Providence City Council Finance Committee Meeting

Date: November 4, 2025
Committee: Finance
Chair: Councilwoman Joanne Ryan

The committee met to consider two agenda items: a 20-year lease agreement with Waterfire Providence for the property at 475 Ballast, and a general obligation bond for infrastructure improvements on Benefit Street. After extensive testimony and debate, the committee voted to approve the Waterfire lease (moving to full council) and to approve the Benefit Street bond (3-2), despite prior denial and concerns over equity and process.

Discussion Items

1. Waterfire Providence Lease (Item 2 – taken out of order)

Proposal: A 20-year lease between the city and Waterfire Providence for the property at 475 Ballast. Rent is $1 per year. The city will purchase the building for approximately $4 million principal (total cost with interest ~$6.2 million, appraised value $7.9 million). Waterfire will be responsible for 100% of maintenance, operations, and insurance. The building will serve as an arts center and event space.

Testimony (all under oath):

• Courtney (city representative) – Explained the financial structure: the city gains an appreciating asset, Waterfire avoids rent costs to focus on operations, and the city retains control over the building's future use. The bond interest for Waterfire’s portion is $103,000 for the first half-year, rising to $206,000 annually thereafter.
• Director Wilson (Parks, Culture & Tourism) – Called Waterfire an iconic, signature event and a generational investment in the city’s cultural landscape. He stated the purchase is a smart, strategic investment.
• Bob Walsh (Waterfire Board) – Thanked the council and mayor for a 30-year partnership. He described the lease as a win-win: the city gets a building below appraised value, Waterfire gets affordable space. He noted the alternative was selling to a private developer.
• Barnaby Evans (Creator of Waterfire) – Emphasized Waterfire’s role in bringing community together. He introduced letters of support (admitted into record) including testimonials from students and a letter from artist Jordan Seaberry.
• Kristen Adamo (President/CEO of GoProvidence, Waterfire Board member) – Presented tourism data: 8 million visitors in 2024, Waterfire drives up hotel occupancy 15.7% and rates 57.4% in shoulder seasons, producing an estimated $50 million in state hotel tax revenue over 20 years. She stated Waterfire is the only Rhode Island event with worldwide recognition.
• Mark Allen (Executive Director) – Described Waterfire’s dire financial situation upon his arrival (lost $900,000 in 2023, depleted cash reserves, $650,000 line of credit). He outlined cost-cutting (26% staff reduction), renegotiated licensing with Barnaby Evans (permanent, irrevocable), and a new financial plan focused on management effectiveness, revenue optimization (corporate sponsors, tourism taxes up from $195,000 to $345,000), and a major donor program (one pledge of $500,000). The sale will recapitalize the organization, paying off debt, and allow a path to operating in the black on a $3 million annual budget.

Questions from committee:

• Councilman Ainfo asked about debt service breakdown and rationale for $1 rent. Courtney explained it shores up the organization and avoids a burden; the city benefits from maintenance responsibilities and future appreciation.
• Councilwoman Grace questioned the lack of posted rental rates. Mark Allen explained rates are custom-quoted based on needs, with a nonprofit discount.
• Councilwoman Grace also raised constituent concerns about $1 rent while city taxes and rents rise. Courtney argued the investment will reduce property taxes long-term by maximizing non-property tax revenue.
• Councilman Ainfo asked about building history: built on a brownfield with federal money and tax credits; initial cost over $10 million (including remediation). No debt until line of credit lien.
• Councilman Ainfo asked about paying off the $650,000 line of credit – yes, the sale proceeds will do so.
• Councilman Ainfo asked about the 2023 loss – caused by not cutting expenses fast enough, loss of corporate sponsors, and inability to access federal venue grants because Waterfire is free and has no tickets.
• Councilman Taylor asked what happens at the end of 20 years – to be determined by the parties.
• Councilman On Peterson (?) commented on Waterfire’s international appeal, citing colleagues from Harvard Kennedy School who visited and spent thousands. He asked about leveraging the Massachusetts market; Bob Walsh and Mark Allen expressed interest in further discussion.

2. Benefit Street General Obligation Bond (Item 1)

Proposal: Approve financing for infrastructure improvements (sidewalks, ADA accessibility) on Benefit Street, using a general obligation bond not to exceed $6.7 million. The matter had been previously voted down in committee, sent to full council, and referred back. A public hearing was held, and additional information on lower interest rates (0.33% possibly) was presented.

Discussion:

• Chairwoman Ryan argued the bond is economically beneficial for the entire city because the low rate saves money that can be used for other sidewalks. She stated it is a matter of finance and economics, not equity.
• Councilwoman Grace expressed strong opposition: she felt the process set a dangerous precedent, that the same proposal was being re-voted without changes, and that it only benefits a specific area while other wards have crumbling infrastructure. She stated the perception is that some council members don't care about other neighborhoods. She voted no.
• Councilman Sanchez (likely) echoed concerns: the transaction is one-sided, creates inequality, and fails to address citywide needs like food and housing. He felt disrespected and said he had agreed to a smaller, ADA-only project. He voted no.
• The vote was 3-2 in favor, with Chair Ryan and two others (likely Councilman Taylor and Councilman Ainfo) voting yes. The matter will go to the full council.

Key Outcomes

• Waterfire Providence Lease: Motion to approve (made by Councilman Taylor, seconded by Councilman On Peterson) passed unanimously. The matter advances to the full city council for final vote.
• Benefit Street Bond: Motion to approve (made by Chairwoman Ryan, seconded by Councilman Taylor) passed 3-2. Two council members (Grace and Sanchez) voted no. The matter advances to the full council.
• Adjournment: Motion made by Councilman Taylor, meeting adjourned.