With construction of the $266 million intermodal project now in full swing, the city administration has advanced a major alteration in the intermodal district with the objective of stimulating accompanying development that has yet to happen.

Essentially, City Planner Mark Carruolo explained this week, the change would abandon the effort to have a master developer oversee the redevelopment within the district and open it to public development.

The master developer proposal was advanced more than eight years ago with the premise that the company selected to oversee the work would assemble properties and match them with companies looking to build hotels, office buildings and related uses designated for the general area – the intermodal zone –between Jefferson Boulevard and Post Road across from Green Airport. The city solicited bids and three companies advanced proposals.

“When Bullfinch [Bullfinch Companies of Needham, Mass.] was selected, no one could have envisioned their total lack of performance. To make things right, I believe that the city should abolish the actual redevelopment district and instead ask the Planning Board to enact regulations that would spur individual development in the area,” Mayor Scott Avedisian responded in an e-mail over the weekend.

According to Carruolo, the city would act to finalize a master plan drafted in 2003 to create a Station Development District. Such action, needing Planning Board and City Council approval, would serve to replace the existing Station Redevelopment District.

With the redevelopment district gone, the Warwick Station Redevelopment Agency would cease to exist and the Planning Department would assume the job of reviewing proposed station district developments.

Frustrated by Bullfinch’s lack of action, the city moved ahead to develop its own master plan for the district in early 2000. In June of 2003 the firm of Goody, Clancy Associates of Boston completed a draft plan. That plan, however, was never made public or adopted. It is that plan that will now be advanced after it has been updated to reflect current land values and the projected financial impact to the city should the property be fully developed to its best use.

According to the executive summary of the draft, the purpose of the project would be to create an attractive mixed-use destination for Warwick; support regional economic development and job growth and enhance the gateway area to the airport.

The draft provides a plan for the development of about 1.1 million square feet of office, support retail, hotel and residential development in the district.

As described in the executive summary, “The Master Plan provides a guiding framework for phased development of office, hotel and complementary retail, restaurant and residential uses. It describes standards for establishing a high quality public environment, including pedestrian-oriented streets and a signature public space, ‘Warwick Green,’ centered around the planned train station, that will help forge neighborhood identity and stimulate private investment.”

A potential sticking point is what will happen to Bullfinch, which entered into a 10-year agreement with the redevelopment agency on Oct. 5, 2000. Under the terms of that agreement Bullfinch has the right to extend the contract for two successive terms of five years each.

So far Bullfinch hasn’t been successful in bringing any development to the district or assembling properties as the potential site for a development. In the meantime, Joseph Piscopio initiated the development of the Hilton Garden Hotel, which is on the periphery of the district and Michael D’Ambra, president of D’Ambra Construction Company, has won city approval to proceed with a massive development flanked by Jefferson Boulevard and Amtrak over more than eight acres comprised of a hotel and more than 500,000 square feet of office space. That site is just beyond the district and Bullfinch had no role in the proposal.

Carruolo cites three major reasons for the city to drop the Bullfinch arrangement and the redevelopment district: the company has failed to bring any redevelopment to the district; that while Bullfinch reached an agreement to acquire one significant parcel after it had the land appraised for a lesser amount it sought to have the agency condemn the land (the agency refused to do so) and that the condemnation powers of the agency impede development.

Carruolo estimated it has been about 18 months since he last heard from Bullfinch.

Eric Schlager, Bullfinch CEO, said this week that the company remains interested in the development.

“This is a challenging economic period,” said Schlager, “but it presents opportunity.”

Schlager refused to discuss details of any developments or what will now become of the relationship with the city.

“We’re analyzing all options with counsel,” he said.

At the time the district and the adjoining 70-acre gateway zone were created, the power of condemnation was viewed as essential to the redevelopment. That belief has changed and, in fact, the provision is viewed as hindering development.

“The only way that the condemnation provision was in the legislation is that we were creating a redevelopment district. That would not apply in the case of the Planning Board setting new parameters for the area,” Avedisian said.

In addition to seeking agency approval to condemn a property it had negotiated to purchase but never did within the first six months of signing the agreement with the city, Bullfinch requested that the agency take most of the 20-acre district by eminent domain.

“They petitioned for the whole district and that was contrary to what our understanding was. Everything they did was contrary to our understanding,” Carruolo said.

Vincent Pallazzo, owner of Fountain Coffee at 3032 Fresno Road, whose building will be in the shadow of the people mover connecting the airport terminal and the rental car/commuter parking garage and rail station, was relieved to learn Bullfinch is being dropped.

“Bullfinch made one offer and that was less than what I paid for the property 40 years ago,” Pallazzo said.

“His performance,” he said of Bullfinch, “as far as I’m concerned, has been less than acceptable.”

Stephen Hinger, owner of Drum Rock Specialty Company, has a similar story and reaction.

He said that Bullfinch offered $220,000 for his half-acre property and manufacturing facility.

“That would have barely paid for the land,” he said. Hinger has had issue with the condemnation powers from the start and favors its dissolution. “Let nature take its course,” he said. “As far as I knew I didn’t wake up in a communist country.”

“I feel that it is a good decision they’re making. No one is going to build without seeing numbers for the train or airport,” he added. Calling the intermodal district “the largest piece of economic redevelopment that could occur in the city,” City Council President Bruce Place welcomes the prospect of a new district.

“We could do this very nicely to our advantage. We certainly need the revenue streams,” he said.

Place noted that Gilbane Building is moving ahead with construction and it would behoove the city to have the “rest of the pieces in place, to make the whole puzzle come together.”

“We need to expedite this thing. Let’s move forward and get it done,” he said.