RI approves $21 million for the Providence Superman Building redevelopment plan
Rhode Island's state economic development agency Wednesday approved $21 million in state incentives for the renovation and conversion of the Industrial Trust Tower into apartments.
The unanimous vote by the Rhode Island Commerce Corporation's board of directors is one of the first steps in the proposed $220-million rescue plan for the Art Deco landmark known as the Superman Building.
The incentives approved Wednesday – $15 million in Rebuild Rhode Island tax credits and $5.7 million from the Commerce Corp's "First Wave" fund – are part of a $41-million package of state and city financial aid.
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The redevelopment plan, put forward by building owner David Sweetser of High Rock Development, would build 285 apartments in the 26-story tower, 57 of them reserved at below-market rents.
"There has been a gap-tooth smile with which Providence has presented itself," Commerce Secretary Stefan Pryor told the Commerce board about the need to get the vacant building reoccupied.
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Protections for the state
The developer can only claim the Rebuild tax credits after construction is complete and the building receives a certificate of occupancy. There are also provisions allowing the state to receive money if the building is sold or profits exceed projections.
Board member Michael McNally said the protections meant there would be very little risk to the state.
"This is a great deal for state," he said. "Our concerns are 'could we lose money and pay too much?' And it is bulletproof."
The state is under no legal obligation to provide more than the $21 million approved Wednesday, but with prices for goods and services rising rapidly across the country, it is not unheard of for developers to return for more help if costs go way over budget.
That happened with the Worcester Red Sox stadium and may happen with a proposed soccer stadium in Pawtucket.
"It's case by case, but it is important that developers follow through on what they promise to do," McKee told The Journal after the meeting.
For the incentives to be finalized, Sweetser will need to show proof that his business is licensed to do business with the state. High Rock Westminster LLC, the corporate entity for the building when he first proposed redevelopment nine years ago, lapsed in 2017, according to the secretary of state's office.
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Other state assistance in the downtown renovation
The other state assistance in the deal is $5.5 million from Rhode Island Housing, which will enforce the affordable housing component of the project.
Providence Mayor Jorge Elorza has agreed to pitch in $15 million towards the project, including a $10-million low-interest loan and a $5-million grant.
The agreement with the developer also calls for a 30-year tax treaty.
The terms of the tax treaty have not been finalized and there is no cost estimate.
The General Assembly would need to pass a law allowing a tax treaty longer than 20 years.
No legislation making that possible has been introduced yet.
Elorza spokesperson Faith Chadwick on Wednesday said the city does not plan to request any tax treaty legislation but expects the Assembly to pass something.
If all the pieces come together, interior demolition work is expected to begin in five months and take three years to complete.
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This article originally appeared on The Providence Journal: RI approves $21 million toward Providence Superman Building renovation
