City, JWU move toward payment plan
This reads like a love letter between the Mayor’s Chief of Staff and JWU.
The city says it has received a draft memorandum of understanding from Johnson & Wales University about a new Payment in Lieu of Taxes (PILOT) agreement between the university and municipality.
At Monday night’s City Council finance committee meeting, Mayoral Chief of Staff Anthony Moretti also shared that the university has advanced the city a $120,000 check “as a good faith gesture.”
On Monday, city officials said discussions about a deal to have the university make voluntary payments to Cranston in lieu of property taxes had been progressing for several months.
The matter was recently pushed into the public spotlight after calls by local Democratic citywide City Council candidate Steven Stycos for the city to negotiate a long-term agreement
According to city documents, in previous years, JWU contributed about $200,000 annually to Cranston’s revenues until 2023, when the city’s PILOT agreement with the university expired.
JWU is a nonprofit and tax-exempt institution. Of its two campuses in Rhode Island, its Harborside Campus – home to its graduate programs, culinary arts museum, athletic fields and more – is partially in Cranston’s Edgewood neighborhood.
One of the university’s dormitories, Harbor View, is on Narragansett Boulevard.
City administration stated that any agreement made would be a voluntary contribution by the university, and not something required of the tax-exempt university.
PILOT payments are an option for municipalities to get tax-exempt organizations to help fund city services including fire and police protection and snow removal.
During discussion Monday night, Moretti said that on average annually, there have been around 20 police responses to Johnson & Wales facilities, and in the past year there were 17 calls for rescue and other Fire Department responses.
He noted that the university has its own security, which “probably results in less frequency of calls, too.”
Moretti noted that although the city had not been receiving PILOT payments directly from JWU, it had received PILOT payments from the state, which contributes to municipalities on behalf of all nonprofits.
He said that last year, Cranston had received $258,000 from the state for JWU. Moretti also noted that the university is not the “bad guy,” describing its officials as “good businesspeople.”
“They’re empathetic to the needs of the City of Cranston … we’re dealing with some good individuals that care about the city and care about the reputation of the university,” Moretti continued.
With a draft memorandum of understanding in hand, the city says it will review the tentative agreement, and once details are finalized, it will be presented to the City Council.