When The Procaccianti Group first presented its O2 Newport proposal last month, the developer said it would solicit extensive public input to flesh out the details of its $1.4 billion investment to create a year-round destination/neighborhood in the city’s North End.
That process began May 11, when Thomas Niles, executive vice president for development, spoke to a Newport County Chamber of Commerce breakfast to “put a face and name on the possibilities and potential,” he said, and build support for the project.
If the meeting was any indication, getting community support will not be difficult.
“There’s a tremendous excitement here because of the fact that this in only going to, over a long period of time … extend and build upon a strong brand name,” said Keith W. Stokes, executive director of the Chamber.
O2 Newport starts with TPG’s purchase of Newport Grand but then adds dramatically to that part of the city – in addition to a Ritz-Carlton hotel, the developer expects to add village-style retail, office and residential development, as well as year-round recreational and entertainment facilities, possibly including an indoor water park.
In an interview after the breakfast, Niles said the 60-acre plan represents direct investment of $1.4 billion, with indirect investment and spending bringing the total to $2 billion and a completion date a decade down the road.
Niles said the project would generate and support about 16,000 jobs paying about $700 million in wages in construction, support industries and at the resulting facilities.
In the long term, TPG estimated that O2 Newport will generate sales of about $280 million, create 2,800 jobs (with $91 million in new wages) and add $31 million in tax revenue for state and local government.
The breakfast, held at the Community College of Rhode Island, was a follow-up to the initial April 4 press conference. Interest in O2 Newport jumped attendance at the event – normally 75 to 100 – to 180, including representatives of the hospitality, real estate and banking industries, Stokes said.
“Newport has a very strong worldwide brand name in hospitality and tourism,” he said. “But there’s always a need to rebrand yourself and reinvestment. And that takes private investors and vision. … [TPG] expressed a sincere interest to invest and build upon our world-brand tourism name, and that’s exciting.”
Stokes said one of the questions he heard was whether the plan would hurt downtown businesses. But Stokes said people came away from the breakfast saying the plan would create quality, year-round tourists who would also go downtown.
Rebecca McSweeney, an attorney for Jackson Lewis LLP and a member of the Newport zoning board, attended the meeting and said the concept is interesting, and she hopes TPG can pull it off. However, she does have some concerns, specifically about how the project will impact the North End, traditionally one of the poorest sections of town.
“As long as you’re spending billions of dollars [in that part of town], why not help to upgrade some of that and help the people” who live there, she said.
William H. Yost, chief financial officer for architectural, engineering and construction management firm The Maguire Group Inc.’s Foxboro office, said he was impressed by the comprehensive nature of the plan.
“It was not just a particular hotel or a gambling facility, but it was really a response to a lot of different needs,” he said.
There are many hurdles to the completion of the project, Niles said, not the least of which is the acquisition of the land needed for the project, much of it composed of the ramps to and from the Claiborne Pell Bridge. But Niles said TPG has gotten extraordinary outreach and verbal support from the community so far, and it will continue to move ahead.
