PROVIDENCE – Providence College has agreed to contribute $3.84 million to the city over the next 10 years as part of a payment-in-lieu-of-taxes agreement, Mayor Angel Taveras and PC President Rev. Brian J. Shanley announced Tuesday at a press conference.
The college, which was the last of the city’s seven major tax-exempt institutions to come to a payment-in-lieu-of-taxes agreement, will make an initial $1 million payment to the city and then will contribute approximately $316,000 annually through 2021.
According to a release, PC already contributes roughly $264,000 annually under the terms of the 2003 memorandum of understanding it signed with three other Providence-based colleges and universities.
“Providence College is an important pillar of our community,” said Taveras in a statement. “I am pleased that Fr. Shanley and the entire PC community have stepped up to share in the sacrifice many have made to position Providence for the future.”
“By being a part of the long-term solution to put Providence on strong fiscal ground, PC is helping to secure their own future and improve the futures of the thousands of Providence residents that their students, faculty and alumni serve,” added Taveras.
As part of the agreement, the city will abandon sections of three streets that abut the PC campus at Huxley Avenue from Eaton Street to Ventura Street and the sections of Wardlaw Avenue and Cumberland Street that are immediately adjacent to the northwest corner of the college campus.
“Providence College is, and always has been, mindful of the significant role that the city of Providence plays in the decision our students make to attend this institution,” said Shanley in a statement. “Providence is a vibrant city with rich history, great restaurants, and myriad tourist and cultural attractions. It is both an alluring and attractive setting for our students and their families.”
“As the leaders of all of Providence’s higher education and major health care institutions have noted on multiple occasions, a financially sound Providence is critical for the continued prosperity of each of our organizations going forward,” said Shanley. “I am pleased to join Mayor Taveras in announcing this agreement and the college’s purchase of these streets.”
Shanley added that “no operating funds (i.e., tuition
dollars, funds that might otherwise have been used for financial aid, etc.) are being used to fund this purchase.”
Including the agreement with PC, the Taveras administration has secured contributions from all seven major tax-exempt institutions in Providence, contributions that will total nearly $48 million in additional revenue over the next 11 years.