PBN July 7, 2023

K A S Y H K A S Y H

Troubled office real estate could undermine banks, wider economy

BY SAM WOOD | Wood@PBN.com

THEformer mayor of Providence is distressed.

When Joseph R. Paolino Jr. walks through the city’s financial district, he’s anxious about what he sees. He led Providence as its mayor for much of the 1980s, but he’s now the outspoken managing partner of Paolino Properties LP, which owns hundreds of thousands of square feet of downtown commercial real estate, including its centerpiece property, the 20-story 100 Westminster St.

As he chats with attendants at empty parking lots and looks in the windows of darkened restaurants, Paolino feels the local and national economy are on the precipice of change.

He’s not the only one.

Developers, bankers and real estate brokers in Rhode Island and nationwide are worried about the continued effects of people working from home, which is triggering a decline in office real estate values, and how that might impact banks and the ability of business owners and others to obtain credit.

“It’s all connected,” Paolino said.

FOCUS: COMMERCIAL REAL ESTATE

Growth of self storage is raising some alarms

BY JACQUELYN VOGHEL | Voghel@PBN.com

DRIVING UP INTERSTATE

95 on a recent evening, Richard Godfrey, executive director of Roger Williams University’s real estate program, couldn’t help but notice a UHaul self-storage facility sitting on the edge of the roadway in West Greenwich.

The building itself isn’t new –it used to be the headquarters of the international gaming company GTECH Corp. that merged into International Game Technology PLC. Now, rather than buzzing with tech

CORRECTIONS: In an article on page 7 of the June 23 edition of PBN, Gary S. Sasse was incorrectly identified as director of the Hassenfeld Institute for Public Leadership at Bryant University. The institute closed in June 2022, according to Bryant. In an article on page 18 of the same edition, one of the administrators of the pilot Health Professional Equity Initiative program was incorrectly identified as the R.I. Office of Postsecondary Education. The administrator is the R.I. Office of the Postsecondary Commissioner.

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FOR STARTERS

TRENDING

Most-read stories on PBN.com, June 2023

As travel season heats up, R.I.’s vacation rental market cools

POSTED ONLINE: JUNE 26

3

2 Rhode Island nursing homes file for receivership, citing ‘inability to pay debts’

4

Dighton police chief charged with insider trading

POSTED ONLINE: JUNE 29

6

Mass. cannabis manufacturer expands into R.I.

R.I. Sports Commission executive director dead at age 63

After a string of lucrative summers post2019, shortterm vacation owners are experiencing a cooler rental market in 2023, with their listings staying open longer and renting at lowered rates. tinyurl.com/y4z623yu 2

POSTED ONLINE: JUNE 12

John Gibbons, the longtime executive director of the Rhode Island Sports Commission, died at the age of 63. Gibbons, who had more than four decades of experience in the travel and hospitality industry, joined the Providence Warwick Convention & Visitors Bureau in 2006 and became the Rhode Island Sports Commission executive director in 2010. tinyurl.com/54x2sby9

POSTED ONLINE: JUNE 28

Two Rhode Island nursing homes have filed for receivership, declaring their “inability to pay debts as they come due.”

Trinity Health and Rehabilitation Center in Woonsocket and Hebert Nursing Home in Smithfield filed requests on June 20 citing financial difficulties. Both facilities are held by JBF Healthcare Management Inc., which is jointly owned by Jeffrey A. Barnhill and James V. Flanagan. tinyurl.com/ud9cym75

Dighton Police Chief Sean Cronin was charged on June 29 with insider trading that reaped $72,000 for himself and an additional $1.6 million for his friends and their associates. The U.S. Securities and Exchange Commission accused Cronin and four associates of allegedly trading on nonpublic information in May 2020 that involved a bid by Alexion Pharmaceuticals Inc., of Boston, in its acquisition of Portola Pharmaceuticals Inc., of San Francisco. tinyurl.com/2p998xwv

5Nursing home chain owners charged with stealing $83M in Medicaid money

POSTED ONLINE: JUNE 29

The owners of Centers Health Care were charged in a fraud scheme that allegedly siphoned off $83 million of Medicaid money for personal gain. The multistate chain operates 47 facilities throughout the Northeast, with three in Rhode Island: the Bannister Center for Rehabilitation and Health Care in Providence, the Kingston Center in South Kingstown and the Oak Hill Center in Pawtucket. tinyurl.com/2ehjb8wx

POSTED ONLINE: JUNE 19 tinyurl.com/yckz5xet

7

Alex & Ani closes 20 stores, vacates R.I. headquarters

POSTED ONLINE: JUNE 30 tinyurl.com/3wctn5e3

8

Report: R.I. electric vehicle policies rank 19th out of top 33 in nation

POSTED ONLINE: JUNE 28 tinyurl.com/nhzpwxx7

9 Supreme Court strikes down affirmative action in college admissions

POSTED ONLINE: JUNE 29 tinyurl.com/5hevbszm

10

R.I. adopts Juneteenth as state holiday beginning in 2024

POSTED ONLINE: JUNE 16 tinyurl.com/yhyrrzc

ORIGINAL TEAK, FOUR COATS OF HAND-APPLIED MARINE VARNISH, AND THE KIND OF PERSONALIZED CARE AND ATTENTION THAT YOU'LL FIND WITH OUR BANKING.

COURTESY PROVIDENCE WARWICK CONVENTION & VISITORS BUREAU

PBN FILE PHOTO/K. CURTIS

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FOR STARTERS

5Q: Robert Russell

Executive director, Providence Downtown Improvement District

BY CHRISTOPHER ALLEN | Allen@PBN.com

1How would you describe the successes of the district?

The DID has made a substantial impact in the downtown area for over 18 years. Adhering to our mission of enhancing the quality of life in downtown Providence, we have significantly improved the physical environment of the downtown landscape. This includes cleaning and maintaining streets and sidewalks and improving the overall aesthetic appeal of the downtown. These efforts have helped to make downtown Providence a more attractive and inviting place for visitors and residents.

safe and clean place to visit, live, learn and enjoy.

3Mayor Brett P. Smiley has made quality-of-life improvements a centerpiece of his administration. Do you see any differences between the current and previous administrations?

This mayor and the DID are totally aligned, and this administration is very supportive of our mission. The new mayor and his administration had to hit the ground running and they have shown great promise.

Six months after the legalization of recreational cannabis in Rhode Island, the Cannabis Commission has been appointed. PBN’s 2023 Business of Cannabis Summit will feature a panel discussion with various industry experts, business executives, educators and community leaders to discuss the key obstacles the industry is facing and the whether the potential revenue impact to the state, local businesses and economy will ever be realized.

VISIT PBN.com FOR DETAILS

For sponsorship and advertising opportunities, contact 680.4800 or Advertising@PBN.com

2

Do you think the district has improved public perception of downtown or lessened public safety concerns?

Overall, the Providence Downtown Improvement District has had a positive impact. Its initiatives to improve the physical environment, promote economic development, increase safety and security, and encourage community engagement have helped to make downtown Providence a more vibrant and welcoming urban environment. Still more must be done. We have a downtown that statistically is very safe, but that is not the perception. The challenge for the DID and its many stakeholders is to band together and let the public know that the downtown is a

4Has funding been adequate?

The district is funded through a special assessment of properties within the district’s boundaries. This assessment is based on the assessed property value and is calculated as a percentage of that value. The funds collected through this assessment are used to support various programs and initiatives, including public safety measures, marketing and promotional activities, and support for economic development and community engagement. …The DID also receives funding from other sources, including grants, sponsorships and donations.

5

What are your thoughts on the plan to revamp Kennedy Plaza?

It is my understanding the proposed plan for the intermodal hub is still very much a work in progress. [We support] any plan that makes Kennedy Plaza a place that everyone can enjoy. n

PBN

PHOTO/MICHAEL SALERNO

We have significantly improved … the downtown landscape.

#PBNCannabisSummit

presenting sponsors

PROVIDENCE RESTAURANT

WEEKS is getting underway July 9-22. Enjoy two weeks of special dining offers brought to you by the Providence Warwick Convention & Visitors Bureau

The initiative, in which participating restaurants feature deals and specials for lunch and dinner, is inclusive of more than just the capital city. Restaurants all over the state, as well as over the state line, are taking part this time. It is no longer a one-size, one-price proposition. While recognizing the value of collective promotions, restaurateurs are insisting on unique propositions in the post-lockdown world.

Everyone on both sides of the table looks forward to Providence Restaurant Weeks. Each restaurant’s special is as unique as the eatery. Places may be serving breakfast, signature cocktails, family-sized entrees or even their specialty products. Many long-standing favorite spots are participating, as are some of the newer spots around the area.

In Newport, John Flynn, the general manager of Pour Judgement on Broadway, told a broadcast interviewer that the repeated inclement weather weekends that were the story in June did not put a damper on business on his restaurant row. Flynn said businesses on Broadway and in the city were open and wel-

DINING OUT | BRUCE NEWBURY

Summer food getaways

coming crowds.

Before the summer season began, there were some potential challenges during the permit process as the Newport City Council balanced the new popularity of outdoor dining spaces from the past two years with the reality that space on the street and the island is limited. To allow restaurants to continue outdoor dining after the pandemic, rules had to be put in. As a condition of their outdoor permit, the businesses were required to display only “non-logoed” umbrellas, as well as the same color traffic barriers and planters atop the barriers.

Flynn said it has created more uniformity, and the umbrellas do provide some protection from the sun and a light rain.

With the last weekend of June featuring the sold-out Newport Flower Show along with concerts and other events, the city was busy all weekend and it shows no sign of letting up any time soon.

In fact, on the first run of the Providence-Newport Ferry, Providence Mayor Brett P. Smiley told reporters that Providence hotel operators are booking a larger-than-usual number of rooms to guests whose vacation destination is Newport. Anecdotally, higher hotel room prices in Newport have apparently led to visitors booking rooms in Providence and day

Each restaurant’s special is as unique as the eatery

tripping to Newport.

In addition to an influx of visitors to Newport, there are new restaurants popping up in the city this summer season and both are “walk-ups.”

As Providence Business News reported in the spring, Newpor t Chowder Co. will be serving up its popular chowder, which was made famous on its food trucks, from a new walk-up window on Thames Street, and Luke’s Lobster, from Portland, Maine, by way of New York City, quietly opened a walk-up window tucked away on Bowen’s Wharf.

Luke’s serves Maine-style lobster,

crab and shrimp rolls, as well as New England clam chowder. There is a backstory about the restaurant operating its own seafood-processing plant in Maine to be more sustainable. The business notes repeatedly that it is unable to issue or accept gift cards at the Bowen’s Wharf location. n

“Dining Out With Bruce Newbury,” syndicated weekly on radio, can be heard in Rhode Island, Connecticut, Vermont and Indiana. Contact Bruce at bruce@brucenewbury.com.

toWork Work 2023

ROOFTOP DINING: Guests enjoy a meal at Rooftop at Providence G during last year’s edition of Providence Restaurant Weeks. The 2023 promotion will run from July 9-22.

COURTESY PROVIDENCE WARWICK CONVENTION & VISITORS BUREAU/NICK MILLARD

.

FOR STARTERS

BETTER TOGETHER: Shannon

the UpRiseHer coworking space in Providence last July to help women build a community and empower one another.

Helping women thrive

BY CLAUDIA CHIAPPA | Contributing Writer

WALKING INTO ONE of the rooms at UpRiseHer is almost like walking into your own living room. Warm colors, patterned chairs, soft pillows and, of course, blankets – these are some of the features that make the space feel so “homey.” The distraction-free space is perfect for productivity and for the hardest work-fromhome days.

