PROVIDENCE – Mayor Brett P. Smiley and Brown University Health CEO and President John Fernandez on Friday signed a $1.5 million, three-year payment-in-lieu-of-taxes agreement between the city and Brown University Health.
The PILOT deal marks the health care system’s first voluntary payment to the city in three years, and its largest annual contribution since 2014. The total amount will come in two payments of $750,000 due by Dec. 31 of the 2025 and 2026 fiscal years.
“We are pleased that our agreement to make a $1.5 million voluntary payment ... was approved,” Fernandez said. “We take our commitment to the city of Providence and the community very seriously."
The PILOT agreement, which cleared the City Council on Nov. 8, also formalizes and quantifies the community contributions that Brown University Health provides to Providence, with an estimated value of $50 million annually.
Also, within a memorandum of understanding, Brown Health agrees to enter negotiations with Providence in the third year of the agreement.
Brown Health's last PILOT payment was in September 2021 for $400,000, and the hospital group has contributed $4.35 million in total PILOT payments to the city since 2012.
“By signing this agreement with Brown University Health, we’re reinforcing the critical role that Providence’s tax-exempt institutions play in supporting the city’s growth and long-term sustainability,” Smiley said. “This agreement reflects our continued commitment to ensuring these institutions contribute meaningfully to the city, not only through financial support but also by working together to strengthen the future of our community.”
Also on Friday, Smiley announced new data that highlights the community contributions made by Providence’s four private higher learning institutions thus far under the PILOT program.
Brown University contributed a total of $17 million in fiscal 2024, including $5.1 million in voluntary payments and $11.9 million in community contributions.
The $11.9 million in community contributions consists of $10.6 million in direct spending and $1.3 million in in-kind contributions. These investments support priorities, such as K-12 education, community programming and scholarships for local residents. Over the next 20 years, Brown has committed to contributing nearly $175 million in voluntary payments through shared memorandum of understanding and a separate memorandum of agreement between the university and the city.
“Investing in the success of Providence is embedded in Brown’s mission of education, research and service, and students, faculty and staff across campus bring that commitment to life every day,” said Brown President Christina H. Paxson. “The contributions reflected in this new data resource demonstrate how Brown and other local higher education institutions can have a meaningful impact as we work together with local leaders to address shared challenges, spark economic development and improve quality of life for residents across the city we call home.”
The Rhode Island School of Design made $3.3 million in community contributions in fiscal 2024. The city said RISD has focused on capturing and measuring its contributions to the community in a more comprehensive way.
“RISD has always contributed to Providence’s vibrant community life, and over the last year, we have begun to capture and measure the impact of those contributions in more robust and meaningful ways,” said RISD President Crystal Williams. “Through our college and museum, RISD helps drive Providence’s civic life, economic vitality, and cultural vibrancy. We are committed to ensuring Providence – ‘The Creative Capital’ – remains a destination that nurtures the next generation of artists, designers, makers, and thinkers.”
Providence College made $6 million in community contribution in fiscal 2024, according to the city data.
“The Memorandum of Understanding that Providence College, along with the other private, Providence-based institutions of higher education, signed in September of last year was indicative of our continued commitment to support the city financially,” said PC President The Rev. Kenneth R. Sicard.
Johnson & Wales contributed $7.2 million in fiscal 2024. In addition to providing financial aid to local students, the city said, the university opened its facilities and athletics field to the community and dedicates hundreds of hours of community service each year.
“Providence has been home to Johnson & Wales University since 1914,” said Johnson & Wales Chancellor Mim L. Runey. “We are deeply committed to being a good neighbor and community partner, and we are proud of how the thousands of Johnson & Wales’ students, faculty, staff and alumni have and continue to contribute to the vibrancy of Providence.”
(ADDS paragraphs 8-17 with details on each school's contributions.)
