RI Contractor Blasts Out-of-State Developer of College Hill Tower, Governor Should Be “Embarrassed"
GoLocalProv News Team and Kate Nagle
RI Contractor Blasts Out-of-State Developer of College Hill Tower, Governor Should Be “Embarrassed"
The $60 million project and an approved second phase have been green-lighted by the Rhode Island Commerce Corporation for ten million in public financing, but contractors have levied liens in Rhode Island courts for millions of dollars on unpaid bills by the developer Rick Shaffer of Vision Properties, a Pennsylvania development company.
The company has repeatedly promised over the past six months that it would get all the contractors paid.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTVision issued GoLocal the following statement on February 22, “The Edge At College Hill was a significant undertaking and we are proud that it could add to the fabric of the great City of Providence. Like any large-scale project, much of the final reconciliations occur well after the project is complete. We are wrapping up that process now. We hope to finalize all such matters within the next 30 days or less.”
“I am really not happy with Mr. [Rick] Shaffer — especially with my conversation [Wednesday]. I don’t know the truth. I’ve had enough,” said Bruce Bookbinder, CEO of RI-based Delta Mechanical
Delta is owed more than $800,000 for work that was completed in September. Bookbinder previously spoke out on the non-payment back in February.
“The [State of Rhode Island] can’t give [the next project] to him — if they give it to him, the Governor ought to be embarrassed. Tell me what the difference is with this and 38 Studios. I think Curt Schilling at least was honest, I think the other people got away with murder,” said Bookbinder.
Raimondo is chair of the Commerce RI and led the board’s approval of both of the Vision Properties’ projects. Her office refused to comment on this article.
“One is he hasn’t paid, and he really is hurting people. The tile guy [on the project], his contract is for $700,000 — and I believe he got $100,000 to date,” said Bookbinder.
Commerce's consultant in its analysis of the project wrote, "Appleseed estimates that when the project is completed and fully occupied (which for purposes of this analysis is assumed to occur in the fall of 2018), it will directly and indirectly account for:
• 31 FTE jobs in Rhode Island;
• Approximately $886,000 in annual earnings (in 2018 dollars);
• Approximately $2.573 million in annual statewide economic output; and
• An increase of approximately $1.487 million in Rhode Island's annual GDP."
“[Shaffer] wanted to give me $300,000 to release the lien, then $400,000, then $500,000. I said we want eighty [cents] on the dollar -- now -- and we want to get paid in whole,” said Bookbinder.
In February, Rhode Island subcontractor Jose Marcano told GoLocal he has not received pay for his company's work in 2018.
"I've gotten no pay since [we finished] in September," said Marcano, who said he started on the job in March 2018. "I hear they're looking at the [Vision] tax credit at Commerce, and I've been in touch with the city of Providence regarding their tax stabilization agreement."
Marcano said that in total, he is "owed $264,000" for his company -- JoMar Painting's -- work on the project.
At that time, Commerce RI’s Brian Hodge told GoLocalProv, “We are aware of the ongoing situation and continue to look into it. As stated previously, the contractor has received no tax credits and will not receive any tax credits until there is a review and certification of the final project cost, which includes proof of payment.”
And, while Commerce continues to review both the compliance with the Phase 1 funding — $4 million. Vision Properties in still eligible to receive another $6 million for a second phase of the properties.
“I told Rick — I said you’re hurting people’s families — I said you have to pay your bills. I’ve had enough of Rick Shaffer. He’s got a project up in Boston. We’re trying to see if any of this money is going towards that,” said Bookbinder. “He said six weeks ago, I told him [I'd be fine] with $600,000. I said six weeks ago I said get me $600,000 and we’ll figure out the rest. That deal is off the table now."
Commerce’s Matt Sheaff told GoLocal on Thursday, "Not one dollar of tax credits has been paid out to the developer yet because of the strong taxpayer safeguards we have put in place for our economic development programs. Rebuild Rhode Island Tax credits are paid out over five years after a review and certification of the final project costs. The final project costs of this project have yet to be certified."