Armory Sale Still Under Consideration: City Hall

NEWPORT, RI—Newport City Hall released a statement on Thursday afternoon explaining the potential sale of the Armory on Thames Street. The talks with the Sailing Hall of Fame, based in Annapolis, Maryland, have drawn fire from residents unhappy about rumors the sale was a "done deal" for a price under $2 million and concerned the price was too low. Other comments expressed unhappiness the discussions were happening in secret and without public debate.

The Newport Daily News reported last week that Mayor Harry Winthrop wanted to close the deal in February.

But also last week, a Maryland daily reported the governor of Maryland last Friday withdrew a $1.2 million contribution from the Sailing Hall of Fame, partly due to the negotiations in Newport, and partly due to the Hall of Fame's failure to meet its fundraising commitments. The Maryland governor also cancelled a plan to make another donation, leaving the organization with about $2 million in the bank. The Newport deal was supposed to cost $3.5 million, including improvements the Sailing Hall of Fame would make to the Thames Street property.

Meanwhile, the Newport City Council met last week in closed door session to discuss the real estate negotiations over the Armory and two vacant school buildings. Another closed door session was scheduled for Thursday but then was cancelled after 4 p.m. on Wednesday. Despite blog reports stating the Armory sale would have been under discussion, the Thames Street property was not specifically mentioned on the agenda.

Meanwhile, Friends of the Waterfront on Monday circulated an online petition against the sale. As of 6:30 p.m. on Thursday, 1,041 people had signed it. The petition said the Friends of the Waterfront would like to see the Sailing Hall of Fame move to Newport but not in the Armory. Some of the petitioners said they had been selling antiques at the Armory several years, paying the City rent. They rely on the income.

Published reports have indicated the Sailing Hall of Fame would hire four people in Newport.

Here is the statement the City released Thursday.

The Newport City Administration has been discussing for several weeks the National Sailing Hall of Fame’s (NSHOF) acquisition of the Armory property on Thames Street. The acquisition price has been derived in consultation with two different appraisers who have done independent fair market analyses on the property to determine its fair market value price. The value takes into consideration the extensive repairs that need to be done to the exterior of the premises. The market value price also takes into consideration the fact that the building is encumbered with historical covenants with the State Historic Preservation Office on any exterior work to the building. Those covenants stay with the building regardless of who owns the property.

If the sale discussions with the NSHOF were to come to fruition, they would include, among other details, the City retaining the Maritime Center located in the basement of the Armory facility as well as the small beach area that borders the Center immediately on the west. The Maritime Center is an important City public asset and will remain so under any circumstance. The City would continue to operate that facility as a public maritime facility. The Armory building, with the exception of the Maritime Center, would be placed on the real estate tax rolls. The NSHOF is not an organization that would be exempt from local real estate taxes.

The sale discussions with the NSHOF do NOT include Ann Street or the Ann Street Pier. If, at some time, the City is able to construct the Ann Street Pier extension, it will result in a magnificent public attribute that will enhance the public boating experience along with the Maritime Center.

The NSHOF has presented a plan to operate a museum on the first floor of the Armory which is the street level on Thames Street and which is currently occupied by an Antique Center. The NSHOF would also occupy the small office suite on the second floor of the building which is currently unoccupied and in a state of disrepair.

If the City Administration and NSHOF are able to come to terms, the terms will be presented to the City Council in a public forum and the Council will discuss the issues and determine how to proceed.