After years under contract with an out-of-state developer, Parcel 42 on the former Interstate 195 land in Providence is finally up for grabs again. But a lot has changed since the parcel first went on sale, and commissioners are considering what the future will look like for the 1.08-acre parcel.
For over six years, the property was under a purchase agreement with the Fane Organization, which planned to build a 550-foot, $300 million luxury tower set to become the tallest building in the city. But the tower’s journey, bedeviled by obstacles, delays and opposition, ultimately came to an abrupt end in March 2023.
Now that the parcel is once again available, some are wondering what is next for the lot, which is located along Dyer Street in the Jewelry District.
Most people agree that the lot’s most attractive feature is its location near the Providence River, next to popular buildings such as Point225, South Street Landing and the Warren Alpert Medical School at Brown University. The lot overlooks the Innovation District Park and the scenic pedestrian bridge.
“It’s in the hottest area of the city,” said Michael Giuttari, president of MG Commercial Real Estate Services Inc.
But the location also adds a challenge, says Caroline Skuncik, executive director of the I-195 Redevelopment District Commission. The property doesn't have room for a "back side," where a service entrance might be located or where utility boxes might be placed. Also, several easements might be a hindrance, including easements for the R.I. Public Transit Authority and utility companies.
Skuncik says the commission has received various inquiries on Parcel 42 over the years, mainly from residential developers. And now that it has become available, the commission has started to reassess its possible uses.
“We are considering existing easements and how they influence development potential, how to maximize flexibility in terms of what uses could be accommodated on the site and how the parcel works with the adjacent park,” Skuncik said.
Sharon Steele, president of the Jewelry District Association, agrees that the commission’s focus should now be on optimizing the parcel, rather than rushing to find a new developer.
“The worst mistake everyone can do is say, 'Let’s hurry up and do [a request for proposals],' ” she said. “The economic environment right now has issues, and we have other things already in process that are going to require our attention before Parcel 42.”
Steele, who has long been advocating for the commission to return to its original focus to promote jobs and foster economic development, says the commission should reconfigure the parcel to promote commercial development, possibly in life sciences. That's where the “future of the Jewelry District and of job growth” is, she said.
“It was very clear to me from the beginning that the parcel was too narrow,” Steele said. “There needs to be a review of what we’re now calling Parcel 42, and how it is best to reconfigure that parcel to promote commercial development while providing better view corridors.”
Colin P. Kane, founding partner at Peregrine Group LLC and former chairman of the I-195 commission, says he thinks it will be a while before the lot is picked up by a new developer.
“Right now unfortunately we’re in a downturn, but it’s still such a compelling location,” he said. “It will have a little bit of a problem, because of the economics. The cost of construction and potential recession makes all projects challenging.”
Kane was chairman of the commission at the time that the parcel was created when the commission realized it had created too much open space. He says studies were conducted at the time and that the lot is definitely buildable despite the easements.
As for what should be built there, Kane says "no" to another laboratory.
“I think it will be a profound mistake to contemplate a laboratory,” he said. “A laboratory doesn’t need windows and it doesn’t need a view. I think some beautiful high-end residential project would be spectacular.”
Giuttari agrees with Kane that the parcel is the perfect location for a residential development. But he is also not opposed to commercial uses, such as restaurants. And he thinks the commission will have no problem finding interested developers despite the current economic situation.
“In the time it took for Fane to figure out his deal and take off, the economy has changed,” Giuttari said. “So to put a deal together is going to be difficult, the financing is going to be difficult. But the other lots are all being taken, are all being developed.”
Steele says her association will make sure that the next Parcel 42 development respects the area’s 100-foot height limit.
“Our standard for any proposal needs to be the highest we can demand,” she said. “The development that happens here is development we’ll live with for the next 100 years. It demands excellence in architecture and excellence in delivery.”
The lack of vision and deep understanding is on display here by comments like “the commission should reconfigure the parcel to promote commercial development, possibly in life sciences. That’s where the “future of the Jewelry District and of job growth” is. The fact that this view was expressed by Lincoln Chaffee many years ago should give pause to any thoughtful, unbiased person to reflect on why that hasn’t happened to date. What is needed is an open mind, a dose of reality and not rigid thinking. For example, 100 ft variance should be questioned especially for a narrow parcel like 42 because dogmatic holding to it assumes the knowledge that a residential building limited to that height on that narrow parcel is financially feasible.
Also, recall that rigid adherence to unrealistic zoning laws in San Francisco has led to the housing crisis and skyrocketing rents currently plaguing that city. We shouldn’t duplicate that situation in Providence and ignore the density advantages of the city.