real Estate (collectively, the 'Claims'), all of which are covered by the Agreement’s indemnity provisions.” PrevNext

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