Projo 7 to 7 News Blog

PROVIDENCE, R.I.-- Struever Bros. Eccles & Rouse will have a less active role in the development of Cotton Shed, a West Warwick mill renovation project, a company spokesman said this week.

Consortium Structured Investments, a limited member in the company developing the former mill for retail use, will now have "a more active role in the resolution of open issues at the Cotton Shed," according to Robert Rubenkonig, Struever Bros. Vice President and Director of Marketing and Communications.

SBER, doing business as Cotton Shed LLC., had been the lead member in the development company that started construction on Cotton Shed last year.

Over the last several months, the Baltimore developer has been mired in financial troubles, defaulted on some loans and has lawsuits from dozens of subcontractors claiming they are owed millions in work done at many of Struever's projects in Rhode Island.

"We are taking a less active role. As a whole, we have always believed the Cotton Shed is a viable and fantastic piece of property for the West Warwick community with Consortium ... the active role. We are confident we will bring this project to fruition," Rubenkonig said.

Based in Charlotte, N.C., the Consortium Structured Investments specializes in identifying, structuring and investing in real estate property improved by using tax credits. Consortium is affiliated with the Consortium Historic Equity Fund, a $200-million fund established in 2006.

Jeffery S. Brenner, a Providence lawyer from Nixon Peabody, representing the limited member in the Cotton Shed LLC, confirmed that his client is now leading the project, as of last week. Brenner declined to specifically name his client, but said Struever Bros. was still a part of the development company.

"It's the first change in eight months. We are evaluating the project and seeing our options. The [subcontractors] want to know, are they going to get paid, and what the town wants to know is this project is going to be completed," Brenner said.

"They will deal directly with the subs. They haven't decided what they are going to do. It could be reworked or scrapped. All options are on the table."

The Cotton Shed at 186 Providence Street, in West Warwick, overlooks the Pawtuxet River. The project is proposed as a conversion of the original three-story mill structure into a two-story building with roughly 32,296 square feet for retail, other commercial use and parking.

The project is adjacent to the Royal Mills residential redevelopment, which is also being developed by Struever, doing business as SBER Development Holdings, LLC. Royal Mills has been completed, with 153 apartments and 61 condominiums.

Struever is also leading the redevelopment at projects in Providence, including the $230 million American Locomotive Works on Valley Street and the rehabilitation of the Dynamo House on South Station Street.

C. William "Bill" Struever said earlier this year at least part of his financial trouble is due to changes state's historic tax credit program last April affected many projects in midstream.

 Tags  Providence RI real estate West Warwick RI

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