PROVIDENCE – A proposal by the administration of Gov. Daniel J. McKee for the state to purchase a vacant East Providence property owned by Citizens Bank for use as state office space is likely dead after House Speaker K. Joseph Shekarchi confirmed Thursday there will be no funding included in the fiscal 2025 budget.
"The speaker had a Democratic caucus yesterday and there was overwhelming opposition to it," said Shekarchi spokesperson Larry Berman.
In a budget amendment submitted earlier this month, McKee asked for $33.7 million to purchase the 210,000-square-foot Tripp’s Lane building from Citizens – the former location of the bank’s One Home Loan Center – with the justification the state could save $39 million over 10 years, mainly by ridding itself of costly lease agreements.
The total expenditure, funded through $33.7 million in borrowing, would have been roughly $44.5 million after factoring in an estimated 5.5% interest rate over a 10-year period, according to an administration analysis presented to the House and Senate finance committees.
The R.I. Department of Administration told lawmakers the property had originally been listed for $27 million and is currently assessed at $16.9 million.
The state is liable for $10.7 million in annual lease payments for a total of 569,745 square feet of office space among varying agencies, and another $684,586 on 73,770 square feet of warehouse space, according to the presentation provided by the House fiscal office.
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.