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Local Aid and Finance PILOT agreement established with local college
Worcester has begun receiving payments in lieu of taxes from the Massachusetts College of Pharmacy and Health Sciences, the first time the city has established such an arrangement with a local college or university.
Under the agreement, reached in late November, payments made by the college will help support the Worcester Public Library, which is near the college campus and often used by its students.
Over the next 25 years, payments from the college are expected to total more than $1.25 million. An initial annual payment of $50,ooo was received in December; the amount, which will increase at a rate of 2.5 percent annually, is based on 20 percent of the assessed value of three tax-exempt buildings on the campus.
On four other buildings that are not tax-exempt, the college paid taxes in fiscal 2008 totaling more than $171,000.
“We recognize that Worcester is facing financial challenges like most other cities and towns,” Charles Monahan, the college’s president, said when the agreement was announced on Nov. 26. “This is our way to give something back to the city.”
The Massachusetts College of Pharmacy and Health Sciences, which has a larger campus in Boston, established a presence in downtown Worcester in 1999.
Local Aid and Finance PILOT agreement established with local college
PILOT agreement established with local college
Worcester has begun receiving payments in lieu of taxes from the Massachusetts College of Pharmacy and Health Sciences, the first time the city has established such an arrangement with a local college or university.
Under the agreement, reached in late November, payments made by the college will help support the Worcester Public Library, which is near the college campus and often used by its students.
Over the next 25 years, payments from the college are expected to total more than $1.25 million. An initial annual payment of $50,ooo was received in December; the amount, which will increase at a rate of 2.5 percent annually, is based on 20 percent of the assessed value of three tax-exempt buildings on the campus.
On four other buildings that are not tax-exempt, the college paid taxes in fiscal 2008 totaling more than $171,000.
“We recognize that Worcester is facing financial challenges like most other cities and towns,” Charles Monahan, the college’s president, said when the agreement was announced on Nov. 26. “This is our way to give something back to the city.”
The Massachusetts College of Pharmacy and Health Sciences, which has a larger campus in Boston, established a presence in downtown Worcester in 1999.
Written by MMA Associate Editor Mitch Evich