This balance is what founder Shannon Sexton Potter had in mind when she opened the doors of the coworking space in July 2022. She wanted to create a space where people – women in particular – could thrive, connect and feel safe.

“The main mission is to build community and build togetherness with one another,” she said.

While she-centric, the 1,800-square-foot space on Hope Street in Providence is open to anyone, and it has attracted a wide variety of members since opening, from working mothers to older women looking for a career shift.

Members use the rooms to work, gather, relax, host events, or find a moment of solitude, said Potter, who already owns Harmony on Hope Massage, located below UpRiseHer.

“I knew that there was a real need for women to have a place that they could go to that was not work and not home,” she said. “A gathering space for us to empower one another and to exist without feeling shame around all of the things that make us stronger.” n

Chosen by chocolate

Chocolatier also offers catering services

AURA FAJARDO QUINTERO did not plan to become a chocolatier.

BY CLAUDIA CHIAPPA | Contributing Writer

Originally from Caracas, Venezuela, Fajardo was a graphic designer before moving to Rhode Island and becoming interested in culinary school. Even then, her dream was to bake cakes, not craft chocolate bars. But a random internship at a chocolate shop while studying at Johnson & Wales University derailed her plans and led her to discover a new passion.

“I think chocolate chose me instead of the other way around,” she said.

A few years since that life-changing internship, with her baking and pastry degree in hand and some help from food business incubator Hope & Main, Fajardo has accomplished her dream of opening her own chocolate shop in Cranston in 2021. It wasn’t always easy, especially when she pivoted from baking cakes to creating chocolate.

“At the beginning it was very overwhelming,” she said. “It’s chemistry, it’s all about temperature and observation of the chocolate. It’s very intimidating.”

But eventually, she found her niche. Aur a’s Chocolate Bar is

OWNER: Aura Fajardo Quintero

TYPE OF BUSINESS: Chocolate confections shop

built on her love for her home country and for her new home in Rhode Island, where she started her own family. Every product is an homage to both places, combining chocolate imported from Venezuela and locally sourced ingredients from the Ocean State, from bee pollen and honey to chips and whiskey.

“I learned in my first job all the wonderful things you can do with chocolate,” she said. “The chef started making mixes with spices and chips and I didn’t know you could do it. After I started seeing that … I also wanted to create.”

Inspiration for a new product can strike her at any moment, as she walks through a farmers market or goes on a stroll in nature.

LOCATION: 250 East St., Cranston

EMPLOYEES: Three

This is how she creates some of her bestselling – and some of her favorite – products: passionfruit dark chocolate swirl, lemon lavender honey bars, honeycomb toffee bar, or sea salt chocolate.

“I take clues from what’s around me,” Fajardo said. “I love to highlight beautiful ingredients.

“When you choose high-quality ingredients with a good story behind it, it makes the chocolate taste even better.”

With the help of her parents –her mother opening the store and her father helping her run the books – Fajardo manages to produce up to 300 bars a day, depending on how many orders she has or how busy she is. While her store is in Cranston, she offers nationwide shipping and catering services.

And eventually, she is hoping to expand. One of her upcoming projects includes a “tasting and pairing” event that will take place in September at her shop, where clients will be able to taste chocolate flavors and pair them with alcoholic and nonalcoholic drinks.

“I want to see how well the pairing and tasting goes, and if it works out, we’d love to go somewhere in Providence,” Fajardo said. n

YEAR FOUNDED: 2021

ANNUAL SALES: $100,000

CREATIVE CONFECTIONS: Aura Fajardo Quintero, owner of Aura’s Chocolate Bar in Cranston, says inspiration for a new product can strike her at any moment, which has led to bestselling products using Venezuelan chocolate and locally sourced ingredients such as bee pollen, honey, or whiskey.

PBN PHOTO/RUPERT WHITELEY

Sexton Potter opened

PBN PHOTO/RUPERT WHITELEY

Questions still surround ‘iGaming’

BY CHRISTOPHER ALLEN | Allen@PBN.com

RHODE ISLAND HAS BECOME the seventh state to allow residents and visitors to gamble on casino games remotely by phone, computer and tablet, but question marks remain about how internet gaming will work and how much money it will bring in.

Some observers are also raising questions about whether at least one portion of potential online offerings –online poker – will ever become reality because of provisions added to the legislation just before it was passed by the General Assembly.

A crucial modification to the “iGaming” bill before final passage was a compromise requiring that table games such as blackjack and poker be run by live dealers instead of computer software – a change made to sidestep worries from the R.I. Lottery that the original iGaming legislation could be an unconstitutional expansion of gambling.

The change will require the construction of a “miniature casino” that has been likened to a TV studio where table games and poker will be simulcast by Bally’s Corp., which has been given exclusive rights in partnership with International Game Technol-

ogy PLC to manage iGaming.

Geolocation technology will verify that players – who must be 21 and over – are physically within Rhode Island, although the law also allows for out-of-state betting in specific circumstances, provided that the R.I. Lottery has entered into an agreement with another state regulator.

The iGaming law will go into effect on March 1, 2024, but Bally’s hasn’t publicly said when it will have its system operational.

Elizabeth Suever, Bally’s vice president of government relations, said the lottery division is currently moving through the regulatory process

and iGaming “cannot go live until the regulatory and licensing process is complete.”

How will iGaming work?

“It’s too soon to tell,” said R.I. Lottery spokesman Paul Grimaldi. “We haven’t yet worked out a regulatory [framework].”

Also uncertain: how much money iGaming will generate in revenue.

In February, Bally’s told legislators the expansion could bring $210 million into state coffers over five years. A separate state-backed study by Christiansen Capital Advisors LLC had a more conservative estimate of $162 million for the same period.

After R.I. Lottery Director Mark Furcolo expressed concern that gamblers’ appetite for iGaming would eat into the revenue from traditional lottery products, the iGaming legislation was amended so that Bally’s would be required to cover at least some shortfall caused by cannibalization.

A more refined state revenue esti-

mate will be produced in November, according to Senate spokesman Greg Pare.

Questions remain about other aspects of iGaming, too.

Take online poker. While some players thought iGaming would give them the chance to participate in poker games with money bets, others said the investment required and live dealer provision may make it a nonstarter in Rhode Island, particularly given poker was projected to bring in only 2.6% of the iGaming revenue.

As of now, Bally’s doesn’t have an online poker platform and would have to invest money to build one. And the live dealer requirement would negate the ability for fast play on multiple tables that online poker players seek, according to people who track the gambling industry.

Jessica Welman, editor of SBC Americas, a gaming industry trade publication, said Bally’s could enter into interstate agreements to stream table games such as blackjack and roulette.

“It’s cheaper because that technology already exists,” she said.

As for investments in streaming live dealer poker? “Nobody has ever done that” said Welman, who briefly worked at Bally’s Corp.’s digital arm, Bally’s Interactive. n

Over the years, StarTrak’s roster of clients has grown. Many are referrals, some are current, and some are repeats, including Paul Masse car dealerships, BJ’s Wholesale Club Holdings Inc. and Gem Plumbing & Heating Co.

The company has also worked with politicians, including former Gov. Gina M. Raimondo, Sen. Jack Reed and many other Rhode Island public officials. “We’re not political animals though,” Rametta said. “We try to stay out of politics.

“At any one moment, we may be working with a dozen clients,” she said. “We’ve put out hundreds of radio spots and at least 200 for TV.”

Recently, she’s been working with another longtime client, RDW Group Inc., a marketing agency.

Her job has become quite the production

BY SARAH FRANCIS | Contributing Writer

JUDY

Rametta isn’t what you’d call a name dropper, and she wants people to know that celebrities don’t stop by her production house, StarTrak Studios Inc., every single day. But there are exceptions.

For example, the time Oscar-winning actress Olympia Dukakis arrived and settled in: “She brought a friend and spent the afternoon reminiscing about her early days,” Rametta said.

And former Warwick resident James Woods, the fast-talking character actor: “Although, he doesn’t live here anymore,” Rametta pointed out.

And Justin Bieber: “He arrived with more vehicles and people than everyone else,” she said.

Justin Bieber, wait, what? Turns out he played a teenage bomber on “CSI” in 2010 during his early acting days. “We had to fix his audio. He came with his grandfather and started drawing with my kids,” Rametta said. “We’ve also replaced, matched or recreated the audio for TV shows shot here, like ‘The Brotherhood’ and ‘Body of Proof.’ ”

Justin Bieber aside, Rametta oversees an audio/video company with a full-time staff of three who work with advertising, media and direct clients. Additional crew

members and dozens of voiceover, on-air talent and other freelancers are also housed in a sprawling, 3,000-square-foot facility in Warwick.

Rametta, a Lincoln native, was drawn to a media career from the outset. She edited her high school yearbook, then graduated from Boston University with a Bachelor of Science in photojournalism, followed by a full-time reporting job. “I was at the Woonsocket Call, where a lot of the news was about landfills,” she said. “The stories were pretty gritty.”

Looking for a change, she went on a job interview at Bogh AV Productions, a marketing and PR firm. “When I walked in, I saw Kodachrome slides everywhere,” she recalled. “I thought, these are my people.”

She worked at Bogh for 10 years, eventually moving up to production manager. “I met my future husband, Jack, there as a client,” she said. They married in 1992, and she joined him at StarTrak a year later, eventually becoming the company’s majority partner. Today, as president, she manages and produces projects, and handles the business side. Her husband is the main videographer and an accomplished composer, with several New England Emmys for his original scores.

SIGHTS AND SOUNDS: Judy Rametta, president of StarTrak Studios in Warwick, works with her husband, Jack, assembling audio and visual projects for local businesses, politicians and charity causes.

The R.I. Office of Health and Human Services hired RDW to create a campaign, and StarTrak, as a subcontractor, is producing video and radio spots. National numbers show an upsurge in kids who are eating parents’ gummies laced with cannabis; the commercials will warn how these and unsecured medications can pose a poisoning risk to young children. “We try to work on projects that make a difference,” Rametta said. The production work should take a couple of weeks, with plans to air this summer.

Julie Rishworth, an RDW production manager, is Rametta’s contact on the project and has toiled with her in the trenches for years. “We work very closely, and there’s a lot of back and forth,” Rishworth said.

“Judy makes things work. She really is collegial. There can be a lot of changes and she accommodates all that. With her, we know the end product will make us look good, be on budget and on time.”

The ads are being filmed at McAuley Villa ge, where Rametta chairs the organization’s board of trustees. The nonprofit supports needy communities with food assistance, housing, clothing and social services. She describes it as a cause near and dear to many.

Her other passion project is working with students. In 2005, she finished a master’s degree in English literature at the University of Rhode Island and started teaching. “My first year there, one of my students turned out to be one of my clients,” she said. “It was awkward.”

She moved on and since 2007 has been an adjunct at Three Rivers Community College in Norwich, Conn., teaching literature and composition. “I try to work with students who need extra encouragement with their English skills. I like to help them with their critical thinking,” she said.

Although bigger opportunities have come along over the years, Rametta says she and Jack have no interest in pulling up stakes and leaving. “Rhode Island is a good place to work,” she said.

“We raised our kids here and always come back home,” she added. “We don’t take business that would cast a negative light on the state. We’re trying to do a bit of good in the world. There’s no place like here.” n

PBN PHOTO/ RUPERT WHITELEY

‘We try to work on projects that make a difference.’

