Big changes are under way along the western shore of Aquidneck Island, and they promise to provide jobs and growing space for the state’s maritime industry.
O’Neill Properties, a Pennsylvania-based company, is directing three Portsmouth projects with an aim toward revitalizing the shoreline.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
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The project with perhaps the biggest impact on the town is the Tower and Royal Cottages at the Carnegie Abbey Club. Lying within a 417-acre golf course and residential development, the centerpiece of the project sits on the site of the former Kaiser Aluminum Factory, which O’Neill purchased last year for $13 million.
The company is waiting until the spring to raze the existing tower and build in its place a 220-foot tower with 80 condominiums, half of which have already been sold. The project has a national profile, having been advertised in The New York Times for months.
In addition to the tower, there will be more than 30 coastal residences – all of which have been sold – and another 21 cottages built (five sold so far). Those who wish to purchase property in the new development will be required to join the exclusive Carnegie Abbey Golf Club, which carries an initiation fee of $175,000.
Residents at Carnegie Abbey also will have use of their own 41-slip marina (there will be a public launch, but no slips available for non-residents), which cleared its last hurdle in mid-January from the R.I. Coastal Resources Management Council.
The development comes in a part of the town that has been neglected for years, and promises to “create a unique living environment,” said Stephen Corridan, New England regional partner for O’Neill.
The summer residences might not be affordable for everyone, with condominium prices starting at $695,000 and going upward of $7 million for a coastal home, but there are benefits for those who aren’t interested in hopping from the lap pool to the lap of luxury.
“The Tower alone will create $2.8 million net revenue for the town,” Corridan said, tax revenue that is needed for the town’s schools.
“The sad truth of funding education is that every town is on its own,” Town Administrator Robert Driscoll explained. “We’ve been tracking the portion of the tax base of residential property versus non-residential property to ensure a balance to minimize the burden on the homeowner.”
While the Carnegie Abbey plan has the largest footprint of O’Neill’s venture in Portsmouth, its other projects are expected to give a more direct boost to the town’s business climate.
“Rhode Island has a strong maritime industry,” Corridan said. “And a lack of marine slips has put a chokehold on growth within the industry.”
The company plans to build a 1,496-slip marina at Weaver’s Cove on a 44.5-acre parcel, with additional plans to develop the former Weyerhaeuser Lumber Terminal (Mount Hope Marine Terminal), which has an 88-acre footprint. In both cases, O’Neill has not taken control of the land, but it is under contract to do so.
“There are more than 40 marine businesses in [the Melville section of Portsmouth], which is one of the largest areas of boat construction in the country,” Driscoll said. “It’s an industry we want to nurture. The marina is crucial to that.
“Other businesses want to move into the area and want to be a part of the recreational boating industry. This makes for some exciting economic developments in the town.”
Beyond the economic benefits, however, town officials are pleased that O’Neill is making an eyesore go away.
“Being an ugly industrial site is a cross to bear for any community, so there are obvious psychological benefits for the town,” said Driscoll.
“It was a used and abused property that we’ve cleaned up under the regulation of [the R.I. Department of Environmental Management],” Corridan said. “It was a defunct, derelict piece of property scarring a section of coastline.” And soon, it won’t be.
