The transit buses converge on Kennedy Plaza in Providence every few minutes throughout the week, circling the historic site and pausing at their designated stops.
More than a quarter-mile away, separated by buildings and several lanes of auto traffic, MBTA commuter and Amtrak trains pass through Providence Station.
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Learn MoreA seamless transition between public transportation modes isn’t yet a reality here, more than two years after Rhode Island voters authorized funds for a transit hub that would remove most buses from Kennedy Plaza.
The state is quietly moving forward, however, pursuing what could become a signature, skyline-altering development. And the plans have moved far beyond a transit hub.
The state is actively pursuing a public-private partnership that could exceed $100 million in value, featuring new construction of private development that feeds off the tens of thousands of commuters and visitors expected to use the transit center.
Up to $35 million authorized by Ocean State voters for a transit hub will remain set aside for that aspect of the development. The private development, meanwhile, could take many forms. But the state has made clear in published documents that it’s looking for something that will be transformational for Providence.
The goal is a bus hub and a transportation center that supports Rhode Island’s growth for the next century “with a timeless, skyline-altering development,” according to documents published by the R.I. Department of Transportation, intended to solicit interest from development teams.
The best way to do that is to solicit proposals from private industry, says RIDOT Director Peter Alviti Jr., rather than design something and put it out for public bids.
“We had a bond referendum that was approved, $35 million to build a bus hub,” he said. “The track that things were on before the new administration came here was that they would have taken the $35 million and they would have built a $35 million bus hub. And [we] basically would have ended up with a Soviet [Politburo-style] structure and facility that would have just provided a bus station.”
Gov. Gina M. Raimondo, on taking office, asked Alviti to look at ways to couple the transportation infrastructure with efforts to attract new economic development.
P3 CONCEPT
The public-private-partnership model, which has been used previously in many other cities, is now coming to Rhode Island on a first major project, to be called the Providence Intermodal Transportation Center.
“Every other major transit facility [similar to] the bus hub that we have, in most other states and larger cities, is being built in a way to capitalize on private-sector development that comes along with it,” Alviti said.
For example, Boston Properties Inc., one of the firms that is seeking to be qualified for the Providence project, is now engaged in a significant transit-oriented development at North Station in Boston, near TD Garden, which includes a 38-story residential skyscraper.
The concept of a P3, as they are called by government and industry officials, involves an internal review of the qualifications of development consortiums and companies that have expressed interest in the project, and then a formal submission by the development teams of projects that they would build, and manage, to meet the state’s requirements.
That process began with a Request for Qualifications by the state in June 2016. Four companies or consortiums responded, and the state is now evaluating their credentials.
While the state has not specified the exact mix of development it would like to see in the Capital District, the RFQ includes the potential mixes: retail, residential, office, commercial space, along with the required bus terminal and public parking.
Several statewide, city-planning and civic-engagement organizations have signed on with support for the project.
Dan Baudouin, executive director of the Providence Foundation, said the nonprofit is excited about the P3 approach because it could bring additional development to help complete the Capital Center District.
“The project offers many transportation improvements, transit-rider amenities and community benefits, including the continued transformation of Greater Kennedy Plaza into a world-class, public space,” he said.
Although the district has attracted some $1.3 billion in private real estate investment, he said, it has the potential on undeveloped acres to attract even more activity.
“The foundation was one of the originators of the Capital Center project, and it’s been very successful, but there are still some sites to redevelop,” he said. “If this can be used as a way to get more development, more benefit, for the city and the state, let’s try it.”
Scott Wolf, executive director of Grow Smart Rhode Island, which along with the Providence Foundation supported the $35 million bond referendum two years ago, said the transit center’s downtown location is exactly where new development should go. “This is right out of the smart-growth playbook,” he said, “to be able to have mixed-use, transit-friendly, pedestrian-friendly development.”
Although the mix of proposed development is unknown, it is conceivable it could feature new apartments. The pattern of downtown development has veered toward retail at ground level, with apartments on upper floors, for several years.
