Brady Sullivan loses bid for preservation tax credit on R.I. projectUnion Leader Staff
August 30. 2013 8:28PM
PROVIDENCE, R.I. — Despite losing an initial bid for state historic preservation tax credits on Tuesday, Manchester-based developer Brady Sullivan Properties will proceed with plans to redevelop a former factory in Warren, R.I.
Principal Shane Brady told the Providence Journal his company plans to create 225 apartments and 85,000 square feet of commercial/retail space at the site of a former American Tourister factory.
The first floor of the main, three-story brick mill building will include the commercial/retail spaces and indoor parking for residents of the apartments, he said.
Rhode Island’s new historic preservation tax credit program generally provides a credit of 20 percent of qualified project costs and 25 percent in certain circumstances up to a maximum of $5 million per project, the Journal said.
Brady said that although his company’s American Insulated Wire project in Pawtucket was selected in Tuesday’s lottery drawing to distribute a total of $34.5 million in state historic tax credits, the Tourister project was not one of the winners, coming in last among the 41 competing projects. But the Warren project could still obtain credits if some of the 31 winning projects are disqualified.
Brady said his company tentatively won $2.5 million to $3 million in credits for its $20-million redevelopment of the former American Insulated Wire complex in Pawtucket. That project, which, like the Tourister plan, is a partnership between Brady Sullivan and Starr Development of Boston, includes about 40,000 square feet of commercial space and 139 apartments.
Brady Sullivan, which specializes in mill renovation projects, bought the American Tourister site in March for $2.6 million after a court receivership auction. Brady Sullivan has redeveloped many former mill buildings in its home city of Manchester and in Rhode Island.