Clock Runs Out On Disputed RISDICLoans
PROVIDENCE, R.I. - (02/17/05) -- The state cannot collect on 11RISDIC loans totaling almost $15 million from a local developerhoping to buy the downtown Westin Hotel complex because the 10-yearstatute of limitations has run out on the loans, state authoritiesconcluded. But state officials can still pursue a single loan of $3million still owed by James Procaccianti because that loan has beenthe subject of litigation, according to the Rhode Island Departmentof Administration. Procaccianti, president of the Cranston-basedProcaccianti Group, is trying to resolve 14-year-old claimsconcerning loans he had with Marquette CU, which went under alongwith 28 other credit unions insured by Rhode Island Deposit andIndemnity Corp., in order to get clearance from the state for the$95.5 million hotel purchase. Procaccianti wants to buy thedowntown hotel from and build a $50 million, 200-room hotel towernext to it but state officials are trying to resolve some of thestill unpaid RISDIC debts. The deal must be approved by the RhodeIsland Convention Authority and state lawmakers. If successful inthe lawsuit, the state could recover as much as $6.5 million on the$3 million loan, representing unpaid interest.