PROVIDENCE – A report commissioned by the state and Providence to explore the potential for land freed up by the relocation of Interstate 195 recommends encouraging a mix of public space, commercial development, residential buildings and an expansion of the Brown University and Johnson & Wales University campuses.

Most of the land – which totals about 29 acres – is expected to come on the market in mid-2011.

The report suggests that 6.49 acres of the parcels to the east of the Providence River are best suited for residential uses, with some hotels, offices and ground-floor retail. For the waterfront parcels along South Water Street and India Street, the report recommends creating public parks totaling about half an acre.

On the other side of the river, the report says development should “capitalize” on the presence of nearby Brown and Johnson & Wales by building office and research facilities, and hotel rooms. The report says development could happen directly by the institutions or through partnerships with businesses.

The consultants identified seven parcels – roughly 8.87 acres in total – for potential institutional use, including a 2.3-acre lot bordering Interstate 95 that Johnson & Wales previously had identified as a place to consolidate its outlying buildings closer to its main campus. A lot to the northeast could be used for student housing. And Brown University has its eye on acquiring about 4.25 acres between Eddy and Chestnut streets.

The plan says if officials want to encourage the educational institutions to develop land, the city should purchase the land from the R.I. Department of Transportation and resell it to the institutions “with conditions.” The idea appears to acknowledge complaints by Providence officials that land held by nonprofit entities that do not pay property taxes are draining the city’s treasury. (Although the universities have arranged with the city to pay some money in lieu of property taxes the total does not equal what the institutions would pay if they were private landowners.)

Alternatively, the report suggests some of the parcels could be set aside for affordable housing instead of university use.

The report also notes that development will not be instant in an economy in which credit is tight. It implores planners to take a long-term look at the opportunities for the land and consider prior planning undertaken by the city, state and higher education institutions.

And it cautions against turning the newly vacant area between Downcity and the Jewelry District into a massive parking lot. Proper development, the report says, will stitch the two neighborhoods together and create a vibrant community.

“The full benefits of the project will be judged by how successful the reuse of the parcels is and how well their redevelopment catalyzes reinvestment of adjoining areas over time,” the report says. “Without a thoughtful approach to guiding the infill of the parcels and the creation of meaningful patterns of public open space, the post-highway condition may, for years to come, prove to be nearly as much of a deterrent to redevelopment as the overhead highway itself. This must be avoided.”

The report was commissioned by the city, R.I. Department of Transportation and R.I. Economic Development Corporation. It was compiled by a team of planners, real estate professionals, engineers and officials led by Chan Krieger Sieniewicz. To see the entire report, click here.