Providence councilman decries dorm use
1:00 PM Fri, May 22, 2009 | Permalink
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By Christine Dunn PROVIDENCE, R.I. -- Providence City Councilman John J. Lombardi says that by leasing the 96 newly built Capitol Cove condominiums on Canal Street as dormitory space to Johnson & Wales University, developer Robert S. Roth has violated the terms of a tax treaty worth an estimated $8.7 million over 20 years. In a May 22 letter to City Solicitor Joseph M. Fernandez, Lombardi said the city's tax ordinance with Capitol Cove, LLC has "a clear and unambiguous prohibition against "the use of any building or portion of the building for dormitory or apartment dormitory purposes," the result of such a use being that the treaty would be rendered null and void." The city, facing a revenue shortfall approaching $50 million for the fiscal year starting July 1, must be "extra vigilant to make sure we hold people's feet to the fire," Lombardi said. "These are unprecedented times," Roth said Friday morning. "If the building was empty, everyone would suffer." Roth said that during the construction process, Capitol Cove LLC has been paying the city about $500,000 a year in taxes for the land. Additionally, Roth said, the company has contributed more than $100,000 to the city's affordable housing program. Leasing the building to Johnson & Wales "allows us to continue paying our taxes," he said. "If we were to sell that building to Johnson & Wales, that would take it off the tax rolls," he added. 
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Remember about two years ago ,all the rich and famous were supposodly lineing up to live in providence. Tax breaks were given to these units , the towers in waterplace park, the westin and the aborted W hotel. The Emperor has no clothes. Its a college town ,deal with it and capitalize on it.
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If the city was bustling, condos would sell, legitmate companies would buy vacant buildings. But the city isn't bustling, condos aren't selling and schools taking available properties is better than letting them sit vacant.
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Sell the building to Johnson & Wales and tell Lombardi to pound sand.
Ungrateful wad!
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Selling the condos to the university wouldn't really take it off the tax rolls because that area is not in the university institutional zone. And I think it would still violate the tax treaty.
If the developer had made those condos just a little more affordable for folks just out of college or working entry level school jobs etc, made them available at $200K instead of 350+K, then they probably would have sold pretty easily.
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Lombardi has spent more than two decades in the council performing the same tired old tricks, same old grandstanding. Now he thinks he has a shot at being Mayor? He should thank God Federal Hill is populated by students and non-citizens. Otherwise he would have lost his seat on the council years ago.
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johnnie mo is mad and nobody cares. get over yourself and take some diction lessons.
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