Superman Building redeveloper shopping for more public money. How much has been given so far?

Wheeler Cowperthwaite, Providence Journal
5 min read
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PROVIDENCE − The redevelopers of the Industrial Trust Tower, most commonly known as the Superman Building, are shopping around the idea for more public funding for the conversion of the former office building into residences.

The move comes amid rising construction costs and interest rates that have risen to nearly a 20-year high.

In all, $94.2 million of public financing has been pledged to the Superman project, a mix of grants, low-interest loans, tax treaties and tax credits. The last estimate for the total project was $223 million.

Could the Superman Building project get more money?

Housing Secretary Stefan Pryor is "exploring" the possibility of getting more federal funding for the private project, he wrote in an emailed statement.

"The federal government under the Biden Administration has offered favorable rate financing for residential developments, especially those close to transit hubs," Pryor wrote. "We are exploring the potential applicability to Rhode Island residential developments, including Superman."

While the Superman Building is on the state's biggest transit hub, Kennedy Plaza, the state is exploring options to move the transit hub to the former I-195 land, a 15-minute walk away.
While the Superman Building is on the state's biggest transit hub, Kennedy Plaza, the state is exploring options to move the transit hub to the former I-195 land, a 15-minute walk away.

While the Superman building is on the state's biggest transit hub, Kennedy Plaza, the state is exploring options to move the transit hub to the former I-195 land, a 15-minute walk away.

What officials are saying about the ask

House Speaker K. Joseph Shekarchi's office, through spokesperson Larry Berman, said there has been no "formal ask" or specific amount, but developer David Sweetser of High Rock Development did tell Shekarchi the project needed more money when he recently ran into the speaker.

Gov. Dan McKee's spokesperson, Olivia DaRocha, wrote in an email that the administration has not received a new request from the developer and there is currently no plan for additional state funding.

Providence Mayor Brett Smiley's spokesperson, Josh Estrella, said the city has not been asked to put any more money into the project. The city is footing 46% of the $94.2 million in public financing.

From October 2023: Work on the 'Superman Building' in Providence starts soon. What's happening first.

How much has been spent so far?

The figures on the public funding for the Superman Building have not changed since 2022. In all, $94.2 million in public financing has been pledged for the project, including $44 million from Providence (46% of the total). Here's how that breaks down:

How does that compare to other projects?

If the Superman Building has soaked up $94.2 million in public financing ($26.2 million in state funding, $44 million in city funding and $24 million in federal funding), how does it compare to other big projects?

  • Tidewater Landing Stadium: $50 million in public financing ($27 million in bond funding, $10 million in Pawtucket federal pandemic aid, $14 million in issued Rebuild RI tax credits to net $10 million). The state is projected to pay $132 million in total debt service over the next 30 years.

  • 38 Studios: A $75-million bond. While some of that money was recouped in settlements following lawsuits over the failed company, taxpayers shelled out at least $54 million.

What about projects that have either been canceled or are still dreams?

How much state money are subsidized/income-restricted housing projects getting?

  • The state is pitching a $100 million to 150 million housing bond, although how much would go toward housing units is in flux. Current proposals include $10 million for site acquisition and work, $30 million to help people buy houses and $7.5 million for vulnerable people, including veterans and low-income seniors.

  • The state (through a variety of programs) allocated $3.9 million in state funding for the the conversion of the Millrace mills in Woonsocket into 70 units of income-restricted housing and commercial spaces, representing 11% of the $34.5 million total. The state allocated the project $6.9 million in federal stimulus funds and picked the project to receive low-income housing tax credits. The federal government foots the bill for those tax credits.

Rising construction costs a sign of the times

Rising construction costs are nothing new, but they appear to have significantly increased over the past few years, including for the state-funded Tidewater Landing stadium. Project costs have ballooned to $137 million, with estimates in 2022 of $124 million.

Construction costs coming in well above original estimates cost One Neighborhood Builders 13 months on two housing projects in Central Falls, as the group had to get an extra $1.5 million to fill a budget gap between the estimated construction cost and what bids came in.

Delays in the 1960s over disputes of the aesthetics of the now-failing Washington Bridge led to its odd construction techniques and increased the cost, eating up any savings the state was looking to make with the new design.

The ill-fated Fane Tower project, which would have brought 618 apartments to a city and state experiencing a crushing housing crisis, was delayed by an appeal in court by neighbors that was eventually dismissed. The appeal came at a pivotal moment, before the pandemic. During the years of court proceedings, construction costs surged.

The developer came back with a cheaper, more conventional design as a result of inflated costs before abandoning the project altogether.

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Reporter Patrick Anderson contributed to this story. Reach reporter Wheeler Cowperthwaite at wcowperthwaite@providencejournal.com or follow him on Twitter @WheelerReporter.

This article originally appeared on The Providence Journal: Providence's Superman Building redevelopment may need more public money

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