Redeveloping the Arcade should be a top priority

Joseph R. Paolino Jr.

08/28/2010

Recent news stories regarding the vacant Arcade provide clear evidence that Providence must take a more proactive stance in order to redevelop this historic jewel in the financial district.
The problem encompasses the 182-year-old Arcade as well as the adjacent, mostly empty lot that is separately owned by out-of-state developers. The two properties, in their current condition, have a blighting influence on the financial district and discourage new investment. The brick facade that has been left on the vacant lot, looming over the sidewalk, is also potentially hazardous to passersby.
The city’s planning department bears a major share of responsibility for the current situation. The department allowed two buildings on the lot to be demolished based on the promise that a hotel and condos would rise in their place. Years later, we have nothing.
The city cannot allow this situation to continue. More than 1.5 million square feet of office space in the downtown area is currently vacant. Banking, insurance and professional employment in the city – much of it in the financial district – declined by 2,500 between 2002 and 2009. The next mayor of Providence must act decisively to reverse these trends. Redeveloping the Arcade should be one of his earliest and highest priorities. This is the kind of bold, entrepreneurial move that urban mayors must be prepared to make.
I am convinced that the best opportunity for the Arcade will come if the historic building and the adjacent lot are placed in the same investor’s hands. The Arcade has potential for retail, offices, a boutique hotel, a museum, or some combination of uses, but only if the nearby land – with or without the facade – is available for parking. The state and federal tax credits, which equal 50 percent of the restoration cost of the Arcade, are another selling tool of great importance. If the Arcade is marketed with the vacant lot and the tax credits included, then developers with vision and means will be found. To unlock the Arcade’s potential value, the mayor will need to bring in the Providence Redevelopment Agency. The agency could use its condemnation powers to take control of both properties and to market them as a package to investors. Considering that these high-profile commercial properties have been vacant and deteriorating for a period of years, that they are a potential hazard to public safety, and that they discourage investment in the entire financial district, I believe it is appropriate for the city to use these powers in the near future. The Arcade is a unique historic property of national importance. The city must take all reasonable steps to protect it and restore it to prominence.
This is a great opportunity for the next mayor to show strong leadership. For generations, the Arcade flourished in the center of Rhode Island commerce, its walkways crowded with shoppers, diners and office workers. The strategy I propose gives us the best prospect to renew the Arcade and the financial district.

Joseph R. Paolino Jr. is a downtown property owner, former mayor of Providence and once served as economic-development director for the state.

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