Wexford Asks for $32M for 195 Project, Tenant Says Might Not Work in Providence
Tuesday, December 13, 2016
Wexford Science and Technology is on track to get over $32 million in tax incentives from the State of Rhode Island for its $158 million innovation center on 195 land - and one of its tenants has warned that it might not be a sure thing.
On Monday, Wexford announced to the 195 Commission at the Rhode Island Commerce Corporation that it has signed letters of intent to lease space to Brown University’s School of Professional Studies as well as the Cambridge Innovation Center, whose CEO and Founder Tim Rowe was on hand to talk about their successful track record as a start-up incubator.
“You can’t have surety this is going to work,” said Rowe during his presentation, who estimated that 40,000 jobs have been created by CIC’s Cambridge facilities.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTCiting what he said is the “need for innovation infrastructure,” Rowe said he thinks there is a possibility for a “design innovation center” at the Wexford facility in Providence, among other opportunities.
Supporters of the project, meanwhile, are confident in its potential.
“This is the best thing since sliced bread - this has been worth the wait,” said Sharon Steele, who is the Vice-President of the Jewelry District Association, and recently spoke out in opposition to New York developer Jason Fane’s tower proposal on an adjacent 195 lot.
“It’s important for people to understand that this is the time to spend the money that needs to be spent, to button up and tie down our future,” said Steele, who spoke to who she saw as helping with the start-up potential at the CIC. “I see URI has being huge, with food, and blue-tech, marine, every silo that's been identified by Brookings.”
“When Rowe said in St. Louis the difference CIC made [there] was ‘seismic’ — that's what Wexford is doing,” said Steele.
Wexford’s Incentives
According to Commerce, Phase 1 of the Wexford project is expected to break ground in the second quarter of 2017 and will directly and indirectly generate over 1,000 construction jobs and 1,000 permanent jobs.
195 Commission Chair Joe Azrack spoke Monday to the incentives being offered to Wexford - by the 195 Commission.
“From the redevelopment fund, it's a total $18.5 million for the innovation center's development and up to $1M for renovation of One Ship Street for interim space for future tenants,” said Azrack. “The land is being contributed to the partnership in return for profits interest -- we'll get the land value back depending on the performance of the project.”
Azrack said that the land under the innovation center is valued “at about $2.9 million.”
Commerce Secretary Stefan Pryor spoke following Monday’s 195 Commission meeting about what to expect from Wexford and the Commerce Corporation now, above and beyond the 195 Commission's incentives.
“The likely Rebuild RI tax credit amount is in the neighborhood of $12.5 million,” said Pryor. “There will likely be two forms of forgone revenue as part of the total deal structure also authorized. Forgone revenue is revenue that’s generated by the project but would not exist but for that project. So sales tax on construction materials -- there may be a request for exemption for that, and also a repledging of a portion of the hotel tax, that wouldn't have been generated otherwise back to the project.”
On Monday, Wexford President Jim Berens told GoLocal that while he knows the rents that Wexford will be getting from Brown and CIC, that he was not going to divulge them.
“They’re not public information,” said Berens.
SLIDES: Reactions to Fane"s 195 "One Tower" Proposal
Related Slideshow: Reactions to Fane’s “One Tower” Proposal on 195 - December 9, 2016
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