Paolino Close to Finalizing Newport Grand Purchase

Joseph Paolino is close to wrapping up a deal to buy Newport Grand from owner Diane S. Hurley, though the deal hinges on title issues and a court complaint filed against the city of Newport to clear those issues.

The deal was first reported by Providence Business News on Wednesday night.

Last year, Paolino was the primary backer of a plan to turn Newport Grand into a luxury casino and entertainment center along with a team of high-profile investors, but Newport voters rejected a ballot referendum in November that would have paved the way for the deal.

After the election day loss — a rare occurrence in the former Providence mayor’s political career — Paolino pledged to keep working on a possible purchase. He said he was still committed to Newport and taxpayers and wanted to see something done at the former Newport Jai Alai site, though many doubted anything would come of it.

But Paolino has been in ongoing talks with Hurley, he said, and he’s close to finishing up the deal.

At stake is a title issue. Hurley has filed suit against the city in an effort to eliminate a clause in the title that gives the city the ability to take a portion of the property, known as a reverter clause, if the parcels are not used ”continuously and exclusively in connection with, or as part of, a Jai Alai Fronto development and/or a Civic Center.”

“The sale of the real estate is subject to the removal of the right of reverter,” the complaint, filed Jan. 16, states. “More than 20 years have passed since the execution of the deeds. . .and the possibility of reverter did not become a possessory interest.”

The parcels in question have been used by Newport Grand for parking for the slot parlor.

The reverter clause was included as part of former Mayor Humphrey J. “Harp” Donnelly deeding of 23 acres to the original jai alai investors in 1975. The deed was renewed in 1997.