Battle over Urban League of Rhode Island's Future Heats Up

Kate Nagle, GoLocal Contributor

Battle over Urban League of Rhode Island's Future Heats Up

The Urban League of Rhode Island is looking to address $2.2 million in debt by selling its Prairie Avenue property -- and some are questioning the decision.
A former Urban League of Rhode Island board member, as well as a former employee, are raising questions about the finances -- and leadership -- of the organization.

The Urban League is currently looking to sell its Prairie Street property to pay off $2.2 million in debt -- for $2.6 million.  Proponents say the project by the proposed developer, The Aspen Group, could mean jobs and tax revenue to the city, while bringing the nearly 75 year-old non-profit out of debt.

However, some in the community are asking how the organization, which runs shelters as well as adoption, foster care, and community programs, accrued the millions in debt -- and if the sale of one of the organization's biggest assets is the best way to address the fiscal situation, and what the plan is moving forward.  

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"The leadership's only plan is to sell a building that was acquired - prior to current leadership -- for $1," said former Urban League Board Member Raymond Watson, who is now the Executive Director of the Mount Hope Neighborhood Association. "That's not even the matter -- it's more of a matter of covering up mismanagement."

Urban League Executive Director Dennis Langley said however that non-profits across the state are struggling financially -- and that the City of Providence was playing politics with the League.

"I met with representatives with the Mayor's office, who told me in no uncertain terms, "Why should we help you, when you have a council member on your payroll who opposed our budget?," said Langley. "They had their beef. I told them we need to grow up, I said we needed to start acting as adults here."

Tax Potential for Providence?

Langley said that the League decided to move forth pursuing the sale of the building "about a year ago."

"After looking at the amount of programs that we have, the decrease in administrative costs -- it was appropriate to downsize. The overhead cost of the facility was enormous. To keep the agency in fiscal fitness, we had to address to not having enough tenants, with the recent Allen Berry departure," referring to the Providence Community Health Center.  

"We had to do something. The plan is to sell the 246 [Prairie Avenue] complex, pay off whatever debt we owe, and go into Gordon Street Property, which is a solar facility, it's a green building. It's less costly to maintain."

Langley mentioned that prior to the Aspen Group, Lifespan had been interested in the property, but didn't pursue it due for internal reasons. The Aspen Group, however, said they'd "love to purchase the property," said Langley. "They'd tear it down, and put up two large office buildings -- but would not use all of the land, instead the would put up greenways for the community."  

"We're talking about $500,000 each year in taxes back to the city on a $30 million project," said Langley. "It's a win-win situation. The clause that the city has is that the money should be enhance and grow the Urban League -- but that's what the money's supposed to be used for."

Leadership, Finances Called into Question 

Individuals familiar with the Urban League have said the organization however has been in trouble for years -- and shouldn't sell the building to cover its debt.

"The red light should have gone off years ago," said Toni-Marie Roderick, who had worked at the Urban League for 15 years. "I held almost every position there -- I started as a part time case worker and worked my way up to Director of Program Development. I brought in millions of dollars, brought in new units and programs, working with higher risk populations." Roderick currently works for a non-profit out of state.

"I started to see the downfall of the business decisions being made. You stated to feel like you were seeing a great institution of close to 80 years crumbling," said Roderick. "I think the board's in the dark, or they're covering. They should have sold this property years ago. We had viable assets that weren't being sold. If you can't pay staff, you need to make educated business decisions."

Roderick continued, "I'm not saying this as a disgruntled employee -- I was a good administrator there. A lot of what people are saying right now might sound like hearsay, which is why a lot of people haven't come forth -- for fear of losing their jobs. I went without a job for 9 months when I left the Urban League. I just couldn't stay there and watch it go down like that."

Roderick said that she didn't believe selling the building to cover its debts was justified, given what she said she was "mismanagement" by the leadership.  "The city should not be responsible for bailing out the League," said Roderick. "Why should the city say the League can just have the $2.6 million from the sale of the building?"

Former board member Watson, who helped found the League-affiliate, Rhode Island Young Professionals, said, "If the only plan of action is to sell off the biggest asset that the organization has, where is the plan of action moving forward? I'd personally like to see it go into receivership, and a new president and board. I don't see how the same organization can now with any sort of integrity lead this organization out of this.  It wouldn't happen with any business."

"My concern is to the residents of South Providence. There's a lot of changeover in that neighborhood. How does this benefit them?" asked Watson. 

Next Steps  

The proposal for the sale of the building is currently on hold with the City Council, as the Council held off on transferring the city property to the Urban League at last Thursday's meeting, calling for a further look into the Urban League's finances by the city.  

"They can audit the financials," said Langley, noting he had handed over everything asked of him of the City -- but said they were playing politics. "The Urban League is not in the business of making money -- we're here to help the community, we don't charge a fee. Look at adoptions, helping youth -- one kid in the training school is more than $60,000 a year."

 

"People don't understand what's going on," said Langley. "The state is recognizing that they're needing more than what we can provide with unemployment, homelessness. We'd look for another building for homeless. We won't need Russia to start a war here -- if you don't have what you need to subsist, people will start revolting."  


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