Bankrupt Developer Struever Could Be Tapped By Lucchino for Providence Stadium
Kate Nagle, GoLocalProv News Editor
Bankrupt Developer Struever Could Be Tapped By Lucchino for Providence Stadium
The once high-flying Bill Struever of Struever Bros. Eccles & Rouse, whose involvement in developing such projects in Rhode Island as the ill-fated Dynamo House, the American Locomotive Building, Royal Mills and Rising Sun Mills has a long history going back to the early 1990s with Lucchino in Baltimore.
Struever, whose projects nearly all resulted in foreclosures or lawsuits on the projects, was seen with Lucchino and members of the Pawtucket Red Sox delegation in North Carolina this week for the team's tour of the Durham Bulls, according to multiple sources.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTStruever’s firm -- who 20 companies sued in 2009 in Rhode Island Superior Court for failing to pay contractors $5 million for work on the then-Dynamo House power station -- has ties to Lucchino dating back to their days together in Baltimore when Lucchino was President and CEO of the Baltimore Orioles.
In Durham -- where the PawSox were courting favor from a group of hand-picked Rhode Islanders this week -- Struever also faced suits stemming from his work in the North Carolina city.
When asked how Struever was in Durham to greet the group from Rhode Island, Patti Doyle, spokesperson for the PawSox said, "He happened to be in NC. Larry Lucchino knows him from past work at Fenway."
As the new Providence stadium deal appears imminent, Lucchino and the PawSox organization have tried to build support for the proposal with the trip to North Carolina. Many elelcted officals refused the trip and would not allow staff to attend.
Baltimore to Boston With Lucchino
Baltimore developer Struever gained close ties to Lucchino when the latter took the helm as the Orioles President, and was close enough to take part in an Oriole VP's wedding reception for Janet Marie Smith at Camden Yards along with Lucchino and other execs in 1992, according to the Baltimore Sun.
Struever, who was credited for transforming old mills and vacant properties in Baltimore in the 1990’s and early 2000’s in Baltimore, soon saw his empire implode.
A trail of failed projects, however, in 2009 led to the company "known for decades of urban revitalization projects throughout the city and elsewhere," faced with more than $5.5 million in loan defaults, with National City Bank going after $5.3 million for a commercial loan made to Struever Bros. in 2007 in a lawsuit in Baltimore Circuit Court.
Headlines appeared in the Baltimore Business Journal that read:
“Wells Fargo sues Struever, alleging unpaid line of credit”
“Struever Bros. asks court to reject $4.2M judgment, citing economy”
“Struever Bros. Eccles & Rouse stops work on Baltimore projects”
“Struever Bros. agrees to pay $900K in court judgments”
“Setbacks for Struever Bros.”
A few years later when Lucchino made the move to Boston Red Sox, he turned to Struever for work in the Fenway Park area.
As reported in the Boston Herald by Scott Van Voorhis on March 10, 2005:
As the Boston Red Sox renovate Fenway Park and look to overhaul the gritty streets around it, the team has opted not to turn to one of the traditional heavyweights of the city's development scene.
Instead, the team is quietly relying on a Baltimore firm acclaimed for its work revamping once-neglected industrial buildings and helping revive the old port city.
While Struever Bros. Eccles & Rouse Inc. is little known in Boston, it is a company that Sox architectural chief Janet Marie Smith and Sox Chief Executive Larry Lucchino know well.
Smith, a longtime Struever Bros. executive, is on "loan" to the Red Sox, where she works as a senior vice president. And Lucchino, former head of the Baltimore Orioles, saw Struever transform an old warehouse next to the Orioles' Camden Yards ballpark into offices for the baseball franchise.
Smith was ousted, however, in 2009 -- the same year Streuver Bros. closed its doors, as outlined by the Herald's Thomas Grillo in a piece noting that Red Sox principal John Henry's new wife Linda began calling the shots.
Some anti-Smith forces also accused her of a conflict of interest, noting that she also worked for Struever Bros. Eccles & Rouse, a Baltimore-based development company that handled the team's real estate transactions for a fee.
Others dismissed the charge, saying the real estate deals were transparent and everyone knew Smith split her time between the Sox and Struever.
"When Linda arrived, she woke John Henry up to the fact that Janet has a conflict of interest and that the team is not maximizing its value on properties it owns," a source said. "So they ditched her and they're trying to make it look like Janet's departure was mutual, but it wasn't."
In the early 2000s, Struever was being dubbed a rising star in the urban revitalization movement, and he began making inroads into the Rhode Island industrial renovation scene – leveraging Rhode Island’s very charitable and then-unapped historic tax credits.
