$220M renovation plan unveiled for ‘Superman’ building–PBN
111 Westminster Street in early spring. Photo by Kia Davis.
PROVIDENCE – The Industrial Trust Co. Building, the tallest property in Providence which has remained empty for nine years despite numerous efforts by public officials to spur economic development, is now expected to undergo a massive historic renovation.
Gov. Daniel J. McKee, state officials and building owner High Rock Development LLC on Tuesday announced a $220 million project supported by $41 million in state and city financing that will revive the former office tower into apartments, office, retail and event space.
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High Rock Development’s publicly financed renovation of the “Superman” building will turn the building into 285 apartments, with 20% of those to be considered affordable housing, Pryor said. The project will also include 8,000 square feet of commercial space, and 26,000 square feet is being dedicated to retail and event space, the commerce secretary said.
High Rock Development said they hope to start the redevelopment of the 428-foot-tall “Superman” building at 111 Westminster St. in five to six months by first conducting demolition work, while also going through the permitting process for full construction. It’s unclear how long it’ll take to get the project permitted, but the company said full construction phase of the project will take about 30 months to complete once it commences.
The renovation of the “Superman” building is expected to generate 1,500 construction jobs, according to state officials.
Pryor said the deal was the result of “tough negotiations” and that state officials “bargained hard” on behalf of Rhode Islanders. Pryor called it “a deal that protects the taxpayers.” As a result of the negotiation, Pryor said the 20% affordable housing is up from a 10% originally proposed by the developer. Of those affordable housing units, half will be for those who make up to 120% of the area median income, a quarter will be for those who make up to 100% AMI and the remainder will be for those who make up to 80% AMI.
Pryor said High Rock Capital committed to providing over $42 million toward the project, including up to $32 million in cash equity, as well as the land and building.
McKee’s office said $26 million in contributions to financing for the project is coming from the state’s existing housing and economic development programs, which is 45% less than the developer’s recent financial request to the state. On top of that, the project is getting $22 million in federal historic tax credits, the governor’s office said, along with $10 million in a loan through the city of Providence Housing Trust through the Providence Redevelopment Agency, $5 million in a direct contribution from the city of Providence and $2 million in federal new markets tax credit proceeds. High Rock also intends to seek a tax stabilization agreement from the City of Providence, according to McKee’s office, although details on that were not made clear on Tuesday. Also, the nonprofit Rhode Island Foundation is providing bridge financing for the Rebuild Rhode Island Tax Credits in order to reduce the project’s financing cost, McKee’s office said.
“There’s no new allocation of state funding,” said House Speaker Joe Shekarchi, who also spoke highly of the affordable housing being included. “This is going to be a model for how we do state projects. … I’m excited about this. This is a good day for the state of Rhode Island.
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McKee said the project will “breathe life” into downtown Providence, calling it a “really good deal” for everyone in Rhode Island. McKee said there were “times when it didn’t look like it was going to happen,” but the deal is coming together. McKee said the project will involve “good-paying jobs” for union construction workers, and that the developer committed to recruiting minority businesses and women-owned construction firms to do 20% of the work.