Let’s work together to repurpose Superman building

Development is finally starting to take a foothold in Providence and throughout the state after years of inactivity while just to our north, Boston has experienced one of the largest building booms in the city’s history. The development in Boston has been transformational and likely helped lure GE to relocate there. It’s important as policymakers that we understand that companies move where there is a populous of skilled workers, not the other way around. That said, the majority of Boston’s construction has been residential development, not commercial.

Back in Rhode Island the Senate has supported legislation to encourage construction and attract investment to our borders. Last year we supported legislation to give the Commerce department a wide array of incentives, including the Rebuild RI Tax Credit that can provide up to $15 million in incentives per project.

This year seven projects have taken advantage of the Rebuild RI Tax Credit and the department has committed over $24.5 million to support these projects.

While all of this activity has occurred, a 428-foot symbol of inactivity looms over the Providence skyline – The Superman Building. Back in 2013, the owners unveiled a proposal to repurpose the building and convert it to residential housing. Unfortunately, that proposal languished under the weight of a political environment that produced too much inactivity and indecision. The development we are now experiencing is a byproduct of the body politic once again making decisions to encourage development.

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Last year the owners and elected officials sought to repurpose the building by luring Citizens Bank to 111 Westminster St. Unfortunately, this failed to materialize and with it, the last and best shot at the building being used as a one-tenant office structure again.

It is incumbent on all of us that we produce a proposal returning life to this dormant building. Construction costs and interests rates will continue to escalate and a solution to this problem will become more difficult.

The solution to repurpose the Superman building is complex, particularly because of the scope and scale of the building at 380,000 square feet.

Projects like South Street Landing have benefited from millions of dollars of incentives – approximately $50 million in state and federal historic tax credits – in addition to a 20-year tax stabilization agreement with the city. South Street’s developers stated their project – totaling 265,000 square feet – could not be accomplished without such support.

To further heighten how difficult these projects are to finance, the state provided South Street Landing with a guaranteed 15-year lease totaling $6 million a year. Unique challenges require unique solutions, and in the case of South Street Landing everyone came together to make it happen. Commerce’s Rebuild RI Tax Credit is capped at $15 million and cannot support projects as large as the Superman building.

The cost of inaction is highly problematic. An empty Superman building is a visible eyesore on the Providence skyline, but more importantly it will erode surrounding property values. Think about buying a house in a neighborhood next to an empty and incrementally decaying house. It isn’t hard to imagine the damage it will cause to your own property values.

It is time to rethink a residential repurpose of the Superman building. Market studies support the need for more residential development in Providence. Conversely, the vacancy rate for office space in Providence does not support another 380,000 square feet of development.

A residential plan brings the building back online and adds a neighborhood to downtown Providence. This will be transformational for the city as well as Kennedy Plaza. Particularly in light of the plan to move bus berths to the newly proposed intermodal transit hub adjacent to the Amtrak station and the hospitals. All in addition to the jobs created, income tax revenue generated and long-term economic impact of an active Superman building.

Great things are happening in Providence including the Wexford proposal at I-195, South Street Landing and the intermodal bus terminal. How can we let this great symbol of our history turn into a 428 foot pillar of urban blight?

I remain hopeful that a solution can be accomplished soon. The governor, General Assembly, city leaders and the building’s owner must come together to produce this result.
Dominick J. Ruggerio is majority leader of the Rhode Island Senate. He is a Democrat representing District 4, North Providence and Providence.

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