Starting with the Royal Mills development in West Warwick that was completed in 2006, Struever then turned his attention to Providence, with the Rising Sun Mills and the contentious American Locomotive Works project in Olneyville. His most ambitious project -- and ultimately one of his biggest failures - was Dynamo House in Providence (now the site of the new nursing school).
In 2005, Struever had announced plans for a $333-million mixed-use development on the 23-acre U.S. Rubber "ALCO" complex: a nine-phase development planned to house 650 residences, 450,000 square feet of commercial space and a 180-room hotel. While a portion of the site was redeveloped, a portion of the site was slated for a foreclosure auction in 2011, after Struever pulled out of Rhode Island in 2009.
Struever’s business began to unravel.
Struever was sued by a number of contractors on the Dynamo House project -- which has been leased to Brown University and is now going to be part of the the South Street Landing Project. A final settlement for payment was announced in December 2014. A story ran in the Baltimore Business News that was headlined, “$10 million unaccounted for in former Struever Bros. project,” about the Dynamo project.
North Carolina Ties
So what was Struever -- not on any official Sox "invite list" -- doing in Durham this week?
In 2005, Struever Bros. Eccles & Rouse Inc. was chosen to "transform a former tobacco factory next to the Durham Bulls' baseball park in North Carolina into apartments, shops and offices...to redevelop five buildings across from the downtown Durham minor league ballpark of the Bulls."
Fast forward to 2008.
"Baltimore's Struever Bros. Eccles & Rouse is under fire from contractors who have filed claims exceeding $1.2 million for unpaid work at a redevelopment project in North Carolina," wrote the Baltimore Business Journal.
In 2008, Struever’s VP told the Baltimore Business Journal that more than 20 liens had been filed against their project.
Efforts to reach Struever about his relationship with Lucchino and the PawSox Providence Stadium were unsuccessful.
Struever currently is at Cross Street Partners — a new company he founded that is a real estate consulting firm.
EDITOR'S NOTE: An earlier version of this stroy said South Street Station had been sold to Brown University. In fact, the agreement was a long-term lease to occupy the property. We apologize for the error.
Pawsox Stadium Timeline
1938-1942
Depression Era Public Works
The stadium's construction was started in the midst of the Great Depression as a public works project.
The champion of the project was then-Mayor Thomas P. McCoy. After World War II the building was named in honor of McCoy.
PHOTO: RI Historical Society
1990s
Pawtucket Power Brokers Deliver Millions for Rehab
The demands for public money is not new. In the mid-1990’s, the PawSox under the ownership of Ben Mondor leveraged an offer by Massachusetts Governor Bill Weld to build a $40 million public stadium in Worcester, MA to lure the PawSox to central MA.
In response, then-Speaker of the House John Harwood and House Finance Chair Tony Pires — both of Pawtucket to realize a total rehab of about $18 million. Mondor provided a reported $4 million dollars to the project to rehab the state owned facility.
November 28, 2014
PawSox To Be Sold To Some Red Sox Owners.
According to a report in The Boston Globe, The Pawtucket Red Sox will be sold to part of the Red Sox ownership group. The price and names of the owners purchasing the minor league franchise is not yet known.
For the full story click here.
January 10, 2015
Leaders Make the Case for PawSox to Stay in Pawtucket
Support is mounting from city and local sports industry leaders to make a case for keeping the 2014 league champions at McCoy stadium, which it has called home for over 40 years.
For the full story click here.
January 12, 2015
Raimondo’s First Test, Keep The Pawsox in RI
Days into the Governorship of Gina Raimondo and she’s already tasked with a tall order—find a way to keep the Pawtucket Red Sox where they belong—in Pawtucket.
For the full story click here.
February 24, 2015
City Council President Aponte “Excited” at Prospect of PawSox Coming to Providence
City Council President Luis Aponte reacted with excitement Monday at the prospect of the Pawtucket Red Sox moving into Providence.
For the full story click here.
February 24, 2015
Pawtucket Mayor Says PawSox Move is “Devastating”
Pawtucket Mayor Donald Grebien confirmed to GoLocalProv that the new owners of the Pawtucket Red Sox plan to move the team out of the city.
For the full story click here.
February 24, 2015
New Owners Don’t Rule Out Public Funding For New Providence PawSox Stadium
The new ownership group of the Pawtucket Red Sox hasn’t ruled out using public financing to fund their proposed new stadium in downtown Providence, according to comments made by new principal owner and team president James Skeffington.
For the full story click here.
February 26, 2015
Jencunas: Providence PawSox Stadium - Boon or Bust?
