June 5, 2003

DAVID N. CICILLINE MAYOR
Executive Office, City of Providence, RI

FOR IMMEDIATE RELEASE
Contact: Karen Southern, Press Secretary
401-421-2489 ext. 752; 401-595-9702 (cell)
ksouthern@providenceri.com
Steve Maurano/Amy Quinn, Duffy & Shanley, Inc.
401 274-0001; 401 491-4773 (cell)

MAYOR CICILLINE REACHES AN HISTORIC AGREEMENT WITH PROVIDENCE COLLEGES + UNIVERSITIES
20-year Landmark Agreement Achieved Through a Spirit of Cooperation Between Providence’s Institutions of Higher Education + the City

PROVIDENCE, RI -- Mayor David N. Cicilline and the presidents of Brown University, Johnson & Wales University, Providence College and Rhode Island School of Design, today announced an unprecedented financial agreement between the City of Providence and the four institutions. The agreement provides for nearly $50 million in voluntary payments to the City over a twenty-year period. It’s the first agreement of its kind in the history of this City.

“I want to commend the presidents and trustees of these institutions for demonstrating great leadership and a commitment to our City,” said Cicilline. “For nearly three centuries, colleges and universities have not made voluntary payments in lieu of taxes to the city of Providence. This landmark agreement was reached through a spirit of cooperation, and marks the beginning of a new relationship between the City of Providence and our private colleges.”

The historic agreement was forged after weeks of negotiations between representatives of the four colleges and the Mayor’s Office. The main elements of the agreement include:

$8.472 million in voluntary cash contributions to the City starting in the fiscal year that begins July 1, 2003, and spread over the next four years for several properties that were either acquired by the colleges in 2002 or are in the process of being acquired in 2003;

Voluntary contributions from each of the four colleges and universities totaling $1.730 million in the next fiscal year and escalating at a rate of 1.5% for twenty years for a total of $40 million;

A third major element of the agreement is a voluntary contribution schedule for any new properties that might be acquired by the colleges and universities in the future. The schedule provides that in the first five years of college or university ownership the contribution is equal to 100% of the property’s existing taxes at the time or purchase. In the second five years, the contribution scales down to 66.7%. It moves further to 33.3% in the third years. After fifteen years, the contribution is reduced to zero for as long as the respective college or university owns the property.

“When I first took office, I made a commitment to do everything in my power to ensure that these four institutions pay a fair share, comparable to what other private colleges and universities around the country contribute to their host cities,” said Cicilline. “This agreement accomplishes that.”

Roger Mandle, President of Rhode Island School of Design and spokesman for the four colleges and universities, said that the Mayor laid out for him and his fellow presidents the nature of Providence’s challenges and his desire for the colleges and universities to be part of the solution.

“We feel that our respective institutions are an integral and vital part of Providence,” said Mandle. “But we also understand that the successful pursuit of our educational mission is greatly enhanced if the City of Providence remains a vibrant, flourishing community. Mayor Cicilline faces a daunting challenge in returning Providence to fiscal health and stability. The agreement we announced here with him today goes above and beyond what we already provide and is our way of saying we support his efforts, his vision and his leadership.”

Mandle pointed out that in addition to the positive economic impact and myriad cultural and social benefits they bring to the City, the four colleges and universities already contribute financially to Providence. He noted $1.1 million annually in property taxes that the colleges and universities pay for buildings they own that are not central to their core educational mission. He also mentioned approximately $2.5 million per year that the colleges and universities pay for building permits and other municipal documents and licenses.

In announcing the agreement, Mayor Cicilline said he would not file any legislation in the General Assembly aimed at imposing service fees or mandating payments by the colleges and universities in Providence.