JUDY RAMETTA, StarTrak Studios Inc. president

As travel season heats up, R.I.’s vacation rental market cools

BY JACQUELYN VOGHEL | Voghel@PBN.com

(Editor’s note: A version of this story was first published on PBN.com on June 26.)

CHARLESTOWN – At Randall Realtors Compass, sales manager Kristen Holloway’s office line has been buzzing with short-term rental owners anxious to fill their vacation properties.

“We have had a high number of calls every single week from people unable to rent on Airbnb and VRBO, stuff like that, and they want us to list their property,” Holloway said. But with July approaching, the realty company, which specializes in coastal vacation rentals, can’t provide much relief.

“We are now hesitant because we’re not going to be getting [the property] rented either at this point,” Holloway said.

This influx of late-season pleas isn’t unique to Randall. After a string of lucrative summers post-2019, short-term vacation owners are experiencing a cooler rental market in 2023, with their listings staying open longer and renting at lowered rates.

In fact, bookings are down 18% year over year companywide, Holloway said – a stark contrast from 2020, when bookings surged by 27%, though that year was far from the norm as well. Typically, Holloway said, these fluctuations sit at around 5%.

This slower market didn’t come out of the blue: Airbnb Inc., an international short-term rental management platform that’s name has become near-synonymous with individually owned vacation accommodations, in May predicted fewer bookings and lower rental prices year-over-year for summer 2023, Reuters reported. The company partially attributed this anticipated drop-off to competition from similar platforms such as VRBO and Booking.com.

But other factors are dampening the industry as a whole, Holloway said, such as financial stresses from inflation and increased comfort with international travel following COVID-19 anxieties. According to AAA data, international trips have risen 200% over 2022 rates.

“I think what’s happening is a mix of two things: the economy being down, and people taking big trips rather than going a state over for the weekend,” Holloway said. And those who have managed to accumulate savings amid economic uncertainties “are going on more-lavish vacations,” she noted, speculating they may be more interested in resorts and higherend hotels once they get to their destinations.

Airbnb did not respond to a request for booking trends in Rhode Island. But Haven Thorn, a spokesperson for the company, said Airbnb remains op-

timistic about a strong summer 2023.

“Last year, more guests traveled on Airbnb than ever before, and this year, we’re expecting over 300 million guest arrivals, as we look forward to another strong travel season,” Thorn said.

But if guests are swaying to more-luxurious destinations with their savings, as Holloway suspects, short-term rental owners are proceeding cautiously in their expectations compared with the past few years, and sometimes adjusting prices accordingly.

In response to a PBN inquiry, all but one of approximately 15 to 20 respondents with the Rhode Island Short-Term Rental Association Inc. said that they were experiencing lower demand for their rentals this year, said Greer Gagnier, executive director of the group.

The association formed in May with a goal of providing “a unified voice for the legislature” around short-term rental policies, Gagnier said, and currently has around 40 members, many of whom rent their properties through Airbnb or VRBO.

In the summer of 2021 and 2022, members reported occupancy rates of around 95%-100%, Gagnier said, with most summer stays booked months in advance. This year, short-term rental owners in the association have recorded an average occupancy rate of 93% for June, with 70% to 80% of availability booked out for July.

Gagnier expects that number may still rise, settling around 90%-95%.

Association members haven’t reported that they’re significantly lowering their rates, Gagnier said, but she’s decreased the prices on some of her own short-term rentals in Pawtuxet Village, where she rents out three vacation homes. And those who do lower their rates are still seeing less demand, she noted. n

UNCROWDED HOUSE? This summer travel season, many short-term rental owners in Rhode Island are seeing a dip in booking rates for the first time since the COVID-19 pandemic.

FOR STARTERS | WHAT’S HAPPENING

Understanding housing crisis

THE GREATER PROVIDENCE Chamber of Commerce will hold a workshop titled “Understanding the Impact of the Housing Crisis on Employees” as part of the Chamber’s Lunch & Learn series. Eric Coury, owner and manager of The Coury Team Realtors, will discuss the current economic and housing market challenges for employees, what is happening and why, and what employers can do to improve recruitment and increase employee retention.

WEDNESDAY, JULY 12, NOON TO 1 P.M. Free/members; $15/nonmembers CIC Providence LLC, 225 Dyer St., Providence.

WEDNESDAY, JULY 12, 6-8 P.M. $5

Whalers Brewing Co., 1174 Kingstown Road, South Kingstown.

INFO AND REGISTRATION: tinyurl.com/4setp7ya

Driving success

THE TRI-TOWN CHAMBER of Commerce will hold a human resources and business owner forum. The presentation will cover HR strategies for businesses of all sizes, offer opportunities to improve a business’s culture, talent acquisition, employee retention, total rewards, employee development and positive employee relations.

HITTING THE LINKS: The Greater Newport Chamber of Commerce will hold its Chamber Golf Club networking event on July 12 at Green Valley Country Club in Portsmouth.

EDITOR’S CHOICE

Greater Newport Chamber to hold golf networking event

THE GREATER NEWPORT Chamber of Commerce will hold its Chamber Golf Club networking event, hosted by Green Valley Country Club. Business professionals will have the chance to build connections over a round of golf. Advance registration is required.

WEDNESDAY, JULY 12, NOON TO 2 P.M. $55/members; $65/nonmembers Green Valley Country Club, 371 Union St., Portsmouth.

INFO AND REGISTRATION: tinyurl.com/2s42ymyh

INFO AND REGISTRATION: tinyurl.com/23jftxke

On tap

THE SOUTHERN RHODE ISLAND Young Professionals, part of the Southern Rhode Island Chamber of Commerce, will team up with professional groups from around the state to hold a Statewide Summer Social, hosted by Whalers Brewing Co. LLC. This group welcomes professionals under the age of 40 and anyone new to networking to meet quarterly at a local Chamber member business. A cash bar and pizza will be provided.

THURSDAY, JULY 13, NOON TO 1 P.M. Free Online.

INFO AND REGISTRATION: tinyurl.com/ywfucwc8

Interested in having your business-related event included in What’s Happening?

Contact PBN Researcher James Bessette at (401) 680-4838 or Research@PBN.com.

COURTESY GREEN VALLEY COUNTRY CLUB

Making impacts

SOCIAL ENTERPRISE GREENHOUSE will host its Rhode Island Impact Business Showcase, an event that highlights the achievements of SEG program graduates. The showcase provides a chance to discover some of the most innovative and socially responsible businesses in the state, as well as celebrate Rhode Island’s growing ecosystem of social impact businesses.

THURSDAY, JULY 13, 6-9 P.M. Free Farm Fresh Rhode Island, 10 Sims Ave., Unit 103, Providence.

INFO AND REGISTRATION: tinyurl.com/4nasecwd

How to sell

CENTURY 21 THE DIVINE GROUP will hold a workshop geared toward educating sellers on today’s housing market. The workshop will cover multiple topics, including preparing your home for sale, listing strategies, what to expect during the process and selecting the right buyer.

SATURDAY, JULY 15, NOON to 1 P.M. Free

Century 21 The Divine Group, 843 Reservoir Ave., Cranston.

INFO AND REGISTRATION: tinyurl.com/mrx7wefv

Computer literacy

THE CENTER FOR WOMEN & Enterprise will hold a workshop titled “EmpowerHerTech: Bridging the Digital Divide for Women Entrepreneurs.” The computer literacy session will help attendees gain the skills and tools to succeed in the digital age while receiving personalized guidance and insights tailored to one’s business needs. This session is designed for women at all levels of computer and tech knowledge. Lindsey Ramirez, Rhode Island’s CWE center director, will lead the workshop.

WEDNESDAY, JULY 19, 9:30-11:30

A.M. $10-$50 Online.

INFO AND REGISTRATION: tinyurl.com/yckzufhy

On track

THE GREATER NEWPORT Chamber of Commerce will hold a Summer After Hours networking event, hosted by Rail Explorers. Business professionals are invited to build connections with one another. Attendees will also enjoy hors d’oeuvres and drinks, such as beer, wine and soft drinks, before and after riding the rails – 3 miles each way – as well as during a 20-minute break overlooking Narragansett Bay before heading back.

WHAT’S HAPPENING | FOR STARTERS

WEDNESDAY, JULY 19, 4:45-7:30 P.M. $20/members; $25/nonmembers

Rail Explorers, 1 Alexander Road, Portsmouth.

INFO AND REGISTRATION: tinyurl.com/3x5e6ssd

Shopify 101

THE RHODE ISLAND Small Business Development Center will hold a workshop titled “Shopify 101: Website Platform.” The workshop will offer attendees the basics of Shopify. This platform has specific advantages pertaining to certain situations, such as starting a business or creating a website with e-commerce. Amanda Basse, a center marketing counselor, will lead the workshop.

THURSDAY, JULY 20, 11 A.M. Free Online.

INFO AND REGISTRATION: tinyurl.com/mrycm6aw

Out for a run

THE NARRAGANSETT LIONS CLUB will hold its 51st annual Blessing of the Fleet Race/Walk. The 10mile run/walk will take participants around town. The event will raise funds to help the Lions Club support local charities. Registration is online only.

FRIDAY, JULY 28, 5 P.M. $40 Narragansett Pier Middle School, 235 South Pier Road, Narragansett.

INFO AND REGISTRATION: tinyurl.com/345d4bxp

Business is brewing

THE NORTHERN RHODE ISLAND Chamber of Commerce will hold a networking pop-up event, hosted by Providence Brewing Co. The event will bring together local business professionals and entrepreneurs to build connections with one another in a relaxed setting.

WEDNESDAY, AUG. 9, 5-7 P.M. $20/members; $30/nonmembers Providence Brewing Co., 10 Sims Ave., Unit 110, Providence.

INFO AND REGISTRATION: tinyurl.com/3dc5c8ay

UPCOMING PBN EVENT:

The 40 Under Forty Awards Program will be held on Thursday, July 20, from 5:30-8 p.m. at the Aldrich Mansion in Warwick. For more information, visit PBN.com. For sponsorship opportunities, contact Advertising@PBN.com.

REAL ESTATE

OFFICE

CONTINUED FROM PAGE 1

Paolino is focused on his holdings in Providence and elsewhere in Rhode Island. But his concerns are echoed more broadly across the nation by financiers, C-suite bankers and real estate professionals.

On the local level, post-pandemic Providence has not fully recovered from the shifts touched off by COVID-19. The city still feels emptier, Paolino and others say. Hybrid work arrangements have dampened sales at businesses that rely on office workers. On Mondays and Fridays, some parking lots and lunch spots are deserted. “For rent” signs populate many storefronts. There are fewer people strolling the sidewalks.

At the same time, the Federal Reserve’s inflation fighting has sparked mayhem in the national market, observers say. The central bank’s interest rate spikes are wreaking havoc on commerce. Financial institutions have tightened lending. Borrowers can’t get mortgages. Loans are coming due on the office properties. Tenants are aggressively reducing their leasing footprints. Office building values are plummeting. Holders of maturing loans face skyrocketing refinancing payments.

If the problem accelerates, it will be more than rich developers and bankers who feel the effects, observers say. It could create a credit crunch for business owners and consumers as the price of money becomes more expensive and lending gets tightened.

“Across the country, the real estate market is in jeopardy because interest rates have doubled and tripled,” Paolino said. “I’m not saying we’re on the brink of a catastrophe in Providence, but the potential is definitely there.”