GoLocal contributor Brian Jencunas writes, “the proposed move of the Pawtucket Red Sox to Providence is either the next Providence Place Mall or the next 38 Studios.”
For the full story click here.
March 2, 2015
The Ten Biggest Questions Facing the PawSox Coming to Providence (Slideshow)
If the new ownership of the Pawtucket Red Sox want to build a new stadium in Providence, a number of questions need to be answered. The potential for a major contruction project in the state's Capitial city touches upon a number of issues, from money, to politics, to jobs, and development.
For entire slideshow click here.
March 2, 2015
David Brussat, Dr. Downtown: The Red Sox and the PawSox
GoLocal contributor writes David Brussat writes that his “heart says stay, but “stay in Pawtucket” may mean “leave Rhode Island” unless it means “move to Providence.”
For the entire article click here.
March 2, 2015
Moore: Will PawSox Move be a Sweetheart, Insider Deal?
GoLocal contributor Russell Moore explains that, “if you think that the shrewd, savvy, group led by renowned Rhode Island political insider James Skeffington and Red Sox boss Larry Lucchino bought the Pawtucket Red Sox without the framework of a deal with the state in their back pocket, I've got a video game business idea I'd like to pitch to you.”
For the entire article click here.
March 4, 2015
City Councilors Make Pitch for PawSox to Come to Worcester
Worcester City Councilors Gary Rosen and Phil Palmieri proposed that the city of Worcester makes a pitch for the Pawtucket Red Sox, or another Major League Baseball-affiliated team, to move to Worcester.
For the entire article click here.
March 5, 2015
Bishop: Keeping the Pawtucket Red Sox Without Seeing More Red in Providence
The Speaker of the House seems to have rushed to judgment, favoring the move of the Pawtucket Red Sox to Providence and decrying critics as unduly pessimistic and unwilling to see us invest in ourselves.
For the full store click here.
March 10, 2015
RI GOP: $450 Million Spent on Convention Center Red Flag for PawSox Deal
Members of the Rhode Island House Republicans are warning about "lessons learned" from the Rhode Island Convention Center lease agreement that has cost the state nearly a half billion dollars over the last twenty years, as the new owners of the PawSox eye Providence for a new stadium.
For the full story click here.
April 8, 2015
Providence PawSox Proposal Asking For Greater Public Support
The new owners of the Pawtucket Red Sox are asking for more public support to finance moving the team to a parcel of land in downtown Providence on former I-195 land.
For the full story click here.
April 13, 2015
Is the PawSox move to Providence a distraction to growing real business?
Rhode Islanders look to a 43-year-old woman to lead the state out of one the worst economies in its history, and hope that Governor Gina Raimondo will begin the process of transforming the economy into a modern and functioning era.
For the full story click here.
April 16, 2015
PawSox Ask for More Than $100 Million in State and Local Aid
The Pawtucket Red Sox today unveiled their plan for a new ballpark in downtown Providence, which would cost taxpayers over $100 million.
For the full story click here.
April 17, 2015
PawSox Consultant’s Findings in Other Cities Often Very Rosy
A GoLocalProv review of reports written by consultants hired by the PawSox new ownership group finds similarities in the methodology and the findings of many of the reports that the consultants have delivered across the country.
For the full story click here.
April 17, 2015
PawSox Consultants Overestimated URI Ryan Center Attendance by Millions
The consulting group hired by the new ownership group of the Pawtucket Red Sox was the same one retained by the state to conduct the business plan for the University of Rhode Island's Ryan Center in 2000 -- and furnished attendance projections for the Center which proved to be overinflated by nearly 30% over the course of its first ten years.
For the full story click here.
April 20, 2015
Bill Introduced to Require Voter Approval for PawSox Stadium Deal
New legislation has been introduced that would require voters to “approve any financial arrangement that obligates the state to fund the debts of others with respect to a baseball stadium.”
For the full story click here.
April 20, 2015
John Loughlin: PawSox in Providence – A Counter Offer
Here is John Loughlin’s “counter-offer” to the new owners of the Pawtucket Red Sox.
Click here for the full story.
April 20, 2015
Moore: A Preposterous PawSox Proposal
After the jaw-dropping proposal from the Pawtucket Red Sox ownership, that would, among other things, force Rhode Islanders to pay the team $120 million for an $85 million stadium they'll build was released, former State Representative David Segal took to Facebook to ask a question: Why wouldn't the state just buy the team itself?
Click here for the full story.
April 20, 2015
Leaders’ Reactions Mixed to Providence Sox Stadium Proposal
The new owners of the Pawtucket Red Sox have announced their proposal to build a $85 million stadium in Providence -- and while many Rhode Island elected officials and leaders have taken a wait-and see approach, a number have voiced their outright opposition to the plan as presented.
