Vacant buildings in and around East Providence are signs of the difficulties small cities face keeping industrial tenants and manufacturers from shifting operations abroad, City Manager Richard Brown says.
SeedAmerica, an Alpharetta, Ga.-based nonprofit last week took one of those empty buildings in Brown’s community off the market, closing on the acquisition of the former Fram Corp. corporate headquarters in East Providence, which, as an IRS 561 Exchange, was offered as a charitable donation.
The nonprofit isn’t required to renovate – that decision is based on the condition of the building. But at least part of the East Providence facility has mold problems that will require renovation, said Jim Moran, the city’s economic planner.
Plans for renovations have not yet been finalized, said SeedAmerica Marketing Director Karen Buckley Washington.
Most of the space, which totals 125,000 square feet, will be rented at market rates, but SeedAmerica will sometimes rent for less if a promising business is looking for space. Buckley Washington said SeedAmerica wasn’t ready to discuss prospective tenants.
Brown hopes the 9.21-acre site will become a mixed-use facility that might have a multiplier effect, incubating businesses that eventually buy or build headquarters in East Providence.
The purchase agreement mandates that the nonprofit organization lease the property at 105 Pawtucket Ave. for at least three years before selling it. The former owner, Harborside Park II LLC, will receive tax benefits for the donation for up to five years, said Buckley Washington. Harborside purchased the property in 2001 for $1.2 million.
SeedAmerica operates 15 properties around the country. Since 2001 it has been searching out owners of vacant property. When the nonprofit identifies a potential donor, the owners are approached with information about SeedAmerica, Buckley Washington said.
“It’s really kind of an exit strategy for corporations who have empty buildings that are raking up carrying costs,” she said.
The nonprofit’s hope is to acquire buildings it can turn over to potential entrepreneurs or small-business owners looking for affordable space to lease.
Turning a vacant building into a business incubator also has other community benefits, including creating a vibrant neighborhood, Brown said. There’s the inherent value of drawing new customers to local businesses – and a vacant building is far more likely to be a target of vandalism.
“Now, with a building that’s occupied, there’s advanced security in the neighborhood,” he said. “There’s also more people coming in who can take advantage of purchasing opportunities – whether it’s a meal or goods and services in East Providence – that just weren’t there before.” •
