Technical Assistance Success Stories | EPA #560F23293 March 2023 Planning for Sustainable Brownfield Redevelopment FINANCIAL FEASIBILITY ANALYSIS - ATLANTIC MILLS SITE (EPA REGION 1) SITE INFORMATION Community: Providence, Rhode Island Local project lead: City of Providence and the Providence Redevelopment Agency (PRA) Former use: Textile Mill Future use: Commercial/Light Industrial/Retail Brownfields technical assistance: Targeted Market Analysis and Financial Feasibility Analysis PROJECT BACKGROUND Atlantic mills is a former 1800s~era textile mill complex that is located along the Woonasquatucket River in the Olneyville section of West Providence, Rl, The site includes a 348,000 square foot (SF) structure on 4,75 acres. The building is owned and managed by private owners, and it is partially leased to small commercial tenants in spaces ranging from 500-50,000 SF, There are several comparable mill reuse properties in EPA Region 1, but each development is unique based on its site, location, and ownership, PROJECT CHALLENGE The Atlantic Mills property owners are seeking to sell the property, and the City and PRA needed technical assistance to better understand the financial feasibility associated with purchasing the structure to preserve it and continue its operation by a new, future owner, Future developer interest in Atlantic Mills is likely to be based on the site's financial performance as measured by Net Operating Income (NOI), which is largely determined by rent/lease rates, space utilization, and overhead/property management cost. The City and PRA have an opportunity to ensure that site redevelopment is undertaken in a way that supports its site reuse goals by purchasing the property from the current owners. This includes retaining a qualified and cost-effective property manager, addressing flood mitigation and environmental cleanup at the site using grant funds, and seeking a qualified private owner to take over long-term site renovation. Figure 1: Atlantic Mills Site HOW EPA HELPED In 2022, the U.S. EPA's Office of Brownfields and Land Revitalization (OBLR) provided technical assistance to support the funding and financial analysis of the Atlantic Mills property. The TA included the following support: • Refining a Financial Model: Updated financial data and inputs were incorporated into an existing financial model that was created under a previously- funded EPA TA project. The Financial Model was designed to be "evergreen" so that it can be updated as plans development scenarios change to analyze development costs and financial feasibility, • Preparing Funding Strategies: A 5-year funding strategy was prepared to demonstrate how the site improvements could be funded while under public ownership (before a future, private buyer is identified). • Creating a Development Model: A conceptual development model was created to identify roles, responsibilities, agreements, and action items that may be necessary to successfully implement the redevelopment project. COMMUNITY'S NEXT STEPS Assuming that the PRA secures the site through a negotiated purchase, the next steps for the community include: • Retain a property management team to continue operation as a small business hub that provides leasable commercial, retail, and light industrial space at affordable levels, • Apply for grants to address flood mitigation and environmental cleanup at the site. • Seek a new private owner within three to five years. Questions? Please contact EPA Region 1: Jessica Dominquez ------- |