Click here for the full story.
April 21, 2015
PawSox Owners Have Given Hundreds of Thousands in Political Contributions
The new ownership group of the Pawtucket Red Sox has given hundreds of thousands of dollars in political contributions to candidates and elected officials in Rhode Island -- and its lobbying and communications team have donated over six figures combined on top of that.
Click here for the full story.
April 26, 2015
Opposition Mounting Against Providence Sox Stadium Proposal
The 195 Commission reversed its decision to hold its meeting on the proposed Providence stadium Monday in closed session, announcing Friday it would now hold Monday's meeting open to the public, but public opposition to the proposed deal continues to grow.
For the full story click here.
April 27, 2015
Dr. Mazze - Asking the Right Questions Now on PawSox
The PawSox stadium proposal is on a fast-track to obtain financial support in one way or another from Rhode Island and the City of Providence. Various studies have been presented on the viability of a new stadium in Providence, and another study of about $150,000 has been commissioned.
For the full story click here.
April 27, 2015
New PawSox Stadium Location Emerges in Providence
A new stadium location in Providence has emerged as an alternative to the proposed 195 Commission land, GoLocalProv has exclusively learned.
For the full story click here.
April 29, 2015
Owners of Potential New PawSox Site Issue Statement As Alternative to 195 Land
The owners of the Victory Plating site that GoLocalProv unveiled as an alternative site on Sunday have issued a statement regarding their site as the potential new home of the PawSox.
For the entire story click here.
May 1, 2015
Dr. Mazze - New PawSox Stadium v. 38 Studios Lessons Unlearned
Dr. Mazze writes, “Bringing up 38 Studios as the discussion for public financing and tax forgiveness continues for a new PawSox stadium in Providence gets the immediate response……we have to move forward.”
For the full story click here.
May 1, 2015
RI GOP: Convention Center Contracts Warning Sign for PawSox Deal
The Rhode Island House Republican Policy Group continued their investigation into the state's spending on the Convention Center Authority (CCA) at a meeting on Thursday, releasing findings from an Auditor General report that showed massive contact cost overruns in the 1990s that they said serve as a warning sign.
For the full story click here.
May 11, 2015
Moore: Mattiello Must Leave Pawsox Fate Up To Voters
GoLocal contributor believes that “Rhode Islanders should be asked directly if they want to spend tens of millions to pay for a new stadium for the wealthy men who now own the Pawtucket Red Sox.”
For the full story click here.
May 12, 2015
PawSox Want $120M, South Carolina Lands Volvo for $200M in Incentives
The Pawtucket Red Sox new ownership is asking for $120 million in incentives from Rhode Island and a tax break from the City of Providence voiding property taxes for thirty years. The PawSox employ less than 30 full-time employees.
For the full story click here.
May 14, 2015
Economist Says PawSox Leverage Over RI is Overstated
Rhode Island House Speaker Nicholas Mattiello’s (D-Cranston) recent Pawtucket Red Sox talking points make it seem like the state of Massachusetts is waiting in the wings with financial incentives to lure the team away. Victor Matheson, a prominent economics professor from the College of the Holy Cross, poured cold water on that notion.
For full story click here.
May 18, 2015
PawSox President Jim Skeffington Dies
Jim Skeffington, the PawSox President and driving force behind the proposed move of the team to Providence, has died of a heart attack at age 73.
For the full story click here.
May 18, 2015
PawSox Release Statement on Jim Skeffington Passing Away
Pawtucket Red Sox President James Skeffington passed away of a heart attack early on the morning of May 18th. The Pawtucket Red Sox have released a statement regarding his passing.
For the full story click here.
May 19, 2015
What’s Next for the PawSox?
The passing of Pawtucket Red Sox President James Skeffington raises new questions about the future of a Providence stadium, as the ownership group was in the midst of negotiating a new deal with Governor Raimondo and state leaders -- and embarking on a community tour to hear from residents of the city, spearheaded by Skeffington.
For the full story click here.
May 26, 2015
Pawtucket Fights to Keep PawSox: Mayor Grebien’s Letter to Larry Lucchino
Just days after the passing of Pawtucket Red Sox owner James Skeffingon, Pawtucket Mayor Donald Grebien wrote a letter to Boston Red Sox owner Larry Lucchino.
For the full story click here.
June 5, 2015
Bill to Require Voter Approval for PawSox Stadium in House Finance
The Rhode Island House Finance Committee is hearing testimony Thursday afternoon on legislation to require voter approval for any financial agreement the State of Rhode Island may make with any professional sports franchise -- including any new PawSox stadium in Providence.