DISTRESS SIGNALS

Paolino isn’t the only business leader concerned about the distressed office real estate market.

JPMorgan Chase & Co. CEO Jamie Dimon warned analysts in late May that souring commercial real estate is a threat to financial institutions. In its Financial Stability Report this spring, the Federal Reserve declared that commercial real estate debt – especially within the office sector – is a systemic risk to the broader financial system. Share prices for some of the largest office landlords have dropped to near-historic lows.

The topic is at the top of the minds of local bankers, too.

“We all talk about the same thing,” said Julia Anne Slom, The Washington Trust Co.’s chief commercial real estate lending officer and an executive vice president. “Office, office, office.”

That said, Slom believes the regional commercial real estate market is stable – at least the properties that Washington Trust is involved in.

“There is some weakness in office, [but] my office portfolio is not keeping me up at night. We’re not hearing a death knell,” she said. “But we’re all focused on how do we get from point A to point B during this period of volatility while serving clients and protecting the bank.”

Yet there’s ample reason for increasing concern.

Demand for office space is expected to continue to decline through early 2024. Case in point: Financial services giant Fidelity Investments Inc. recently donated a 250,000-square-foot Smithfield office building it no longer needed to the neighboring Bryant University – real estate that was estimated to be valued at $32.6 million in 2022.

The National Association for Industrial and Office Parks surveyed its members in May for its CRE Sentiment Index and found respondents believe conditions for commercial real estate likely will worsen over the next 12 months. The index

WEATHERING IT:

forecast declines in occupancy rates and effective rents, and for debt and equity to be less available for financing.

How bad could it get? Opinions differ. Kevin Fagan, the chief of commercial real estate economic analysis at Moody’s Analytics, expects a 25% correction in commercial property values. The Boston Consulting Group was less sanguine; it recently predicted that office values will decline from pre-pandemic levels during the next 12 to 36 months by 40%.

INSULATED?

Rhode Island may be insulated from the worst of a potential economic downturn, says Thomas Sweeney, owner and principal of Sweeney Real Estate & Appraisal in Providence.

“We’ll certainly see some of the turmoil,” Sweeney said. “The good news is that we don’t build a lot here. If we don’t build anything, we’re not going to have that many empty offices.”

Data published by Hayes & Sherry Real Estate Services shows that office vacancy rates in downtown Providence and Rhode Island have been stable in recent months, hovering around 14% downtown and 12.5% in the rest of Rhode Island. The downtown office vacancy rate in late 2019, before the COVID-19 pandemic, was 12.2%.

In its first-quarter 2023 report on Rhode Island’s commercial real estate, Hayes & Sherry said the workforce is slowly returning to the downtown as companies try to bring people back to the office “with varying degrees of success.”

“We are beginning to see tenants make longterm decisions around their footprint needs, often resulting in square foot reduction due to flexible workspace strategy,” the report said.

While shrinking office space, companies are looking at higher-quality buildings with amenities to attract workers back to the office, such as onsite dining and fitness areas. The report cited the property at 3 Davol Square as an example, where a $15 million overhaul of a brick-and-beam building in the city’s Jewelry District has attracted tenants.

Alden Anderson Jr., senior vice president for the Providence office of CBRE Group Inc., believes that southern New England has so far avoided a major real estate crisis.

“We don’t have huge vacancy rates now,” Anderson said. “However, we expect an uptick [in vacancies] in the midyear. In other markets, the urban centers have had a more difficult time coming out of the pandemic.”

Slom says Rhode Island has had two factors work in its favor when it comes to the amount of empty office space.

“First, we don’t have the vast tracts of land that other states do. So that means we’re not constantly building,” she said. “Second, [lenders in the region] are much more conservative here. People are prudent in their underwriting and risk tolerance.”

On May 1, CBRE reported the national office vacancy rate was 17.8%, and it projects that the rate will peak at between 19.3% and 21.4% in late 2024 and then gradually decline to roughly 16% by 2028. With increased vacancies comes decreased cash flow, which dampens property values.

Sweeney says property owners in America’s biggest markets are starting to unload troubled office buildings at fire-sale prices.

“A tower in San Francisco was valued in 2019 at $300 million,” he said. “Now it’s expecting to sell for about $60 million.”

Discussions in real estate circles are turning to the looming risk of loan defaults.

“The conversation is being driven by loan maturities,” Anderson said. “If you did a loan that has a five-year term on it four years ago, in the next 12 months that loan is maturing. That loan could have a 3.5% rate currently. But when you go to refinance it, it’s possible the rate could be 6% to 6.5% or higher. The borrowing costs have nearly doubled.”

In those situations, the banks will likely write down the value of the assets.

“If the buildings are still leased, the values may not change. They could even go up. However, if

Alden Anderson Jr., senior vice president for CBRE Group Inc.’s Providence office, says the amount of unoccupied office space has been manageable so far.

PBN PHOTO/MICHAEL SALERNO

‘Now that borrowing costs have nearly doubled, the whole situation is very challenging.’

ALDEN ANDERSON JR., CBRE GROUP INC. senior vice president in Providence

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REAL ESTATE

CONTINUED FROM PAGE 12

you have a bank with a struggling commercial real estate portfolio, and they were to reappraise the values, that could open up Pandora’s box,” Slom said, creating a risky situation in which borrowers owe more than the property is worth and defaults become more likely.

“That hasn’t happened,” she said. “The underlying conditions are still OK. Unemployment is low, people are working, and the retail numbers are still good.”

‘JURY IS STILL OUT’

Financial institutions aren’t taking any chances. In the wake of this year’s failures of Silicon Valley Bank, Signature Bank and First Republic Bank, many financial institutions have cut back on lending to preserve capital and strengthen balance sheets. They are also bracing for future Federal Reserve interest rate hikes.

Slom said smaller institutions such as hers are “sticking to our proverbial knitting” while proceeding with caution.

“I don’t think you’ll find any bank financing a new spec office building,” she said. “There’s no demand for it. The jury is still out on the office market. It will always be there, but people are waiting to see.”

Already, high interest rates are starting to cause stress in consumer lending. Slom says some borrowers are increasingly late on loan payments and maxing out their credit cards. Another interest rate hike by the Federal Reserve could affect discretionary spending.

The net effect is that the underwriting of credit has become much more stringent, Anderson says.

Also adding to strictness: federal regulators mulling measures to rein in risky practices that caused the recent bank failures.

“There’s a general fear that the cure could be worse than the disease,” said Bruce Van Saun, CEO and chairman of the Providence-based Citizens Financial Group Inc.

“[The banks that failed] were idiosyncratic. They grew too fast,” Van Saun said in an earnings call earlier this year. “They have management failure, supervisory failures. It doesn’t look like lack of regulation was the root of the problem.”

Van Saun said Citizens is well prepared to weather turmoil in the commercial real estate market, in part because a high percentage of the office properties it has financed are in suburban areas, which were less impacted by the COVID-19 pandemic.

TALKING

IT OUT:

Employees concerned about catching the virus were more comfortable returning to their lowslung offices in less-densely populated areas that wouldn’t have closely packed elevators.

Nearly 70% of Citizens’ $4.1 billion general office portfolio is located in suburban areas, and the majority of its office holdings is considered Class A or premium space.

About 90% of the portfolio is income producing, according to Van Saun.

“The geography is relatively dispersed and in relatively strong markets,” Van Saun said. “We currently expect losses to be manageable, and we’ve already set aside meaningful reserves.”

Slom says Washington Trust has a small exposure to urban office markets.

“We have some soft spots. We have some office properties that aren’t 100% occupied and showing the strain of the post-pandemic economy,” she said. “Most of our office [portfolio] is in the suburbs of Boston. Fortunately, we don’t have a concentration in any one area, which is serving us well.”

When the value of office space falls, the possibility of defaults rise. That may spell catastrophic losses for some developers, banks and investors. It may also set up tremendous opportunities for distressed asset specialists to swoop in and buy properties for low prices.

The delinquency rate on all commercial mortgage-backed securities in May jumped to 3.62%, from 3.09% a month earlier, the highest rate it’s been since 2018, according to international real estate analytics firm Trepp.

The increase was driven by a spike in office delinquencies, which jumped from 2.77% to 4.02%, the highest that rate has been since 2018, according to Trepp. The April-to-May spike was the largest month-to-month increase for office special servicing since 2012.

Loans coming due in 2023 are enough of a problem. There’s an even larger wave on the horizon set to come due across the U.S. in 2024.

“Now that borrowing costs have nearly doubled, the whole situation is very challenging,” Anderson said. “In our region, we may be fortunate that we don’t have a lot of assets maturing during

the next zero to 18 months. Therefore, we don’t expect it to have as much of an impact here.”

REFI TENSION

Still, there has been some impact locally, even for the commercial landlords who aren’t in trouble.

Paolino says leery banks are increasingly reluctant to refinance office buildings and want to see solid cash flow, a large balance sheet and sufficient assets to finance a new loan. Most of his portfolio fits those criteria, but he isn’t looking forward to refinancing some of his holdings next year.

In recent years, when a borrower remortgaged a property, the increased value of the building usually resulted in the borrower walking away with extra cash, he says. No more. Now the bankers want borrowers to pony up additional funds.

“The financial institutions are wanting more equity to be put in,” Paolino said. “If the borrower doesn’t have more equity, the bank could take the building. I have to ask, what bank can manage a building better than a good developer?”

Many mortgages have loan-to-value covenants that limit the allowable outstanding amount of the loan based on the property value. If the value drops, a bank can demand the borrower put in more equity or risk default.

But Slom says banks are not eager to put pressure on struggling clients.

“We learned our lesson during the great financial crisis,” she said. “You don’t bring a big sledgehammer to a meeting, but you look for solutions that work for both the bank and the borrower. We’re going to do our best to support them. But it doesn’t mean we won’t take severe measures if we have to.”

Right now, the banks Paolino works with in the local market – such as Bank Rhode Island, Rockland Trust Co., Washington Trust and Citizens – have been amenable during the recent volatility, he says.

“You can start working with them early to get ahead of the problem. I have a big mortgage coming due in February,” Paolino said. “I’m taking care of it now.” n

‘We all talk about the same thing. Office, office, office.’

JULIA ANNE SLOM, The Washington Trust Co. chief commercial real estate lending officer and executive vice president

Julia Anne Slom, chief commercial real estate lending officer and executive vice president at The Washington Trust Co., says banks are eager to help office landlords out of financial jams.

PBN PHOTO/ELIZABETH GRAHAM

LONG VIEW: Joseph R. Paolino Jr., managing partner at Paolino Properties LP, in his office atop 100 Westminster St. in Providence.

PHOTO/MICHAEL SALERNO

Toun’s growth plan: Education, hard work and smarts

BY JACQUELYN VOGHEL | Voghel@PBN.com

(Editor’s note: This is the 35th installment in a monthly series speaking with minority business owners and leaders. Each will be asked for their view on minority business conditions in the state and for ways to improve those businesses’ chances for success.)

ON A 6-ACRE WATERFRONT property in Bristol, Sophath Toun sees a story in every flower, shrub and tree.

Toun was hired to landscape and maintain the parcel six years ago, and now it’s home to hundreds of plants. All but one – an oak tree everyone agreed was too beautiful to cut down on the onceforested land – were plotted by Toun.

There are “too many [plants] to name,” she said.

But pick any plant, whether it’s a tropical carnivorous plant, desert succulent or an evergreen shrub, and Toun can recite everything about it, from its origins and uses to which part of the property has the soil quality, sun and wind conditions to support its growth.

