Paolino Not Ruling out Newport Grand Purchase

Even though the deal to sell Newport Grand hinged on voter approval of table games, the property still might be sold and transformed into an entertainment venue of some sort, says Joseph Paolino Jr., managing partner of Paolino Properties in Providence and one of the three investors behind the $40 million proposal that Newport voters rejected at the polls on Tuesday.

Paolino, who had teamed up with Peter de Savary and Paul Roiff and formed Jobs for Newport to lobby for approval of Questions 1 and 2, said once the dust settles, he is open to resuming talks with owner Diane Hurley for some kind of sale.

Paolino told Providence Business News that he loves Newport and still wants to see something productive happen at the site, but acknowledges that the inclusion of table games was important. Without table games, it’s unclear how much investment would be possible or what the final plans might look like.

“You never know; I still have interest,” Paolino said. “I will touch base with Diane Hurley in a couple of days after the dust settles and discuss it.”

Jobs for Newport spent $905,561 on their campaign, including nearly $70,000 to install a banner over the dreaded and garish “SLOTS” sign on the building’s facade that urged voters to approve Questions 1 and 2. Their campaign relied heavily upon the personal stories of Newport Grand employees, who say they enjoy decent salaries and strong benefits and are worried about their futures. Without table games, they argued, the future of the existing facility is under threat, let alone the potential for a major transformation.

Paolino told the Providence Journal that he believed the plan began to fall apart when the Newport City Council rejected a host community agreement on the grounds that it wasn’t a sweet enough deal for Newport.

“That’s when it crumbled,” he said. “I’ve learned in politics that when pressure is put on political people, they fold like accordians.”

That vote came shortly after M. Teresa Paiva Weed, the Senate President who represents Newport and Jamestown, had an change of heart on the casino issue and came out against the proposal despite earlier support.

Meanwhile Paiva Weed was considered to be under serious threat of losing her election bid after her Republican challenger Mike Smith ran a vigorous campaign, spending much time attacking the casino proposal and criticizing Paiva Weed’s role in the formation of the ballot question’s language and terms.

And the pressure was on from Citizens Concerned About Casino Gambling, which reformed earlier this year to oppose Jobs for Newport and the ballot question and spent about $185,000. Their campaign was extremely successful in rousing anti-casino advocates and getting people out to the polls en masse.

The pressure included the end of Mayor Harry Wintrhop’s time behind the City Council’s Dias. He finished fifth in the seven-candidate citywide council race. Many believe his public support of the casino proposal cost him hundreds of votes.

Whatever happens, Paolino has his work cut out for him. Hurley has a reputation for driving a hard bargain and with full-fledged casino gaming such an integral part of Paolino’s original vision of a Monte Carlo-esque facility, any scaled down proposal runs the risk of falling flat both financially and in terms of public enthusiasm.

Still, there is a widespread sentiment that something should be done. When the Newport Yachting Center closed for good this fall, Jobs for Newport jumped into action and announced plans to offer similar facilities to host concerts like the Newport Summer Concert Series. Though it could be argued the evolution of the proposed project from Monte Carlo casino into the so-called Newport Entertainment Center was a case of opportunism, Paolino deserves credit for seeing a demand and opportunity present itself.

And it seems he still sees an opportunity.

“If Diane and I can find common ground, I want to do right for Newport,” he told the Providence Journal. “I think it’s important that somebody do something with that facility.”