The Newport City Commission voted to enter into a development agreement for the World Peace Bell Block Hotel Project.
The development near the World Peace Bell at the intersection of York and Fifth Streets includes a public parking garage, two hotels and offices. The agreement discussed at a Newport special meeting on Wednesday allows the developer to move forward with the project as long as certain conditions are met. Then, they can close and start constructing the garage and other parts of the project.
After the agreement is in place, the developer will work with city staff and the construction management team to develop the final garage designs and the maximum guaranteed price. A guaranteed maximum price contract sets a maximum price for a construction project, beyond which the contractor absorbs additional costs.
The development is spearheaded by local hotelier Shaun Pan, who owns the Hampton Inn & Suites on Columbia Street. Pan purchased the land in 2018.
The project consists of a building with two Hilton properties–a TRU and Home 2 Suites, the first of its kind in the region, Pan said–and an office building, which a separate developer will complete.
Some of the original drawings of the site plan have changed due to the World Peace Bell’s relocation. The city announced in February that plans were in place to move the bell to General James Taylor Park.
“Under the agreement we have in place, it’s the developer’s obligation to disassemble the bell and move it to its new location,” legal counsel for Pan, Jim Parsons said. “Now when the city gets its funding in place for that (bell relocation), then those costs will be reimbursed—specifically from state funds.”
Pan currently owns the land, and local developer and philanthropist Wayne Carlisle owns the World Peace Bell.
“The plan is for the Southbank building, and everything else will be demolished; the bell, though, will be disassembled in such a way that some of the framework that houses the bell will be reused,” Parsons said. “So, we will be working through that process over the next several weeks.”
Parsons said they would like to have the bell moved by July 1.
Per the agreement, the developer will design the garage and bring it back to the city for final approval. Then, according to Parsons, they are required to negotiate with the city for a “maximum guaranteed price,” which is the maximum obligation to the city for the parking garage. That still has to be negotiated and finalized.
“We need to be as aggressive as we can on the project moving forward,” Parsons said. “There is a timeframe on the state TIFF. The city under the agreement receives all of the benefits under the state TIFF increment. We have an end-of-October deadline to meet certain capital investment requirements to keep that TIFF in place.”
By the end of October 2025, the developer has to have expended $20 million in total capital investment, not limited to just the garage.
“Have you put any more thought into the garage screening to make that a little more exciting than just a garage?” Newport Commissioner Beth Fennell asked.
The developer said they are emphasizing what’s happening in people’s field of vision, prioritizing what’s happening lower and taking the eye up the building. The screening is a steel lattice system that ivy can grow up and will go on the York and 5th Street-facing facade.
Further, the site plans are being worked on with Newport’s Urban Design Review Board.
“Something I like in your plan is it looks like we’ve been able to double the amount of office space—the square footage.” Newport Commissioner Mike Radwanski said. “That’s great for the standpoint of job creation as well as having those extra storefronts on Monmouth Street which will really help tie that block together.”
Newport Commissioner Julie Smith-Morrow said she appreciated the developer’s provisions for a public bidding process and encouraged the hiring of local people.
“I appreciate the work that you guys have done and the city’s team as well, taking a little extra time the last few weeks to include some additional items in the agreement,” Smith-Morrow said. “I especially appreciate the provision for public bidding and the encouragement for hiring local.”
Pan said in January that the hotel will hire about 40 full-time positions and 25 to 30 part-time positions.
Newport Mayor Tom Guidugli Jr. said the project had come a long way since the initial proposal of one hotel and a surface lot.
“This has been complicated, and it has received input from each of the board members at different points, which makes this more difficult, and your patience is greatly appreciated,” Guidugli said. “What this has created is also a much higher performing track of land. If it had been done in the original intent—there was nothing we could do to stop you from doing that—and you said, ‘I want to be a part of something better.’”
Parsons said they will be back in front of the city for numerous things regarding the development before construction begins.
