PROVIDENCE – Citing increased construction costs, the I-195 Redevelopment District Commission has agreed to cut the purchase price for the site for the $55 million Aloft Hotel project and apply district incentive funds.
The project, part of the CV Properties’ Wexford Science & Technology campus, will involve a seven-story hotel with 169 rooms aimed at business travelers. The site is adjacent to the Wexford Innovation Center, now nearing completion.
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Initially, the commission negotiated an agreement that would have sold developer BAC CVP ALOFT LLC the land for $15 per square foot for the building area. That price has been lowered to a flat price – $1 million, according to the revised terms approved Wednesday.
The project also will receive up to $750,000 from the I-195 project fund, an account authorized by the General Assembly that provides financing to projects in the district. At the end of June 2018, the fund had a balance of $23.7 million and $24.2 million in commitments to other projects, according to the annual report.
In January, the R.I. Commerce Corp. authorized incentives for the hotel that include tax-increment financing for $6.8 million, Rebuild Rhode Island tax credits of $100,000 and sales tax rebates for construction materials.
The incentive package was coordinated for the hotel between the two bodies, said Peter McNally, the I-195 commission executive director. The original terms were negotiated in 2015, he said.
The hotel is critical for the district, he said, adding it is aimed at business travelers. Without the incentives, the financing doesn’t work for the project given the Providence rates, he said.
“The rationale for the incentive structure? To make it happen,” he said. “Even with the incentive structure, it’s just not easy.”
Mary MacDonald is a staff writer for the PBN. Contact her at macdonald@pbn.com.
