The developer behind the long-dormant Superman Building in downtown Providence is pushing for a revised tax incentive, calling it the “last piece of the puzzle” needed to restart its long-stalled conversion into housing.

David Sweetser’s High Rock Development, with backing from Providence Mayor Brett Smiley, is urging lawmakers to approve legislation that would allow a sales tax exemption on construction materials while still qualifying for the full $15 million in Rebuild Rhode Island tax credits. Under current law, developers must choose between the exemption and the maximum tax credit amount.

The Rhode Island Commerce Corporation estimates the proposed change would save the project an additional $4.6 million, bringing new hope to the redevelopment of the 28-story art deco landmark, formally known as the Industrial Trust Tower.

Lawmakers Delay Vote, Consider Amendments

A vote on Senate bill S1002 was originally expected May 27 but was delayed until Thursday to allow for amendments. The House version, H5741, has yet to advance since its April hearing. While neither bill explicitly names the Superman Building, their provisions are clearly tailored to it, requiring projects to include housing with at least 20% of units set aside for those earning 80% to 120% of the area median income.

That income-targeting requirement aligns with the original 2022 agreement between Sweetser, Governor Dan McKee, then-Mayor Jorge Elorza, and legislative leaders, which included a $65 million public financing package composed of $26 million in state support, $15 million from the city, and $24 million in federal funding. That total does not include a 30-year city property tax treaty.

Construction Started, Then Stalled

Though High Rock received permits and began demolition work after the 2022 announcement — even opening model units — the project later stalled due to rising costs and inflation.

“Since 2022, construction inflation has only increased the costs of financing this worthy project,” said Nicholas Hemond, High Rock’s lobbyist, in a May letter to the Senate Finance Committee. “This legislation, together with existing programs at the local, state, and federal level, is the last piece of the puzzle towards getting this project back on the track to completion as was contemplated in 2022.”

At the time of the original deal, the estimated cost of redeveloping the building into 285 rental apartments was $285 million, but High Rock has not publicly revised that number to reflect inflation or other changes.

Mayor Smiley: “A Piece of the Puzzle”

Speaking outside the Senate Finance hearing room, Mayor Smiley acknowledged the financial challenges facing the project and the uncertainty that remains — even if the bill passes.

"That's not to say that if this passes the hammers start swinging tomorrow, but we've been told by them that this is a piece of the puzzle," Smiley told The Providence Journal. "This is sales tax on construction materials that will never be received if the project never moves forward, so I think it is a financially responsible way to provide a little assistance."

Support Grows from Business, Labor

Supporters of the legislation include state construction unions and the Providence Foundation, a business-backed organization advocating for downtown revitalization. Before seeking the state tax exemption, High Rock had also explored federal transit-oriented development grants, though the current status of those efforts is unclear.

“There are many complicated layers to financing this project, but this piece would go a long way towards developing this meaningful project for the City of Providence and the State of Rhode Island,” Hemond wrote. “We hope to see you all at the ribbon cutting when the project is done and life returns to the City’s centerpiece forever.”

Originally reported by The Providence Journal.