Home Economy ‘Superman’ developer seeks ‘last piece of the puzzle’

‘Superman’ developer seeks ‘last piece of the puzzle’

By

Christopher Allen

-

05/28/2025

THE SENATE FINANCE COMMITTEE will hear legislation on Thursday that if enacted would separate sales and use tax rebates on construction costs from the Rebuild Rhode Island tax credit program cap, potentially saving owner High Rock Westminster LLC $4.6 million toward the renovation of the Industrial Trust Co. Building. / PBN FILE PHOTO/MICHAEL SALERNO

PROVIDENCE – Supporters behind the effort to transform the long-vacant Industrial Trust Co. Building into a mixed-use space with retail and more than 300 housing units are lobbying the General Assembly to approve legislation they say is required to make the project financially feasible. Known as the “Superman” Building, the state’s highest skyscraper has been

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PROVIDENCE – Supporters behind the effort to transform the long-vacant Industrial Trust Co. Building into a mixed-use space with retail and more than 300 housing units are lobbying the General Assembly to approve legislation they say is required to make the project financially feasible. Known as the “Superman" Building, the state's highest skyscraper has been empty since Bank of America Corp. moved out in 2013. The Senate Finance Committee has scheduled a hearing on Thursday to take up legislation filed May 2 by Sen. Jacob E. Bissaillon, D-Providence, and Sen. Matthew L. LaMountain, D-Warwick, that would change the Rebuild Rhode Island state tax credit program by separating sales and use tax rebates on construction costs from the current cap, potentially saving real estate developer High Rock Westminster LLC, which owns the building, $4.6 million in construction costs. High Rock purchased the 428-foot-tall skyscraper in 2008 for $33 million, but the property is currently assessed at just more than $14 million, according to the city’s 2024 tax records. In December, the developer disclosed in filings with the city that the total cost had climbed from an initially estimated $223 million to $270 million. At the close of 2024, construction costs had risen 4.69% year over year, according to the Association of the Wall and Ceiling Industry. Despite $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, federal tax credits, and a 30-year tax stabilization agreement reached with the city in 2022 that was projected to save High Rock $29 million in property taxes, High Rock lobbyist Nicholas Hemond told lawmakers the legislation “is the last piece of the puzzle towards getting this project back on the track to completion, as was contemplated in 2022." In addition to Providence Mayor Brett P. Smiley, who included the proposed legislation among his state-level legislative priorities, the change is also supported by The Providence Foundation and Build Rhode Island. Build Rhode Island Assistant Executive Director Anthony J. Cherry said in written testimony the change could be “part of the equation" that will facilitate the renovation, an economic infusion and much-needed housing. The House version of the legislation was presented to the House Finance Committee in April, but there has been no legislative action since. R.I. Tax Administrator Neena S. Savage submitted written testimony warning of “unintended” fiscal impacts, and “uncertainties’ if there are no restrictions included on the sales and use tax exemptions or limitations on the amount authorized under the program. In separate statements Wednesday, House Speaker K. Joseph Shekarchi and Senate President Valerie Lawson declined to comment on whether they supported the legislation. "We are currently reviewing the testimony as part of the legislative process," Shekarchi said. Lawson said the Senate would be consulting with finance committee leadership and the Providence delegation regarding the proposal. "We continue to explore ways to support robust development in our capital city and our state," she said. Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.