A lawsuit alleging political interference in a Cranston development project has moved from state to federal court, as one of the officials mentioned in the case, former Cranston Mayor Allan Fung, competes for an open seat in Rhode Island’s Second Congressional District.
Coastal Partners filed the suit against the City of Cranston and David Capuano, in his official capacity as city treasurer, in 2021, charging that its attempt to build a mixed-use project that would feature a Costco and be known as Cranton Crossing on New London Avenue was scrapped “due to improper and unlawful interference.”
The suit alleges that Fung and his newly elected successor as mayor, Ken Hopkins, “had been working to kill the project and to steer Costco to a different, and vastly inferior, site on Sockanosset Crossroad owned by the Carpionato Group, a long-time political supporter and donor to both administrations.”
In a statement, Fung said that regardless of which court considers the case, “the matter is frivolous and the claims are baseless.”
Steven Paiva, Hopkins’ spokesman, did not respond to a request for an interview with the mayor.
Currently a lawyer with Pannone Lopes Devereaux & O’Gara LLC, Fung announced his candidacy last month for the congressional seat being vacated next year by U.S. Rep. Jim Langevin, a Democrat.
Fung is one of three Republicans seeking the seat. Seven Democrats have announced campaigns. The field will be narrowed through a September 13 primary election.
The lawyer for Coastal Partners, Robert C. Corrente, said the case was moved from state to U.S. District Court at the request of the defendants.
“There will be a fair amount of activity between now and next fall in terms of depositions and discovery and things like that, so the factual record will be more developed in the federal court than it would have been in the state court,” said Corrente, a former U.S. attorney.
Lawyer Marc DeSisto, who is representing Cranston in the case, did not respond to a request for comment.
The lawsuit by Coastal Partners and the company’s quest for up to $46 million in damages was first reported in 2021 by WPRI, Channel 12.
Corrente said the potential timing of a trial depends on the court calendar. Mary McElroy is the judge assigned to the case.
According to a court filing, the Cranston Planning Department reviewed Coastal’s proposed mixed-use project and found that it met city regulations and legal standards, would represent benefits including hundreds of construction jobs, generate $800,000 in annual property tax revenue and leave 60% of the site at Cranston Crossing as undeveloped open land.
A different part of Cranston’s municipal government, the City Plan Commission, which held hearings on December 1 and December 8, 2020, later recommended rejecting the proposal. The City Council’s Ordinance Committee later rejected the project.
Gregg Perry, a spokesman for the Carpionato Group, declined comment.
The proposed mixed-use project, on the site of Mulligan’s Island Golf & Entertainment, was opposed by some neighbors and elected officials.
In a December 2020 statement, then Mayor-elect Hopkins said, “I am happy that the voices of the people were heard loud and clear. This site was not appropriate for that development. I welcome Costco to look at other potential sites in our city. I love the store. I am a member. It will provide job opportunities for our citizens and will expand our tax base. I hope they will continue to pursue other opportunities in our great city and my administration looks forward to working with them.”
Ian Donnis can be reached at idonnis@ripr.org. Follow him on Twitter @IanDon and sign up for his weekly RI politics newsletter.
