Public Financing Feasibility Analysis for Division Street Development in Pawtucket, RI

The Challenge

The City of Pawtucket, RI, issued a Request for Proposals for the development of a City-owned parcel on Division Street, adjacent to the Seekonk River. The sole proposal, submitted by the developer, Peregrine Group LLC, featured a mixed-use development that directly responded to the City’s goals and vision for the site. The development proposal featured a conceptual plan for a $31 million mixed-use development featuring 8,000 square feet of medical office space, 26,000 square feet of retail space, 214 residential apartment units, a public riverwalk, and an on-site parking garage. However, to achieve the desired development outcome, the developer sought some level of public assistance for the project to make it financially feasible and initially proposed tax increment financing (TIF) as a method for providing that assistance.

The Solution

The City commissioned Camoin Associates to analyze the feasibility of a TIF and other potential funding strategies to identify the method of public assistance for the project that was in the best interest of the city and acceptable to the developer.

The Impact

Camoin Associates held conversations with City staff and the developer individually and collectively to discuss alternatives to a TIF and identified two alternative strategies to move development forward: tax abatement and payment-in-kind. To reach a final agreement with the developer, Camoin Associates outlined specific next steps for the City.