Developer Arrested Had Received Millions in Incentives - Sparked When Called “Trust Fund Baby”

Developer Arrested Had Received Millions in Incentives - Sparked When Called “Trust Fund Baby”

Developer Federico Manaigo, who has received millions in incentives from the State of Rhode Island and the City of Providence for his projects, is facing an assault charge.

According to reports, Manaigo became enraged when he was called a "trust fund baby."

The Ivy-League-educated Manahattan-based developer was arraigned last week in Providence District Court.

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The events leading to the arrest were sparked, in part, over a property line dispute and then a war of words and an alleged physical altercation, according to Providence police.

The confrontation took place in June between Manaigo and a neighbor — Scott Stearns of Stearns Tool Company, a nearly 50-year-old family business adjacent to one of Manaigo’s developments — the "ROOMS&WORKS" mill conversion in the West End. 

Stearns told police that the two have been in a dispute for three to four years over the property line.

According to the Providence Police, Stearns and his lawyer Michael McCaffrey were outside his business when Manaigo came over and stated that he received all the letters from Stearns’ lawyer and threw them out.

McCaffrey is non-other than the Senate Majority Leader.

 

"Trust Fund Baby"

According to police documents, “Scott [Stearns] stated that words were thrown back and forth; Federico [Manaigo] insinuated that Scott wasn’t a 'worker' and Scott told Federico that he was a 'trust fund baby.' Scott stated that Federico came charging with a closed fist at him, missed and hit a fence; then pinned Scott against a wall and jabbed him in the waist stating ‘say it again’ over and over again.”

Manaigo attended Cornell University's school of hotel management and according to his bio worked for Lehman Brothers just before the collapse of the company -- an event that helped set off the great recession.

He was a junior analyst for the company.

 

Manaigo -- Multiple Projects, Multiple Subsidies

Manaigo, who developed "ROOMS&WORKS" at 55 Cromwell Street was praised by Providence Mayor Jorge Elorza when the project opened in 2017. The former manufacturing site is now home to 40 lofts, Knead Donuts, and other workspaces,

“Back in 2012, we had a vision for these vacant historic buildings consisting of a mixed-use including residences, shared work-space and a kitchen incubator to be branded Room&Works. Today we are very excited to be offering a space for startups in Providence to grow their businesses and the opening of the City’s first culinary incubator under the umbrella of Foodworks” said Manaigo in 2017.

The project was funded, in part, by a 2013 Historic Preservation Tax Credit from the State of Rhode Island and a property Tax Stabilization Agreement with the City of Providence.

Manaigo and his brother have been part of the development of multiple other projects across the city and those have received taxpayer incentives as well. Manaigo and his partners are also involved in the renovation of another Providence project -- the Pilgrim Congregational Church -- which was built in 1874. That project qualified for $500,000 in state historic preservation tax credits.

Manaigo did not respond to requests for comment via phone and social media.