Fung, Taveras Leasing Campaign Headquarters from 195 Bidder Carpionato

Kate Nagle, GoLocal News Team

Fung, Taveras Leasing Campaign Headquarters from 195 Bidder Carpionato

The redevelopment of 195 is moving forward -- and one of the bidders leases campaign space to two gubernatorial candidates.
The Carpionato Group, which is one of the bidders for developing the 195 land, currently leases campaign headquarters space to candidates for Governor Cranston Mayor Allan Fung and Providence Mayor Angel Taveras -- and opponent Ken Block is questioning the nature of the deals. 

According to the campaigns, Republican Fung has paid $500 a month for a space at 100B Sockanosset Cross Road in Cranston -- owned by Carpionato -- starting in April.  Democrat Taveras pays $500 a month for its Carpionato-owned headquarters on Narragansett Park Drive in East Providence.  Developer Carpionato has in the past given over $6,000 to the two candidates combined, and reports campaign contributions to candidates in Rhode Island totaling more than $90,000 over the past ten years.

The Block campaign has spoken out at the revelation of the prices -- and links to a "connected insider" -- in the arrangements.

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"We are paying $2,450 a month for headquarter space on Post Road, and will show that as an expense for the quarter of $7,350," said Britt. "We frankly would be shocked to find that the Fung campaign would be paying so little for space when we shopped hard for a good deal. The $500 the Fung campaign and Taveras campaign are both paying a connected insider who is bidding on 195 project land is both ridiculous and disturbing."

Of political contributions made to candidates from a major real estate developer, Darrell West of the Brookings Institution noted, "Real estate owners often make large campaign contributions to candidates. They want to curry favor in hopes that they will have a shot at government building contracts. If they end up on the winning side, it generally is easy to get these kinds of contracts."

Carpionato, Candidates, and 195

Carpionato Group spokesperson Gregg Perry explained the terms of the agreements, and noted they are not leasing any space to any other candidates this election cycle.

"Campaigns take these spaces that are generally located in vacant locations featuring ease of access and parking, with the understanding that they may be required to move with 30-days’ notice should Carpionato find long term tenants, or if the company’s plans for those spaces change," said Perry.  "These empty spaces don’t require Carpionato to provide maintenance, build out or other activities that would be required with a long term tenant."

Perry continued, "And so while the leases offer fair market fees and provide us with the flexibility we require they cannot be compared to the rate a long-term tenant would be required to pay if we had to provide all of those services and amenities. Such is the case with the spaces leased to both the Fung and Tavares campaigns in Cranston and Pawtucket which were vacant pending renovations planned in the coming months."

Democratic candidates Gina Raimondo and Clay Pell did not respond to request for comment. Raimondo lists a $1500 payment to Shuster Realty for campaign headquarters on North Main Street in Pawtucket on the campaign's first quarter filing report for 2014.

As for the Carpionato Group's pursuit of 195 land, Perry explained it would be judged "based on its merits."

"Currently, Carpionato Group has a $250-million proposal to create an office/lab, retail, residential, and hospitality lifestyle center, similar to Kendall Square in Cambridge, that would provide amenities needed to help attract knowledge-based business that are the future of Providence," said Perry.  "That proposal is currently pending before the I-195 Commission and the company is confident the commission will review and make a determination on the proposal based on the merits and strength of the project."

LINK spokesperson Dyana Koelsch explained where things currently stand with the LINK.

"Two proposers are doing their due diligence now and have their lawyers reviewing the Letters of Intent. We have no know receipt date at this time," said Koelsch.  "We do have a second due date for the next round of proposals and have planned outreach in September to get the word out again."

Jennifer Duffy with the Cook Political Report said she didn't see the arrangement as having any conflict of interest. 

"I don't see this as a real conflict of interest.  The campaigns seem to be taking care to avoid such a conflict. Rhode Island is a small place. It would be very difficult to find space in which the owner or management company hasn't made some kind of political contribution over the years," said Duffy.

"However, perception is sometimes more important than reality," Duffy added.  "I think this passes the smell test. Some voters may disagree." 

Looking Ahead

"Ken Block wouldn't have rented space from a person with the kinds of conflicts outlined here," said Britt.  "This also raises another issue -- in the past quarterly report, the Block campaign paid his company for use of office space before we got our headquarters for $1912.50. Mr Fung seems to have been running his campaign out of city hall and using city taxpayer employees to do so ..that is the Gordon Fox school of politics again what insiders do. Taxpayers of Cranston should be up in arms about this misuse of their tax dollars."

Britt continued, "The conflicts of interest in renting a campaign headquarters from a connected person like Mr. Carpionato who is bidding on the 195 land, and who has many issues in front of the Cranston city hall is very troubling."

"This issue brings up conflicts of interest and may rise to a campaign finance violation.  I will be speaking to legal counsel today," said Britt.  "The process of elections has to be as transparent as possible the idea that the Fung and Taveras campaigns may be receiving illegals donations in the form of ridiculously low rent from some one who may very well want something from them should they win, should trouble all taxpayers and voters in Rhode Island."


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