By Steve Klamkin WPRO News
Providence and four private colleges announced an agreement on Tuesday that will see the four increase their “payment in lieu of taxes” to the city by 138% over the next 20 years.
The colleges, which contributed just over $94 million in voluntary “PILOT” payments to the city between 2012 and 2023, have agreed under a new memorandum of understanding to contribute $223.4 million over the coming 20 year period.
Providence has estimated that approximately 40% of its tax base is exempt from taxes, either publicly-owned or belonging to tax-exempt institutions including educational or religious entities.
The talks, with Brown University, Johnson & Wales University, Providence College and the Rhode Island School of Design were at times, “a bit of a slog”, said Democratic Mayor Brett Smiley, adding that, “everyone was always at the table because they felt deeply that a successful Providence” … “is important to the city itself, but important to the institutions as well.”
Brown University also reached a separate agreement to return currently tax-exempt property to the commercial tax rolls, and provide direct investments in development projects including workforce housing, childcare and public parks.
“I do think the innovation here is remarkable,” said Brown University President Christina Paxson. “And that is having something that explicitly aligns our interests going forward.”
An administration official said Roger Williams University is currently contributing to the city under a separate, ongoing agreement.
Smiley said the city has also been collecting payments under a memorandum of understanding with hospital operator Care New England, but added that Lifespan is the only large non-profit that has yet to come to agreement with the city. He added that Lifespan, which has been undergoing financial struggles, had indicated that they might resume talks with the city after Labor Day.
