Shekarchi nixes state bid to buy Citizens Bank building. Here's why.

Money to buy and retrofit a Citizens Bank-owned office building in East Providence will not be included in the upcoming state budget, House Speaker K. Joseph Shekarchi said Thursday.

It's a rare break with Governor Dan McKee, who proposed moving state agencies there.

Shekarchi pulled the plug on the bank building purchase after hearing near-unanimous opposition from his fellow House Democrats in a closed-door caucus meeting on the budget Wednesday.

A separate Citizens-backed McKee budget proposal to change how banks are taxed in favor of firms with a large in-state workforce is still alive, Shekarchi said in a brief State House interview late Thursday afternoon.

"It was very clear in the caucus that the membership, the House membership, did not have information to feel comfortable for this request to be taken in the budget," he said. "I think that looking at state leases and ownership is an issue that we as a state need to look at. But it can't be in a budget amendment in the last part of the session with very little details."

More: Why is McKee rushing to have the state buy a Citizens Bank building? Here's what we found.

Behind-the-scenes: $33M to buy a $16.9M building

The McKee administration has been negotiating with Citizens to purchase the building on Tripps Lane and asked lawmakers for permission to borrow $33.7 million to buy and retrofit if for state use. Including borrowing costs, the state was projected to pay $44.5 million over 10 years on the project.

How much of the total borrowing would have gone to the purchase price was not disclosed. Its assessed value was $16.9 million.

The city of East Providence was set to lose an estimated $400,000 in property taxes from having the building move from private hands off the tax rolls.

East Providence lawmakers concerned by purchase

Shekarchi said members of the East Providence House delegation, including his majority whip Katherine Kazarian of East Providence, were particularly concerned about the proposed purchase. East Providence Mayor Bob DaSilva, a former House member, had also shared concerns about loss of tax revenue.

"I'm not saying it's a bad idea or a good idea, I'm just saying it was an idea that we need a little bit more information on," Shekarchi said.

This article originally appeared on The Providence Journal: Citizens Bank building purchase by state stopped by Shekarchi