Providence City Council Committee on Finance Meeting - September 23, 2025

The Committee on Finance of the Providence City Council met on Tuesday, September 23, 2025, to consider the appointment of a new director of recreation, a stage two application for school capital projects, and a bond issuance for property acquisitions. All agenda items were approved, and two items were continued.

Agenda Amendment and Order of Business

• Motion to amend agenda: The committee voted to add the "Mile of History Project" to the agenda solely for the purpose of scheduling a public hearing. Motion carried.
• Motion to take item out of order: The committee voted to hear Item 5 (appointment of director of recreation) first. Motion carried.

Discussion Items

Appointment of Director of Recreation (Item 5)

• Nominee: Sean Hawley, proposed by Mayor Brett Smiley for the position of Director of the Department of Recreation.
• Presentation: Hawley outlined his background, including degrees from Providence College and Catholic University School of Law, experience as a sports agent, professor at Johnson & Wales and Providence College, and current role as Administrator for the Equal Opportunity Office for the State of Rhode Island. He emphasized the importance of recreation centers as community hubs and his vision for youth empowerment, diversity, safety, and career development.
• Questions: Councilmembers questioned Hawley about short tenures at previous positions, allegations of "double dipping" (working two city jobs simultaneously), and his continued teaching commitments. Hawley explained that one position led to another, denied cheating, stated he left one role due to communication discrepancies, and confirmed he teaches one evening course per semester but would reevaluate after the semester.
• Support: Councilmembers expressed approval of Hawley's resume and commitment. One councilmember noted the importance of recreation centers and praised the mayor's selection.
• Vote: Motion to approve made by Councilman Taylor, seconded by Councilman Sanchez. All in favor, none opposed. Motion carried. Hawley will go to the full council for final approval.

Stage Two Application for School Capital Projects (Item 1)

• Presenters: Courtney (Director of Program Management, Downs Construction), Joe (Facilities, PPSD), Kevin Dion (PPSD), and others.
• Purpose: To submit a stage two application to the Rhode Island Department of Education (RIDE) for school housing aid reimbursement for capital projects not included in Phases 3 and 4. This would allow projects to be eligible for up to 91% reimbursement.
• Funding details: The application seeks eligibility for $80 million in projects with up to $67.3 million in state reimbursement. The Capital Revolving Fund currently has $6.3 million, with additional deposits of $5 million in FY2027 and FY2029. The city commits no new funds; the resolution authorizes reimbursement.
• Projects included: District-wide capital improvements for 17 schools (8 elementary, 2 middle, 7 high), supplemental funding for Cazarian Elementary (new gym connection), and $9.5 million for Times2 Academy improvements (self-funded, city acts as pass-through).
• Discussion: Councilmembers asked about reimbursement rates (blended average ~84.7%), the need for $10 million MOA vs. available $6.3 million (flexibility for emergencies), decision-making process for prioritizing projects (based on PPSD five-year plan and input from principals), middle school funding (only $5M allocated, explained by fewer needs and older elementary schools), and concerns that schools not in Phase 4 could be closed due to enrollment declines and charter expansion. Presenters clarified that no closure decisions have been made, and the revolving fund provides flexibility if enrollment drops.
• Vote: Motion to approve made by Councilman Taylor, seconded by Councilwoman Sanchez. All in favor. Motion carried.

Bond Issuance for Property Acquisition (Item 2)

• Presenters: Sarah (CFO), Larry (bond counsel), and Hilltop Securities (financial advisor).
• Proposal: Issue $25 million in bonds through the Providence Public Building Authority (PPBA) to acquire two properties: 444 Westminster Street (the Dorley Building) for $18.5 million, and 475 Valley Street (Waterfire Arts Center) for $3.75 million. Remaining funds cover closing costs, borrowing costs, and a capital reserve for the Dorley Building.
• Rationale:
  • 444 Westminster: The city currently leases the building at ~$1.5M/year in rent, escalating at 3% or CPI (historically up to 8%). The lease expires in 2036 with no purchase option. By buying, the city saves a minimum of $7.5M over 20 years, moves cost from general revenue to debt service, and can make strategic improvements. The seller's appraisal was $23M (considering the lease); the city's appraisal was $11M.
  • 475 Valley Street: The city would purchase and lease back to Waterfire, providing financial stability to the nonprofit. Waterfire will cover operating costs; the city pays ~$336K/year in debt service. The city's appraisal was $6M (vs. Waterfire's $3.75M).
• Bond structure: 20-year term, with interest-only payments for the first two years. All-in cost estimated at 4.71% based on market conditions. Expected to close by October 31, 2025, after full council approval on October 2.
• Discussion: Councilmembers raised concerns about the optics of a bond after raising taxes, but CFO clarified this is a substitution of rental payments with no net increase in city spending. Questions were asked about appraisal differences, bond capacity, carbon neutral requirements, and the future of Waterfire funding. Council expressed support after explanations.
• Vote: Motion to approve made by Councilman Grace, seconded by Councilman Taylor. All in favor. Motion carried. The resolution goes to the full council.

Key Outcomes

• Appointment of Sean Hawley: Approved by committee; moves to full council.
• Stage Two Application: Approved; the city will submit to RIDE.
• Bond Issuance: Approved; full council vote scheduled for October 2, 2025.
• Continuation: Items 3 and 4 were continued to a future meeting.