Aloft Providence Hotel - Rhode Island Commerce

Aloft Providence

Project

The Sponsor is proposing a $55.2 million, 7-story Aloft brand hotel with 169 rooms. It will include various amenities including a business center, a fitness center, and a backyard outdoor patio, among others. Additionally, it will have a restaurant (6,300 square feet) and a rooftop look-out bar (3,250 square feet). The Project will be located adjacent to a 200,000 square foot, life science research complex proposed on Parcels 22 and 25 in the I-195 Redevelopment District in downtown Providence.

Approved Incentives

The sponsor has been approved for the following incentives: 

  • Rebuild Rhode Island Tax Credits (“Tax Credits”) in the amount of $100,000 (the “Amount”) over the five-year eligibility period. The Sponsor has a one-time right to exercise a Put Option for 90% of the Amount of the Tax Credits, which would result in net proceeds from the Tax Credits of $90,000. In addition, sales and use tax reimbursement (“Tax Exemption Reimbursement”) for the project is estimated at $1,500,000. The Tax Credits will be reduced at Certification by the actual Tax Exemption Reimbursement in excess of $1,500,000. In no event will the Tax Credits be increased.
  • Tax Increment Financing (“TIF”) Incentive of $6,750,000, as requested by the Sponsor to support TIF loan(s), over a term not to exceed 18 years.
  • The project has a total financing gap of $9,090,000 (“Financing Gap”), approximately 15% of total project costs, which is filled by the net proceeds from the Tax Credits of $90,000, Tax Exemption Reimbursement of $1,500,000, and TIF Incentive of $6,750,000 and 195 District Funds of $750,000.

[1] The put option is the redemption procedure provided for in the Act which permits the tax credit recipient to request the state to pay out 90% of the face value of the tax credit, instead of using the credit to reduce tax liability.  This option is subject to state appropriations. 

[2] The total of incentives used for payment of a TIF loan may not exceed 30% of the project cost.

Sponsor Description

The applicant is controlled by the principals of Boston Andes Capital LLC (“BAC”), BAC Equity members, and CV Properties LLC (“CVP”). BAC is a real estate investment and development company focused on certain parts of Latin America and the USA with offices in Boston, Massachusetts; Buenos Aires, Argentina; and Bogotá, Colombia. The owners and advisors of BAC have worked together since 2003 on various projects in Argentina; Colombia; Guatemala, Chile; and Boston, Baltimore and Richmond in the USA. CVP is a Boston-based commercial real estate company focusing on development and investment opportunities throughout the United States since 2003. CVP’s senior professionals have years of experience acquiring, developing and managing commercial real estate in the United States.

Additional Documentation

Board Resolution icon-pdf
Economic Impact Analysis icon-pdf

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