Last night the Providence City Council voted 9-1 to approve a new plan for Providence’s four private colleges to pay the city voluntary payments instead of taxes.
This program, known as a payments in lieu of taxes (PILOT) agreement, is split into two parts: a 20-year agreement with the federally tax-exempt colleges including Providence College, RISD, Johnson & Wales, and Brown University, and a separate 10-year agreement with Brown.
PILOT agreements date back to 2003. This is the third such agreement the city has entered into with the four colleges, and will rake in by far the most money. Both of the prior agreements lasted ten years each, and combined they generated $94,006,384. The new agreement is expected to bring in $223,472,813 over the next two decades.
Additionally, the colleges will be expected to make non-cash-based community contributions; for example, they can provide services that the city normally would, such as snow removal.
In the separate agreement with Brown University, the city expects to gain an extra up to $46 million in revenue, though if the university makes other contributions to the city that generate real, taxable income, amounts can be deducted from that sum. The city will also allocate four blocks in the jewelry district to Brown University, in an area where Brown already owns all the buildings. Brown’s president Christina Paxson has not promised to keep the blocks open to city residents for driving or walking. Before the land transfer can be made official, it must pass through the City Plan Commission and once again through the City Council.
Most of the council members who voted in favor of the agreements said they were voting yes, but without enthusiasm, saying they felt Brown could contribute more.
“I can’t see us drowning three babies because we’re worried about one,” said council member Althea Graves as an explanation of why she was voting yes. Graves is the council member for Ward 12, where Providence College is located.
The council members who felt lukewarm about the agreement did so because they felt Brown University could have contributed more money. Still, many said they were grateful for at least something.
Five council members, which is one third of the whole council, were absent during the vote, including council members who have previously expressed dislike for the agreements. Among those absent were Sue AnderBois of Ward 3, where part of Brown’s campus is located. The only person to vote nay on the agreement was councilmember Miguel Sanchez of Ward 6 (Olneyville) who said he wished the agreement negotiations had been more transparent.
“This was done between government and entities and no real community organizing or support. That’s one of the most depressing parts for me, honestly,” Sanchez said.
Following the meeting, Providence Mayor Brett Smiley’s office sent a press release conveying his strong support for the passage of the agreement.
“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,” Mayor Brett Smiley said.
Once the agreement is signed by the mayor, the cash-strapped city will end its hiring freeze.
Because the city and the colleges entered into these agreements voluntarily, either party can end the agreement at any time.
Metro Reporter Olivia Ebertz can be reached at olivia@thepublicsradio.org.