PROVIDENCE, RI—Looking to cash in on the explosive growth of the life sciences sector, the State of Rhode Island and specifically the City of Providence will stive to become a player in coming years on property less than an hour from Boston and Cambridge.

On Friday the I-195 Redevelopment District Commission and Wexford Science & Technology of Baltimore and CV Properties of Southport, CT signed a purchase and sale agreement on two downtown parcels in Providence where a more than 1 million-square-foot mixed use development will rise.

The first phase of the mixed-use project will encompass research and development, lab and office facilities, and an innovation center, along with restaurant and meeting facilities and a hotel and residential complex. The entire first phase will total approximately 500,000 square feet in several buildings. Two other phases would bring the total project scope to more than 1 million square feet. The Wexford-CV Properties multi-phased project would serve as the catalyst for other development at the downtown properties called "The Link."

The agreement calls for a 90-day due diligence period, followed by 180 days to obtain building permits leading to closing on Phase I. Construction on Phase I is expected to begin by early 2017. The agreement also stipulates that Wexford, a BioMed Realty company, and CV Properties will be applying for recently enacted state incentives in connection with the project.

The I-195 Redevelopment District Commission was created in late 2011 to serve as the authority for the sale, marketing and oversight of 20 acres of land freed up by the relocation of Interstate 195. According to the commission's website, Parcel 22 on Clifford, Dorrance and Dyer streets, totals 115,363 square feet. Parcel 25, which borders Clifford and Richmond streets, totals 102,584 square feet.

The agreement is the result of months of negotiations between Rhode Island Commerce Secretary Stefan Pryor, I-195 commission chairman Joseph Azrack, the commission and the City of Providence.

Dyana Kielsch, a spokesperson for the I-195 Redevelopment District Commission, said the purchase price for the first phase was $6.6 million. The total purchase price for all the parcels in the three phases will be more than $13 million. According to the purchase and sale agreement, Wexford and CV Properties have already or will acquire adjoining properties at One Ship St. and 60 Clifford St. as part of the project.

"Wexford and CV have created thriving life science centers and leading research and development business environments around the country. Their decision to take this next step forward with Rhode Island is a big deal for our state and shows we have momentum," states Rhode Island Gov. Gina Raimondo. "This project has the potential to create many good-paying jobs for Rhode Islanders over the next few years. While there is still work to do, we remain relentless in our efforts to bring these jobs here and build an innovation economy in Rhode Island."

"The execution of this agreement represents an important step forward," states Commerce Sec. Pryor. "This project has the potential to realize key aspects of our vision for the Innovation and Design District. We must take additional steps before we're fully ready to proceed—including negotiations and approvals regarding state investments and incentives. We will continue to work toward a closing—and then toward the start of construction for this promising project."