Thanks in part to the R.I. Historic Preservation Investment Tax Credit program, which lawmakers recently decided to end, the $17 million construction of the Hampton Inn & Suites at 58 Weybosset St. is on schedule. The latest mid-priced addition to the Providence hotel scene will open as planned in early December, according to the head of the development company in charge of the project.
Jim Karam, president of First Bristol Corp. in Fall River, said the job is “a bit complicated” because the work involves melding an historic structure, the former St. Francis Chapel, with a newly built, 11-story addition. Floor and wall dimensions, for instance, must match exactly. The existing building was constructed 80 years ago as the original home of Old Colony Bank and is listed on the National Register of Historic Places.
“Without the tax credit program,” Karam said, “this would not be a viable development.”
He expects the project to generate approximately $5 million in state and federal tax credits. The state tax break is assured because Karam said his company paid the state the $250,000 processing fee needed to reserve it, as required by recent changes the General Assembly made in the law.
During the session that ended last month, Rhode Island lawmakers enacted several significant revisions to the historic tax credit program in an effort to reduce its cost to the state in upcoming years. The credit was cut from 27.5 percent to 22 percent, and developers were required to pay a large portion of the processing fee earlier than originally planned. The legislature also decided to end the program in 2012.
First Bristol is developing the hotel in partnership with Granoff Associates of Providence, which owns and operates The Arcade. Stone Street Construction of Providence is in charge of construction, which began in November. Developers have been working with the state building and trades council, Karam said, and approximately 65 percent of the work is being done by union laborers. Rockland Trust is providing $11 million in financing.
The existing façade of the former bank will remain in place, with only minor improvements required. “The exterior is pretty much intact. It’s in excellent shape,” Karam said. Marble columns will undergo a “light power wash to bring back some of the white color,” he said, and a marble restorer will be retained to repair chips and blemishes.
Inside the building, marble walls on the first level will be left in place, including bronze markers about 5 feet from the floor that show how high the water rose in downtown Providence during the 1938 hurricane. In what will be the lobby, a metal-stamped ornate ceiling with gold trim will be preserved, along with many antique air vents crafted of iron that Karam called “very beautiful.”
But perhaps the most striking feature of the interior is what was probably the old bank boardroom. Karam described a conference room with a marble fireplace and handcrafted wooden walls that he said is in “absolutely pristine condition.” It will remain a private meeting room that can accommodate about 18 people, Karam said, and the only change will be the addition of modern technological features like internet connections.
All approvals from state and federal historic preservation agencies have been obtained.
First Bristol, which will own and manage the hotel, began recruiting candidates June 30 for 52 full-time positions for management, the front desk, food and beverage, housekeeping, security and maintenance. Interested candidates can apply in person at the Arcade Mall, 65 Weybosset St., where Karam said the developers have rented an office.
“We’re looking forward to bringing some new faces into our hospitality family,” said Michael Buddemeyer, general manager. “Employees will find that our incredible benefits package coupled with our stylish workplace environment will make us the employer of choice in Rhode Island.”
The hiring process is expected to take several weeks. Karam reported the response has been excellent because “people are anxious for an opportunity to work.” First Bristol, a 30-year-old real estate development firm, manages other Hampton Inn & Suites as part of the Hilton Hotel Corp. in Norwood and Raynham, Mass., and in Newport.
The Hampton chain offers “a limited service, high-quality product with mid-level pricing,” the developers said in a release. Room rates will be in the $145 -$165 per night range, according to Karam. The hotel will have 110 guest rooms, including 38 suites, 32 king rooms and 40 standard rooms.
“Limited service” generally refers to the fact that the Hampton will not have in-house room service, although a “complimentary full-menu breakfast” comes with each room. There will be no “high-end restaurant” in the hotel, Karam said, and no banquet rooms. Meeting rooms will be available, but any food served must be provided by outside caterers.
But the downtown Hampton will provide “all the fine amenities” other hotels do, Karam stressed, including a fitness center, free high-speed Internet access, deluxe bedding, high-definition plasma-screen television sets, iPod -compatible alarm and clock systems, valet parking, free shuttle, microwaves and refrigerators. •
