NARRAGANSETT – After first requesting proposals for the state-owned property in October last year, the Rhode Island Department of Environmental Management announced on Wednesday that its not going forward with any of the three bids that it received from entities looking to redevelop the site of the former Lighthouse Inn at the Port of Galilee in Narragansett.
Instead, according to the department, the state will be demolishing the 100-room hotel and restaurant building that’s been closed since 2015, located across from the ferry to Block Island, and the state will also divide the 5-acre site into three parcels in an effort to make the land more attractive to prospective investors.
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Two lots on the seaside property, which gained a reputation in recent years for attracting seagulls and an unpleasant stench, have historically been used for parking.
The Department of Environmental Management said envisions “clearing the way for investors that may be interested in establishing a business that further complements and supports Rhode Island’s commercial fishing industry” and potentially provides public amenities.
“The (request for proposals) process gave us valuable feedback and insight into the strengths and, from an investor’s point of view, weaknesses of this site,” said Department of Environmental Management Acting Director Terry Gray, in an announcement about the decision. “We know that we must invest to make it more viable. We are committed to working on a plan for the property that supports the many commercial fishing crews, seafood processors, and other shoreside businesses that bring fresh seafood to markets locally, nationally, and globally.”
The Department of Environmental Management was considering three bids made to develop the site, coming from a company called iCell Aqua Inc. that wanted to establish a $30 million facility to process fish; a joint venture called PRI X involving former mayor and Providence real estate developer Joseph R. Paolino Jr. together with Procaccianti Cos. for a retail center and boutique hotel during a later phase; and the town of Narragansett, which proposed a mixed-use development involving offices, housing, a hotel and restaurant. The proposals that were ultimately determined to be unviable were reviewed by a team consisting of employees from the Department of Environmental Management and R.I. Commerce Corp.
“We appreciate the good-faith proposals made by the three bidders,” Gray said. “As we move forward with these plans, we will continue discussions with the town of Narragansett and other stakeholders on redevelopment options for this valuable property.”
The Department of Environmental Management also said it’s planning to terminate a lease it has with PRI X, which uses the Lighthouse Inn lot for parking. But the department said it will negotiate a new lease with PRI X for two sections of the Port of Galilee property to allow it to continue providing public parking to support nearly 200 commercial fishing boats, the Block Island Ferry, and other shoreside businesses.
“The rental for the parking lot lease will be at the current appraised value of rentals in the port and standard terms and conditions required for leases in the Port of Galilee will apply,” the Department of Environmental Management said.
The Port of Galilee is the biggest port in Rhode Island and is one of the busiest ports on the Atlantic Coast, according to the Department of Environmental Management, with landings at the port totaling 48 million pounds of seafood that were valued at more than $68 million in 2019. Rhode Island’s fisheries and seafood sector account for more than 3,100 jobs and $538 million in gross sales, with indirect associated effects from the sector contributing to a combined 4,300 jobs and nearly $420 million annually in economic impact.
Marc Larocque is a PBN staff writer. Contact him at Larocque@PBN.com. You may also follow him on Twitter @LaRockPBN.
