PROVIDENCE — The Fane Organization on Wednesday secured a revised purchase and sale agreement with the I-195 Redevelopment District Commission for the Hope Point Tower site that pushes the original closing date back almost a year.
On Wednesday, the commission approved a new term sheet that includes a development agreement with more specific time frames the developer must follow through construction. The terms also provide for a later closing than originally anticipated, as well as the option for an extended purchase window if Rhode Island enters an economic recession.
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The land acquisition price, set a year ago at $3.2 million, has not changed. But the developer will now pay a reduced initial deposit of $250,000, cut down from $500,000, combined with increased followup fees that are intended to cover the commission’s costs through the design phase, and through litigation if it is pursued by project opponents. The document specifies additional fees of $150,000, plus any litigation or design review expenses that exceed that.
The greatest change involves the anticipated closing on the northern half of Parcel 42, where the proposed Hope Point Tower would be placed. It is now set for a target date of Dec. 31, 2021, almost a year later than anticipated when the Fane Organization in January negotiated the preliminary purchase terms.
Commission chairman Robert Davis, who outlined the new agreement for the commission, said the time extension was requested by the developer due to the amount of time spent gaining city zoning approval.
Under the new terms, the Fane Organization has to file for a tax stabilization agreement and design review by June 30, 2019. The project will also require the concurrence of the state historical preservation officer, a stipulation of the original land-transfer agreement when the I-195 district was created.
By April 30, 2020, the project has to have resolved any zoning litigation that may arise.
And the closing date, although moved to Dec. 31, 2021, could be pushed back yet another year if the economy slows for two quarters in 2021. If the area enters a recession, the Fane Organization could extend the parcel acquisition date to Dec. 31, 2022.
Mary MacDonald is a staff writer for the PBN. Contact her at macdonald@pbn.com.
