By Kevin Shalvey
PBN Staff Writer
JOHNSTON – Construction of FM Global’s $60 million future headquarters, where developers broke ground April 10, has been halted pending resolution of a complaint by the commercial property insurer’s current landlord.
Capital Lease Funding Inc. (NYSE: LSE) – the New York-based real estate manager that in April 2007 purchased FM Global’s current headquarters – is appealing the Johnston Planning Board’s decision to expedite the FM Global building, saying that it and the public were not given enough time to review and comment on the plans. CapLease also cites wetlands and other site concerns. (READ MORE)
But Johnston Mayor Joseph M. Polisena Polisena told Providence Business News this morning that all due diligence steps were taken by the town. Whether construction begins again is dependent on the outcome of a May 14 hearing before the town Zoning Board of Appeals, he said.
The project, announced in December 2007, was the first approved through the state’s Certificate of Critical Economic Concern (CCEC) permit expediting program. This morning, the R.I. Economic Development Corporation (R.I. EDC) officially introduced revisions to that program, which is an agreement between state planners and municipalities to expedite construction projects that are “priority” economic developments.
Polisena called the CapLease appeal a case of “sour grapes,” saying it doesn’t reflect negatively on the CCEC program.
“It’s just unfortunate that this outside, New York company would cry foul now because FM Global wouldn’t stay in their building,” the mayor said. “It’s just so obvious, so overt, what they’re trying to do … Quite frankly, I’m sure the corporate world is taking notice of this, and I’m wondering who’s going to want to go in their building afterwards.”
The CCEC program allows expedited municipal and state permitting for developments that are more than 50,000 square feet, and at least 50 percent new office space; or developments that will create at least 100 new full-time jobs with average wages at or above 105 percent of the state average.
“CCEC expedited review is an important step in improving our business climate and a mechanism for moving high-priority economic development projects forward,” R.I. EDC Executive Director Saul Kaplan said in a statement his morning. “These changes to the CCEC program” – approved yesterday by the R.I. EDC board of directors – “will ensure that the program is fully aligned with our economic development strategy to create new jobs and to increase the availability of office space throughout the state.”
FM Global, the state’s largest private employer, is a commercial and industrial property insurer with 4,800 employees in 52 offices worldwide. Its roots in Rhode Island stretch back to 1835. Additional information is available at www.fmglobal.com.
The R.I. Economic Development Corporation is a quasi-public agency established to promote business development, preservation and expansion in the state and undertake port projects in Rhode Island. To learn more, visit www.riedc.com.
Additional information about Capital Lease Funding Inc. (NYSE: LSE) can be found at www.caplease.com.
So, FM Global does not have to wait in line with the ordinary taxpayer for years waiting for D.E.M. wetlands permit approvals. Or a minimum of 3 months in zoning and planning board approvals. This is bad goverment at its worse. It gives large companies the right to build when and where they like because they threaten to leave. What if this was a project that was controversial and the gov't gets to shove it thru without the proper hearings? Not that that would bother the new mob running the town.