Rhode Island Attorney General Peter Neronha filed a motion to intervene in the proposed development of the former Memorial Hospital in Pawtucket, the Providence Business News reported April 3.
Memorial Hospital was bought by Providence, R.I.-based Care New England in 2013 but closed in 2018 after years of financial troubles, according to the report.
Lockwood Development Partners bought a portion of the property from the health system for $250,000 in 2021, according to the report. It planned to develop the site into housing and an education center for veterans.
The sale was subject to several conditions, including that the property could not be sold, transferred or conveyed without the permission of the attorney general's office, according to the report. Lockwood was also required to provide the office written notification of all key milestones of the redevelopment of the main hospital building.
Lockwood's plans fell through and Memorial Real Estate Group stepped in with plans to build affordable housing and workspace, according to the report. Memorial filed foreclosure proceedings for the property in March, but Mr. Neronha's motion alleges his office was not made party to that action and "stands to impair the attorney general's right to consent to any direct or indirect conveyance of the property."