Will the Projo Move to a Paolino Building, Stay Put or Move Out of Prov

GoLocalProv Business Team

Will the Projo Move to a Paolino Building, Stay Put or Move Out of Prov

75 Fountain Street is sold
The new owners of the Providence Journal — GateHouse Media — have been cutting newsroom costs aggressively as well as slashing print production costs, and now they are focused on reducing overhead, specifically real estate costs.

Former Journal owner A.H. Belo Corp. is in the midst of selling the Providence Journal’s longstanding headquarters building at 75 Fountain Street to Providence developer Buff Chace (Belo retained ownership of the building when the company sold the Journal to GateHouse in 2014).  As GoLocalProv reported in 2014, the Providence Journal endorsed the reinstatement of historic tax credit legislation and then simultaneously applied for millions in tax credits. According to City of Providence records, the Providence Journal building is appraised for $10.4 million.

GoLocalProv reported in December of 2014 that the Providence Journal/GateHouse applied to the state for millions in tax credits: "The Providence Journal's $13 million project is poised to receive up to 25% of the project cost in historic tax credits - supported by the taxpayers of Rhode Island." 

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As part of the deal for 75 Fountain Street, Chace could receive millions in tax credits as part of the transaction.  The big question is will GateHouse sublease a portion of the the Providence Journal’s present location from Chace or will they move to another Providence location or outside the city. GateHouse media is headquartered in Pittstown, New York. 

Joe Paolino, Providence Developer
Paolino Plays Monopoly

One potential location is 33 Broad Street, also known as One Weybosset Hill, the former headquarters to some of the biggest companies in Rhode Island and now the home of the Johnson and Wales bookstore.  No property may be more emblematic of the problems in downtown Providence. The building was once the home to tenants like Blue Cross/ Blue Shield and then to Cookson and America Online. Joe Paolino purchased the building from Blue Cross in 2000 for $3.5 million. 

Last April, the Rhode Island State Properties Committee approved a lease and parking with Paolino for HealthSource, RI’s Obamacare, in the 33 Broad Street building that totals $250,000 a year for 8,500 square feet and parking.

Today, the building, which is more than 124,000 square feet, is appraised by the City of Providence for more than $8.6 million.

Paolino purchased 100 Westminster
The Broad Street building is just one of the buildings owned by the real estate empire of Paolino, the former Mayor of Providence, who has become the dominant real estate owner in the city.

In the past year, Paolino has played the real estate game in Providence and across the state more like a Monopoly game.  He has taken a majority interest in three of the City of Providence’s most significant properties including 100 Westminster Street, 30 Kennedy Plaza and the parking lot and historic facade at 110 Westminster Street for $60 million announced in January of 2014.

The postmodern 100 Westminster Street, which opened in 1984, is a 350,000 square foot class A office building and currently home to Providence Equity Partners, Hinckley Allen, Nortek, Bank of America, the US Attorney, Wells Fargo and others. 

Paolino has tried to resurrect Newport Grand - one of Rhode Island's two licensed gaming facilities. He first took an option and then ownership of Newport Grand slots parlor in Newport. Two weeks ago, Paolino announced he was flipping the Newport property to Twin River. If approved by state regulators, Twin River will own both gambling facilities in Rhode Island.

In addition, Paolino purchased the Hasbro R&D facility in Pawtucket for $10.5 million. In January, Paolino announced that he owns more than 1,000 parking spaces in the City of Providence.

The Battle 

The battle for the Projo may be tied to the influence of former Vice President Mark Ryan. Today, he is law partner with Paolino lawyer Tom Moses.  Ryan was influential when the Projo was owned by A.H. Belo, but since the Journal was sold to GateHouse Media, it is unclear if Ryan has the same or any influence. Certainly, the Projo moving into Paolino’s building is a seminal moment for Ryan to retain his influence.

Moses, Alfonso and Ryan paid $4.4 M settlement
Ryan’s firm Moses, Alfonso and Ryan paid a $4.4 million settlement to resolve their role in the 38 Studios debacle.  The payment by the firm was the first major payment by one of the companies sued by the State of Rhode Island. Moses, Alfonso and Ryan was sued for the firm’s role in the 38 Studios collapse which cost the state of Rhode Island more than $100 million in damages.

Paolino Properties claims to be one of the oldest family owned and operated real estate companies in Rhode Island. According to Paolino, the company “oversees more than one million square feet of commercial office property, multiple parking facilities, multi-family units and one million square feet of retail space in Providence, Cranston, Barrington, East Providence and Plainfield Pike.”

Third Option - Move Outside of Providence

According to multiple commercial realtors, GateHouse officials have toured potential office space in Warwick, Cranston and Johnston. One of the key factors for GateHouse officials in relocating is to greatly decrease the amount of space and the cost of parking. Presently, the Providence Journal’s space on Fountain St. is approximately 140,000 square feet. Realtors tell GoLocal that Gatehouse is only looking for 40,000 to 50,000 square feet -

approximately one third the size of the present space.

One potential location outside the City of Providence that GateHouse officials toured is the former FM Global space in Johnston, RI. 

In just over two decades the Providence Journal’s circulation dropped from 218,000 to 70,000 per weekday


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