Home Economy Providence City Council approves PILOT agreement with Brown University Health

Providence City Council approves PILOT agreement with Brown University Health

Updated at 1:54 p.m.

By

Christopher Allen

-

11/08/2024

Screenshot — THE PROVIDENCE CITY COUNCIL on Thursday approved a $1.5 million 3-year payment-in-leu-of-taxes agreement with Brown University Health, formerly Lifespan Corp. Deputy Whip Sue Anderbois (right), said the healthcare nonprofit should be contributing more./PBN SCREENSHOT

PROVIDENCE – The City Council on Thursday approved a $1.5 million three-year payment-in-lieu-of-taxes agreement with Brown University Health, formerly Lifespan Corp., closing the books on what has been viewed as a protracted process to push the health care nonprofit to contribute more to the city budget. The PILOT will mark the health care system’s first

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PROVIDENCE – The City Council on Thursday approved a $1.5 million three-year payment-in-lieu-of-taxes agreement with Brown University Health, formerly Lifespan Corp., closing the books on what has been viewed as a protracted process to push the health care nonprofit to contribute more to the city budget. The PILOT will mark 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. Council members speaking before the vote used their time to send a message to Brown University Health executives that they should expect future calls to contribute larger sums after this current three-year agreement expires. City Council President Rachel M. Miller said she was "frustrated” the council was accepting “what feels like a hard deal,” but pointed out there are no state or local statutes requiring nonprofits to pay anything at all, something she would like to see changed. “We have very little authority to do it,” she said. “We are not in a position to say no as a city." In 2023 the city entered a 20-year PILOT agreement with its four private higher education institutions – Brown University, the Rhode Island School of Design, Providence College, and Johnson & Wales University, and has an ongoing agreement with Care New England. Still, Councilman Oscar O. Vargas argued these institutions should be sharing more of their wealth with city government. “We need every penny that we can get from the nonprofit institutions,” he said. “This [agreement with Brown University Health] is the first step.” Other community benefits spelled out in the Brown University Health deal include a “shared goal” for the nonprofit to contribute an additional $750,000 annually, though that provision is non-binding. Deputy Whip Sue AnderBois thanked Mayor Brett P. Smiley’s administration for getting the two sides to an agreement, but cautioned that the council views it as "a down payment for future negotiations." (UPDATES: Corrects Lifespan Corp. to Brown University health throughout) Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.