The former Industrial Trust bank building at 111 Westminster St. is empty, losing value and subject to deterioration the longer it remains vacant.
The owner of the iconic Providence skyscraper, known locally as the Superman Building, wants to redevelop it for a new purpose. High Rock Development is seeking an as-yet undisclosed combination of public incentives to help bridge the financial gap between what the renovation would likely cost and the revenue that could be collected through rents.
From a business perspective, supporters say this makes good financial sense for the state, as well as the city. An economic-impact report, updated in April for what is envisioned primarily as a residential conversion of the 26-story building, anticipates $117 million in total project expenses associated with what could be an 18-month project, as well as $84.5 million in spending in the extended economy through multiplying factors.
Once completed, the renovated building could generate $29 million in household spending and building operations, the report states. Over 20 years, the project could produce $13.9 million in state tax revenue, including sales and income taxes paid by residents and visitors.
The figures are not stationary, as the development team has not yet settled on the mix of proposed uses in the building, according to Bill Fischer, a High Rock spokesman. But he said the economic analysis anticipates a largely residential use, which is what the Providence market supports. “The market is there,” he said.
The existing building, unoccupied for three years, had its value cut nearly in half in the recent Providence re-evaluation of commercial property.
The building needs a new purpose, so it can contribute to the state and city economies, he said.
The 111 Westminster development team began discussions with the R.I. Commerce Corp. four months ago. The talks continue, Fischer said.
According to a key supporter, Sen. Dominick Ruggerio, D-North Providence, the developer-owner is seeking approximately $30 million in state assistance.
Fischer could not immediately say whether the figure was accurate.
No one program could provide that amount. The state’s Rebuild Rhode Island program, which provides state funds for redevelopment projects through a competitive application process, is designed to cover financing gaps experienced by developers. But it is capped per-project at $15 million.
Ruggerio says converting the building to housing will fit a documented need. Public support for economic-development projects brings to mind, for many Rhode Islanders, the failed investment in 38 Studios, but he said the comparison is not appropriate.
“Everyone in Rhode Island is down on any kind of public financing, but this is … a tangible asset in the city,” he said. •
