Lifespan, Providence agree to $1.5 million in voluntary payments

PROVIDENCE, R.I. (WLNE) — Providence Mayor Brett Smiley and Lifespan President and CEO John Fernandez announced a proposed Payment in Lieu of Taxes (PILOT) agreement between the city and the company Tuesday.

The agreement would see Lifespan provide $1.5 million in voluntary financial contributions to Providence over the next three years.

This would account for the largest annual contribution Lifespan has made to the city since 2014.

The agreement calls for the payment to be made in two installments, $750,000 in fiscal years 2025 and 2026, respectively.

Lifespan and Providence will enter negotiations in the third year according to the memorandum of understanding.

“Following last year’s historic agreement with our colleges and universities, I am proud to have once again negotiated a new payment in lieu of taxes agreement that ensures our tax-exempt institutions contribute directly to the Providence community,” said Mayor Brett Smiley.

“The financial contributions from this agreement would represent the largest annual voluntary payment Lifespan has made to Providence in over a decade and would finally ensure that every major tax-exempt institution in Providence has a formalized PILOT agreement with the City that meaningfully gives back to our community.”

The PILOT agreement will be introduced to the Providence City Council on Thursday, October 3.