Pontiac Mills purchased with redevelopment set for spring

DEVELOPER Larry Silverstein's plan to redevelop Pontiac Mills in Warwick includes creating a riverwalk along the Pawtuxet River the runs alongside the old textile mill. / PBN FILE PHOTO/RUPERT WHITELEY
DEVELOPER Larry Silverstein's plan to redevelop Pontiac Mills in Warwick includes creating a riverwalk along the Pawtuxet River the runs alongside the old textile mill. / PBN FILE PHOTO/RUPERT WHITELEY

WARWICK – A development company that specializes in historical renovations has purchased the sprawling Pontiac Mills property and plans a $35 million conversion to apartments and commercial space.
Most of the several dozen buildings that remain on the 15-acre riverfront property will be saved, said Larry Silverstein, president of the Baltimore-based Union Box Co. A subsidiary of the company, called Union Mill, paid $1 million for the Pontiac Mills property in October, he said.
The proposed redevelopment project for Pontiac Mills will take place over three years, he said, and potentially could begin this spring. The initial phase will include renovation of the building nearest to the NYLO Hotel, which originally was a part of the Pontiac Mills complex, but sold by the previous property owner and converted to a boutique hotel.
For the remaining site, Union Mill plans a first phase that will include 65 apartments and 10,000 square feet of commercial space, including a leasing office and gym for the residents, according to Silverstein. The mill complex has more than a dozen separate structures and covers more than 300,000 square feet. Although vacant for years, most can be saved, he said.
“Most of the buildings are salvageable,” he said.
The Pontiac Mills has a storied place in Rhode Island history. It dates to the mid-1800s and produced uniforms for union soldiers in the U.S. Civil War. It produced the Fruit of the Loom garments. The mill complex was listed on the National Register of Historic Places in 1972. Its future has been closely followed by preservation advocates.
Silverstein, who said he lives year round in Newport, described the mill project as larger and more complex than the renovation work previously handled by his company, but said the individual buildings on the Pontiac Mills site lend themselves to a phased development, which would allow him to respond to changing market demands in later years. The mix of commercial space, for example, could change if needed, he said.
He was attracted to the site by the history of the mill and the location in Warwick, and on the scenic Pawtuxet River.
“It’s a great location for rental apartments,” he said. “It has a very unique atmosphere on the water. It has an incredible riverwalk. It can be renovated into a beautiful building.”
The project will qualify for $5 million in state historic preservation tax credits, he said, explaining that he was informed the mill would be allocated the credits if the project complies with the requirements of the state’s historical preservation program. That review is ongoing, Silverstein said.
The Pontiac Mills project also is eligible for federal historic preservation tax credits, he said, to reduce the cost of redevelopment. Silverstein said he has spoken with Warwick officials about the possibility of phasing in taxes from improvements as they are made to the mill, but that nothing has been approved.
Warwick Mayor Scott Avedisian said Friday the project is a “big win” for Warwick, and an important development for the city. City officials have worked with Silverstein for more than a year, he said, including trying to get the project in line for historic preservation tax credits. “It’s very exciting development,” Avedisian said. “It’s been a great partnership.” The restoration of Pontiac Mills was the first legislation he sponsored in the city, Avedisian said, referring to a rezoning of the area to allow for mixed-use redevelopment. It’s taken 15 years, he said, but what is planned is exactly what he hoped might happen for the area.

“It’s perfect,” he said of the proposal. “It’s good, smart growth.”

Of city tax incentives, he said, there are ongoing discussions of allowing the project to pay property taxes on an income basis, as the improvements come on line.

“We have talked about the income approach, you’re billed for what you’re phasing in.”

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The mill property overlooks the Pawtuxet River from Knight Street, and is located close to an established residential neighborhood, part of Pontiac Village. Silverstein said he’s had meetings with neighborhood residents to discuss the conceptual development plans, and would be revisiting the area once designs are approved. Initial work will include removal of asbestos and other materials from the site.
“We have to wait until everything is approved,” Silverstein said. “We’ll start once the weather gets better.”

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