Hotel in former Providence Journal building scrapped in favor of apartments

PROVIDENCE — What was once a plan for a hotel in downtown, in the former Providence Journal building on Westminster Street, has been scrapped in favor of furnished, high-end apartments.

Owner Gordon Buist presented amendments to a tax treaty to the Providence City Council's finance committee on Monday night. The City Council first approved the treaty in 2019 when the building was slated to become a boutique hotel. Now, it is slated to become 124 apartments.

The proposed apartments, renamed "Hive Life," would span the old Providence Journal building at 203 Westminster St. and, next door, the Kresge’s department store.

Dec. 10, 2019: City Council approves tax deal for Providence hotel project

The amended tax treaty, which goes to the full City Council for approval after receiving approval from the finance committee, moves out the start date from 2020 to 2023 and the end date from 2039 to 2043. The building owner would also be responsible for maintaining the sidewalk in front, shifting the cost from the city to the developer.

According to a tax analysis, the developer would save $4 million in taxes over 20 years, as the buildings' valuation would peak at $20.9 million in 2038. The only changes to the tax treaty are the dates.

'Superman' tax deal: $29 million tax treaty for 'Superman building' in Providence moves closer to approval

Buist said during the meeting that the original renovation costs were $39 million, which have gone up to $52.7 million. Inflation was one major factor, as is the extra plumbing, appliances and construction that goes into building kitchens in all 124 apartments.

Buist said plans for a hotel were no longer financially viable, hence the move to apartments.

Dec. 3, 2019: Providence City Council majority supports vote on Hotel Hive tax deal

The other owner, Washington, D.C. developer Jim Abdo, purchased the two buildings in 2018 for $4.3 million.

The ornate former Providence Journal building, built in 1906, was home to The Providence Journal for less than 30 years. The newspaper moved to 75 Fountain St. in 1934. The smaller, Art Deco-style Kresge was built in 1920. Together, they have about 120,000 square feet of space.

What would the Hive Life apartments look like?

According to documents presented with the plan, there would be 124 "fully-furnished upscale apartments," accessible by three elevators. The apartments would have "grand high ceilings" and large windows in "most" units.

Amenities would include a lobby and mailroom, security, a fitness center, a central atrium dubbed "The Courtyard," storage, a bike room and 10 parking spaces.

Project drawings show that the former Providence Journal and Kresge buildings would be internally connected.

July 29, 2018: Proposed Hotel Hive needs many approvals as architect says Complexity, location present challenges

Out of the 124 apartments, 42 would be one-bedrooms, sized 428 to 634 square feet.

Six units would be one-bedroom "plus," sized 495 to 807 square feet.

"Micro" units would make up 38 units, ranging in size from 260 to 350 square feet.

Studios would make up 37 units, ranging in size from 364 to 465 square feet.

What would the retail space in the Hive Life project look like?

In addition to the 124 apartments, the project proposes a total of 29,230 square feet of retail space, including 1,511 square feet for a pizza restaurant, another 1,970 square feet for a cafe and co-working lounge and two additional retail units, at 1,360 square feet and 6,706 square feet.

July 17, 2018: Historic Providence buildings could get a microloft-hotel makeover | Gallery

The largest component would be a 13,056-square-foot "Player's club," styled as a 1970s "barcade" (a bar with arcade games) in the basement, connected to a 4,622-square-foot "Player's Club Rooftop" with a "skybox."

What happens next to the Hive Life project?

The amended tax treaty will be in front of the City Council at their Thursday night meeting, along with the tax treaty for the "Superman" building.

Construction would start in the "first half of next year," but is dependent on when they complete the financing. Construction would take 18 months to two years.

Thanks to our subscribers, who help make this coverage possible. If you are not a subscriber, please consider supporting quality local journalism with a Providence Journal subscription. Here's our latest offer.

Reach reporter Wheeler Cowperthwaite at wcowperthwaite@providencejournal.com or follow him on Twitter @WheelerReporter.

This article originally appeared on The Providence Journal: Hive Hotel proposal in Providence pivots to furnished apartments