Restoration of the Aquidneck Mill Building:
A Conversation with IYRS President Terry Nathan
Give us a quick history of the Aquidneck mill building.
Terry Nathan (TN): The Aquidneck mill building is an 1831 post and beam structure on the National Register of Historic Places. Originally a steam-powered textile mill, the mill is one of the last buildings of its kind in Rhode Island. The building has native green granite and brick walls, is 30,000 square feet, and part of the historic Newport waterfront. The building is a wonderful example of industrial Newport between the Colonial and Gilded Age periods.
What will IYRS do with the building once it is restored?
TN: The restored mill will have a dual use: part of the building will accommodate critically needed classroom, workshop, and assembly space, as well as house a world-class library open to both students and the public. The mill will also be used to generate lease income from synergistically related commercial businesses such as a yacht design firm, sail maker, yacht brokerage, etc. In essence, the school needs the mill to both continue its growth and to fulfill an important institutional mission, which is to preserve its historic waterfront property and buildings.
How long will it take to restore the building?
TN: The architects at Newport Collaborative, and construction manager Farrar & Associates—both local Newport firms—estimate that the restoration will take approximately 16 to 18 months. If construction begins, as anticipated, in August, occupancy is expected by spring 2009.
What is the anticipated cost of the restoration?
TN: Current cost estimates are $7.5mm, which includes legal, architectural, administrative and construction costs. A $510,000 contingency allocation is included in this cost. But historic buildings can have surprises. We have gone to great lengths with the forensics to minimize the surprises, but that is no guarantee.
How is the project being financed?
TN: IYRS has already raised almost $1.5mm from Board members and $1.1mm from foundations. The project qualifies for approximately $2.9mm in net state and federal tax credits. Additionally, Bank Newport has agreed to provide a construction loan that can be rolled into a 20-year mortgage. IYRS will continue to fund-raise during the project and is committed to roll over as little debt as possible at the conclusion of the restoration. Importantly, though, the lease income from commercial tenants can be used for debt service.
How does the merger with The Museum of Yachting fit in?
TN: As part of our plan to build a campus that enriches our students’ educational experience and attracts a broad base of support and understanding of maritime history, the Museum plays an important role. The Museum will be in the 1,600 square feet that is adjacent to Thames Street. It will be a unique part of the Lower Thames Street visitor experience, adding new value to the neighborhood and better access for the Museum to promote its mission.
In the long term, what is the importance of the mill’s restoration to IYRS?
TN: From a financial perspective, a restored mill will allow us to expand enrollment and add a new and important income stream from lease tenants—both helping to decrease dependency on philanthropic support. IYRS will then be able to turn some focus on endowment building to secure the long-term financial integrity of the institution. The restored mill is also the last cornerstone project that creates a dynamic, 2.5 acre waterfront campus and maritime phenomenon, attracting students, visitors and industry to a world-class educational institution.