Documents reveal negotiations between Providence, state to take over Armory. What they say.

PROVIDENCE – Newly released documents shed light on the City of Providence's initial $45 million demand if and when it takes over the deed and the stalled development of the fortress-like, largely abandoned Cranston Street Armory.

The state made the city's letter public on Wednesday in response to an open-records request from The Journal, along with a spreadsheet of potential funding sources that the state provided the city.

What does Providence want in exchange for taking the Armory?

As a starting point, Mayor Brett Smiley's administration asked the McKee administration for $45 million over three years.

"While the city is eager and interested in the prospect of acquiring this property, as you’ve recognized, the building requires significant investment for both its ongoing maintenance and for future capital improvements," Smiley's chief of staff, Emily Ward Crowell, wrote Gov. Dan McKee's chief of staff, Antonio Afonso, on July 7.

"These future investments are beyond the scope of what the city’s budget can absorb," Crowell wrote.

More: For decades they pushed to revive Cranston Street Armory. All they have is an empty shell.

"Given this, we would request that the state provide grants to the city, totaling $45 million over the next 3 years, to ensure that the city can care for the building while also making the necessary improvements to its core infrastructure quickly," she wrote.

Is the deal moving forward?

It is not clear where the negotiations stand nearly two months later and, more specifically, where the McKee administration stands on the city's $45-million ask.

Asked the status, McKee spokesman Matt Sheaff said: “The discussions with the City of Providence regarding the potential transfer of the Cranston Street Armory remain ongoing."

"At this time, terms are still being negotiated and discussed. A final agreement has not yet been reached. We look forward to our continued conversations with the mayor and his team," he continued.

City spokesman Josh Estrella said: "In its current state the building needs significant deferred maintenance and capital upgrades, which is why we made an initial ask of the State for $45 million over three years. These discussions have been collaborative and productive and we anticipate this process to be ongoing for the next several months while we negotiate a deal that works best for our community."

As for the future use of the building, he said: "The Administration hopes to see a combination of small businesses, maker space, public spaces, community organization spaces, and potentially even housing....What we need to do now is integrate the community’s desire for this space with the level and sources of funding that is available."

Documents paint a picture of what happened as the Scout deal fell apart

The city's July 7 proposal, the spreadsheet of potential funding sources and a series of emails between city and state officials provide a fresh glimpse into what was happening just before – and after – McKee's announcement July 17 that the state was terminating its contract with Scout Ltd., the Philadelphia firm hired to redevelop the abandoned Armory.

Tying his announcement to a newly released consultant's report, McKee said at the time: "It became clear that the proposal put too much risk on Rhode Island taxpayers and not enough on other sources."

The announcement sparked anger, frustration and concern in the surrounding neighborhood for the future of the cavernous building on the city's West End, that has been largely empty since the Rhode Island National Guard pulled out in 1996, except for relatively short stints as a homeless shelter, movie staging ground and headquarters for the State Fire Marshal's Office.

On that same day he announced he was cancelling the state's contract to develop the Armory into a hub of activity with Scout Ltd., McKee and Smiley publicly acknowledged for the first time that they had had "preliminary discussions" about the state handing the Armory over to the city to redevelop as it sees fit.

And then came weeks of public silence while emails flew back and forth.

The city's July 7 proposal began:

"The City of Providence (the city) appreciates the opportunity to discuss the potential transfer of the Cranston Street Armory (the Armory) to the city’s ownership. The Armory is an important piece of ... Providence’s history and should be used as an asset to spur economic development, contributing to the vitality of the neighborhood and city where it’s located."

"The purpose of this memo is to provide the state with proposed terms for this transfer for discussion, including the $45 million divided into increments of $20 million in the current budget year (FY24), then $15 million (FY25) and $10 million (FY26)," the proposal continued.

"This investment would ensure that the building is transferred responsibly with a clear plan for future success," Crowell wrote.

"Further, we would request that the state enter into a memorandum of understanding (MOU)," setting the stage for the city's operations team to "work in close coordination with the [state's] Division of Capital Asset Management and Maintenance (DCAMM) and other relevant state agencies to prepare for taking over the care and control of the building while ensuring that the building is responsibly maintained during the transition."

And finally, she wrote: "The city will continue to maintain ... the parking lot adjacent to the property as well as Dexter Training Ground Park ... Thank you in advance for consideration of this proposal and for the potential transfer of this important property, we look forward to further discussion."

Deal could come with significant ARPA funds for Providence

The spread sheet prepared by McKee's budget team reflects the potential availability of a total of $44 million statewide in American Rescue Plan Act (ARPA) funding, including $16.6 million for "community learning facilities, $4 million for "out-of-school-time learning grants" and $27 million for "housing priority projects" that must be contractually obligated by Dec. 31, 2024.

The list also includes: a whopping $125 million in ARPA dollars for "broadband equity, access and deployment" statewide.

This article originally appeared on The Providence Journal: City of Providence will take Cranston Street Armory from RI - for a price