Home Economy Government Tax deal for proposed 71-unit apartment complex in Providence advances

Tax deal for proposed 71-unit apartment complex in Providence advances

By

Christopher Allen

-

01/19/2024

BANK RHODE ISLAND’S commercial real estate division recently closed a $10.5 million financing deal for a new residential project on Providence’s East Side at the former Tockwotton building. / RENDERING COURTESY BANK RHODE ISLAND — CITY OFFICIALS ARE CONSIDERING GIVING a 10-year tax stabilization deal to 180 GMC LLC to redevelop the former Tockwotton Home into an apartment complex. / RENDERING COURTESY BANK RHODE ISLAND

PROVIDENCE – The City Council on Thursday unanimously forwarded the proposed 10-year tax stabilization deal for the developer building a 71-unit apartment complex in the city’s Fox Point neighborhood. The proposed tax stabilization agreements for 180 GMC LLC, sponsored by Senior Deputy Majority Leader John Goncalves, were sent to the council’s finance committee. The 50,000-square-foot

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PROVIDENCE – The City Council on Thursday unanimously forwarded the proposed 10-year tax stabilization deal for the developer building a 71-unit apartment complex in the city’s Fox Point neighborhood. The proposed tax stabilization agreements for 180 GMC LLC, sponsored by Senior Deputy Majority Leader John Goncalves, were sent to the council's finance committee. The 50,000-square-foot brick building is planned to be redeveloped as part of a $7.75 million construction project. Developer 180 GMC purchased the property in 2022 for $4.9 million, according got city tax records. It was most recently assessed at $4.5 million. Local real estate investor and 180 GMC LLC manager Dustin Dezube previously received approval from the Providence Zoning Board of Review in 2022 for dimensional variances needed to renovate the former Tockwotton Home at 180 George M. Cohan Blvd. into the “Residences At India Point.” Constructed in the 1850s as “The Home for Aged Women" nursing home and assisted living residence, in 2013 it served as the Roosevelt International Academy boarding school. The tax stabilization term would be retroactive to Dec. 31, 2023, and run until Dec. 31, 2032, with the base property tax paid in the first two years, followed by 12.5% of the base rate in year three and a progressively higher rate until the final year. BankRI provided $10.5 million in financing for the acquisition and conversion of the property in 2022. Though the council did not debate the agreement during its meeting, Gonsalves spoke of the city’s housing needs during a separate discussion condemning the recent demolition of three historic homes on College Hill. "Providence has a housing crisis,” he said. “We can afford more density across our city. Growth and density and sustainable can be achieved while also integrating historical preservation into city planning.” The council on Thursday also received an ordinance to designate funding allocated by the Providence Housing Trust to be used for affordable housing projects for families earning less than 80% of the area median income rather than the current 120%. Christopher Allen is a PBN staff writer. You may contact him at Allen@pbn.com.