R.I. attorney general files motion to intervene in Memorial Hospital foreclosure

A PREVIOUS PLAN to redevelop the Memorial Hospital site in Pawtucket proposed by Lockwood Development Partners failed to materialize. Above is a rendering of that proposal. / COURTESY CITY OF PAWTUCKET

PAWTUCKET – Attorney General Peter F. Neronha filed a motion on March 31 to intervene in the proposed development of the former Memorial Hospital in Pawtucket.

Neronha is stepping in following a foreclosure proceeding brought forward by Memorial Real Estate Group LLC, seeking to take over the vacant five-story building, located at 111 Brewster St., from Lockwood Development Partners LLC.

“Because a foreclosure proceeding potentially involves conveyance of the property, the attorney general has now moved to intervene in that proceeding,” said Neronha’s spokesperson Brian Hodge in a statement. “This is an ongoing matter and the attorney general will work to ensure that not only the law, but the public interest, are protected.”

Care New England Health System bought Memorial Hospital in 2013, but closed it in 2018 following years of financial struggles. In January 2021, Lockwood Development Partners LLC bought part of the property from Care New England for $250,000, with plans to redevelop it into a housing and education center for veterans.

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The sale, approved by a court order in 2020, was subject to certain conditions, including that the property could not be sold, transferred or conveyed without the permission of the R.I. Office of the Attorney General. Lockwood Development Partners was also ordered to provide written notification to the attorney general of “all key milestones of redevelopment of the Main Hospital Building,” according to Neronha’s motion.

Eventually, Lockwood’s plans fell through and Rhode Island-based Memorial Real Estate Group stepped in with plans to build affordable housing and workspace. In March, Memorial Real Estate filed foreclosure proceedings for the property, according to Neronha’s filing.

“The current foreclosure action, to which the attorney general was not made a party, stands to impair the attorney general’s right to consent to any direct or indirect conveyance of the property,” said Neronha’s motion.

Memorial Real Estate Group is owned by Michael Mota, who recently came under scrutiny following a Boston Globe investigation that found the businessman is being sued by several creditors and vendors due to alleged unpaid debts. Lockwood Development Partners and Michael Mota could not be immediately reached for comment.

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