University Business - January 2011 - (Page 56)

PILOTS Taking Off for the next 25 years, there will not be any additional taxing on WPI or its students. I made sure that was written in,” says Berkey, who adds that the larger commitment of dollars was not a hard sell to his constituencies. “We got very positive publicity out of the agreement. My trustees saw right away that this was an opportunity to do something aligned with our interests. Libraries and parks are a good thing, and many of our alumni commented that they were proud.” Good Neighbors Clark’s 20-year agreement with Worcester also built upon a long and positive town/ gown history and extended the idea that both entities would benefit, says Vice President for Government Affairs Jack Foley, who has Worcester Polytechnic Institute President Dennis Berkey, seen here with students, sealed a 25-year PILOT agreement with the city last year. worked at the university for almost 35 years. “There’s a trend nationally of universities nonprofits were more extensive, culminating at the end of last working with communities in less than amiable ways,” Foley observes, “but since 1985, we’ve had a partnership year in a sweeping agreement for hospitals and universities alike with the neighborhood and larger Worcester community that’s be- to ante up 25 percent of what any nonexempt landholder would owe the city. come a national example.” Along the way, both sides repaved a two-way street of underBesides subsidizing 250 new units of housing available to standing each other’s contributions. Rich Doherty, president of the Worcester residents, Clark has pursued an aggressive program to locate faculty and staff in the city, provided local scholarships to 40 Association of Independent Colleges and Universities in Massachustudents over the past 15 years—a $4.5 million contribution—and setts, admits that Boston’s nationally renowned non-profits—from universities to hospitals—are fair targets in financial hard times. paid $75,000 a year in property tax. “To be investing in the neighborhood is nothing unusual. “The ‘Meds and Eds’ are seen as corporate leaders, and it’s underIt’s not like we’re starting from the beginning,” Foley maintains. “The relationship we have with the city of ‘What’s come out of the PILOT task force is a greater Worcester is extraordinarily positive, and it starts from awareness of what the nonprofits already contribute to a position of respect and appreciation of what we do their cities. Harvard and Boston University combined pay for each other. It’s one thing to say you’re bringing benefits to the community, but you need to show the real more in real estate taxes than the John Hancock building.’ benefits and make sure the public and city officials see —Rich Doherty, Association of Independent Colleges and them. In that way, you make advocates of your neighUniversities in Massachusetts bors and local businessmen.” Under the new agreement, the school is making a $262,000 PILOT contribution this year, with an annual 2.5 percent standable to look to them for additional financial support,” he says. On the other hand, says Doherty, who testified before the task escalator clause, plus maintaining its property tax payments. Besides force, city officials now better appreciate what schools are bringtargeting improvements to the city library system and local parks for its increased PILOT contributions, Clark also won the concession ing to the community. “What’s come out of the PILOT task force that the city would close a street that bisected the campus and cre- is a greater awareness of what the nonprofits already contribute to their cities. Harvard (which has much of its campus on the ated hazards for pedestrians. Boston side of the Charles River) and Boston University combined pay more in real estate taxes than the John Hancock buildBoston’s PILOT Task Force Negotiations between the city of Boston and nearly three dozen ing,” the nearly 60-story structure that’s one of the city’s priciest 54 | January 2011 universitybusiness.com http://www.universitybusiness.com

Table of Contents for the Digital Edition of University Business - January 2011

University Business - January 2011
Contents
Editor’s Note
College Index
Company Index
Advisory Board
Behind the News
Sense of Place
Viewpoint
Money Matters
Guide to Financial Services
Human Resources
Community Colleges
Take Ii Tablets
Pilots Taking Off
Today’s Admission Office Budget
What’s New
End Note

University Business - January 2011