After careful vetting, including a public hearing and feasibility studies, the amended lease will advance to the full city council with substantial changes

Providence, RI – Tonight, the Providence City Council Committee on Ordinances voted to advance a resolution authorizing the city to enter into an amended version of a proposed lease with Excel Academy charter school for the Carl G. Lauro school building. Under the current proposal, Excel Academy would use half of the building, with the other half used as swing space for the Providence Public School District until June 30, 2030.The amended lease will be considered at next Thursday’s city council meeting and will require only one passage.

Council President Rachel Miller negotiated a number of substantial changes to the lease proposed by the mayor earlier this year to ensure a much more favorable arrangement for the city, the surrounding neighborhood, and the educators who will be using this space. Among others, the following changes were made to the proposed lease:

·     The original lease would have locked the city in for a 65-year period, giving Excel Academy the option to renew unilaterally after the initial 35 years. Under the negotiated lease, after the initial 35-years, further renewal will require Excel to come in front of the city council and mayor for approval.

·     The amendments added clear labor protections through an entirely new Employee Relations section that requires Excel Academy to remain neutral in any union organizing efforts, barring intimidation or retaliation and prohibiting the use of public funds to influence workers’ decisions. The historic neutrality clause reads in part: “The Lessee acknowledges and respects the rights of employees to organize, form, join, or assist labor organizations as well as the right to refrain from any or all such activities. As a responsible employer, the Lessee shall not threaten, intimidate, discriminate against, retaliate against, or take any adverse action against any employees based on their decision to support or oppose union representation. The Lessee agrees not to pay public funds to outside consultants or legal advisors for the purpose of encouraging or discouraging union organizing activity.”

·     A new section was added that ensures that funds for property improvements are funneled into apprentice programs by requiring that any such improvements with over $3M in labor costs must allocate at least 10% of the work to registered apprentices.

·     Language was added ensuring the lease remains competitive and profitable for the city by introducing a gradual escalation of rent every five years over the term of the lease, beginning in 2030, along with a provision requiring regular rent increases if the lease is extended beyond the 35-year initial term.

·     A new provision ensures the building remains a community-serving hub by limiting Excel Academy’s ability to sublet, permitting such arrangements only with registered non-profit and educational organizations.

·     A new requirement was introduced that directs Excel Academy to produce an annual written report on student demographics (race, ethnicity, geographics), so that academic performance of students from across the city—including English language learners and students with disabilities—can be compared with those in traditional public schools.

·     A similar requirement requires Excel Academy to prepare a written report annually that details construction and building improvements, ensuring that necessary updates and repairs are made in a timely and responsible manner.

·     In a major win securing substantial ongoing community investment, Excel Academy is directed to allocate $50,000 annually throughout the term of the lease into a neighborhood improvement fund that will be overseen by the Ward 13 councilor.

Tonight’s changes follow more than a year of evaluation, discussion, and information-gathering regarding the future of this historic school building.

Last year, the mayor proposed a lease for the Lauro building that would have allowed Excel Academy and Achievement First charter schools to use the space for one dollar per year over a term of more than 30 years. Councilors rejected that proposal by more than a 2-to-1 margin, urging that all options be considered for the city-owned space – such as the development of affordable housing — and that any proposed lease should generate meaningful revenue for the city.

The current proposal, submitted by the mayor for council approval earlier this year included a much more reasonable rate of $7.50 per square foot, but still fell short of what many councilors felt would best serve the community and the beloved historic building that has become a landmark in Providence’s Federal Hill neighborhood. To ensure the city found the best path forward for the building, councilors ordered a housing feasibility study to assess the viability of converting the space to affordable housing.

With authorization from a city council resolution, the council entered into a contract with CoEverything to complete this assessment. Following the completion of the contracted study, the council office worked with Armory Revival Company and One Neighborhood Builders to perform basic financial analyses of the study. The council engaged these two organizations to ensure both for-profit and non-profit perspectives and analysis of a potential housing conversion were taken into consideration. These studies concluded that a conversion of the Lauro building to housing was perhaps technically possible, but is not reasonably feasible, with an exceptionally high price tag and a very lengthy timeline

While these studies were being completed, the Committee on Ordinances also hosted a public hearing on May 12 to hear from students and educators from Providence schools, both public and charter schools, as well as parents and community members about their hopes and concerns regarding the building’s future. This feedback was weighed carefully along with the data and conclusions from the completed studies

The final amended lease represents a carefully-vetted and extensively researched solution for this landmark city building that ensures a seat at the table for the surrounding community for decades to come, all while guaranteeing increased neighborhood investment and responsible stewardship of public money and property. The major changes made by the council are a significant improvement over the original $1/year proposed lease. With tonight’s passage out of committee, the resolution authorizing the amended lease will be heard by the full city council at next week’s regular meeting, the last scheduled full council meeting before the August recess.

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