NEW: Providence Reaches $31.5 Million Agreement With Brown University
Tuesday, May 01, 2012
Providence Mayor Angel Taveras took another step toward closing the city's budget gap today by announcing an agreement with Brown University that will result in the city receiving $31.5 million in additional payments in lieu of taxes from the tax-exempt institution.
The university, which will now pay the city nearly $8 million annually, will contribute $3.9 million during the current fiscal year.
"This agreement is evidence of a longstanding partnership between Providence and Brown University, and it represents a renewal of our shared willingness to work together to make both Brown and Providence successful," Taveras said. "Because of President Simmons' leadership and Governor Chafee’s statesmanship, we have agreement that helps position Providence for the future and recognized the vital role that Brown plays in our burgeoning knowledge economy."
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"Brown continues to be deeply concerned about Providence’s financial situation and is committed to supporting efforts to enhance the city," Simmons said. "The most significant role that Brown can play in contributing to a stronger Providence and Rhode Island is to continue to improve as an internationally renowned research university.
Unlike a previous deal with Johnson & Wales, the agreement does not include any payments for property the university will purchase or develop in the I-195 area. The university will take control of several streets close to the main campus and will be provided with 250 parking spots.
The announcement came a night after Taveras announced a landmark agreement with Lifespan that will result in the city receiving $2.4 million in voluntary payments.
Taveras said the city still hopes to reach agreements with the other major nonprofit institutions in the city, but did not wish to comment on negotiations.
