Providence City Council endorses PILOT agreements with local colleges
PROVIDENCE – The City Council on Thursday night voted in favor of payment in lieu of tax agreements – or PILOT agreements – with four institutions of higher education, despite some criticism from the public. A handful of council members concurred: The agreements aren't perfect, but the money is sorely needed.
Between two agreements – a 20-year memorandum of understanding with Brown University, the Rhode Island School of Design, Johnson & Wales University and Providence College, and separately a 10-year memorandum of agreement with Brown University – the city stands to collect $223.5 million over 20 years.
The city's most recent agreements with the schools have expired. Under those deals, the city collected $94 million.
'Not perfect,' but 'darn good,' says councilwoman
Councilman Miguel Sanchez rose to oppose both agreements as covering too many years and raising too little money. He speculated that the agreements as they stand are "going to make it very tough to not increase the residential" property-tax rate again.
(Councilwomen Sue Anderbois, Shelley Peterson, Ana Vargas and Helen Anthony and Councilman Justin Roias were absent.)
Councilmen Pedro Espinal, John Goncalves and Juan Pichardo delivered statements in support, the latter describing the agreements as imperfect while wanting to see the city lift a hiring freeze if the agreements were passed. Councilman Oscar Vargas was critical but still voted in support of the agreements.
More: Mayor Smiley's new plan has city's universities paying more. Here's how much.
"It's not perfect," said Councilwoman Jo-Ann Ryan, echoing her colleague. "Nothing ever is. But it's darn good."
Councilwoman Althea Graves, despite feeling Brown should pay more, chimed in: "We have to take what we can get and continue talking to the colleges."
Majority Leader Jim Taylor also rose in support of the agreements, having headed up a public hearing on the issue less than two weeks ago.
At that hearing, numerous Brown students and other community members spoke out against that school's agreement, far outnumbering supporters who showed up.
More: Brown University students turn out to criticize school's payment deal with the city. Here's why.
Critics, who focused most of their commentary on Brown, said the school should pay more and decried the credits system that would allow the university to reduce its payments if it contributes to new development or returns property to city tax rolls.
"I tell people that they paid during the two years of COVID," Taylor said on Thursday of the schools, which make payments voluntarily, as is typical with PILOT agreements.
"I don't see them not paying," he said.
Technically, the council's vote Thursday night was to "authorize" Mayor Brett Smiley to enter into the agreements. Smiley, however, along with council President Rachel Miller, had participated in talks with representatives of the schools before the council took up the matter.
"I think it was the appropriate thing for it to be brought before us," Miller said of Thursday's votes. "We got a chance to vet it with the public."
Smiley's administration described the agreements as among the most generous in the nation.
"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," Smiley said.
This article originally appeared on The Providence Journal: Providence City Council signs off on payment agreements with colleges
