Press Release about Memorial Hospital Property.

For Immediate Release

Nathan Luciano on behalf of the people of Pawtucket Demand Answers on Controversial Sale of Former Hospital Property

Pawtucket, RI – The recent developments surrounding the sale of the former Pawtucket

Memorial Hospital property have raised serious concerns among residents. When the hospital closed, the state of RI gave the property to the city of Pawtucket with deed restrictions.

In 2021, the entire property was sold for a mere $250,000—despite being valued at millions. The buyer was able to leverage the property’s equity to secure a $15 million loan, raising questions about the city’s decision to sell such a valuable asset for significantly less than its worth. “Why did the city sell the property for only $250,000 when it was clearly worth millions?” Nathan Luciano questions. “At a time when property taxes are continuously rising, it’s disheartening to see such a large asset sold for so little.”

The new owner, who claimed intention to develop VA housing, has made no improvements to the property. Reports indicate that the buildings are suffering from severe water damage, leaks, and mold. Despite securing a substantial loan, the owner has since disappeared with the money, leaving the property and community in disrepair.

Now, the property is currently at a standstill, the lender who lent the $15 million has not been allowed to foreclose on the property. As they went through the legal process of foreclosing on the property, they received a 90 day cease and desist order from the Rhode Island State Attorney General’s office. They are not able to do anything with the property as they not being allowed to be the legal owners of the property. When and if the state allows them to take possession of the property any potential buyers will need to negotiate with the bank, which seeks to recoup its investment. This raises further questions about the city’s decision to sell the property for a fraction of its value.

Compounding the issue, potential buyers are not able to move forward with purchasing the

property as the property is locked in a legal battle at this time. We the people of Pawtucket are forced to wait and allow a large asset of the city to just sit and waste away, largely due to the manner in which the property was sold back in 2014. The Rhode Island Attorney General’s office is investigating the sale and potential lifting of deed restrictions by the city, an act which is not allowed.

“It’s imperative that we, the people of Pawtucket, understand what has transpired,” said Nathan Luciano. “We demand transparency and accountability regarding this significant asset, especially as we continue to bear the burden of high property taxes.” The community is calling for answers and clarity on the situation to ensure that such oversights do not occur in the future.