PROVIDENCE – The developer of a significant new building planned for downtown will come before the Providence City Council on Thursday with a request for a 20-year tax stabilization agreement.
The sponsor of the project, 78 Fountain JV Owner LLC, is an entity owned by Providence-based Cornish Associates LP and by Nordblom Development Co., of Burlington, Mass., which are pursuing the project as a partnership.
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The project would place a new building at 78 Fountain St., between Fountain and Washington streets, that will include 146,493 square feet of mixed-use space, including commercial and residential units. It would cover an existing parking lot and occupy a full block downtown.
The 20-year TSA would begin Dec. 31 and continue through Dec. 31, 2036. It would phase in the increased property tax on the new construction beginning in the fourth year, achieving full taxation in the 20th year. The cumulative savings to the applicant was estimated at $12.2 million, according to a fiscal note.
Under the TSA terms, construction would have to begin within a year of the incentive agreement approval.
The $48 million project has received approval from the R.I. Commerce Corp. for up to $6.1 million in Rebuild Rhode Island tax credits. A small masonry building, at 66 Fountain St., will be torn down to facilitate the development.
The City Council is expected to take up the city tax incentives request in its meeting at 6 p.m. on Thursday, July 20.
Mary MacDonald is a PBN staff writer. Email her at MacDonald@PBN.com, or you can follow her on Twitter @MaryF_MacDonald.
