The following statement sent to the New Shoreham Town Council was copied to The Block Island Times.On August 6,2021 a final judgment was entered in Superior Court in a case initiated by Sara McGinnes as a dissenting minority shareholder of the Block Island Power Company regarding the sale of its assets to the Block Island Utility District. The aim was to challenge the value of her one-third interest at $900,000, an amount agreed to by the prior shareholders when the Town of New Shoreham purchased the Power Company in 2015. Sara refused to sell at that time and, in fact, initiated two lawsuits to try to halt the sale, but it occurred as planned in 2016.
The town subsequently wrote legislation approved by the State of RI to create a non-profit Municipal Utility District, the first in Rhode Island. Once created, the Utility District’s newly elected Board made an offer to purchase the assets of the Power Company and the offer was accepted. The balance of the purchase price, once liabilities were paid off, was intended to be distributed to the shareholders, 2/3 to the town and 1/3 to Sara McGinnes as the minority shareholder. Sara received $900,000,
