State officials were finalizing a deal last week to buy the Providence Produce Market property, an eyesore poised to become a real estate jewel in the shadow of the Providence Place mall.
The state Department of Transportation was expected to complete the purchase of the eight-acre site off Harris Ave. from Amtrak as early as last Wednesday. The price of the property was not disclosed.
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Land around the dilapidated produce terminal, which will close Jan. 1 after serving as a home for produce wholesalers for 69 years, is needed by the state to construct a highway ramp that will feed traffic to the mall. The land that remains, approximately six acres, will be then used by the state to make its money back and maybe a little more.
“Yes, we are hoping to make the state some money. This land has potential for upscale commercial development,” said Ann M. Hollands of the DOT. <"Making money, however, is obviously not the goal of the purchase."
Year-long negotiationsHollands has been negotiating with Amtrak for the past year, but many familiar with the area thought it was to simply get enough land to construct the ramps.
“I hadn’t heard anything about them buying the entire property. I thought they were just worried about the ramps,” said David DelBonis of Wasserman Associates of Providence, a company with a vested interest in the neighborhood.Earlier in the year, Wasserman purchased and demolished the former Merchants Cold Storage building across the street from the produce terminal with plans to build a retail area similar to Seattle’s successful Pikes Place Market.
Wasserman also recently bought from the city of Providence 1.5 acres of land, where the Silver Top Diner is located.
Not disappointed
Before hearing about the state’s deal with Amtrak, DelBonis had said he was interested in the produce market property, but didn’t appear disappointed with the state’s move.
“I wouldn’t say it’s prime land. By the time they are done with the ramps there really won’t be much left,” he said. He added that he probably wouldn’t be interested in the property once the state is ready to sell it.
Despite Wasserman’s lack of interest in the produce terminal, the property would be a natural spin-off for retail development from the mall. Hollands said, like the Wasserman property, the produce terminal has piqued interest for many real estate developers since Providence Place became a reality. The idea of creating spin-off retail space was enough for Wasserman to consider investing $30 million into his project.
“I think that under the situation, given the tremendous growth of the surrounding area, this land’s best use will be for commercial development,” Hollands said.
Providence Mayor Vincent A. Cianci, Jr. has acknowledged the area’s potential.
“I think it will work perfectly with the mall by taking an old freight yard, a decrepit farmer’s market and desolate area and revamping them,” he said. He added that the city plans to spend money to improve the appearance of the nearby Woonasquatucket River as part of the city’s river project.
With the idea of eventually selling the land, Hollands said buying the entire property appeared to be the most cost-effective way of handling the matter.
Hollands said, “Under the Uniform Act, what governs us when involved in highway projects, we have to compensate the property owner for taking or using land. This is going to be a two-year project.”
In building the ramp, a tremendous amount of staging and equipment would go directly behind the produce market, where its loading dock is located, preventing them from operating.
“A business owner would want to be compensated during that time. That could have been very costly. All things considered we did get a buy and the purchase made sense,” Hollands said.
She added that more than likely the building will remain intact. That could be due to the fact that it may be considered a historic building.
“We will have to go through the proper historical authorities, because we are concerned with the historical significance of the structure,” she added.
Ed Andrews, head of the Providence Produce Association, and the handful of vendors he represents can tell them a little about the building’s historical significance.
“This place means a lot to us all. It’s part of all of our lives here,” said Andrews, who owns A.T. Siravo’s, one of the vendors in the terminal.
Andrews mentioned Charles Michael, owner of Michael Bros., who ran his produce business from the terminal for over 40 years.
“Now after all that time it’s time to go. Just like that,” Andrews said.
The produce association had a lease with Amtrak that ran out in October. Amtrak officials said they didn’t renew the lease because of the ramp and because they were interested in selling the property.
Andrews has said that the mall and its impact on property values made it impossible for the vendors to considering buying the land themselves.
“The biggest downsize is that we are not going to be together anymore. That was our strength,” said Andrews. “We just hope that we don’t lose our business to the Boston wholesalers who have a place to keep them together.”
