TPG seeks tax stabilization for downtown hotel

BUILT IN 1968, the John E. Fogarty Memorial Building, at 111 Fountain St., is a three-story concrete building built in the Brutalist style popular at the time. / PBN PHOTO/MARY MCDONALD
BUILT IN 1968, the John E. Fogarty Memorial Building, at 111 Fountain St., is a three-story concrete building built in the Brutalist style popular at the time. / PBN PHOTO/MARY MCDONALD

PROVIDENCE – The Procaccianti Group is seeking a 12-year tax stabilization agreement, including a three-year introductory period with no property taxes, to level the Fogarty Building downtown and construct a nine-story, extended-stay hotel.
The redevelopment project has been sought by the Cranston-based development company for more than a year. Last week, an ordinance proposing the tax incentives was introduced to the Providence City Council.
The company has had discussions with the Marriott Corp. regarding one of their upscale, extended-stay brands, according to Ralph V. Izzi Jr., a spokesman for TPG Cos.
In an email, he said the tax stabilization agreement will provide “the necessary relief to address the myriad of financial pressure points of constructing a brand new building in Providence.”
According to documents filed with the city, the project would include construction of an upscale, extended-stay hotel with 168 guest rooms and 5,400 square-feet of retail at street level. In an email, Izzi said the early concept anticipates uses including a restaurant and an executive-style boardroom or meeting space which would be available to guests as well as visitors.
Built in 1968, the John E. Fogarty Memorial Building, at 111 Fountain St., is a three-story concrete building built in the Brutalist style popular at the time. Originally built to house the state’s then-named welfare department, it has been vacant for a decade, despite efforts to attract tenants.
Several of its street-facing windows this week were covered in plywood. “Unfortunately, one of the lasting impressions many visitors have of Providence today is the view looking out of the windows of the convention center, toward the old Fogarty building,” Izzi said. “The new hotel will add much-needed vibrancy and energy to the blighted site.”
The Procaccianti Group, under the name PRI XXI LP, purchased the property in September 2005. The property was valued by the city at $1.6 million in 2014, with all but $147,000 of that value in the land.

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