Wistow to Receive 50% of Tax Revenue Recovered in Agreement With Providence City Council

Wistow to Receive 50% of Tax Revenue Recovered in Agreement With Providence City Council

Prominent Providence attorney Max Wistow and his firm may receive 50% of the tax dollars it recovers on behalf of the City of Providence, GoLocal has learned. 

Last week GoLocal reported that Wistow, Sheehan, and Loveley (WSL) will review the merits of a 2021 consent judgment executed by the administration of former Mayor Jorge Elorza that allowed the owner of 10 downtown buildings to pay significantly lower property taxes to the city in the amount of approximately $42,500,000 over 30 years.

The big winner in that deal cut by city solicitor Jeff Dana was developer Arnold "Buff" Chace. The agreement was not approved by the City Council. Providence Mayor Brett Smiley retained Dana as the city's top attorney.

GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST

According to the agreement between the Providence City Council and Wistow’s firm, WSL will also be paid beyond the 50% of the dollars recovered -- they will get thousands in expenses. The total amount the firm can recover -- beyond the expenses -- is capped at $1.4 million.

Last week, City Council President Rachel Miller announced the hiring of prominent lawyer Max Wistow’s firm as outside legal counsel.

The agreement between the City Council and Wistow's firm WSL states:

"The amount of WSL's contingent fee shall be fifty percent (50%) of all the past or future property tax revenue payable to the City of Providence relating to the properties that are presently subject to the Consent Order, beyond the amounts already payable under the Consent Order (without reduction to present value); however WSL's total contingent fee shall not exceed $1,400,000.

For purposes of this contingency, the City Council and WSL deem the amount of each future year of such additional property tax revenue to be $1,400,000. The fees shall be due and payable upon the achievement of a final modification of the Consent Order."

 

The agreement between the city and Wistow, Sheehan, and Loveley is signed by Wistow and Miller.

Chace’s attorney/lobbyist Nick Hemond has defended the 2021 Elorza administration deal claiming the deal was fair to the city and properly structured.

In the past, Wistow recovered more than $60 million for the state of Rhode Island in the 38 Studios collapse and nearly $50 million for the retirees of the failed St. Joseph pension fund,