Uncertain Future for Providence’s Superman Building

News Summary

The Superman building in Providence, Rhode Island, faces challenges in its redevelopment into apartments due to rising costs and financial hurdles. Originally estimated at $223 million, costs have surged to at least $308 million, leaving the project’s future bleak. As local leaders express concerns, discussions about potential solutions, including eminent domain, emerge. The building’s neglect and community frustrations highlight the urgency for action to revitalize this iconic landmark.

Uncertain Future for Providence’s Iconic “Superman” Building Amid Rising Costs and Development Delays

Providence, Rhode Island – The Industrial Trust Co. Building, commonly known as the “Superman” building, faces an uncertain future as a project to convert the vacant 26-story office tower into apartments encounters significant financial hurdles. After more than a year of interior demolition and asbestos removal, escalating construction costs and rising interest rates have thrown the project’s feasibility into question.

Originally estimated at around $223 million, the cost to convert the building into approximately 300 apartments and commercial space has now risen to a staggering at least $308 million. This financial predicament has left the future of the renovation unclear, prompting concern among local leaders and residents alike.

Since its closure following Bank of America’s relocation in 2013, the Superman building has remained empty. The building, a beloved landmark and the tallest structure in Rhode Island, has appeared on various souvenirs and in various media, symbolizing the city’s identity. However, signs of neglect have become prominent, signified by construction materials left outdoors and scaffolding that stands empty.

High Rock Development, the company that has owned the building since 2008, initially had grand plans for its revitalization. They received a combined $41 million pledge in support from state and city leaders to assist with the redevelopment efforts. However, the value of the building has plummeted 58% since its purchase, reducing its current value to approximately $13.5 million.

Current Challenges

Other commercial properties in Providence also face similar challenges, with low occupancy rates negatively impacting property values. The ongoing redevelopment of the Superman building heavily relies on a low-interest loan of up to $236 million from the U.S. Department of Transportation, which is currently undergoing eligibility review. Furthermore, a pending bill in the state Legislature seeks to provide $4.6 million in sales tax relief that could benefit the Superman project if approved.

Public confidence in the completion of the Superman building’s transformation remains low, with ongoing discussions between High Rock Development and state government officials producing little progress. The high effective tax rate on commercial properties in Providence, which ranks as the third highest in the nation, complicates efforts to attract and retain businesses, adding further difficulty to the project’s realization.

Community Frustration and Possible Solutions

Local community members have expressed frustration over the continued neglect of the Superman building, urging city officials to take immediate action to preserve the landmark. There are emerging conversations about the potential use of eminent domain to facilitate the ownership transfer for more effective development efforts.

The redevelopment of the Superman building carries potential benefits for Providence’s downtown financial vitality, as it could introduce hundreds of new residents to the area. While recent actions were taken to initiate the redevelopment process after the filing of demolition permits by High Rock, significant work remains to be done.

Broader Context

This predicament reflects a broader trend impacting urban areas across the United States, where declining demand for commercial spaces and associated low occupancy rates continue to challenge development initiatives. As the situation evolves, the future of the Superman building remains a crucial topic for Providence’s economy and community well-being.

Deeper Dive: News & Info About This Topic

• Boston Globe: Superman Building Redevelopment
• Providence Journal: Opinion on City Challenges
• WPRI: Q&A on Superman Building Renovation
• Google Search: Superman Building Providence
• Rhode Island Current: Schools Proposal by Smiley
• Encyclopedia Britannica: Urban Development