PROVIDENCE – The top executive for Crossroads Rhode Island was surprised but nonetheless happy to hear that the local nonprofit would get $500,000 if a proposed renovation of the long-vacant “Superman” building is approved.
As part of High Rock Development LLC’s $220 million plan to convert the city’s tallest building into a mixed-use residential, retail and event space, High Rock on April 13 committed to making a $500,000 charitable contribution to Crossroads. That contribution would be paid out over 10 years once the Industrial Trust Co. Building renovation project is complete, according to Gov. Daniel J. McKee’s office.
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Crossroads CEO and President Karen A. Santilli told Providence Business News the money would go toward Crossroads’ broad mission to end homelessness. But she’ll start thinking about potential uses once the developers live up to the pledge with a written agreement.
“It would be up to the donor to fulfill this pledge, and for them to provide documentation,” she said.
Santilli added it would be better for the organization to receive the pledge in full upfront, but she still sees it as being welcomed “money in the bank.”
High Rock spokesperson Bill Fischer on Tuesday told PBN that High Rock went with the 10-year pledge distribution plan because having the renovated Superman project completed and generating revenue is what will work best for High Rock. He added there will be a written agreement between the developers and the nonprofit to make sure that the pledge is honored.
But Fischer was noncommittal when asked whether the pledge would still be honored by the developers if the Superman building renovation doesn’t come to fruition.
“These details still need to be worked out,” he said.
Santilli said Crossroads was not part of any of the discussions between High Rock and state officials leading up to the April 12 project announcement. She first found out on April 12 when she received a phone call from R.I. Commerce asking her to attend the press conference.
“It was a surprise,” Santilli said.
Fischer said High Rock principal owner David C. Sweetser came up with the idea to include Crossroads in the plan for the Superman building. “David [Sweetser] stands completely behind the mission of Crossroads, and he wanted the gift to have a direct impact on the Greater Providence community,” Fischer said.
It’s estimated that it will take between three to five years for the 95-year-old building that has been vacant since 2013 to be refurbished. And city officials’ approval is still needed to get the project off the ground.
That timeline makes it difficult for Santilli to figure out specific uses for the money but she’ll welcome the gift.
“It may go toward filling any budget gaps we may have. Maybe we put it into an endowment and let it grow and work for us into the future,” Santilli said. “We haven’t solidified anything.”
Santilli did say she was pleased to hear that 20% of the 285 apartments that are part of the proposed renovation would be considered affordable housing, but noted much more still needs to be done to end homelessness in the city.
Crossroads spokesperson Mike Raia added that while the nonprofit supports High Rock’s proposed renovation, it won’t get involved in discussions on it before the Providence City Council. The council would have to approve a tax-stabilization agreement for the proposed renovation.
(SUBS last paragraph to clarify Crossroads’ support for the proposed renovation.)
James Bessette is the PBN special projects editor, and also covers the nonprofit and education sectors. You may reach him at Bessette@PBN.com. You may also follow him on Twitter at @James_Bessette.
$50K a year for 10 years. Crossroads should have High Rock pit the money in escrow.