“I love that there’s always a story behind a plant,” Toun said while showing the property on a recent afternoon, highlighting a leafy plant that will eventually bloom into the white flowers used to make leis in Hawaii.

Her work maintaining the array of plants involves “a constant sort of nipping and tucking of plants, kind of organizing nature,” Toun said. “When things pass, you cut it back, and then something is coming forward. I call it a little symphony of plants always happening.”

The residential Bristol property is one of Toun’s more involved projects. But her clients hire her for a range of landscaping services, from design to maintenance.

Toun has been fascinated by plants since childhood. Originally from Cambodia, she moved to Rhode Island from Thailand, where she had lived in a refugee camp for a year after she and her family fled the Khmer Rouge regime.

After arriving in the Ocean State at age 5, Toun watched her uncle plant Chinese broccoli seeds in the ground. When the vegetable, which wasn’t readily available in area supermarkets, emerged from the soil, “that amazed me,” she said. “I always loved seeing things grow, and I always had that love of plants.”

Toun did her own planting in high school before attending Roger Williams University, where she studied architecture. During that time, she put gardening on hold as she focused on her

other passions for drawing and building.

Her eventual shift to landscaping, prompted by her work as a landscape designer at Katherine Field & Associates Inc. in Newport, drew on this same artistry she channeled in college, “but in a different way, using plants as my medium,” Toun said.

In 2013, she launched Soto Design.

In addition to an expertise in landscaping and design principles, the role also requires an understanding of the complex ecology governing a vast array of plants and varying soil qualities, which Toun has taught herself over the years during the cold months.

“There are layers,” Toun said. “There are the shade trees, flowering trees, specimen sort of anchor trees, evergreen.”

In the front of the house, for instance, “there’s evergreen for structure in the winter, there’s ground covers, then there’s always pops of color,”

she said. “So it’s a lot of ingredients, and the ingredients change with the sun exposure.”

In one of the property’s shady areas, she said, “if you put the same things here on the west side, they would be toast. They would cook.” In another area of the property where rainwater collects, all the plants thrive in wet soil.

When she wasn’t tending to a client’s property, Toun originally worked from home before renting a storefront on Main Street in Warren, initially intending to use it only as an office space. But passers-by were frequently intrigued by the greenery decorating the storefront, and at their request, Toun began selling plants under limited hours on top of her landscaping and design work.

She’s also added a bookkeeper and part-time employee to the business, with two graduate students helping in the gardens for the summer. In the future, she hopes to add more staff and expand the storefront hours.

Sophath Toun

1

Do you believe racism is keeping minorities from starting businesses in the Ocean State or succeeding when they do?

No. Education, hard work and business smarts are the tools for a successful business.

2

How dependent is your business on the support of other minority groups? Is that a sustainable business model?

Not dependent.

3

What one thing could Rhode Island do to boost the odds for minority-owned business success?

More exposure via print, TV and radio – advertisement. I believe mentorship would really help any starting business. Can the state offer that?

4

Have you had to turn somewhere other than a bank for a loan? Do you believe the state’s lending institutions generally treat minorities fairly?

I haven’t needed a loan. My business is pretty low overhead. I have sustained my business by starting slowly and staying small. As a small one-person design firm, I offer very personalized service ranging from micro and macro scale. I am blessed having great client support through the years and haven’t had to advertise, as most all my clients are through referrals.

5

If another minority entrepreneur asked you where they could turn to for support for their business, where would you direct them?

If [you] have talent, a product or service people require, people will find you. n

I haven’t needed a loan. I have sustained my business by starting slowly and staying small.

ROOT CAUSE: Sophath Toun established Soto Design in 2013 and has steadily grown the business into a landscape design company and plant shop.

PBN PHOTO/RUPERT WHITELEY

Soto Design owner

Lindsey Scannapieco, the managing partner for Scout. “It’s so big that a street once ran through it, Tingley Street.”

Scannapieco – who handpicks the tenants – calls herself an “accidental developer.” A graduate of the London School of Economics, she formed Scout as a design company focusing on high-profile pop-up art projects in the English capital.

On moving back to the U.S., Scannapieco’s company was celebrated after it revitalized the Bok Building, a former vocational training school in South Philadelphia. Scout retrofitted 340,000 square feet of classrooms and auditorium space. It reopened in 2015 and is now one of the most acclaimed redevelopment projects in the nation. Bok is 100% occupied with 250 tenants and a rooftop restaurant.

“We’ve been contacted by many cities, and had tons of visitors at the Bok,” Scannapieco said. “Lots of deputy mayors and heads of economic development have come through.”

Without fanfare, Scout reviving former factory

BY SAM WOOD | Wood@PBN.com

JOHN

Rosenwinkel needed space to grow.

A founding member of the nonprofit PVD Bike Collective, Rosenwinkel began hearing about a developer of a repurposed building in the Valley section of Providence last year that was looking for tenants.

“[The collective] had been searching for a while,” Rosenwinkel said. “So when 50 Sims Ave. came up on our radar, we made a pitch. It was a shot in the dark.”

The 87,000-square-foot brick building had been largely empty for years. It once housed a factory where thin-film products used in solar power cells and LCD screens were manufactured. But the building languished in a postindustrial landscape sandwiched between the Woonasquatucket River and Route 6, where artists groups, artisans and Farm Fresh Rhode Island have repopulated the area.

The PVD Bike Collective became the second tenant at 50 Sims in November, joining Revival Brewing Co. and Lost Valley Pizza, which are run be the same people.

“We doubled our size and we got a much better location for about the same price per square foot as we’d been paying near Cranston,” Rosenwinkel said.

The building has been owned by the Providence Redevelopment Agency

since 2010, but since late 2021 has been under the control of Scout Ltd., a Philadelphia-based firm that is also looking to redevelop the Cranston Street Armory, plans for which have been mired in controversy because of the alleged unprofessional conduct of two high-ranking state officials during a visit to Scout in Philadelphia in March.

Scout’s involvement with 50 Sims Ave. has been largely low profile.

Since Scout signed a master development agreement with the PRA, a gaggle of nonprofit and for-profit businesses have moved in.

In addition to the PVD Bike Collective, the Providence Preservation Society teaches home restoration in one portion of the building. WaterFire Providence repairs its boats in another. In other units, Polaris MEP – a subsidiary of the University of Rhode Island Research Foundation – fosters regional development, the Jane Addams Resource Corp. Rhode Island runs a workforce training center, and the Industrious Spirit Co. warehouses its alcoholic beverages.

It’s an enormous property. And it’s still only about 35% occupied.

“We talk about 50 Sims as one entity, but it’s really a higgledy-piggledy collection of spaces built for several purposes,” said

FRESH START: Philadelphia development company Scout Ltd. is revitalizing a building at 50 Sims Ave. in Providence.

From left are Kelley Gerrard, creative marketing director; Lindsey Scannapieco, managing partner; and Everett Abitbol, director of development. Revival Brewing Co. was one of the first tenants of the repurposed building.

PBN PHOTO/ MICHAEL SALERNO

Among the visitors were two Rhode Island officials: James Thorsen, director of the R.I. Department of Administration; and David Patten, of the state’s property management division. Following the pair’s March field trip, ostensibly to assess Scout’s ability to work on the Cranston Street Armory, Patten’s behavior was described as “bizarre, offensive, and unprofessional.” Patten has since resigned and Thorsen took a job with the U.S. Department of the Treasury. Scannapieco declined to discuss the matter.

50 Sims is similar to Bok in several ways. Both had been unappreciated and unoccupied for years. Each required a fresh reappraisal if they were to avoid the wrecking ball. They were both in areas of the cities that were beginning to thrive again, says Joseph Mulligan the director of planning and development for Providence.

“We wanted something here that would contribute to the cluster of artisans,” Mulligan said. “We wanted tenants interested in an innovative collaborative workspace, with artisans who could contribute to the new economy in Rhode Island.”

But when the PRA issued a request for proposals in 2020 for a master leasee to revitalize 50 Sims, it received no suitable responses.

“Someone had seen the work Scout had done and said it was the type of project that fit into our vision plan for the area,” Mulligan said. Scout’s involvement “allowed the PRA to step back and not worry about the building or collecting the rent.”

“They wanted to preserve the access to affordable space, artist space, a ‘dirty space.’ But they also wanted development,” Scannapieco said. “That felt aligned with our background and experience. An industrial ‘dirty space’ can provide a different set of possibilities. We felt we could take this on.”

Rosenwinkel, of the Bike Collective, says the neighborhood feels like it’s coming into its own, and 50 Sims is adding to the feeling. “The Valley is really undergoing a revival,” he said. “There’s a lot of stuff happening in these four square blocks. n

‘We wanted something here that would contribute to the cluster of artisans.’

JOSEPH MULLIGAN, Providence director of planning and development

CONTINUED FROM PAGE 1

workers and executives, the West Greenwich structure is largely devoid of people but holds plenty of objects.

While the storage building does serve an existing need, Godfrey finds it a somewhat dreary symbol, compared with what it used to hold.

It’s also not alone. Godfrey notes that another self-storage facility was recently completed along Interstate 95, near the Thurbers Avenue curve in Providence, and another just north of the curve.

While perhaps harder to miss along the interstate, these self-storage facilities aren’t just cropping up along highways: The facilities are scattered across the state and only becoming more common.

“They are proliferating,” Godfrey said. “The actual data is hard to gather, [but] it’s been happening for a while.”

It’s not an issue that’s unique to Rhode Island, Godfrey says, noting that self-storage units are popping up in rapid succession throughout the country. But the state’s notoriously restrictive land-use ordinances certainly don’t help.

The prevalence of self-storage units ties back to Rhode Island’s housing crisis in more ways than one, Godfrey says. Under the current dearth of affordable residential units, people are renting out small, shared apartments with little room for their belongings.

“There’s just no room for people’s stuff,” Godfrey said. “We’re also seeing a lot of people sharing [apartments], and they have less [space] to store stuff. … And we bought a lot of stuff during [the COVID-19 pandemic].”

Additionally, cities and towns tend to look upon self-storage units favorably, he adds. The landowners have to pay regular property taxes, the units have minimal water and sewer needs, and these businesses don’t generate a lot of traffic.

In other words, “They pay taxes and demand no services,” Godfrey

said. Meanwhile, the facilities also appeal to property owners as relatively low-maintenance buildings that they can count on for municipal approval.

But while community leaders have traditionally allowed these facilities with little fuss, that’s starting to change as they become more prevalent.

In Providence, the spread of storage units has become a major area of concern for City Council members Miguel Sanchez, Sue AnderBois and Justin Roias.

Sanchez says the issue first came to his attention when constituents raised questions about construction on land in his Ward 6 neighborhood. On further investigation, he discovered that the parcel was approved to host a self-storage facility.

Little data exists on self-storage buildings, so Sanchez and his team set out to document just how many units exist in the city. In their search, they identified 15 self-storage businesses that have already opened in Providence, with another two under construction. And the 10-mile radius surrounding Providence includes another 50 of these facilities, they found.

That was enough for Sanchez, AnderBois and Roias, particularly considering the city’s housing shortage. They recently proposed an ordinance that would ban future self-storage unit developments within the city.

The measure has garnered the support of the ordinance committee and Plan Commision.

Since the ordinance was proposed, a Massachusetts company has proposed a five-story, 1,400unit self-storage building on Branch Avenue in Providence.

“The central thing we want to accomplish is house people and not things,” Sanchez said, adding that self-storage businesses also don’t offer many jobs for locals. “Most of these facilities have one or two employees working there at all times.”

