WPRI: Hotel Hive developer puts project on hold without TSA

A PROJECT two convert two vacant building in downtown Providence into a hotel and microlofts is on hold after failure to obtain a tax stabilization agreement with the city. / COURTESY ABDO DEVELOPMENT
A PROJECT to convert two vacant buildings, one of them the former Providence Journal building, on Westminster Street in downtown Providence into a hotel and microlofts is on hold after failure to obtain a tax stabilization agreement with the city. / COURTESY ABDO DEVELOPMENT

PROVIDENCE – The developer behind the proposed Hotel Hive Providence, Jim Abdo, has placed his plans to convert the historic downtown property into a boutique hotel on hold after the Providence City Council Finance Committee indefinitely postponed a decision on a tax stabilization agreement for the property, WPRI-TV CBS 12 reported Thursday.

The properties, which have been long vacant, would have housed a hotel and rooftop bar. It would feature 91 hotel rooms and 48 studio units, as well as a coworking space and outdoor cafe.

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They include the former Providence Journal building and adjacent Kresge on Westminster Street in downtown Providence.

The project’s design had already been approved by the Downtown Design Review Committee.

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The project had already received a $6 million tax-increment financing agreement from the state.

The $39 million reuse project would not be viable to finance without the TSA, Abdo told WPRI. He had sought a 20-year TSA. It would have lowered Abdo’s payment to the city by $2.7 million over the life of the TSA, resulting in total payment of $5.7 million.

Abdo said he had no plans to sell the two buildings that are part of the planned development.

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