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.
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.
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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