And municipal leaders may soon

CONTINUES ON PAGE 19

‘The central thing we want to accomplish is house people and not things.’

MIGUEL SANCHEZ, Providence city councilor

FOCUS | RHODE ISLAND COMMERCIAL REAL ESTATE LEASES - OFFICE

(ranked by square footage)

Total square footage leased in 2022: 357,303

LIST RESEARCHED BY James Bessette NEED A COPY?

To purchase a copy of this list, call (401) 273-2201 or visit PBN.com/lists for more information.

UPCOMING LISTS July 21: Colleges & Universities, Engineering Firms; Aug. 4: Highway Projects in Rhode Island, Meetings & Convention Facilities.

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FOCUS | BRISTOL COUNTY, MASS., COMMERCIAL REAL ESTATE LEASES - OFFICE (ranked by square footage)

CLOSER LOOK

Total square footage leased in 2022: 24,666

LIST RESEARCHED BY James Bessette FOOTNOTE

j Some information on lessees occupying various properties was unavailable.

RICHARD GODFREY, Roger Williams University real estate program director

follow suit in North Providence, where Town Councilman Ronald Baccala Jr. recently proposed restricting new self-storage units to industrial areas.

Godfrey doesn’t see the facilities as inherently malignant, given that most exist on commercially zoned properties where housing might not be allowed. But Sanchez says his proposed ordinance to prohibit the facilities would serve as a first step toward creating more housing.

“We don’t want to ban them just for the sake of banning them,” Sanchez said. “The next step is to see what we can do as a city to incentivize more housing opportunities … [and] to participate in our compre-

hensive plan as a city and see specifically what kind of zoning changes we can make.”

Godfrey also notes that even lots zoned only for commercial use can be put to better use. Looking at the former GTECH building, he recalls it as something of a symbol of former innovation. GTECH moved its headquarters to Providence in 2004.

“To have [the company] replaced by self-storage may produce tax dollars and [there] may be a need, but it really doesn’t stimulate the economy,” he said.

“We can’t have all of our land consumed with self-storage,” he said. “We need to have a balance of land uses.” n

CONTINUED FROM PAGE 17

WHAT’S IN STORE? Richard Godfrey, executive director of Roger Williams University’s real estate program, stands outside one of Rhode Island’s newest self-storage facilities, located on Eddy Street in Providence.

PBN PHOTO/RUPERT WHITELEY

FOCUS | RHODE ISLAND COMMERCIAL REAL ESTATE LEASES - RETAIL

FOCUS | RHODE ISLAND COMMERCIAL REAL ESTATE LEASES - RETAIL (ranked by square footage)

(ranked by square footage)

Total square footage leased in 2022:

164,606

FOCUS | BRISTOL COUNTY, MASS., COMMERCIAL REAL ESTATE LEASES - RETAIL (ranked by square footage)

& Convention Facilities.

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FOOTNOTE j Some information on lessees occupying various properties was unavailable.

Total square footage leased in 2022: 26,060

LIST RESEARCHED BY James Bessette NEED A COPY?

To purchase a copy of this list, call (401) 273-2201 or visit PBN.com/lists for more information.

FOOTNOTE j Some information on lessees occupying various properties was unavailable.

FOCUS | RHODE ISLAND COMMERCIAL REAL ESTATE LEASES - INDUSTRIAL

(ranked by square footage)

FOCUS | MANUFACTURERS (ranked by number of local employees)

FOCUS | MANUFACTURERS (ranked by number of local employees)

4

2022: 4

Amgen Rhode Island | amgen.com

RobertBradway, chairman and CEO;BrianBritson, Rhode Island site vice president of operations

West Main Road Portsmouth, R.I.02871 (401)842-5438

40 Technology Way West Greenwich, R.I.02817 (401)392-1200

1,039 Electronic and weapons systems integrator for the U.S. Navy and international navies

1,020

Developer and manufacturer of biopharmaceuticals

CLOSER LOOK

Total local employees: 17,888

LIST RESEARCHED BY James Bessette

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UPCOMING LISTS

5

2022: 5 Sensata TechnologiesInc. | sensata.com

JeffreyJ. Cote

529 Pleasant St. Attleboro, Mass.02703 (508)236-3800

900

Custom-engineered sensors and controls, including Airpax, DeltaTech, Dimensions, Klixon, Qinex, Schrader and Sensor-NITE

July 21: Colleges & Universities, Engineering Firms; Aug. 4: Highway Projects in Rhode Island, Meetings & Convention Facilities.

5

2022: 5 General Dynamics Mission Systems | gdmissionsystems.com ChrisBrady, president

400 John Quincy Adams Road Taunton, Mass.02780 (508)880-4000

900 Technology integrator and original equipment manufacturer with deep domain expertise in ground, sea, air, space and cyberspace

WANT TO JOIN?

7

2022: 8 Tiffany &Co. | Tiffany.com

RobertAlley, vice president, jewelry manufacturing; MichaelBergkoetter, senior vice president, industrial

8

2022: NL Joseph Abboud ManufacturingCorp. | josephabboud.com

JosephBahena, senior vice president

9

2022: 9

10

2022: 11

11

2022: 10

Toray Plastics (America)Inc. | toraytpa.com

AkihiroNikkaku, CEO, president and chief operating officer, Toray Industries Inc.;KenKurokawa, chairman and CEO, Toray Plastics (America) Inc.;ChristopherRoy, president and chief operating officer, Toray Plastics (America) Inc.

TacoInc. 2 | tacocomfort.com

John HazenWhite Jr., owner and executive chairman; CherylMerchant, CEO

Teknor ApexCo. | teknorapex.com

Jonathan D.Fain, chairman and CEO;Suresh Swaminathan, president

300 Maple Ridge Drive Cumberland, R.I.02864 (401)288-0100

689 Belleville Ave. New Bedford, Mass.02745 (508)999-1301

50 Belver Ave. North Kingstown, R.I.02852 (401)294-4511

1160 Cranston St. Cranston, R.I.02920 (401)942-8000

505 Central Ave. Pawtucket, R.I.02861 (401)725-8000

650 Bracelets, charms, engagement rings, home accessories, necklaces, NFL Vince Lombardi Trophy, watches

600 Joseph Abboud sportcoats, suits and trousers

557 Polyester and polypropylene film manufacturing

520 Circulators, controls, pumps and valves for HVAC systems

489

Custom compounder of advanced polymer materials

For more information about participating in PBN’s Top Lists, or to make additions or corrections, call (401) 6804838 or write to Research@ PBN.com.

NL = Not listed last year.

FOOTNOTES j Companies listed have manufacturing facilities located in Rhode Island and/or Bristol County, Mass.

 Also known as Taco Comfort Solutions.

 Formerly known as Amtrol Inc.

 Formerly known as Systems Engineering Associates Corp.

12

2022: 14 Worthington Industries 3 | amtrol.com

MikeGiannantonio, general manager

2022: 13 SEACORPLLC 4 | seacorp.com

DavidCadorette, president

14

2022: 16 AstroNovaInc. | astronovainc.com

GregoryWoods

NordsonEFD | nordsonefd.com

SundaramNagarajan, CEO and president, Nordson Corp.;

1400 Division Road West Warwick, R.I.02893 (401)884-6300

62 Johnnycake Hill Middletown, R.I.02842 (401)847-2260

450

HVAC: Extrols, Therm-x-Trols, pressure-rated cylinders; water systems: well-water systems, water treatment 13

427 Systems and software engineering, program and financial management, research and development

600 East Greenwich Ave. West Warwick, R.I.02893 (401)828-4000 400 Manufacturer of associated software and consumables, data acquisition systems, specialty printers

2022: NL

FerranAyala, vice president and general manager, Nordson EFD

40 Catamore Blvd. East Providence, R.I.02914 (800)556-3484 400

Manufacturer of dispensers, dispense valves, automated dispensing systems, syringe barrels and precision dispense tips

FOCUS | MANUFACTURERS (ranked by number of local employees)

FOCUS | MANUFACTURERS (ranked by number of local employees)

21

custom binders, luxury amenity and traveler packaging, luxury-event invitations, marketing and press kits, portfolios, product launch kits, retail packaging, season-ticket packaging

CLOSER LOOK

Ranked by oldest manufacturers: 1

Hexagon Manufacturing Intelligence

Year founded: 1833 2

Tiffany & Co.

Year founded: 1837

3

Bradford Soap Works Inc.

Year founded: 1876

LIST RESEARCHED BY James Bessette

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To purchase a copy of this list, call (401) 273-2201 or visit PBN.com/lists for more information.

UPCOMING LISTS

July 21: Colleges & Universities, Engineering Firms; Aug. 4: Highway Projects in Rhode Island, Meetings & Convention Facilities.

WANT TO JOIN?

For more information about participating in PBN’s Top Lists, or to make additions or corrections, call (401) 6804838 or write to Research@ PBN.com.

NL = Not listed last year.

FOOTNOTES

j 1 Companies listed have manufacturing facilities located in Rhode Island and/or Bristol County, Mass.

 Formerly known as Ximedica.

 Taylor Box Co. was acquired in January 2023 by European secondary packaging group Pusterla 1880 SPA.

Healy lauded for civic education

JOHN HEALY, a teacher at E-Cubed Academy in Providence, was recently named the inaugural winner of the Rhode Island Civic Education Teacher of the Year award. The award honors an outstanding teacher who has demonstrated a commitment to and expertise in teaching civics or American government, with special consideration given to teachers who employ innovative teaching practices and experiential learning. Healy has taught in the Providence Public School District for the past 29 years, including 17 years at E-Cubed Academy. He teaches AP US History, AP Modern World History, and Civics in America.

What does being named the state’s top civics education teacher mean to you?

It is an honor to be recognized; however, I have been blessed with wonderful students in Providence who make teaching civics a pleasure. It is their passion and engagement that drive me to be better every day.

W ith the political strife that is occurring locally and across the U.S., how vital is it to instill civics education in students?

CIVIC LEADERSHIP: John Healy, center, a teacher at E-Cubed Academy in Providence, was recently named the inaugural winner of the Rhode Island Civic Education Teacher of the Year award. He is pictured with Providence Public School Superintendent Javier Montañez, left, and R.I. Secretary of State Gregg Amore.

COURTESY PROVIDENCE PUBLIC SCHOOL DISTRICT

It is important for kids to feel connected to society, especially after the isolation of the COVID-19 pandemic. Students should know that a responsive government has the potential to help bring people together and fix societal issues. In order for ours to be a government of the people, we must support students in engaging in civic action so that they can advocate for themselves and their communities. To better understand civics, students must actively engage in civic action. Students are more likely to continue to be involved when they actively go through civic process.

What kind of tools have you provided to your students for them to better understand civics education?

My classes select a topic of interest and then take steps to

REGIONAL

This publication connects top level business executives and their employees to the region’s nonprofit offerings. Profiles of nonprofit organizations highlight their mission and position them as worthy of support by community leaders who can devote their time, talent and treasure.

In addition to the lasting value of the printed guide, additional distribution includes a digital edition on PBN.com for the year, distribution to all attendees of the AFP-RI National Philanthropy Day Awards in November and emailed to the entire PBN database on Giving Tuesday. RESERVE YOUR

Publish Date: October 27 Reservation Deadline: September 27 Contact your PBN Account Manager or EMAIL Advertising@PBN.com PHONE 401.680.4800

make a change in government policy. Academic skills are strengthened through the experience of researching, writing and delivering House testimony on their chosen topic, and through engaging with legislators and peers on the topic through current technology, such as social media, podcasts and websites. Students’ social-emotional skills are bolstered when they learn that showing up for issues they care about matters. Their confidence climbs when they realize that elected officials are human beings. They learn to speak with adults, authentically present research and write thank-you notes, in which students communicate their gratitude and commitment to working with others to make our community better.

