The seats are installed, the naming rights awarded and the first match to be hosted in Pawtucket’s new riverfront soccer stadium is less than one month away.
But the financial future of the newly christened Centreville Bank Stadium rests on more than a fan following; accompanying residential and commercial development is considered crucial to ensuring taxpayers get a return on government-issued bonds helping pay for the sports venue.
On Thursday, Fortuitous Partners unveiled the first details of the necessary and long-awaited housing and commercial development that will flank the stadium on either side of the Pawtucket River.
The plans, via partnerships with two “prominent” real estate developers, will bring more than 600 new housing units to the area along with commercial space, creating a kind of mini-city encircling the new home for the Rhode Island FC team.
“We are incredibly proud to see this vision for the riverfront and Tidewater Landing continue to come to life,” Dan Kroeber, managing partner at Fortuitous Partners, said in a statement. “This next phase of the development will not only support the new Centreville Bank Stadium, but also create a vibrant, connected community where residents, visitors, and fans can live, work, and enjoy everything Pawtucket’s riverfront has to offer.”
Revitalizing the vacant land mixed-use development was the original vision of private developers and state and city officials when they awarded a competitive bid to Fortuitous in 2019. What is now being proposed represents a substantial departure from the original timeline and cost.
At what price?
The price tag of the residential and commercial development was not available, Kroeber citing “commercially sensitive financial information” in response to questions Thursday.
“We can confirm that we’re working closely with our partners and stakeholders to ensure the project is financially sound, responsibly managed, and positioned to deliver long-term value,” Kroeber said in an email.
The 10,500-seat stadium has already come in substantially over budget and past the deadline, with blame placed on inflation and supply chain disruptions.
Rhode Island Commerce’s board of directors reluctantly agreed to shift all of the state bonds meant to fund public parking and infrastructure improvements to the stadium itself, with Gov. Dan McKee casting the tiebreaking vote in July 2022.
“We really got suckered,” Mike McNally, a former Commerce board member who voted against the reallocation of state bonds for the project, said in an interview Thursday. “It’s like buying land and building the swimming pool but not the house.”
Borrowing costs subsequently soared. The $132 million borrowing issued in February 2024 is more than double the $59 million estimate two years prior, with $89 million in interest accounting for the bulk of the costs over the 30-year repayment period. The cost features just $36 million in public tax-increment financing bonds, which assume revenue generated from the project to pay off the debt.
Revenue from the stadium alone is unlikely to generate the money needed. A 2023 financial analysis from a Commerce consultant, based on lower total borrowing costs, identified a $52 million shortfall in revenue generated from the stadium over the life of the bonds. It noted the need for additional commercial and residential development to help the city and state break even on borrowing costs.
No additional analysis based on final borrowing costs is in the works, Matt Touchette, a Commerce spokesperson, said in an interview Thursday. The state and city will start making payments on the debt service in fiscal 2027.
The city of Pawtucket has also chipped in $10 million from its unspent pandemic aid for the project, while the state awarded $10 million in tax credits, all for the stadium.
Asking for more
Despite his misgivings over how public money was used in the project, McNally welcomed the news that the stadium developer was following through on its commitment to build housing.
“That’s really what we wanted all along,” McNally said. “As long as they don’t ask for more public investment, I will be happy with that.”
As of Thursday, Fortuitous has not approached House Speaker K. Joseph Shekarchi seeking more financial help from the state for the housing and commercial components, Larry Berman, a spokesperson for Shekarchi, confirmed via email.
Pawtucket city leaders have also not discussed financing details for the housing components with Fortuitous.
“Too early in the development process,” Christopher Hunter, a city spokesperson, said in an email.
McKee’s office also has not had a formal ask from the developer, though the administration is “continuing to engage with them about advancing the next phase of the Tidewater Landing project,” Olivia DaRocha, a spokesperson for McKee’s office, said in an email Thursday.
“This next phase has always been part of the original project concept supported by Governor McKee and we’re excited to see that it’s progressing,” DaRocha said.
But Kroeber told the Providence Journal that the company is hoping for public investment in the forthcoming infrastructure upgrades, which include a riverfront connecting both banks of the river and pedestrian walkways. He did not specify a dollar figure.
The next phase of development begins with the construction of 300 market-rate housing units on the east side of the river, directly across from the new stadium. On the west side, fronting a new stadium plaza and riverfront, will be another 250 housing units and commercial space.
Boston-based real estate development and construction company Wood Partners will lead the creation of both buildings.
Further north, on the east side of the river, a third set of 72 mixed-income housing units will be built by a separate developer, Philadelphia-based Pennrose. Federal and state tax credits offered for low-income housing will help to pay for this component of the project, which is under review by Rhode Island Housing. The city-owned land on School Street sits directly across from the Pawtucket Portuguese Social Club. Specific income limits for the affordable and workforce housing units have not been determined.
The housing and commercial development plans are now in the design and permitting phase, Kroeber said. He did not answer when asked for an expected completion date.
Rhode Island FC will play its first match on home turf at 4 p.m. on May 3, squaring off against San Antonio FC in an already sold-out game at Centreville Bank Stadium.
Updated to include additional comments from Fortuitous Partners, Gov. Dan McKee’s office, and former Rhode Island Commerce board member Mike McNally.
This story was originally published by the Rhode Island Current.
