PAWTUCKET – Approved state tax credits for a major Pawtucket redevelopment project will be paid out sooner than expected.
The R.I. Commerce Corp. Investment Committee on Monday voted to recommend a change to the $10 million in Rebuild Rhode Island tax credits previously approved for Tidewater Landing. As recommended, the credits would apply to development costs for the hallmark 8,000- to 10,000-seat soccer stadium, rather than across the entire project.
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The change, which was recommended by the Commerce Investment Committee earlier on Monday, does not change the funding amount but rather the timing of when the developer can receive the redeemable tax credits. By designating funding to this specific portion, the developer can receive the credits sooner because the stadium is among the first elements to be finished in the multiphase, mixed-use development.
Jesse Saglio, R.I. Commerce president, said making the developer eligible for the credits earlier will “unlock additional funding sources needed to deliver this important asset in time for a 2023 opening season.”
The tax credits are needed to help the developer secure commitments from investors, which are projected to cover about half of the $284 million cost, said Jeff Miller, Commerce’s executive vice president of investments. The remainder of the price tag comes from a mix of private equity and a previously approved $36.2 million state bond.
Fortuitous, in its master plan submitted to the city, anticipated finishing the soccer stadium in a first phase of construction, slated to begin this fall. Corresponding mixed-use residential, retail and office space along Division Street would also be part of a phase-one construction to be finished by 2024.
Plans for a hotel and event center, as well as parking improvements related to the development, are planned under a second phase anticipated to begin in 2025 and finish by 2027. The plans attributed the delayed timeline for phase two to the need for clarity in the post-pandemic market for hospitality and indoor event spaces.
Committee member Bernard Buonanno questioned what would happen if the developer fails to complete the other elements of the project, or if those other parts of the project end up costing more.
Under project agreements between the state, the city and Fortuitous, the state is not on the hook for any additional costs beyond the $46 million in public financing already approved. The tax credits will not be paid out until the stadium portion of the project is finished and certified, R.I. Commerce Secretary Stefan Pryor said.
Lauren Greene, a spokesperson for Fortuitous Partners, said the developer declined to comment.
(This story has been updated throughout, including the vote result by the R.I. Commerce Corp. Investment Committee and comments from Stefan Pryor and Lauren Greene.)
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
