CENTRAL FALLS â€“ Saying it heralds a â€śnew period in Central Fallsâ€™ recovery,â€ť Gov. Lincoln Chafee has appointed John F. McJennett III, as the cityâ€™s new receiver, replacing the controversial Robert Flanders.
McJennett is the former executive director of DEPCO (Rhode Island Depositors Economic Protection Corporation), the stateâ€™s response to the credit union crisis in 1991.
Flanders will stay on at City Hall during a transition period to acquaint McJennett with the position, still the only receivership created under a 2010 state law to allow the state to step in an control the finances of cities and towns in fiscal distress.
Chafee also announced that on Monday, the receiverâ€™s office will file the cityâ€™s Preliminary Five Year Plan of Debt Adjustment with the U.S. Bankruptcy Court. That was made possible, in part, because the General Assembly has included in its proposed 2013 budget a $2.6 million allocation to the city to supplement the pensions of police and fire retirees whose payments were cut by as much as 55 percent by Flanders. That money will be used to bring those pension payments up to 75 percent of what the retirees were receiving before the bankruptcy.
"I would like to thank Judge Flanders for his service to the City of Central Falls and to the State of Rhode Island," Chafee said in a written statement. "As Receiver, he has guided the city through a very challenging time, and Central Falls is now stronger and more viable than before.
â€śIt is for that reason - that the city's recovery is entering a new phase - that John McJennett will be taking on the role,â€ť Chafee added. â€śThe efforts of the Receiver will be more focused on economic development and fiscal operations, and John is well-suited to this endeavor. He will also be tasked with examining the possible reduction of state oversight in Central Falls. The hard work and collaborative approach of the legislative delegation â€“ Rep. Agostinho Silva, Rep. James McLaughlin, and Sen. Elizabeth Crowley - have been pivotal to getting to this next step."
McJennett is president of Adams Hill Consulting, Inc. in Providence, a company he founded in 1994. Previously, he served as Chief Executive Officer and Director of TenderLand Power Company, Inc. in Seattle, Washington; Executive Vice President of Rhode Island Hospital Trust National Bank; and Vice President of the Morgan Guaranty Trust Company of New York.
McJennett served in Vietnam as a Lieutenant and Tactical Commander in the United States Navy and received his A.B. from Harvard College and his M.B.A. from the University of Virginia's Darden Graduate School of Business Administration.