McCoy study sees current stadium site as impediment to ‘significant return’ on investment

A STUDY COMMISSIONED BY Pawtucket, the Pawtucket Red Sox and the state of Rhode Island looking at what to do with McCoy Stadium - rehabilitate it or tear it down and build a new stadium from scratch -- sees the second option as preferable, but it also concludes that the location of the stadium is not likely to produce much additional investment in the area around it. / COURTESY PAWTUCKET RED SOX
A STUDY COMMISSIONED BY Pawtucket, the Pawtucket Red Sox and the state of Rhode Island looking at what to do with McCoy Stadium - rehabilitate it or tear it down and build a new stadium from scratch -- sees the second option as preferable, but it also concludes that the location of the stadium is not likely to produce much additional investment in the area around it. / COURTESY PAWTUCKET RED SOX

PAWTUCKET – To renovate, rebuild or move on?

Those are the questions Rhode Island, Pawtucket and the Pawtucket Red Sox face after Pendulum Studio II LLC completed a feasibility study of what to do with McCoy Stadium. It offered two potential options: renovate and improve the existing stadium, making it comparable to other Triple-A ballparks, or raze it completely and rebuild a new structure on the existing site.

Both options, however, would likely cost taxpayers millions of dollars, and a project management firm hired by Pendulum to provide economic impact estimates says neither option may be worth the cost.

“It is highly unlikely that a typical goal of the public investment of this nature – to generate a significant return on that investment driven by ancillary development around a new stadium – will ever be realized at this site,” according to Brailsford & Dunlavey Venues.

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Regardless of what policymakers think, however, the report does urge action.

“It is clear from our observations of existing conditions that if the deficiencies outlined in our report are not addressed, conditions will get worse,” according to the report, which cost $105,000, a fee that was split equally among the state, city and team.

To renovate and repair McCoy would cost an estimated $68.1 million, requiring restorations, alterations and enhancements to modernize the decades-old stadium and make it structurally sufficient enough to last at least another 20 years. The option would preserve the McCoy Stadium legacy, improve stadium and playing conditions and create new revenue opportunities, according to the report. The downside, according to Pendulum, is the option would generate minimal returns on public investment other than the jobs and taxes generated by the construction and enhancements.

“The renovation concept establishes a number of interesting features that significantly improve the operator’s ability to function efficiently in McCoy Stadium similar to what would be anticipated in a more modern ballpark,” according to the study.

To raze and rebuild would cost an estimated $78.4 million, requiring about $59.1 million for hard construction costs and an additional $16.3 million for a new field, seats, lights and other baseball-related amenities. Although more expensive, the rebuild option means the useful life of the stadium would likely be longer than two decades. Creating a new design also opens the door for an opportunity to accommodate other revenue-generating activities besides baseball, according to the study.

“The new stadium on the McCoy site concept offers a unique set of opportunities for the site,” according to the study.

Both plans raised a series of concerns, however, ranging from unknown damages to the existing structure to “the potential to upset public perception by demolishing the existing structure.”

Still, a new design would bring the PawSox up to date in terms of the fan experience, which is what fuels baseball attendance, as opposed to when the stadium was constructed 75 years ago, said Jonathan O’Neil Cole, of Pendulum.
“Baseball 75 years ago was a totally different game than it is now. It’s really about the fan amenities, the fan entertainment, the family-friendly atmosphere,” he said.

But the plan also criticizes the McCoy Stadium site, saying its locale is removed from the interstate and engulfed by a residential neighborhood, which does “not provide an opportunity to attract private investment and development.”

Richard Neumann, vice president, major accounts for B&D Venues, said “the current location doesn’t leave very much if any room for ancillary development that would hopefully occur with an investment such as is contemplated in this report.”
In addition, the report noted that the current stadium location is challenged by its distance and lack of connection to downtown Pawtucket, and to improve those connections would require significant infrastructure investment.
Measured over a 20-year net present value basis, to renovate and repair McCoy would generate an estimated $22.6 million in direct and indirect fiscal benefits, according to B&D Venues. To construct a new stadium would generate about $24.5 million in fiscal benefits. Any ancillary development projects would generate an estimated $5.9 million.

McCoy Stadium is owned by Pawtucket, leased to the state, which contracts with the Pawsox. The state and city sought the study in conjunction with the Pawsox ownership group to determine what costs and improvements would be needed to bring the stadium in line with more modern Triple-A ballparks.
Pawsox owners, led by chairman Larry Lucchino, bought the team in 2015 and quickly announced a plan to move and build a new stadium in Providence. The plan, however, was ultimately shot down after the owners asked for millions in state subsidies, which failed to garner public and ultimately political support.

The team is contractually obligated to play at McCoy Stadium through the 2020 season, but it’s no secret the ownership group has considered other locations in and out of Rhode Island where the team might play future home games.

The various stakeholders will next review the Pendulum report prior to making any decisions.
“We will be reviewing the extensive data in this report and look forward to engaging the Pawtucket Red Sox and the city of Pawtucket in discussions about the future of the site,” said Brenna McCabe, a state spokeswoman. “Our highest priority moving forward is determining what’s best for the taxpayers and Rhode Island.”
Pendulum noted the sensitivity and high-level of interest surrounding McCoy Stadium, urging policymakers to regard their next move with seriousness.
“There is a strong historic and emotional tie to McCoy Stadium that is elegantly cataloged on the walls of ramp towers and in the corridors of premium suites,” Pendulum wrote in its report, released publicly on Friday. “The history, the people and the evolution of the stadium over the last 75 years makes the path forward something that should not be taken lightly.”
Staff writer Mary MacDonald contributed to this report.

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1 COMMENT

  1. I seem to remember that the alternative fact that minor league baseball stadiums are generators for economic development was completely debunked during the last go-around on McCoy. http://ripr.org/post/holy-cross-sports-economist-says-triple-ballpark-subsidies-not-justified-benefits Raises questions for me about the validity of the study if the consultant is promoting that.