Developer declares Fane Tower project dead

Updated at 5:02 p.m.

THE FANE ORGANIZATION announced Friday it will be no longer proceeding with the development of the controversial Fane Tower. / COURTESY OF FANE ORGANIZATION

PROVIDENCE – The Fane Tower saga has officially ended.

The New York-based Fane Organization announced Friday it will no longer proceed with the development of the controversial project that was proposed for Parcel 42 of I-195 land.

“I came to Providence with a vision for a great and iconic project that would provide much-needed housing, quality jobs, and revenue for local government and have worked long and hard to make it a reality,” said Jason Fane, president of Fane Organization, in a statement. “However, due to recent risk factors outside of my control, it is no longer feasible to move forward with this project.”

The 550-foot, $300 million luxury tower was set to become the tallest building in in the city. But its journey has been trifled with obstacles and opposition from neighborhood groups and city leaders. The organization’s contract for the parcel, which has received numerous extensions over the years, was set to expire at the end of March.

- Advertisement -

With Fane’s decision, the contract will now officially end at the end of the month, said Marc Crisafulli, chairman of the I-195 Redevelopment District Commission.

“We appreciate the Fanes’ interest in investing in Rhode Island and we look forward to making the parcel available for another developer,” said Crisafulli. “The Commission is focused on building out the District in ways that enhance our great capital city and we are excited to deliver on our mission to foster economic development. We have a robust pipeline of projects, including new lab and office space, which is a testament to the momentum we’ve helped build in Providence.”

“I wish the I-195 Redevelopment District Commission, the City of Providence, and the State of Rhode Island success with their plans for further development in the I-195 District,” Fane said.

The news is garnering reactions throughout the city, from those who either opposed or supported it.

“We all know this process took time, energy, and resources, and we want to thank the parties involved for their due diligence,” said City Councilman John Goncalves, representing Ward 1. “Now we move in another direction. As the city councilor representing the Jewelry District and Downtown neighborhood, I look forward to working with our constituents, Marc Crisafulli, Caroline Skuncik and the I-195 Commission to find an alternative investment and feasible economic project for this integral parcel in the great city of Providence.”

Brent Runyon, executive director of the Providence Preservation Society, said this news gives the I-195 commission the opportunity to “accept proposals for development projects that will add to the vibrancy of the district and the downtown.”

“The popularity of the park and riverfront have only grown in the time we’ve been subjected to this ludicrous proposal that has tied up two valuable parcels for far too long,” said Runyon.

Michael F. Sabitoni, president of the Rhode Island Building & Construction Trades Council, supported the project, lauding its potential economic impact on the city. He said he is disappointed a project of this magnitude came to an end, made unfeasible by a “perfect storm” of circumstances, from COVID-19 to supply chain issues and time constraints. But he hopes Providence will see similar projects in the future.

“We’re committed to make sure that for the rest of the parcels, we will support projects that will be significant for the skyline of providence,” Sabitoni said. “We haven’t built a significant building in downtown providence in almost 30 years… We need significant developments in the city of Providence.”

Senate President Dominick J. Ruggerio, who had expressed support for the project over the years, said in a statement he was disappointed by the news.

“The project would have provided badly needed housing and jobs, and helped to foster a vibrant downtown,” Ruggerio said. “I always looked to the I-195 Redevelopment Commission to conduct their necessary diligence, but my concern with this particular project was that the developer faced numerous roadblocks separate and apart from that review process.”

Ruggerio said he is particularly concerned about the signal this sends to other developers who might be looking to invest in Rhode Island.

“In construction, time is money,” Ruggerio said. “When a developer is seeking to invest hundreds of millions of dollars in or capital city, we should welcome them, not chase them away.”

The controversial project has made headlines since it was first introduced in 2016.

It received mixed support over the years. Former Mayor Jorge O. Elorza vetoed the zoning change needed to surpass height limits to build the tower in 2018, but the Providence City Council later voted to override Elorza’s veto.

Over the years, the tower faced legal obstacles related to its height. Fane and the I-195 Redevelopment Commission had requested an amendment to the property’s zoning to allow a 600-feet maximum building height, exceeding the parcel’s current zoning regulations that cap building height at 100 feet.

The proposal was approved by the city and Superior Court, but Peter Scotti & Associates, Inc. and Building Bridges Providence challenged the court’s decision process and filed a lawsuit against the zoning change, calling it inconsistent with goals outlined in the city’s “Providence Tomorrow” comprehensive plan. Scotti and Building Bridges said the building should adhere to the original 100-feet maximum height allowance, but the R.I. Supreme Court eventually ruled in favor of the Fane tower project in late June.

The latest controversy surrounded the tower’s design. After months of quiet, in December 2022 the Fane organization submitted a new design for the tower, a choice triggered by budget constraints and necessary to “maintain project feasibility,” Fane said.

The new design changed the building’s façade, adding “curvilinear lines and rounded corners” and reducing the number and size of balconies. The podium, or lower portion of the building, was reduced in height, going from six to four stories, which allowed the tower to have three additional floors of residential units but also reduced the number of available parking spaces from 330 to 166.

The new design was slammed by the commission’s consultant, Utile Architecture and Planning, which pointed out several shortcomings, citing unsatisfactory podium and tower designs, unsatisfactory site plan and potential negative impact on wind patterns.

Much of the public also rejected the new design at a commission meeting in January, raising concerns about the project’s lack of parking spaces and questioned whether there is a market to support it. Despite Fane’s attempts to address some of the commission’s and public’s concerns, opposition continued to be loud at the February commission meeting, especially from neighborhood groups and local residents.

(Update: reaction and project timeline added in 8th through 25th paragraphs)

Claudia Chiappa is a PBN staff writer. You may contact her at Chiappa@PBN.com

No posts to display

4 COMMENTS

  1. Crisafulli says he will make this parcel available to another another developer who will only succeed by putting up a building that will be restricted in height and therefore have less less apartments and will be as low cost as possible given the cost of capital. This will add another bland low rise building in a city of only 18 square miles, wasting its advantages of density by encouraging sprawl and doing nothing for the housing crisis or bolstering the tax base. This is another victory for the NIMBY crowd.

  2. Tell me again why business industry commerce and jobs leave or bypass RI. Neighboring cities’ press we quick and happy to carry this sad story. What a black eye and missed opportunity.