PROVIDENCE – It has been almost 14 months since state leaders held a celebratory press conference touting a public-private effort they said would transform the Industrial Trust Building at 111 Westminster St., built in 1928 and the city’s tallest, creating a centerpiece of downtown commercial and residential revitalization.
But right now, the only residents calling the “Superman” building home are a gaggle of falcons perched atop the 26th floor.
Federal and State Nursing Home Staffing Mandates
Staffing has always been an ongoing challenge in the long-term care industry. However, since the…
Learn More
Speaking on behalf of Gov. Daniel J. McKee, R.I. Commerce Corp. and the R.I. Department of Housing, spokesperson Olivia DaRocha said Thursday that the owner, High Rock Development LLC, has been in talks with the administration “to discuss potential budgetary variables.”
“We look forward to keeping the conversation open in order to understand the project’s financial scenario in greater depth,” she said. “We recognize the current economic climate has been very challenging for development projects everywhere.”
Total cost of the project was originally $223 million with construction to take 30 months. The plan called for 285 residential apartments, with 20% deed restricted, 8,000 square feet of commercial office space, and a 26,000-square foot banking hall with retail and event space.
A slide presentation by High Rock submitted to the City Council on October 2022 said “the darkness and empty state of this 26-story tower is a lurking reminder of economic inactivity and lost opportunity,” promising the redevelopment would “spark a new identity for Kennedy Plaza.”
All told, the deal would involve $26 million in state incentives and contributions, a $10 million loan from the city’s housing trust and a $5 million city grant; bridge financing from the Rhode Island Foundation as well as millions in federal tax credits.
And last year the City Council approved a 30-year tax stabilization agreement on a 11-2 vote, which is projected to save High Rock $29 million in property taxes. The building is currently assessed at $14.1 million, according to the city tax assessor.
A major point of local opposition focused on tax breaks being given to a single developer for a residential project that would still be out of reach financially for many city residents, creating 57 “affordable” units.
Former council member Katherine Kerwin, who voted against the tax treaty, reiterated her opposition Thursday.
“Has the developer increased the number of low income housing units being offered in the building?” she asked. “Or has the affordable housing crisis miraculously ended?”
Before the House approved the $14.1 billion fiscal 2024 state budget on Friday, questions swirled over whether High Rock would be in line for a piece of the coming public housing subsidies in addition to those it already secured.
However, when the House recently released its budget proposal for review before the Finance Committee, there was no mention of the iconic high-rise.
A spokesman for House Speaker K. Joseph Shekarchi later confirmed that the developer did not ask state legislative leaders for additional funds.
“No request was made to the General Assembly for funding for the Superman building,” said spokesman Larry Berman, referring all other questions to High Rock spokesman Bill Fischer. “[And] High Rock did not request funding.”
Fischer did not respond to requests for comment, nor did lead developer David Sweetser, founder and principal of the Massachusetts-based company who purchased the property in 2008.
On June 7, Joseph Paolino Jr., former Providence mayor and managing partner of Paolino Properties LP, said despite the economic headwinds that raised construction costs by double-digit percentage points in the last two years, there should be more communication from High Rock and public officials on the project’s status.
“I’m disappointed that I haven’t seen any momentum or activity,” he said. “[They] need to bring [Sweetser] in and find out what happening. … The building has been sitting there for 10 years. Maybe it’s time to bring him to the principal’s office.”
If the stalemate continues, said Paolino, there are alternative options available, such as purchasing the property through eminent domain under the blighted-building statute.
Paolino also noted the strings attached to the public subsidies.
“I’m sure those promises can’t last forever,” he said. “The people are getting frustrated with the lack of activity. It would be nice if we could hear what is happening.”
Asked during a press conference on June 6 announcing the planning process of the city’s next Comprehensive Plan, Mayor Brett Smiley also expressed frustration with the pace of progress.
“I have spoken in depth about how I’d like to see construction start at that building,” he said. “It has the potential to provide housing for up to 400 residents in Providence, including an affordable component.”
But Smiley still believes the project could be the “first and hopefully best example of integrated and inclusionary zoning with market rate and affordable housing in the same building.”
For now, it’s a waiting game. Darocha said the state “will work with the developer to analyze what escalations in the project budget might be attributable to changes in the market such as interest rate and construction cost increases … and determine what, if anything, is necessary for the project to continue moving forward.”
(SUBS 12th paragraph to add House passage of budget.)
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.
Joe Paolino is correct, “it’s time to bring Sweetser to the principal’s office.”
Unfortunately, Gina, McKee and Pryor have all been sitting on their thumbs wrt the Superman Building.