PROVIDENCE – The I-195 Redevelopment District Commission voted unanimously on Wednesday night to approve a purchase and sales agreement with Urbanica Inc. for Parcel 2, an undeveloped 1-acre site along the Providence River where the company plans to construct a curvy, six-story, 134,750-square-foot building with 194 apartments and ground-floor retail space.
The resolution approved by the commission that authorizes the agreement states that the contract purchase price for Urbanica is $2.01 million. Urbanica is buying the property through a limited liability company it established called Collage Providence LLC.
Urbanica, a Boston-based firm, was selected during a Feb. 2 commission meeting as the preferred developer for the site, sandwiched between South Water and South Main streets, near the Michael Van Leesten Memorial Pedestrian Bridge. During that meeting, commission Chairperson Robert Davis said Urbanica proposed a purchase price of $2.04 million for the site.
The commission voted on the purchase and sales agreement Wednesday after a 25-minute closed session. Davis said the commission voted during an executive session on architecture and engineering services within the district, but didn’t divulge the specifics, stating that the terms would be made public when doing so no longer jeopardizes the district’s negotiating position.
A summary of the purchase and sales agreement states that Urbanica is required to first deposit $25,000 upon execution of the agreement, an additional $25,000 after the end of a 60-day due diligence period. A 210-day permitting period is scheduled to begin after the due diligence period. And a closing date for the purchase and sales agreement is to take place 30 days after the expiration of the permitting period, with a seller option to extend this for an additional 30 days.
The summary outlines project milestones, including the commencement of construction within 30 days of closing the deal, and complete construction of each phase of the project within 28 months of closing. The summary states that if the buyer defaults on the purchase and sales agreement, the seller is able to retain deposits as “liquidated damages.” The summary also includes seller obligations to close the sale dependent on several factors, including the purchaser closing on its debt financing for the project.
The commission also voted on Wednesday to approve a naming rights agreement for the Innovation District Park that will be worked out with the Bally’s Corp. per state legislation. The Innovation District Park is located on the west side of the river, closer to the downtown area.
The naming rights for the park were promised as part of an amendment to legislation signed by Gov. Daniel J. McKee in June for the deal between the state and Bally’s in partnership with International Game Technology PLC to provide the companies with control of the state’s gambling operations for the next 20 years. Bally’s committed $200,000 to the state in exchange for the naming rights.
However, Davis said that the entire park would not be named after Bally’s.
“I think the structure we worked out says that Bally’s gets some naming rights. But this will not be called Bally’s Park,” Davis said. “So far, they’ve been a wonderful partner to work with.”
Davis said the $200,000 provided by Bally’s will be a “valuable asset” to the commission and the “ultimate custodians” of the park.
Commission member Michael McNally asked if the agreement precludes the commission from entering sponsorship deals with other organizations for parts of the park. Davis said it doesn’t, and that “there could be other opportunities” for the west or east sides of the park, along with the Innovation District Park food and drink pavilion that the district is now in the process of selecting a developer for.
The Urbanica proposal for Parcel 2 was selected over two other competing projects. Eden Properties, which is also based in Boston, proposed a 164,595-square-foot building with 163 apartment units, and the Cambridge-based Parent + Diamond Real Estate Development company proposed a 160,078-square-foot structure with 120 condo units that would be owned instead of rented. The proposals were first introduced to the public in September last year, following a request for proposals issued by the I-195 Redevelopment District Commission.
The parcel next to the Providence River is part of the 26 acres of land that was freed up in 2011 after a stretch of Interstate 195 going through Providence was relocated, with 7 of those acres set aside as open space, leaving 19 acres for private development. Nearly 9 acres are still available for development, according to the district, with nine projects either currently completed, under construction or planned, amounting to $670 million of investment.
The long, wavy red terracotta building proposed by Urbanica includes 15,000 square feet of ground-floor retail space, in addition to roughly 119,000 square feet of residential space. The types of units include 120 studio apartments, 40 one-bedroom apartments, and 34 two-bedroom apartments, with an average size of 613 square feet. Among those apartments, the Urbanica proposal includes 12 units deemed affordable, with rents that can be paid using a 60% median income.
The Urbanica proposal also calls for 90 subsurface parking spaces, amounting to 39,000 square feet.
Davis said previously the Parcel 2 development process will involve a preliminary design approval review and a final plan approval. Each step along the way going forward, Davis said, will include opportunities for public input and the participation of a recently announced Parcel 2 design review panel, which includes Craig Barton, an architect and professor at Brown University; Emily Vogler, a landscape architect and professor at Rhode Island School of Design; and Jack Ryan, a Rhode Island architect.
UPDATES with I-195 Redevelopment District Commission vote and with details throughout.
Marc Larocque is a PBN staff writer. Contact him at Larocque@PBN.com. You may also follow him on Twitter @LaRockPBN.