Realtors who specialize in higher-end, new-construction apartments say there is a demand for it among transplants moving to Rhode Island for the first time, and among state residents looking for a change in lifestyle, and moving closer to city amenities.
The rapid inflation in the Boston market has also had an impact, and is prompting renters, as well as buyers, to seek alternatives in Providence.
Benjamin Scungio, manager of the Providence offices for Mott & Chace Sotheby’s International Realty, said at least half of the rental market for high-end units prefers new construction. “I do think if they developed, they would have demand for it,” he said of the area around the train station. “The higher end of the rental market is really hot. The reason for that is people are willing to spend more money on a premium rental because they’re much nicer.”
Commuters to Boston jobs represent about one-quarter of his recent transactions, he said.
Danielle Almeida, a Realtor at Keller Williams Realty in Bristol, said if the new construction includes apartments tied into the transit center, there could be sufficient demand. Already, she has commuters wanting access to the public-transportation lines.
“What I find now, with my rentals and my sales, is I have a lot of people coming from Boston and moving this way because it’s more affordable. Providence is so close to Boston, they can still commute to Boston and afford something much nicer than in Boston,” she said.
In many cases, they are taking their perception of the buying process with them and are expecting to offer full price on properties. “Because in Boston, everything is going over the list price, I see the buyers coming from Boston. If they want to make an offer on a property, they expect they’re going to pay full price. Which is not what the market is here,” Almeida said.
WHERE WILL IT GO?
In the Capital Center District of Providence, the movement of railroad lines and the uncovering of the Providence River more than 20 years ago recovered 48 acres of developable land. Of those acres, 15 remain undeveloped, according to the state.
The state has identified nine parcels that form a semicircle around Providence Station as the potential location for the new development. One or all could be used, and the state has pledged to acquire the land as an enticement to attract interest from developers, according to Alviti.
Six of the parcels are privately owned.
Five are held by Capital Properties, which leases them as parking lots. These lots are located at 1 Moshassuck Court, 5 Moshassuck Court, 10 Park Row West, 6 Moshassuck Court, 65 Park Row West.
Two parcels are owned by the state, at 1 Park Row West, a triangular lot, and the Station Park parcel at the corner of Francis and Gaspee streets.
Amtrak owns a small parcel at 150 Francis St., and it has agreed to consider “mutually beneficial” terms for participating in the project, according to RIDOT documents. These could include improvements or expansions of the Amtrak station and granting air rights over the existing station.
While RIDOT intends to collaborate with the private owners, the agency is open to using eminent domain, if needed, Alviti said. “We have that ability to do that, for transportation purposes, and in a more limited nature for development purposes as well,” he said.
An executive at Capital Properties did not immediately respond to several requests for comment.
To help facilitate interest, the state and city also are offering a host of public incentives for developers.
They include state financial incentives for development and job creation, through the Rebuild Rhode Island tax credit, for example, which provides the largest credit percentage – up to 30 percent of the project cost – for projects that are close to transit centers. The city of Providence also has generous tax-relief programs aimed at projects in the district, such as a tax-stabilization policy that will defer full taxes on private development for up to 20 years.
PRIVATE PARTNER
Four consortiums of companies have expressed interest in being considered for this work.
They include Boston Properties Inc., one of the largest commercial real estate development companies in New England. It owns the Prudential Center, the Shops at Prudential Center retail development, and the tallest building in New England, the 62-story former John Hancock Tower, now known as 200 Clarendon Street.
The company would not comment on its interest in Providence, according to a statement from Bryan Koop, executive vice president of the Boston region for Boston Properties.
“It is our policy not to speculate on potential projects unless and until a formal agreement has been reached,” he said.
In Boston, which is undergoing a development boom, the company is investing in major projects at critical transit centers.
