Council approves sale of former Coggeshall School with 10‑year rent cap on part of units after amendments

The Newport City Council voted 4–2 on a Purchase and Sale agreement to sell the former Coggeshall School to BCM Realty Partners, approving amendments that set a 10‑year cap on rents for a portion of units and added several developer accountability conditions.

The decision follows public comment from neighborhood residents who said the final proposal differs from what the city solicited, and a sequence of council amendments that tightened monitoring and closing requirements for the buyer.

The P&S calls for a cash payment to the city (referenced in the meeting as $1 million) and for the redevelopment of the school into apartments. Under the agreement as amended, 40% of units in the primary school building will have capped rents; council discussion and the contract language round that to 11 of 26 units (about 42%). Council members clarified the cap applies to rents for a defined term of 10 years, and that the 10‑year rent limitation will begin when a certificate of occupancy is issued for the building rather than on the sale date.

Residents who spoke said the project had shifted materially from the original RFP. “It screams of a lack of fidelity in the process,” said Vince Hayne, a Newport resident, who said he supported redevelopment within the existing footprint but opposed additional buildings and the changes since the RFP award. Mark Lloyd and Penelope Hunt also urged the council to prioritize local occupancy and to require income restrictions or local preference before approving the sale.

Peter Regan, attorney for BCM Realty Partners, said the buyer’s proposal caps rents rather than reserving units by income category. “The proposal that we received … the rents would be capped at those levels,” Regan said, and added that imposing an income‑verification requirement would cost the developer additional annual expense and likely require outside vendors.

Councilor Sy proposed and the council adopted several targeted amendments intended to make the deal closer to the city’s stated objectives without reopening the procurement. Key changes adopted by the council include: - Requiring that the 10‑year rent cap period begin on issuance of the certificate of occupancy rather than on closing; - Requiring income verification for tenants in the deed‑restricted/capped units, performed by an independent vendor selected from the Rhode Island Housing list of approved vendors (council discussion noted a typical cost of roughly $200–$300 per unit for third‑party verification); - Limiting the buyer’s ability to assign the contract so that assignment is permitted to a single‑purpose entity formed to develop the project and managed by the buyer’s principal (identified in the meeting as Connor Melville); and - Requiring the buyer to provide a lender commitment/financing commitment and, effectively, necessary permits as conditions precedent to closing so the city will not convey the property absent demonstrated project financing.

City Solicitor Sarah (identified in the meeting) told councilors the P&S will include deed restrictions that run with the land and will reflect the rent limitation and timing as negotiated. Councilors also discussed the mechanics of monitoring and enforcement; the solicitor and staff said the city would have standing to enforce deed‑restriction obligations and that the P&S and deed restriction language would include reporting requirements.

Several councilors said they support moving a long‑stalled property to productive reuse; others said the 10‑year cap does not go far enough to protect long‑term affordability and local access. Councilor Bennett said she was “very concerned about the 10‑year cap” and worried rents could spike after the term. Councilor Sy, who pushed the verification and assignment amendments, said the measures are low‑cost changes that strengthen the agreement and protect the city should financing or ownership change.

After the amendments were adopted, the council voted to approve the P&S. The final vote on the sale was 4 in favor, 2 opposed. The motion carried.

The council discussed but did not finalize where the sale proceeds would be placed; the solicitor said that, absent a council direction, sale proceeds would become part of the city’s general fund but that the council may later designate funds for an affordable‑housing purpose. The P&S as amended requires monitoring, reporting and city enforcement rights; the council instructed staff to complete the final instrument consistent with the amended terms and with the deed restrictions described in the resolution.

The sale follows a multi‑year procurement process and several rounds of council and staff review. Residents who testified urged a longer affordability term, local preference and clearer income limits; the council’s adopted amendments add verification and closing protections but do not extend the 10‑year rent cap beyond the agreed term.

Next steps: city staff and the solicitor’s office will finalize contract and deed‑restriction language and return materials necessary to close once the buyer meets the newly added conditions precedent, including a financing commitment and proof required permits and the certificate‑of‑occupancy trigger for the rent‑cap term.