New business model proposed for Providence Place mall

The is an image of the Providence Place mall. (WLNE)

PROVIDENCE, R.I. (WLNE) — With shopping malls losing traction across the United States following the pandemic, a new business model is being proposed to “reinvent” the Providence Place mall.

The Providence City Council received a proposal at their meeting on Thursday night, revealing an ordinance of a 20-year tax treaty starting July 1, 2028, with annual payments of $4.5 million dollars.

The proposal stems from the challenges COVID posed, turning more people to seek out shopping online, which in turn has “challenged the viability of malls.”

This is an aerial view outside the Providence Place mall. (WLNE)

The Providence Place mall owners want to reinvent the space and modernize it to host retail, business and workplace operations, food, entertainment, fitness centers, medical centers, residential sites, education and arts, as well as other commercial uses.

“The economy and online shopping have changed the mall’s business model from 25 years ago,” said Council President John Igliozzi. “The city and its residents cannot afford to see the mall abandoned and shuttered, but any tax agreement needs to reflect equity across the board.”

The proposal was taken “off docket” by the Council, and referred to the finance committee for future discussion.

Categories: News, Rhode Island