For the full story click here.
June 8, 2015
Tens of Thousands Sign Petitions Against PawSox Providence Stadium Deal
Petition signatures opposing the Pawtucket Red Sox moving to Providence have totaled over 10,000 signatures to date, with two petitions -- one to keep the Pawtucket Red Sox at McCoy Stadium and one to call for no financial aid from Providence -- slated to be delivered to leadership this week.
For the full story click here.
June 22, 2015
PawSox Stadium Opponents to Up Pressure at State House this Week
The Rhode Island General Assembly might be in the waning days of the 2015 session, but opponents to a Providence PawSox stadium are planning to ramp up their efforts to let lawmakers know they oppose a new deal if put forth -- or a special session to consider one.
For the full story click here.
June 26, 2015
PawSox Stadium Opponents Rally at RI State House
Opponents to a Providence stadium for the Pawtucket Red Sox rallied at the Rhode Island State House on Thursday, June 25th -- GoLocalTV was on location to get the scoop.
For video footage click here.
June 29, 2015
David Norton: PawSox Owners Trying to Buy Support
Why are the PawSox owners buying support with a catered dinner at a Salvation Army food pantry in South Providence?
For the full story click here.
June, 2016
Pawtucket and PawSox Hire a Consultant
The Pawtucket Red Sox along with the City of Pawtucket announced in the summer of 2016 that they issued a request-for-proposals for a McCoy stadium feasibility study.
The study was to "determine the needs, upgrades, improvements, and the associated costs, of McCoy Stadium, as called for within the existing lease between the Pawtucket Red Sox, the City of Pawtucket, and the State of Rhode Island."
Dec, 2016
ABC6’s “In The Arena” - Debate Subsidy for Billionaire PawSox Owners
The panel on this week's episode of ABC6's "In the Arena" debate the need to provide subsidies to the owners of the Pawtucket Red Sox.
Moderator Joe Paolino leads the discussion and former Governor Ed DiPrete, former Attorney General Arlene Violet, former State Representative Ray Rickman, and GoLocal CEO Josh Fenton appear this week.
Jan, 2017
National Stadium Expert: Public Should Not Subsidize PawSox to Stay in Pawtucket
A leading sports economist is saying that he would personally advise no public money be spent on rehabbing - or rebuilding - McCoy Stadium for the Pawtucket Red Sox, after a report released this week showed that it would cost $68 million to renovate McCoy, and at least $78 million to construct a new stadium.
“As an economist, I would personally advocate for no public money beyond a provision to infrastructure around the stadium to fans can get to the games,” said Victor Matheson, who is a Professor of Economics at Holy Cross, whose focus is on sports. “That being said, there are certainty sports fans who think that having a AAA team in town is a nice amenity for local residents so might be worth some public money. So, some level of ask might be able to get public support.”
March, 2017
Apex is the new favorite
The new preferred location is the Apex department store site in downtown Pawtucket. It has great highway access, has the potential to be an economic spark, but has numerous environmental issues.
March 2017
RI Commerce's Stefan Pryor Talks PawSox on GoLocal LIVE
Commerce Secretary Stefan Pryor talked with GoLocal about Commerce's role in facilitating development of the dormant Superman Building, how he feels about the ownership of the Pawtucket Red Sox looking for assistance with keeping the team in Pawtucket, and how Commerce increased its $1 million budget to $2 million to help businesses across the state with upkeep improvements.
April, 2017
PawSox’s President Steinberg Talks New Park Potential, Saturday Fireworks, and More on GoLocal LIVE
Pawtucket Red Sox President Dr. Charles Steinberg talked with GoLocal about the team's upcoming season, the recently announced Hall of Fame list, the prospects of the future of McCoy and whether the Apex building location presents a viable option.
April, 2017
PawSox Chair Lucchino: Vision is for “Public Park” in Pawtucket
Pawtucket Red Sox Chairman Larry Lucchino told a crowd of over 100 at Slater Mill on Monday that the ball club has a "strong preference" to stay in Pawtucket.
Lucchino's remarks came during a forum hosted by Pawtucket Mayor Don Grebien along with the Pawtucket Foundation, to discuss Pawtucket’s "20/20 downtown development vision" with local business and property owners to get their input.
“Pawtucket is experiencing a revitalization and a renewed sense of optimism. The commuter rail is on the horizon, new businesses are moving in, and our existing businesses are growing. Pawtucket is truly evolving,” said Grebien. “Now is Pawtucket’s time, and we want to align the efforts of the public and private sectors to capitalize on the momentum that these exciting projects are generating."
