High Rock Development, owner of the what is known as the Superman Building in Providence, and developer Cornish Associates, called a press conference on May 5 to announce … what exactly?
Two years ago High Rock put forth a plan to redevelop the iconic 26-story building into a significant number of residential units and some space for retail and office space. The plan never got off the ground.
Why? Because it was based on $39 million in state aid (cash and historic rehabilitation tax credits) as well as $10 million to $15 million in a city tax-stabilization agreement. That would have been in addition to $21 million in federal historic tax credits.
So what has changed since then? Almost nothing, except that the building is now worth $15.4 million, less than half what High Rock paid for it in 2008.
The proposed redevelopment to 278 rental units and 33,000 square feet of ground-floor commercial space would cost an estimated $117 million. Based on the earlier funding plan, roughly two-thirds of the project would be publicly funded. Let’s assume that plan still won’t fly.
What then, are the developers proposing? At the moment, nothing – at least publicly. But they should be coming out with specifics.
Public financing must be discussed in the light of day. And if High Rock wants the public to invest in its property – bought near the height of the market – then it should be allowed to prosper from the upside as well.
While it is in the public interest to see this building bustling with people, it’s not up to the public to help turn a poor private investment into a good one. •
