Business

Hotel Hive developer: extension request ‘inevitable’ amid financing struggles


THE DEVELOPER OF a $39 million redevelopment mission often known as Hotel Hive says it’s inevitable he’ll want an extension on the December deadline for his tax settlement with town. The PROVIDENCE CITY COUNCIL gave closing preliminary approval on laws that creates wage requirements for giant improvement initiatives that obtain property tax breaks. The Hotel Hive Providence mission, pictured right here, is likely one of the initiatives that has obtained a tax break from town. / COURTESY ABDO DEVELOPMENT

PROVIDENCE – The developer planning to show the previous Providence Journal constructing right into a boutique lodge with retail and loft flats is not going to meet the December occupancy deadline set in his tax cope with town.

Jim Abdo, the Washington, D.C.-based developer behind the $39 million Hotel Hive Providence mission, advised Providence Business News Monday that it’s “inevitable” that he’ll want an extension on the tax stabilization settlement. The controversial settlement, which provides Abdo a $2.7 million break on property taxes over the course of the 20-year deal, required Abdo safe a certificates of occupancy inside 36 months of its approval – which will probably be December 2022.

Exactly how for much longer it would take to redevelop the 2 vacant Westminster Street buildings – one in every of which previously housed the Providence Journal – is unclear. Abdo stated he’s nonetheless working to safe the personal financing to pay for the mission, which has been tough because the pandemic sank the hospitality business.

Hotels unfortunately right now are a dirty word in the world of financing,” Abdo stated.

With that in thoughts, Abdo is considering of nixing the lodge ingredient of the mission, at the least at first, as an alternative concentrating on extra residential “micro apartments” that would later be repurposed as lodge rooms when demand returns.

Failing to fulfill the deadline, and altering the make-up of the mission, provides town the chance to reevaluate the phrases of its tax deal, together with, probably, taking it off the desk. 

But Abdo stated he wasn’t nervous that might occur, regardless of the controversial nature of the unique tax settlement which six of 14 metropolis council members voted towards.

“It’s too important of a project,” he stated, including that he’s standing agency in his dedication to redevelopment with retail and residential. “It’s a complicated project and these are challenging times, but we always do complicated projects and we make it work.”

Whether the redevelopment of the long-vacant “Superman” constructing down the road will assist leap begin Abdo’s mission, he was uncertain, although he lauded the information as an indication of progress for town. 

The unique Hotel Hive mission known as for 91 lodge rooms and 48 studio items, in addition to a coworking area and out of doors cafe. The mission additionally obtained $6 million in tax-increment financing from the state.

Providence Mayor Jorge O. Elorza and Council President John Igliozzi didn’t instantly return inquiries for remark.

Nancy Lavin is a PBN employees author. You could attain her at Lavin@PBN.com.

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