Providence Place Mall's Comeback: How Receivers Are Reviving the City's Iconic Shopping Destination

Providence Place Mall, Rhode Island’s largest shopping center, is undergoing a major transformation. After being placed into receivership by Superior Court Judge Brian Stern in October, the mall is now under the control of court-appointed receivers, attorneys John Dorsey and Mark Russo, who are working hard to stabilize its operations, boost security, and prepare the shopping hub for a sale by mid-2025.

A New Chapter for Providence Place

The receivership process came after Brookfield Properties, the mall’s previous management company, defaulted on a $259 million debt. Since then, Dorsey and Russo have taken charge, focusing on enhancing the mall’s security, upkeep, and financial health. Their goal is to position Providence Place as a viable investment opportunity for future buyers.

“We’re working on turning this place around,” Russo said outside Rhode Island Superior Court. “It was a good public investment, it’s worth repositioning and saving, and that’s what we’re going to try to do.”

Boosting Security and Maintenance

One of the first major steps Dorsey and Russo took was increasing security at the mall. Brookfield had slashed security budgets by 40% since the COVID-19 pandemic, but under the new leadership, the mall is now back to pre-pandemic staffing levels to ensure the safety of shoppers. “With levels of visitors increasing, it’s appropriate to take those measures,” Dorsey explained.

In addition, the receivers are addressing maintenance issues that were deferred due to the pandemic, such as fixing broken parking equipment. They’ve brought in Flash, a new parking contractor, to replace outdated equipment and introduce mobile payment options for patrons.

Stabilizing the Mall's Finances

The receivers are also working to stabilize Providence Place’s budget by addressing ongoing capital needs and focusing on improving the mall’s appeal to both shoppers and potential investors. As part of this effort, they’re working closely with the mall’s 90% occupancy rate and the existing tenants to make sure the mall continues to be a thriving retail destination.

One key tenant, Macy’s, is part of a national trend where the retailer has been closing underperforming locations. The Providence Macy’s was recently listed for sale, raising questions about how long the department store will remain a presence at the mall. Dorsey and Russo are optimistic and have been actively engaging with Macy’s representatives to keep the anchor store in place.

“We’re going to work really hard to convince them to stay,” Russo said, expressing hope for continued negotiations.

Looking to the Future: Tax Treaties and Partnerships

The receivers acknowledge that part of the mall's future success lies in renegotiating its current tax treaty with the city, which is set to expire in 2028. This agreement currently provides significant tax breaks, but city officials have shown limited interest in extending it. According to Russo, any potential sale of the mall may depend on how this issue is resolved.

“We’re going to have to partner with the city and the state and redo that treaty in some way,” he said. “But I think that’s a little bit in the future because we need to demonstrate the mall’s potential.”

A Promising Outlook for Providence Place

Despite these challenges, Dorsey and Russo remain optimistic about Providence Place’s future. They believe that with the right mix of investments and strategic improvements, the mall can continue to thrive for another 25 years.

“We’re confident,” Russo said. “It’s been there for 25 years. Our job is to make sure it’s there for another 25 years.”

With the groundwork being laid for a revitalized Providence Place Mall, local residents and visitors alike can look forward to a more vibrant, secure, and appealing shopping experience in the coming years.