Providence City Council passes funding agreement with private colleges

October 5, 2023 7:57 pm

Gino DeAngelis,

PROVIDENCE, R.I. (WLNE) — The Providence City Council said that it approved agreements with the city’s tax-exempt higher education institutions.

The Payment in Lieu of Taxes (PILOT) Agreement, which Mayor Brett Smiley introduced last month, is between the city and Brown University, Providence College, Johnson and Wales University, and Rhode Island School of Design.

Smiley had said the proposed agreement “more than doubles the financial contributions” Providence will receive over the next 20 years.

The council said the two agreements passed Thursday would see the four institutions pay the city $177.4 million over 20 years, with Brown agreeing to pay an additional $46 million over 10 years.

The full PILOT agreement would see the four institutions pay the city approximately $442 million.

“These funds will immediately impact the city’s fiscal goals while lessening the tax burden on homeowners and businesses,” Council President Rachel Miller said.

The council added that the PILOT agreement is favorable when compared with similar programs in New England.