Newport unfazed by O2 demise

A $1.4 billion investment isn’t something to scoff at. But despite The Procaccianti Group’s announcement last month that it would pull out of sweeping plans to invest in the North End of Newport, city and Aquidneck Island officials are confident that the area’s redevelopment will not be deterred.
The northern part of the city – which includes Newport Grand and JT Connell Highway and borders Broadway – long has been considered an underutilized, underdeveloped portion of the community.
Efforts to revitalize the area have been ongoing since at least 1990, when the city received federal funding to develop affordable housing there. And a recently completed draft of a master plan now before the City Council looks to address ways to make the area integral to Newport’s economic base.
For a few months, it seemed Procaccianti’s plan would take care of much of that work.
In March, the Cranston-based company announced plans to spend $1.4 billion for a project dubbed O2 Newport. The proposal included the $155 million purchase of Newport Grand and was intended to create 2,800 permanent jobs and a year-round destination for the city’s North End. While the company intended to work with the community to determine what the best investment would be, Procaccianti suggested that O2 Newport would include mixed-use development, a Ritz-Carlton Hotel and year-round recreational and entertainment facilities.
But inaction by the General Assembly, which failed to extend a tax agreement for Newport Grand, caused the developer to back out of the plan.
Still, Paige Bronk, director of planning for the City of Newport, said that the death of the Procaccianti plan does not mean the death of redevelopment efforts in the city.
In fact, he says, that area of the city already has been home to several marquee projects, including the 2005 opening of a new Community College of Rhode Island campus and the construction of a new headquarters for BankNewport, slated to start by early 2008.
“The North End is not dependent on any one developer,” Bronk said. “I think the North End has had a number of success stories over the past several years.”
One project in particular will provide an opportunity for development in the short term, Bronk said. A 5.34-acre parcel near J.T. Connell Highway was purchased by the city from the R.I. Department of Transportation in May for $1.5 million. Within the past month, Bronk said, the city has received a number of proposals for the property.
While he wouldn’t specify how many proposals were received or what they contained, Bronk said that they were “commercial in nature.”
Other areas – several of which are identified in the North End Master Plan draft – will be ripe for redevelopment if they were to become available.
The reconfiguration of off-ramps from the Pell Bridge is expected to open up as much as 20 acres of land for redevelopment – a prospect similar to what Providence will face when the re-routing of Interstate 195 is complete.
Another parcel of interest to the city is the former Navy Hospital, which sits on the city’s waterfront. If the property were to become available, Bronk said, it could be an excellent location for a mix of uses.
Taken as a whole, the North End offers plenty of redevelopment opportunities on land that hasn’t been utilized efficiently or effectively before, Bronk said.
“Hopefully, [the North End] will provide more of a year-round economic base for the city,” he said, adding that Newport is generally relies on tourism.
Tina Dolan, executive director of the Aquidneck Island Planning Commission, said that she considers the North End of Newport an “untapped resource” that has the ability to complement Newport’s downtown, mansions and beaches.
“The North End offers other opportunities that will contrast well with the other areas of Newport,” Dolan said.
Newport County Chamber of Commerce Executive Director Keith W. Stokes agrees the area has potential, adding that there is already a lot of interest in the North End.
Stokes said that he frequently takes phone calls from national developers who are looking to invest in the North End of Newport. They were interested in the area before Procaccianti had proposed O2 Newport and will remain so, Stokes said.
“Separate and apart from any one parcel, it’s the Newport brand that attracts,” Stokes said.