Cranston Mayor Fung Pushing Multi-Million Dollar Solar Contract to Campaign Donor

Cranston Mayor Fung Pushing Multi-Million Dollar Solar Contract to Campaign Donor

Mayor Allan Fung has submitted to the Cranston City Council a contract to one solar company that could be worth tens of millions of dollars over the course of the decades-long agreement, GoLocal has learned.

Going before the City Council is an “Ordinance authorizing the Mayor, Finance Director and Purchasing Agent to execute a Net Metering Financing Arrangement with Southern Sky Renewable Energy RI – Natick Ave. – Cranston LLC. Sponsored by Mayor Fung.”

It is unclear if any other renewable company was allowed to bid for the contract.

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Southern Sky Renewable Energy RI is headed by Ralph Palumbo, who is the manager of multiple solar projects across Rhode Island and more than a dozen and a half separate limited liability corporations. According to one press announcement, "Southern Sky Renewable Energy RI, a Rhode Island-based business, is the leading solar developer in the state with over 100,000 panels installed and a pipeline of 296 MWs."

Some of those corporations are tied to New York City-based Izzet Bensusan who is the Managing Partner and Founder at Captona. 

See List of Companies at the Bottom in the Story

Captona is "a North America-focused investment company specializing in power generation and energy infrastructure assets."

Palumbo is also a major political campaign donor in Rhode Island. He has donated over $50,000 to top politicians in Rhode Island, according to Rhode Island campaign finance reports including thousands to Governor Gina Raimondo ($3,400), Speaker of the House Nick Mattiello ($4,750).

Palumbo gave Fung $1,000 in the summer of 2018 -- in the midst of his second unsuccessful bid for Governor. 

Repeated efforts to reach Fung and Palumbo for comment were unsuccessful.

 

Contract Extends for Up to 35 Years

According to the agreement embodied in the ordinance submitted by Fung, the contract can go on for 35-years.

The contract term is 25 years and can be extended for an additional ten years -- two five year terms, according to the ordinance submitted by Fung to the Council for approval on Monday night.

“Unless terminated earlier pursuant to the terms of this Agreement, shall remain in effect until the twentieth-fifth (25th) anniversary of the Commercial Operation Date. This Agreement shall be extended automatically for two (2) successive additional five (5) year terms unless City provides written notice of its intent to not so extend the Term to Seller ninety (90) days prior to the end of each additional five (5) year term” states Fung’s agreement.

The ordinance and its addendum are 100 pages long.

 

Council Members Raise Concerns

Cranston Councilman Ed Brady says the agreement will help the city realize between $800,000 to $1,200,000 a year. “I don’t know why it was not bid,” said Brady.

“It is only being introduced tomorrow. It won't be discussed or voted upon, but merely referred to committee for a hearing…but he way the city has handled solar power plants so far is horrendous.  I will have a comment when the hearing happens,” said City-Wide Councilman Steve Stycos in an email to GoLocal on Sunday night.

“It’s coming to the council as new business for a hearing. [I'm] not sure about the particulars on bids but that is a great question I will ask our clerk in the process tomorrow,” said Michael Farina, President of the City Council.

Councilman Ken Hopkins said he was unaware of the issue. “I personally believe in transparency and that everything should go to bid. Not sure quite what this involves. Will know more tomorrow,” said Hopkins, who is a city-wide council member.

Both Brady and Stycos said there is frustration about the regulation of solar in Cranston. “Every project was going up in my ward.  Residents are heavily against the program,” said Brady who represents Ward Four in the City.

Stycos forwarded a copy of a letter he had written to constituents regarding the proposed Nyatt Avenue project. The letter outlined Stycos view of the controversies in the city, “Thank you for your petition to the Cranston City Council opposing a solar farm on Natick Avenue. I agree the project will damage our city. I hope you will continue to press our city government to stop solar farm construction on inappropriate sites.”