PROVIDENCE, R.I. (AP) — Providence College will make $3.84 million more in voluntary payments in lieu of taxes to the city over the next 10 years under a deal that will see Providence give up parts of three streets near campus, officials said Tuesday.
The deal announced by Mayor Angel Taveras and Providence College President the Rev. Brian Shanley includes an initial $1 million payment this year. The school currently contributes about $264,000 annually under a 2003 memorandum of understanding between the city and several educational institutions.
“I’m grateful for PC being able to help us more,” Taveras, wearing a black PC pullover, said at a news conference at City Hall. “We need each other.”
Added Shanley: “We all have a stake in the success of the city of Providence. We are happy to be able to join in solidarity with the other nonprofits and the city in making this deal.”
Taveras has been negotiating with the city’s major nonprofits for more in voluntary payments, since they are tax-exempt. Providence College was the last of the institutions to strike a deal, behind Brown University, Johnson & Wales University and the Rhode Island School of Design. Taveras also negotiated new payments from Lifespan, CharterCARE and Care England.
“Maybe since we’re Catholic we go really slow,” Shanley said to laughter.
The payments from all the institutions together will amount to nearly $48 million over 11 years, Taveras said.
The negotiations came as part of Taveras’ efforts to close a massive budget hole in the last fiscal year and an attempt to stave off a municipal bankruptcy. Taveras also reached a settlement with police, firefighters and retirees over a pension freeze and other cost-saving benefit changes. City officials say they expect to finish the year that closed July 1 with a deficit of $13 million to $16 million — down from $110 million.
Under its agreement with Providence College, the city will give up parts of Huxley Avenue, Wardlaw Avenue and Cumberland Street. Shanley said acquiring part of Huxley Avenue, which bisects the campus, could lead to the creation of a new entrance for the school.
