PROVIDENCE – An agreement has been reached between Commonwealth Ventures LLC and the Heritage Harbor Museum Corporation to allow redevelopment of the South Street Power Station into an academic and nursing-school complex to go forward.
Patrick T. Conley, president of Heritage Harbor Museum Corp., said Commonwealth has agreed to pay Heritage Harbor $4.5 million in exchange for relinquishment of an easement and rights to $2.3 million in state historic tax credits. The deal was first reported by WPRI.com.
The easement prevented any development of the former power station without a Rhode Island history museum inside and was part of the earlier Dynamo House plan to include the Heritage Harbor Museum inside a larger condominium project. The building had been previously donated to Heritage Harbor by Narragansett Electric.
The proposed $206 million Commonwealth Ventures project would renovate the hulking 1912 building into 120,000 square feet of administrative offices for Brown and 120,000 square feet for an advanced nursing education center to be leased by the University of Rhode Island and Rhode Island College.
Conley said Heritage Harbor would use the proceeds of the deal to establish an endowment from which it would fund projects and research related to the promotion of Rhode Island history.
He said a formal letter of intent is expected to be signed within the week, and a purchase and sales agreement within 45 days.