Lifespan will pay $1.5 million in lieu of taxes to the city of Providence, R.I., where it is based, according to a three-year proposed agreement.
Here are four key takeaways from the deal, according to an Oct. 1 news release from Providence Mayor Brett Smiley's office.
1. The first contribution is due this fiscal year.
As part of the proposed payment-in-lieu-of-taxes agreement, Lifespan would contribute $750,000 in fiscal 2025 and another $750,000 installment in fiscal 2026.
Negotiations for a new agreement would begin in the third year, the release said.
2. This would be the first formal PILOT agreement between Lifespan and the city.
The agreement would be Lifespan's first voluntary payment to the city of Providence since 2021 and its largest annual contribution since 2014, the release said.
3. It was Providence's only major nonprofit without a similar agreement.
After local private colleges in September 2023 agreed to pay Providence more than $200 million over two decades, Lifespan was the only major nonprofit institution without an agreement of this kind, The Boston Globe reported Oct. 1.
4. Lifespan previously said it was unable to pay Providence because of financial pressures.
This included operating losses, according to the Globe. Lifespan recently reduced executive positions by 20%, which will save $6 million in fiscal 2025, President and CEO John Fernandez said in a previous statement.