PROVIDENCE, R.I. (WPRI) — The R.I. Board of Education on Monday unanimously signed off on a proposed 15-year lease for the state’s two nursing schools to move into a new joint facility that would be built inside the decaying former South Street Power Station in partnership with Brown University.
The $206-million project, unveiled last year by developer Dick Galvin of CV Properties LLC, would redevelop the former power plant along the Providence River and adjoining property into academic space for the state; office space for Brown; student apartments; and a parking garage.
The parking garage and student housing would be in new buildings built on adjacent parking lots.[box style=”alert”]May 15, 2014: Press release from the Mayor’s Office[/alert]
Taveras Administration Proposes South Street Landing Agreements Requiring Tax-Exempt Institutions to Pay Taxes
Development of former power station viewed as significant opportunity to expand city’s tax base, create jobs, spur economic growth in Knowledge District.
The tax-exempt tenants of the proposed South Street Landing development project will pay taxes to the City of Providence under agreements proposed by the administration of Mayor Angel Taveras.
“South Street Landing is a once-in-a-generation economic development opportunity for our Capital City,” said Mayor Taveras. “The project promises to expand Providence’s tax base and increase tax revenues, create construction jobs and permanent jobs, help jumpstart development in the Knowledge District, improve public access and recreation along our waterfront and assure the preservation of an iconic building in our city.”
In his economic development action plan, Putting Providence Back to Work, Mayor Taveras pledged to remove barriers to the development of key real estate parcels in the city, including the former South Street Power Station. Mayor Taveras also promised to work with State government and local institutions of higher education to bring a nursing school to Providence.
The proposed development of the former South Street Power Station in Providence includes three related projects expected to create jobs, spur economic development and anchor Providence’s Knowledge District.
As currently envisioned, South Street Landing would be leased to Rhode Island College and the University of Rhode Island for a state-of-the-art nursing education center and Brown University for administrative office space.
River House would be a 6-story, 220-bed student housing development that would support the student housing needs of area universities. The ground floor will contain a lobby, a restaurant and other retail space.
The 650-space parking garage will be privately owned and financed and built on land leased from National Grid.
The Administration has reached three proposed tax stabilization agreements with the project’s developer, CV Properties LLC, to spur the development in the Capital City.
As proposed, South Street Landing’s tax-exempt tenants – Brown University and the State of Rhode Island – have committed to paying City real estate taxes during their tenancies. Over the course of the 15-year lease, the City will collect $9.9 million in real estate taxes.
Both leases give the tenants the option to purchase their leased space for an appraised value. Both the State and Brown have agreed to continue paying the remainder of the 15-year stabilization agreements if they exercise options to buy their leased space or the River House building.
The proposed tax stabilization agreements also include policies that the City Council has adopted regarding the use of union contractors, apprenticeship programs, minority- and women-owned businesses and Buy Local.
Taking into account both direct and indirect effects, a private study by Appleseed Inc. estimated that spending on the proposed project would generate $248 million in economic output in Rhode Island and $92.1 million in employee compensation. When the project is completed and fully operational an estimated 622 people will be directly employed on-site.
The window of opportunity to rebuild the former South Street Power Station is closing and if no action is taken the existing structure could need to be demolished within 3 to 5 years at considerable cost to the City.[alert type=”muted”]See also:
Providence Business News: City, state, Brown agree on tax deal for South Street Landing[/alert]