PAWTUCKET – A new economic and fiscal report commissioned by the city of Pawtucket and the Pawtucket Red Sox on the proposed downtown locations of the replacement of McCoy Stadium by consultant Brailsford & Dunlavy Inc. revealed that one site would generate significantly greater economic activity and state and local tax revenue than the other. The study looked at direct, indirect, immediate and 30-year estimates of costs and benefits of the potential Tidewater and Apex sites, as well as the proposal for extensive development of the Division Street parcel on the east side of the Pawtucket River.
The report – titled “Economic & Fiscal Benefit Analysis of a New Downtown Pawtucket Ballpark” – assumes hard and soft costs of $76 million for the construction of the stadium, exclusive of those costs specific to either of the two sites. The Apex site is on the east side of the Pawtucket River, north of Interstate 95, while the Tidewater site is on the west side of the river, south of I-95.
The report said that the Apex and adjoining Division Street development would cost $147.6 million to develop and would generate a net present value of $93.3 million of tax revenue for the state and $36.5 million for Pawtucket over the next 30 years.
The Tidewater site (including the Division Street development), while costing $51.4 million, would generate an NPV of $71.4 million for Rhode Island and $24.4 million for Pawtucket over 30 years.
Much of the difference in economic impact between the two sites is accounted for by state income, sales, and occupancy tax revenue, as well as property tax money for the state and city of Pawtucket, driven by the more ambitious development agenda of the Apex site. There also was no mention of how the developments costs of either site would be paid.
Estimated features for the Apex site include:
- A 125,000-square-foot hotel
- 200 apartment units
- 50,000 net square feet of retail space
The Tidewater proposal includes:
- 50,000 net square feet of office space
- 12,000 net square feet of retail space
The Division Street parcel, which may be developed in tandem with either the Apex or Tidewater proposals, includes:
- 40,000 net square feet of office space
- 70 condominium units
- 10,000 net square feet of retail space
Due to the scale of the Apex proposal, the report posits that the Apex site would not only generate more money over time, but would also provide greater one-time economic impacts through the creation of immediate jobs and related tax revenue. Over the long term, much of the economic benefits from the Apex site would be generated by hotel and real estate taxes.
According to Pawtucket Mayor Donald R. Grebien, “the numbers pretty starkly point to the Apex site being superior to Tidewater.”
The study assumes that either site will generate $22.7 million in economic activity yearly and support 481 jobs, with the assumption of annual attendance at PawSox games coming to roughly 400,000, and with another 128,000 people attending other events at the stadium (concerts, sporting events and meetings among them). The net present value to the city and state coffers for the 30-year period is estimated to be $58.7 million.
Grebien added that while he knows that McCoy Stadium is not as viable as Apex of Tidewater, he said, “I still feel a great sentiment for McCoy. It’s been here my whole life. Heck, it’s been here 75 years, and that’s why my heart is keeping it in the mix.”
Chris Bergenheim is PBN web editor.