In collaboration with Delaware North Companies, Boston Properties has started development of The Hub on Causeway, which will include a 38-story residential tower at North Station, near TD Garden.
When completed, it will include more than 1.5 million square feet of retail, office, hotel and residential space, as well as an expansion of the TD Garden itself, according to a statement.
“This transit-oriented development is a significant investment that will bring substantial improvements to North Station, will create major economic impact for the area and strengthen the viability of this important district in the city of Boston,” Koop said.
The company has proposed another dramatic remake for the Back Bay MBTA Station. The project, called the Back Bay/South End Gateway, is now before the Boston Redevelopment Authority.
Boston Properties would develop four parcels adjacent or above the station and its tracks, using air rights. The proposal includes a 26-story residential tower with 600 apartments, and would encompass 1.26 million square feet of mixed-use space, including office, retail, residential and restaurant space, according to the application.
Another Providence aspirant is Marsella Development Corp., well-known in Rhode Island as the chief architect of the Capital Center project, which created the district that now includes Providence Station, as well as Providence Place mall, the Omni Hotel and Marriott Courtyard Hotel, and Waterplace, two towers of residential condominiums.
Marsella also developed the Newport Gateway, a project that includes the welcome center, a 750-space parking garage and the 300-room Newport Marriott.
Two additional Massachusetts-based entities also have responded to the state’s RFQ. They are Boston Development Collaborative LLC and Redgate Capital Partners.
The identities of the component companies in each collaboration have not been released by the state.
Among other things, each team is required to disclose any prior P3 experience, describing specifically its experience in developing transportation-oriented urban projects.
Teams are required to explain how they would finance the project and demonstrate capacity to pay or finance a project exceeding $100 million.
To assist, the state has engaged several consultants for the review. They include legal adviser Ashurst, technical consultant Mott MacDonald, and financial adviser Ernst & Young.
The consortium, or consortiums, that are deemed capable of proceeding will then be invited to submit proposals, spelling out how they plan to sequence and develop the project.
The state expected to wrap up its internal assessment by late January.
The transit hub will include a new bus terminal, and RIDOT wants it to be constructed in the first phase of any multiphased project.
The facilities need to include strong links for Amtrak and MBTA trains, which will run from Providence Station, as well as RIPTA and other vehicle-based transportation services such as taxis, and bicycles. The new center will be expected to have ready connections for pedestrians and commuters to the downtown, I-195 Redevelopment District and other areas of the city. Parking is also expected to be included.
Kennedy Plaza, now the exclusive hub in the state for the RIPTA bus services, has 34,000 passengers arriving or leaving daily, and that number is expected to increase, according to planners.
Because jobs have begun to shift away from the traditional office center of downtown toward the Jewelry District, state offices and Rhode Island Hospital, transportation planners envision a series of hubs in the future that would relieve significantly the transit presence on Kennedy Plaza.
The city, meanwhile, is planning for a fast-service bus route through RIPTA that would connect the major employment centers of Providence, rather than a street car with dedicated tracks. This more-frequent service, running continuously from the hospital district to the train and transit center, would need a landing site.
At a minimum, the planned center will have bus berths with enough space for 12-16 buses, with fully accessible passenger-loading areas, comfortable passenger-wait areas, and a covered pedestrian connection between the existing train station and the transit facility, according to the RIDOT documents.
Supporters believe the transit hub would encourage more development in the city near the amenity, but also may help speed economic recovery in Rhode Island, by making public transit more readily accessible.
It all sounds promising to James Kennedy, a Providence-based writer and environmental advocate, who edits a widely read transportation blog called Transport Providence. He remains cautious, however, adding that he hopes the state will de-emphasize construction of new parking near the transit center, in part because its construction expense could detract from other service options truly needed in Providence – such as more frequent bus service.
“A lot of successful transit is based on coordination between land use and the transit itself. To the extent we’re thinking of these as development projects, that makes sense,” he said. “I’d like to see less parking, and more money put into the frequency of buses that do come.” •