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Sen. Sheehan opposes Providence hotel project

          NORTH KINGSTOWN -- Sen. James C. Sheehan (D-Dist. 36) of Narragansett and North Kingstown announced today that he will vote to sustain Gov. Donald Carcieri's veto of the Providence hotel project proposed by Vincent Mesolella.

          The Rhode Island General Assembly, during the final days of the 2004 legislative session, approved a plan that will provide $20 million in tax credits for a downtown hotel being proposed by developer Vincent J. Mesolella Jr. The legislation also directs the Convention Center Authority to lend Mesolella up to $5 million for a skybridge that would connect the hotel to the Convention Center proper.

          The legislation was promptly vetoed by the governor, who opposed the tax credit plan and its reliance on Convention Center funds.

          "While a convincing argument can be made that additional hotel rooms are needed in Providence to bring more conventions to the state, I opposed the so-called Mesolella Hotel for a variety of reasons and intend to vote to sustain the governor's veto of this particular piece of legislation," said Senator Sheehan.

          Mesolella wants to develop -- on the site of the current Fogarty Building -- a $52-million hotel with about 250 suites that he says will allow the Convention Center to host about 15 to 20 more conventions annually. His proposal features 18,000 square feet of meeting space, a 150-seat restaurant, pool and café.

          "The proposed project was not able to muster the support of the Convention Center Authority," said Senator Sheehan. "It this were such a good project, I would have to assume that the very entity that has been legally authorized to promote the convention center would support the initiative. This raises a red flag in my mind."

          In addition, said Senator Sheehan, if the state wishes to subsidize an effort to bring a new hotel to downtown, the state should, at a minimum, put the project out to bid and take the time to perform some needed due diligence to determine if the overall deal makes sense.

          "Such things as the developer, site location and form of subsidy need to be considered in an open and deliberative fashion so that the state can get the best terms possible for its citizens," said Senator Sheehan. "For example, should the state award $20 million in tax credits to an individual who appears to represent himself as opposed to a well-established hotel developer? There would certainly be less risk if the state entered into an agreement with a firm with a long-standing reputation and a good financial track record."

          The hotel legislation is one of several items approved by the General Assembly that have been vetoed by the governor. The General Assembly is expected to return within the next two weeks to consider overriding those vetoes.

          "I am on record as voting against the bill during the regular session, and I am now on the record as supporting the governor's veto of the legislation," said Senator Sheehan.

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