W hat new civics education teachings do you hope to develop and bring to future students at the school?

This year, my classes have had the experiences of visiting [Providence] City Hall and testifying in front of a House committee in the [General Assembly]. In the near future, we plan to interview city and state officials on our podcast, and I would, of course, love to take my students to Washington, D.C., so that they can better understand our federal system. n

PEOPLE ON THE MOVE

ENVIRONMENTAL CONSULTING

Horsley Witten Group, a full-service environmental consulting firm, has appointed Nathan Kelly president. Kelly, of Providence, has been instrumental in the growth of the company during the past two decades, having provided professional planning, zoning and facilitation services to more than 50 municipalities throughout New England. He is recognized as a leading expert in the disciplines of comprehensive planning, affordable housing, regulatory reform, village and downtown planning, low impact development and watershed assessment. He was appointed to the R.I. State Legislature’s Land Use Commission in 2021, and has served as president of the R.I. Chapter of the American Planning Association.

PEOPLE ON THE MOVE

Announce new hires, promotions and accomplishments to the Rhode Island business community.

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ONCE UPON A TIME in a tiny French village, the townspeople decided to honor their parish priest by each bringing a bottle of wine the following Sunday for the pastor’s empty wine barrel. The pastor was delighted, and he asked all in attendance to join him for a glass of wine from the now-full barrel. But when the tap was opened, only water came out.

Each villager had brought water instead of wine – thinking that all the others would bring wine and the one bottle of water would never be detected.

Alas, they all had decided to ignore their agreement, and they were all exposed as cheaters.

What is cheating? Simply put, it is breaking the rules.

Cheating has become so normalized in society that people are hardly shocked by it anymore. There has been a consistent, gradual decline in ethical business practices in the United States for about 50 years. And it’s reached new extremes lately in almost every institution that can be measured. Business leaders, politicians, religious institutions, sports heroes, college students trying to get better grades, and parents cheating to get their children into college are just

MACKAY’S MORAL | HARVEY MACKAY

The cheat is on

some of the examples easy to spot.

In some cases, cheating can seem to be beneficial, but it is often illegal and always unethical. As cheating becomes increasingly common in schools and workplaces, more people are beginning to ask themselves if cheating is becoming acceptable because it is overlooked so often.

For example, a new study has found that more than 90% of college students have cheated somehow. The survey, conducted by the NCAA, surveyed more than 4,000 students at various colleges and universities across the U.S. and found that cheating is not just a problem on one campus – it’s a problem nationwide.

A teacher was talking to his colleague and observed, “The worst thing that can happen to a student starting school is to get caught cheating.”

“Not at all,” said the colleague. “The worst thing at the start of a person’s life is to cheat and not get caught.”

A mechanic whom I have patronized for years explained that his profession is frequently mistrusted

by customers who question why certain repairs are needed because some greedy competitors try to “sell” services that are unnecessary.

Ask a hundred human resources managers if they have ever seen a suspicious resume – exaggerated credentials, fake degrees, questionable experience – and I’d bet you can count on both thumbs how many say they have not.

Performance-enhancing drugs in sports? Athletes know they are banned, yet some still try to cheat their way to success. Clean athletes who turn in stellar performances know there is no substitute for training and talent. But because some refuse to follow the rules, everyone must be tested to prove they haven’t cheated.

Here’s a final story to illustrate my point. A baker bought his butter from a local farmer. After some time, the baker began to suspect that he wasn’t receiving full pound bricks of butter from the farmer.

For several days, he weighed the butter after it was delivered. His sus-

TO SAVOR | JESSICA NORRIS GRANATIERO

THIS TIME OF YEAR is always a great one to enjoy sparkling wines. These bubbly wines are great for backyard gatherings and summer cuisine – shellfish, grilled pizza, chicken kebobs – and cheese and meat boards. Their effervescence tickles the nose. The most famous sparkling wines are France’s Champagne. However, there is a bigger world of sparkling wines that allows us to journey through options and regions and provides us with great value.

Produced in different styles across various regions, these sparkling wines differ in taste, production method and price.

Prosecco. It’s made from the glera grape and comes from areas in northeast Italy that range from Veneto and extend north to Friuli-Venezia Giulia. The most highly regarded Prosecco comes from the DOCG [designation of controlled and guaranteed origin] hills of Asolo and an area around Conegliano and Valdobbiadene. The DOC [designation of controlled origin] Prosecco, instead, is produced in a protected geographical area that surrounds the city of Trieste.

Prosecco is made from a base wine

picions proved correct. So, he turned to the law to settle the matter.

The farmer was brought to court to answer for his act of fraud. “What kind of scale do you use?” the judge asked.

“I don’t have a scale, your honor,” replied the farmer.

“Then how can you weigh the butter that you sell?”

“It’s pretty simple,” the farmer said. “I have balances, and I use the one-pound loaf of bread I buy from the baker as a weight.”

Case dismissed.

I learned a long time ago that by not cheating – and doing the right thing, you will live a much happier life than trying to cheat your way through it. Just tell the truth. It’s so simple, so basic – and the cover-up is always worse. You’ll also sleep much better at night.

Mackay’s Moral: People don’t cheat by chance; they cheat by choice. n

Harvey Mackay is the author of the New York Times bestseller “Swim With the Sharks Without Being Eaten Alive.” He can be reached through his website, www.harveymackay.com.

Bubbles for the summer

and then undergoes a secondary fermentation in large vats to become bubbly. Proseccos range in style with different terms on the label describing their dryness levels, such as brut and extra dry. In 2020, the Italian government approved Prosecco rosé DOC. Look for the DOCG on the label for the more-acclaimed Proseccos, such as my favorites from La Gioiosa and Ca dei Zago. While great to sip alone, Prosecco is essential at afternoon aperitivo time when cafes and restaurants in Italy use it to make the ubiquitous spritz – a cocktail made with Prosecco, aperol liqueur and a splash of sparkling water.

Cava. It’s the most prominent sparkling wine from Spain and is made from a blend of grapes, typically xarel-lo, macabeo and parellada. But other international varietals such as pinot noir and chardonnay can also be used. Cava has the status of the denominación de origen [DO] that provides regulations around its production. In addition, it can be made in only six areas of Spain, with most cava coming from Catalunya. Unlike Prosecco, cava is made in the traditional method – Champagne

method – with the secondary fermentation occurring in the bottle, not a tank. This elaborate process often leads to a slightly higher price. Yet cava is still less expensive than Champagne. I like the Biutiful Cava Brut Nature, which sits at less than $20 and has no added sugar, giving it a crisp, dry style with notes of green apple and pear. Franciacorta. It’s a sparkling

wine that shares its name with the region where it is produced. Located an hour east of Milan, Franciacorta is a gastronomic haven that features ancient Etruscan towns and borders Switzerland. Like Cava, Franciacorta is similar in winemaking style to Champagne, with the second fermentation occurring in the bottle. Franciacorta is aged for about 18 months (a riserva can go up to at least 60 months) before it is released on the market. It is known for its longevity. This process and its aging requirements give Franciacorta weight and complexity. It usually sits at a higher price point than Prosecco. Franciacorta is a blend of mostly chardonnay, pinot noir, pinot blanc and erbamat grapes. My go-to is Mirabella Edea Franciacorta. This is a blanc de blanc style, which means it’s a white sparkling wine made from white grapes – in this case, chardonnay and pinot blanc. n

Jessica Norris Granatiero is the founder of The Savory Grape, a wine, beer and spirits shop in East Greenwich. She can be reached through her website, www.jessicagranatiero.com.

TICKLING THE NOSE: There’s more types of sparkling wine beyond Champagne. From left are recommended brands Franciacorta, Prosecco and cava. COURTESY JESSICA NORRIS GRANATIERO

HARNESSING COGNITIVE diversity in the workplace involves recognizing and accommodating individual variations in thinking and information processing. Given that cognitive diversity is comprised of diverse styles, outlooks and problemsolving approaches, it has become an advantage in today’s evolving workplace. Teams that embrace cognitive diversity have the potential to amplify their innovation, creativity and performance. However, navigating group dynamics can present challenges such as communication barriers and unconscious biases.

Employers should consider these strategies to manage cognitive diversity in the workplace.

Foster open communication. Leaders can highlight the significance of cognitive diversity by actively encouraging employees to share their perspectives and approaches to work. Additionally, managers should remain aware of unintentional biases and avoid making assumptions based on actions or approaches that could merely reflect an individual’s cognitive style.

By adopting hiring practices that foster cognitive diversity, organizations cultivate a range of perspectives

Diverse thinking is key

and problem-solving approaches. A company’s most successful pathfinders can be the individuals who view the world differently from the majority. Furthermore, corporate cultures that embrace varied modes of thinking promote inclusivity, open-mindedness and transparency.

Cultivate collaboration. It is paramount to the success of any team to collaborate effectively. By working together, individuals can use their cognitive strengths to make up for each other’s weaknesses or blind spots. Research has shown that within teams, cognitive diversity not only expedites learning but also improves performance when confronting challenges. The inclusion of various perspectives and viewpoints is imperative for tackling intricate business situations.

Creating an environment where creative ideas can flourish requires providing individuals with the space to contribute. Equally significant is

listening to the perspectives of others. Managers can foster collaboration by establishing cross-functional teams or assigning group projects, encouraging interactions and idea-sharing. Promoting communication and soliciting feedback from employees are also essential. When company culture embodies collaboration and communication, teams can use their cognitive diversity to be innovative and achieve success.

Embrace employee differences. Conflict is an inevitable aspect of any workplace, and it is essential for organizations to establish policies and communicate their expectations regarding performance and behavior, especially in diverse environments where conflicts can be intensified. Managers should know how to effectively resolve disputes and mediate conversations between conflicting parties.

Support training and development. Training and development

programs that highlight cognitive diversity can assist employees in understanding their own and others’ communication styles, reducing biases and misunderstandings.

Companies should assess their training and development programs to ensure their effectiveness across different learning styles, such as using infographics for visual learners or leading hands-on demonstrations for better inclusivity. Individual preferences can vary. Some people may prefer self-paced learning, while others enjoy group sessions. Taking employee feedback into consideration can improve employee buy-in and skill development.

An organization that nurtures a workplace of diversity, equity and inclusivity inspires employees to embody those values. This environment not only fosters creativity and engagement but also empowers employees to use their individual strengths as well the strengths of others, regardless of their cognitive styles. n

Eric Cormier is a manager of human resources services in Rhode Island for Texas-based Insperity Inc., which provides human resources and administrative services.

HELP WANTED

Senior Manager, Validation position available with Vertex Pharmaceuticals Incorporated located in Providence, RI. Position will lead a process validation team to support validation activities for a G.M.P. manufacturing facility, manage validation activities for equipment builds, facility design, utilities, and qualification projects through hands-on work and support from contractor(s) as required; 10% Travel required. Send Resume to Sarah Hadjian at Sarah_Hadjian@vrtx.com.

Reference 12140.417. EOE.

