PROVIDENCE – The City Council Thursday night approved a set of payment-in-lieu-of-taxes agreements with the city’s four colleges and universities, projected to bring in $223.5 million in direct payments over 20 years, an increase from the $93 million previously received.
The bulk of the direct payments, totaling $174 million, will come from Brown University. Providence College will contribute $18.4 million, while the Rhode Island School of Design and Johnson and Wales University will pay $15.2 million each.
Diversity matters at Amgen
We believe our differences lead to better science and better business outcomes, enabling us to…
Learn More
The payments equate to 8.2% of the four colleges and universities’ real property value, according to the city.
Currently, about 44% of city properties are tax-exempt, accounting for $8 billion in assessed value. City officials have said they are still in talks with Lifespan Corp. to reach a new deal with the non-profit hospital group.
“These funds will immediately impact the city’s fiscal goals while lessening the tax burden on homeowners and businesses,” said council president Rachel Miller.
In its separate agreement, Brown has committed an additional $46 million in voluntary payments over the next 10 years, though these can be offset by making certain investments and generating new tax revenue.
The deal also includes annual “community contributions” valued at $177.5 million over 20 years, which are defined as “financial and non-financial support for programs, services and activities that benefit city residents and students,” according to a Brown University press release. The University’s $6.4 million in annual community contributions will include investments in K-12 education, community programming and scholarships for residents.
The city for its part has agreed not to make other requests for financial contributions and to support Brown’s acquisition of four blocks in the Jewelry District: two on Richmond St. and two on Elm St.
A citywide renegotiation of PILOT terms with large nonprofits was a hallmark of Mayor Brett P. Smiley’s campaign.
“This new agreement sets Providence on a stronger financial path forward and it makes our city a national example of what is possible when communities and their major anchor institutions work together,” said Smiley. “Together, we are laying the foundation to make Providence the world-class city that the brightest students, faculty, doctors, researchers and employees want to live, work and learn in.”
In a Thursday statement, Brown President Christina H. Paxson said the agreement “marks an extraordinary moment for the city and its higher education institutions, and we’re proud to have cemented Brown’s investments in the success of Providence for decades to come.”
“The agreements are rooted in a spirit of partnership and a commitment to helping the city and its residents thrive,” she said.
The city will issue annual impact reports on the voluntary financial payments, according to the agreement.
“I encourage Lifespan to come to the table in good faith,” said Miller.
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com
