Rau Fastener

Mill Complex

Providence, Rhode Island

Introduction

Summer 2003 The Developer The Architect Reviving a Brownfield Tour the Site

Fall 2004 The Developer The Architect Tour the Site

Summer 2006 The Developer Tour the Site

The Numbers

Tenants Move into Westfield Lofts

Westfield Lofts, summer 2006.

In December 2005, the first residents moved into Westfield Lofts, the first phase of the multiphase Rau Fastener Mill complex development.

Some 10 years in the making, the Rau development had to overcome a number of challenges to complete phase one, says Sharon Conard-Wells, executive director of the West Elmwood Housing Development Corporation, the developer of the initiative. 

“The finance closing was very stressful and involved an extended process over several months,” she says. “We wound up separating the environmental cleanup, the demolition, and the construction, and this added to the complications.”

“Since the brownfield (environmental cleanup) money was not tied to construction financing, we needed to make adjustments to meet the completion date for the Low Income Housing Tax Credits (LIHTC),” she says. “Thanks to some very good partners and attorneys we wound up having several mini-closings to release the money.”

Samantha Vargas and her son in one of the development's affordable units.

Ms. Wells says the developers’ partners helped out in a variety of ways to ensure that the initiative moved forward. One agency lent money to the project while another partner provided a grant. The contractor started construction prior to the closing and allowed the developer to withhold payments until the initiative closed. “Other professionals waited until we closed for several of their payments,” she says. “Most also subordinated any additional fees they could have earned.”

The developer also overcame a number of obstacles during the construction phase. “We had one major subcontractor go out of business, and we had to replace him at a premium,” Ms. Wells says. “We had subcontractors who were behind schedule, extending the construction work into the holidays and bad weather. We had no wiggle room at the end because we had to meet the LIHTC deadline. The contractors worked weekends, holidays, and evenings to get the job done.”

Westfield Lofts, summer 2006.

The developer, however, worked through the challenges and brought phase one to a successful conclusion last year. “Everyone is happy and impressed with the outcome,” says Ms. Wells. “I have never done so many tours for partners, elected officials, or colleagues. At this point, we are working out how to accommodate some of the requests for the community room. We have also found that some artists' activities are not conducive to residential living.”

Property manager Debra Ellis, Sharon Conard-Wells, and resident Michael Dow in a market-rate apartment.

“By finishing the project in the winter and experiencing a very rainy spring, the landscaping and exterior painting wasn't completed until the summer,” says Ms. Wells. “We have also experienced the typical kind of problems that occur when a new project comes on line. We needed 'comfort' conversations when the air conditioning initially failed to work properly. This happened when we were experiencing some very hot weather early in the season.” 

But the attractiveness of the high-ceiling loft apartments and the overall transformation of the area has impressed the buildings’ tenants. “A couple of tenants have referred several of their friends and family, so that is a good sign,” she says.

Westfield Lofts, summer 2006.

With the renovation of the first two buildings completed and most of the 69 apartments rented as of June 2006, the developer has begun work on subsequent phases of the development. “The next phase is a little complicated right now,” Ms. Wells says. “We are calling it phase A and B. We are concurrently working on the 20,000 square-foot, two-story historic building and the 60,000 square-foot, vacant-lot townhouse project.

“Progress is being made on each,” she says. “It is difficult to say which will happen first. The historic building will be a mixed-use development. We lost a commercial tenant when the business climate changed for them, so we are back in the marketing phase for that piece of the initiative. The site plans for the commercial phase have been developed and submitted to the National Park Service.”