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diversity

EDITORIALS

Pandemic fallout taking toll on commercial real estate More questions than answers on ‘iGaming’

The COVID-19 pandemic has ended but the economic fallout is ongoing in some sectors of the economy, including commercial real estate. Owners and lenders invested in downtown office space are feeling the effects of rising national office vacancy rates that are not expected to peak until late next year. The ongoing pressures of growing remote work and rising borrowing costs are dampening demand in most urban areas, including Providence. But as this week’s cover story reports, the state and its capital city so far have fared better than many overbuilt areas.

Months of behind-the-scenes negotiations that culminated with General Assembly support for internet gambling have left more questions than answers about how it will work and how much revenue it will generate.

ANXIOUS TIMES: Office vacancy rates in downtown Providence have been stable in recent months but are expected to rise this year amid national pressures created by rising borrowing costs and declining demand.

Office vacancy rates have remained stable in recent months as the workforce has slowly returned.

Alden Anderson Jr., senior vice president for the Providence office of CBRE Group Inc., does, however, expect those local rates to rise this year.

As vacancies rise, cash flow decreases and property values eventually fall. Add ever-rising borrowing costs to the mix and the risk of loan defaults grows.

Paolino Properties LP Managing Partner Joseph R. Paolino Jr. is concerned about how bad things may get locally. But he’s not sitting on his hands waiting to find out.

He’s continued to shore up his holdings in response to changing market demands. The latter includes the recently completed $20 million conversion of Providence’s Studley Building into housing units.

He’s also working with local banks now on a large mortgage payment not due until February. “Get ahead of the problem,” he told PBN.

That’s sound strategy from a survivor intent on being at the forefront of the downtown’s post-pandemic recovery. n

POLL CENTRAL

EXECUTIVE POLL

Summertime blues

Do your business operations slow down during the summer months?

Yes: 60%

No: 40%

Does your company hold summertime outings for employees?

Yes: 60%

No: 40%

Do most of your employees take their vacations during the summer?

Yes: 100%

No: 0%

Where does summer rank in terms of your company’s profiability period?

Somewhat profitable: 60%

Least profitable: 40%

Most profitable: 0%

PBN.COM POLL

Rhode Island in March is slated to become the seventh state to allow residents and visitors to gamble on casino games by phone and computer.

But a late change in the legislation requiring table games to be run by a live dealer has Bally’s Corp., which operates Rhode Island’s two casinos, and state officials scrambling to work out a timetable and regulatory framework.

State revenue projections have ranged from $162 million to $210 million over five years. Variables include when it actually gets underway, simulcast investment costs and demand.

Poker players are already questioning whether it will ever happen here because they say no one else in the industry has an online poker platform with live dealers that Bally’s could tap into.

Slot gaming is expected to generate roughly 70% of the projected revenue, but no one is willing to say yet what the state’s initial annual take will be. n

Should local colleges drop COVID-19 vaccination mandates now that it is no longer recognized as a public health emergency? JUNE 23-29

Yes, the mandates were only defensible in an emergency situation 86%

No, COVID is still a significant public health threat 11%

I’m not sure 2%

THIS WEEK’S POLL: Do you support allowing Rhode Island residents who are not citizens to obtain driver’s licenses?

• Yes, it will increase road safety for everyone by allowing them to get insurance

• No, only citizens should have driver’s licenses

• I’m not sure

To vote, go to PBN.com and follow the link on the home page

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The Providence Business News Executive Poll is a weekly survey of 70 business leaders throughout the state, representing small and large companies in a variety of industries.

OPINION

Don’t stymie primary-care tech advancements

An absolute requirement during the COVID-19 pandemic, telemedicine has been a game-changer for patients across the state of Rhode Island. Essential to this new method of care is wireless networks such as 5G that serve as the backbone of the service, enabling doctors, nurses, and patients to communicate and treat medical conditions remotely over phones and computers. Coming out of the pandemic, this technology continues to be a major success story, handling the increased demand for bandwidth without hiccups and allowing telehealth services to become a mainstream option for care.

Through the COVID-19 crisis, our Care Transformation Collaborative – consisting of primary care teams and industry experts statewide – worked to quickly pilot and scale ways to utilize this technology to better support care. Telehealth became a lifeline to families and quickly proved how our industry can embrace advancements to support care needs.

Last spring, we wrapped up our pilot program that engaged 21 practices as they expanded the use of technology to help patients better manage chronic conditions, and as a result, boosted patient access to

care, supported better patient experiences and reduced emergency department visits and hospitalizations. This initiative affected over 2,700 Rhode Islanders.

As we think through the future realities of our primary care industry, telehealth will continue to play a vital role. From pediatric primary care to mental and behavioral health, this technology is being adopted across the health care industry.

Unfortunately, the primary care industry of tomorrow is at a standstill. A muchneeded (and often forgotten) reality that makes technological advancements such as telehealth possible is the use of the wireless spectrum of radio frequencies. It’s what connects us to cellular networks and the wireless internet. With high-powered, licensed spectrum, cellular carrier networks provide internet connectivity to our practices and neighborhoods. This enables us to browse websites, use mobile apps that support telehealth, and access online services wherever we have cellphone coverage. But now, the availability of additional frequencies is limited.The Federal Communications Commission, which is charged with authority of the spectrum for our use, must be empowered by Congress to make

Access to reliable internet must be expanded.

more of this resource available through regulatory proceedings. Unfortunately, this authority has lapsed for the first time ever, and no new spectrum is being allocated for next-generation technology. Our congressional leaders have the power to reauthorize this authority and establish a pipeline of future spectrum proceedings. Taking these important steps will enable future technological advancements in telehealth and our primary care industry. It’s important we work to close the digital divide and ensure Rhode Islanders across our state can utilize the benefits of wireless internet access, including telemedicine.

New spectrum availability increases our digital infrastructure capacity and opens the door to enabling next-generation technology to expand and improve local residents’ internet accessibility and the opportunity to utilize telehealth applications in a whole new way.

As we work hard to address the needs of the primary care industry today, we must consider the needs of tomorrow. From real-time patient monitoring and support to telehealth consultations that help families overcome barriers to care such as transportation or childcare, access to reliable internet must be expanded to ensure everyone can utilize life-changing innovations in primary care. n

Debra Hurwitz is the executive director of the Care Transformation Collaborative of Rhode Island.

Student loan ruling will hurt people and economy

The Supreme Court has struck down the Biden administration’s student loan forgiveness plan. In Biden v. Nebraska, the court ruled 6-3 on June 30, that the secretary of education does not have the authority to forgive $430 billion of student loans under the Health and Economic Recovery Omnibus Emergency Solutions Act

That kills President Biden’s proposed plan to forgive up to $10,000 in student loans per borrower for those with incomes under $125,000 per year, or $250,000 per year for couples. Under the president’s plan, those who received Pell Grants would have been eligible to cancel up to an additional $10,000 in student loans.

Just hours after the decision, Biden announced a new effort to forgive student loans under the Higher Education Act of 1965

To give borrowers time to “get back up and running,” Biden stated that the Education Department won’t refer borrowers who don’t pay their student loan bills to credit agencies for 12 months.

In the majority opinion, Chief Justice John Roberts – joined by his five other conservative colleagues – stated “The HEROES Act allows the Secretary to ‘waive or modify’ existing … financial assistance programs under the Education Act, but does not allow the Secretary to rewrite that statute to the extent of canceling $430 billion of student loan principal.”

Currently, over 43 million Americans owe

$1.64 trillion in federal student loans, with an average balance of $46,000. Student loan borrowers haven’t had to make payments on their federal loans – or accrue interest on those loans – since March 2020, when the Trump administration put the payments on pause due to the COVID-19 pandemic.

But that will change on Sept. 1, when interest will once again begin to accrue on outstanding student loans. Payments on the actual loans is set to resume in October.

When payments resume, the average student loan payment is expected to be between $200 and $500 per month. For those who resume making their federal student loan payments on time, this may lead to an increase in their credit score, while those that miss the first payment after payments resume can expect their credit score to fall.

Prior to the student loan pause, approximately 7.5 million borrowers – out of 43 million – were in default on their federal student loans.

These borrowers can apply for the Fresh Start program. For borrowers who are behind on their federal student loan payments, this program allows student loan borrowers to reset their loans so they won’t be considered past due anymore.

In addition, any negative entries on their credit report due to being behind on their student loans will be removed. About 80% of Fresh Start borrowers enroll in an incomedriven repayment plan. Such a plan calcu-

lates a borrower’s monthly federal student loan payment based on the borrower’s income, spouse’s income and family size Monthly payments under this plan will not exceed 20% of the borrower’s income. Those with larger families and lower incomes have lower monthly payments. Currently, about half of the Fresh Start borrowers pay $0 a month.

It is estimated that student loan borrowers pay about $70 billion a year on their federal student loans. Any economic benefit that borrowers may have gotten from the suspension of student loan payments is likely to have already been absorbed into the economy over the past three years. In other words, any money borrowers had to spend as a result of the student loan pause has already been spent.

With the resumption of student loan payments, there will likely be a small but negative impact on the economy. This reduction in spending on goods and services is estimated to reduce economic growth by about 0.4%

When student loan borrowers begin to repay their loans in October, those dollars will no longer be available to pay for other things like food, rent, clothing or gas. So it won’t only hurt the economy, but it will hurt people, too. n William Chittenden is an associate professor of finance at Texas State University. Distributed by The Associated Press.

DEBRA HUR WITZ GUEST COLUMN

WILLIAM CHITTENDEN GUEST COLUMN

ONE LAST THING

Margaret J. Hartigan

Marstone Inc. co-founder and CEO

Margaret Hartigan co-founded Providencebased Marstone Inc. in 2013. She previously worked as a financial adviser at Merrill Lynch and as a startup entrepreneur.

ITis often said that necessity is the mother of all invention. The innovation born out of the pandemic was an example of this. In financial services, the pandemic accelerated digital roadmaps of banks and wealth management firms, as well as consumers’ adoption of digital engagement.

The response to these shifts was nothing short of heroic and the impacts are still being felt. It proved to many institutions that they can do hard things, quickly. Now is the time to keep being courageous and curious to meet individuals where they are.

My advice on how you can foster a community of inclusivity starting with hiring and, as a result, meaningfully improve your business:

n Remain objective: We leverage an applicant tracking system that helps us to remove unconscious bias throughout the hiring process (objective evaluation assessments, insights to reduce judgments and assumptions). It’s incredibly important for organizations to realize there is much they have yet to learn about themselves as a team and as individual managers as a company grows. There are tools today that can open your eyes to what you don’t yet recognize.

n Remain consistent: It’s vital to hold all candidates to the same standards by defining key decision criteria and requiring skills evaluation explanations. If any member of your team believes that favorites are being played, you run the risk of unmotivating them and damaging team morale.

n Remain curious: Inclusion is more than a buzzword; it literally means that you take into account the variety of opinions your team holds. Once you’re thoughtful and fortunate enough to have attracted diverse talent, curiosity will ensure you can stay ahead of potential issues before they rear up. n

Strive for inclusivity

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Empowering the local workforce

We’ve invested nearly $100 million in workforce development. Alongside hundreds of other employers and community partners, we’re increasing the talent pipeline by helping our neighbors get the skills and experience to build careers that support families and fuel our economy.

Here in Rhode Island we’re investing in our community by investing in people’s futures. I’m proud of the work we’re doing to help train and identify talent for in-demand careers by contributing to local initiatives through employer and academic partners.

Kevin Tracy President, Bank of America Rhode Island

Learn more at bankofamerica.com/rhodeisland

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