UNITE HERE Local 217 Launches New Website Criticizing The Procaccianti Group

PROVIDENCE, R.I.--()--The hotel and food service workers union UNITE HERE Local 217 launched a new website today, criticizing several recent projects of the Cranston-based hotel developer and management company, The Procaccianti Group.

“something less than the asking price ($4.75 million)”

http://www.tpgfails.org

The website criticizes several recent Procaccianti ventures, including:

  • A $61.7 million loan backed by the Procaccianti-managed Westin Falls Church became 60 days delinquent in September 2014, after having been transferred to a special servicer in June 2014.1 In addition a motion for final judgment against the Procaccianti-owned Westin Fort Lauderdale was granted in January 2015 for an amount of $40.8 million.2
  • In 2005, The Procaccianti Group bought a parcel of land on the waterfront of Portland Maine for $6 million. The Procaccianti Group’s goal was to raze the old onsite processing plant and create a massive3 condo/hotel/retail space dubbed “Emerald City”. The property instead was leased for parking. The Procaccianti Group sold it in 2010 for “something less than the asking price ($4.75 million)”4 5
  • In 2006, The Procaccianti Group was given a parcel from the City of Providence and put forth a plan for the lot dubbed “Empire at Broadway” which would include a 22-story tower featuring office and retail space as well as a parking garage. Today the parcel is a parking lot.6
  • In early 2012 operating as “The Glen LLC”, The Procaccianti Group sought to develop a parcel of land into a mixed use housing/retail complex dubbed “The Lodges at Phenix Glen.” After the city council rejected the plan, the land remains vacant.7

Local 217’s parent union UNITE HERE is the union of workers in the hotel, gaming, and food service industries. The 250,000 members of UNITE HERE are beneficiaries of pension funds with over $3 billion in assets. UNITE HERE Local 217 is in ongoing labor disputes with two Procaccianti Group hotels in Providence, RI. Fund managers should do their due diligence before partnering with The Procaccianti Group.

1 Hotel CMBS Delinquencies Rise As Other Assets See Decline, Law360, October 10, 2014, 6:11 PM ET
2 http://www.bizjournals.com/southflorida/news/2015/02/06/westin-fort-lauderdale-loses-48m-foreclosure.html
3 http://mainebusiness.mainetoday.com/story.php?id=312537
4 http://mainebusiness.mainetoday.com/story.php?id=312537
5 http://www.workingwaterfront.com/articles/Portlands-eastern-waterfront-ambitious-projects-now-on-hold/12633/
6 http://skyscraperpage.com/cities/?buildingID=54496
7 http://patch.com/rhode-island/cranston/live-lodges-at-phenix-glen-vote#.VDVZvmePIdU

Contacts

UNITE HERE 217
Guy Rossman, 617-999-5150

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Release Summary

The hotel and food service workers union UNITE HERE Local 217 launched a new website today, criticizing several recent projects of hotel developer and management company, The Procaccianti Group.

UNITE HERE 217