Assessing the Plunder Dome saga’s impact on economic development in Providence is a difficult task.
Some business leaders are convinced that the federal government’s multi-year probe into corruption at Providence City Hall has exacted a heavy toll on economic development efforts in the capital city.
David Preston, a principal with the Providence-based Trion Communications, an advertising and public relations firm that represents a wide range of clients, said he believes there are companies that have not come to Providence – or expanded operations here – because of a climate of corruption.
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"There isn’t a Fortune 500 CEO anywhere who would even remotely consider Providence if this is the climate that exists," said Preston.
Preston said executives are very much concerned about the negative impact the existence of political corruption can present.
"We have a number of Fortune 500 clients…trust me, none of them overlook this," he said.
Others take the position that the aura of seedy political dealings has a decidedly minimal impact on economic development.
Peter Armato, president and chief executive officer of The Downcity Partnership, a nonprofit dedicated to the district’s growth, said he has never heard a business person cite the Cianci case as a reason for not doing business in the city.
"I’ve never heard that," said Armato.
Armato added that it’s impossible for him to gauge any impact the scandal might have had on the overall climate of business in the city.
"Coincidentally, the indictments were handed down the day I accepted my job. So I never experienced a Providence without the shadow of these indictments," he said.
Regardless of the fallout of Cianci’s conviction, Armato said his organization’s mission will not skip a beat.
"The Downcity Partnership is a partnership organization, and the city is a key partner. We will continue to work with the city and our other partners to continue the great progress we’ve experienced in Downcity," he said.
Jim Wood, president and chief executive officer of the Providence Warwick Convention and Visitors Bureau, downplayed the effect that the cloud hanging over Providence City Hall would have on efforts to attract visitors to the capital city.
"Political corruption historically has not impacted meeting planners or leisure travelers in their making a decision on a destination," Wood said. "It’s not like a Confederate flag sitting on the state capital in South Carolina."
That sort of controversy tends to draw boycotts from activist groups, while cases of political corruption cases generally are viewed in isolation, Wood said. He added that meeting planners schedule events at least two years in advance, and generally are not concerned with predicting what the future political landscape of a city will be.
But the potential effects of the corruption conviction on economic development are less clear, Wood said.
"I think the real question is what the long-term ramifications will be on businesses coming into the city," he said.
James G. Hagan, president of the Greater Providence Chamber of Commerce, said Plunder Dome is low on the list of concerns for companies looking to move to Providence or expand in the capital city.
Last week, Hagan met with a potential investor from the Midwest looking at setting up headquarters in the city. Hagan also met with a delegation from China that has put Providence on its radar screen.
"They don’t mention Plunder Dome. Yes, they’re aware of it," he said. "But, businesspeople are very much interested in actions by the Providence City Council and state legislature when it concerns long-term public policy – policy that allows businesses to function in a way that doesn’t put so many restrictions on them."
Hagan said there’s no need for the city or business and civic organizations to troubleshoot to improve the city’s image.
"I don’t see any need for members of the community to launch a public relations blitz, for example," said Hagan. "The city can stand on its own two feet. Providence certainly speaks for itself."
Steve Maurano, a partner at Duffy & Shanley, another Providence-based advertising and public relations firm, sees the Plunder Dome verdict as sending a message that political corruption is taken seriously in Rhode Island.
And with the verdict, said Maurano, comes the realization that the capital city is about to close one chapter – and open another.
"Now, there is the sense that we have moved to the next stage," he said.
Hagan has no doubt the city’s growth will continue regardless of who is in office. He often reminds people that the city’s revitalization was orchestrated by more than one person.
"No city in the world ever rises or falls on the shoulders of one man. The revitalization has come about through the cumulative efforts of a whole lot of civic-minded people," said Hagan.
