News Summary
Providence Mayor Brett Smiley is proposing to purchase 444 Westminster Street for $18.5 million, raising concerns due to the property’s assessed value of only $7 million. The acquisition involves borrowing $25 million, avoiding voter approval. Critics, including State Senator Sam Bell, question the transaction’s financial implications, while city officials defend it as a long-term cost-saving measure. The proposal faces scrutiny amid fiscal challenges and a historic tax increase in Providence.
Providence Mayor Brett Smiley is proposing the purchase of 444 Westminster Street for $18.5 million, a figure that has been met with controversy due to a significant disparity compared to the property’s assessed value. According to the City of Providence’s assessor, the building was valued at only $7 million, making the proposed purchase price 164% higher than its assessed valuation. In comparison, back in 2024, the city’s appraisal for the property stood at $5,133,000.
The building, currently owned by former Providence Mayor Joe Paolino through a corporate entity called 444 Westminster Partners LLC, is home to several city departments and is leased to the city of Providence. Paolino originally acquired the property from Blue Cross Blue Shield of Rhode Island in 2008. This deal raises eyebrows, especially since Paolino has also been a prominent political backer of Mayor Smiley, with members of his company, Paolino Properties, contributing $12,600 to Smiley’s campaign.
To finance the acquisition, Smiley intends to borrow $25 million using the bonding authority of the Providence Public Building Authority, a move that would circumvent the need for voter approval. This decision comes amid a backdrop of fiscal challenges for the city, which has recently executed one of the largest tax increases in its history.
State Senator Sam Bell has expressed concerns regarding the transaction, questioning whether the proposed sale price reflects a “sweetheart deal” or if the assessed value is flawed. Bell has emphasized the importance of fiscal responsibility, particularly criticizing the practice of incurring debt without public consent, linking it to potential mismanagement.
In defense of the purchase, Smiley’s spokesman, Anthony Vega, stated that acquiring the property would ultimately result in long-term savings for the city despite the steep upfront cost. Currently, the city pays $1.4 million annually in lease payments, with automatic yearly increases. Additionally, the city incurs management and maintenance costs of approximately $250,000 each year. Vega estimates that buying the property could save the city about $7.6 million over time.
Paolino has countered the city’s valuation claims, arguing that factors such as property income and the existing lease agreement enhance the building’s value beyond what is reflected in its physical assessment. When the city first entered into a lease with Paolino in 2011, the initial payment was $735,000, with a purchase option available after just three years.
The Providence City Council Finance Committee is set to review a resolution that would authorize the borrowing of funds for this significant purchase, adding another layer to the ongoing discussions surrounding the proposed deal. As the process unfolds, the financial implications for Providence residents and the potential long-term consequences of this investment are poised to remain at the forefront of public scrutiny.
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Additional Resources
- GoLocalProv: Smiley Pushes to Buy Paolino’s Building
- Wikipedia: Providence, Rhode Island
- WPRI: Providence’s Next Renaissance
- Google Search: Providence Rhode Island news
- Providence Business News: Paolino presents beautification plans
- Encyclopedia Britannica: Rhode Island
- Turn to 10: Providence Mayors Discuss Education
- Google News: Brett Smiley
- ABC 6: Mayors Offer Education Policy Suggestions
- Google Scholar: Providence urban development
- Steve Ahlquist: Bill to Close Affordable Housing Gap
- GoLocalProv: Paolino Properties Auction
Author: STAFF HERE PROVIDENCE WRITER
PROVIDENCE STAFF WRITER The PROVIDENCE STAFF WRITER represents the experienced team at HEREProvidence.com, your go-to source for actionable local news and information in Providence, Providence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as WaterFire, Rhode Island International Film Festival, and Rhode Island Comic Con. Our coverage extends to key organizations like the Greater Providence Chamber of Commerce and Providence Warwick Convention & Visitors Bureau, plus leading businesses in finance and manufacturing that power the local economy such as Citizens Financial Group and Textron. As part of the broader HERE network, we provide comprehensive, credible insights into Rhode Island's dynamic landscape.
