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Council approves $25 million bond authorization to buy city office space and WaterFire arts building
Summary
The Providence City Council approved a bond authorization to allow a municipal authority to acquire 444 Westminster Street and the WaterFire Arts Building, citing long-term savings compared with escalating rent and maintenance costs.
The Providence City Council approved a resolution authorizing bonding to acquire two properties used by the city: 444 Westminster Street and the WaterFire Arts Building.
Chairwoman Ryan, speaking for the finance committee, said the bond—approximately $25 million—would let the city end a long, expensive lease and bring multiple city departments under municipal ownership. Ryan said the city currently pays about $1.7 million annually to rent the building, which houses roughly 10 departments and about 70,000 square feet of space, and that the purchase includes a $2.75 million reserve for space planning and renovations to adapt the building for municipal use.
“This is a fiscally sound transaction,” Ryan said, noting the bond service fits within the city’s capacity and would reduce escalating rental and maintenance costs. Council members who supported the motion described the purchase as a way to obtain control over the space, reduce long-term costs and create community and archival space in the building’s first floor and basement.
Several councilors voiced concerns about the original lease and past decisions that placed the city in a difficult position. Councilwoman Graves said she opposed the purchase, repeatedly criticizing the original 444 Westminster lease as “the worst lease I have ever seen” and argued the city should learn from past mistakes. Councilman Sanchez said he was initially skeptical but, after committee review and discussions with finance staff, supported the bond because it provides operational flexibility and reduces combined rent, maintenance and repair spending.
The council approved the measure by roll call: 9 ayes, 3 nays, 2 absent. The record shows the city will use the Public Properties and Buildings Authority (PPBA) mechanism to acquire the properties and that debt service estimates were presented to the finance committee. Supporters said the acquisition will allow the city to plan renovations, relocate archives and tailor the space for city departments without landlord constraints.
Next steps: the counciled authorization allows the PPBA to proceed with the acquisition and finalize bond terms; the bond and project will move through the city’s finance processes and any required public notices.
