Contract Amendment for Skyline at Waterplace Never Approved by Board of Contract and Supply

Contract Amendment for Skyline at Waterplace Never Approved by Board of Contract and Supply

Jorge Elorza’s administration lease amendment for the agreement between the City of Providence and Skyline at Waterplace, LLC -- signed by Elorza in August -- was never presented to the Board of Contract and Supply for approval.

“The Board of Contract and Supply presides over all purchasing and procurement over $5,000 (which must go out to bid) of materials, supplies, services, equipment, and all other necessary categories of procurement for the city of Providence,” according to the City of Providence.

Even emergency work needs approval, “Additionally, emergency work that is being done in the city must come before the board for payment approval. The board meets bi-weekly at City Hall in the City Council Chambers. At these public meetings, bids submitted for active RFP’s are opened.”

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Timeline, Approval in Questionskyline

The initial bid award was presented to the Board of Contract and Supply on Monday, February 22, 2016, agenda when the head of the Department of Parks, Wendy Nilsson, Superintendent, "recommended M.M. Asset Mgnt. & Delpidio Group, low bidder, for Restaurant or Other Services at Waterplace Park Pavilion, in a total amount not to exceed $2,073,900.00 (Lease and Improvements)-Revenue Generating. (Minority Participation is 0%) (659-659). The subsequent negotiation went on after the initial award to finalize the contract.

The executed contract was signed in May 24 of 2016 - READ LEASES BELOW. According to the contract, the agreement incorporates and references the City's, "Request for Proposals for Restaurant or Other Services at Waterplace Paik Pavilion Providence, Rhode Island issued on December 1, 2015 (the "RFP") as if fully set forth herein. In the event of any conflict or inconsistency between the terms and provisions of the Lease and the terms and provisions of the RFP, the terms and provisions of the Lease shall govern and control." 

The August of 2017 Amendment

The August amendment forgave back rent and cut future payments for Skyline's owners, who hold the lease to operate Skyline at Waterplace, by $70,000. On June 8, 2017, the Board of Park Commissioners considered authorizing of an amendment to the lease agreement between the City of Providence and the Skyline at Waterplace LLC. And on August 9 the Board took up the amendment and another agenda item relating to Skyline and the potential "assignment of the lease to Bristol County Savings Bank."

While Elorza’s administration was negotiating a cut to the payments to the city under the contract, Skyline's owners and operators donated a total of $4,100 in campaign donations to the Elorza Mayoral re-election campaign fund.

According to RI Campaign Finance records, Skyline Managing Partner Michael Mota donated $1,000; Skyline Partner David Pontarelli ($1,000), Mota’s father-in-law and responsible for much of the build out at the Skyline Joseph Ricci ($1,000), Mota’s wife and Ricci’s daughter $100; and Boston nightclub owner and investor in the Skyline Louis Delpidio ($1,000). The five donations were all recorded by Elorza's campaign over a two day period -- June 20 and 21, 2017.

According to Rhode Island's corporation database Mota and Pontarelli are the two managers of Skyline at Waterplace, LLC

Skyline won a ten-year contract and was slated to pay $91,250 the first year and there is a provision for a second ten year contract. Under the lease which is dated May 23, 2016, Skyline would pay the City of Providence more than $1 million during the first ten years. 

Questions to Mota regarding the outstanding payments were not responded to.

When the Elorza administration first awarded the lease for the Skyline at Waterplace to Mota, Pontarelli, and crew, GoLocal unveiled the checkered background of Pontarelli.

In 2012, Pontarelli was fired by the City of Providence for being a “no-show” worker and taking city property for use at a nightclub that he simultaneously managed, while working for the city.

As GoLocal reported, Elorza’s administration awarded a multimillion-dollar lease to a group of companies - which include Pontarelli - giving him a management interest in Providence’s iconic Waterplace Park.  

The contract was issued by the Parks Department and approved by the Board of Contract and Supply, which Elorza chairs.

Prior Investigation, New Venture

A Target 12 investigation in 2012 had tracked Pontarelli for a total of 120 hours and found that on Providence taxpayer time, he repeatedly went to have his eyebrows threaded, did work for his other job and went shopping.  

Regarding Pontarelli, Tim White of WPRI said he “soaks up the sun and dines on the Hill.”

Pontarelli said in a press release regarding his latest venture, “Skyline at Waterplace will breathe new life into Providence…I can see clearly how Skyline at Waterplace will push Providence to the next level.”

At the time of the WPRI investigation, Pontarelli’s behavior was roundly criticized.

“It is outrageous and maddening,” said then-Mayor Angel Taveras after being shown the video of Pontarelli. “It's a horrible example. I won’t stand for it.” 

Pontarelli was first suspended and later fired by the Taveras administration, according to press reports.