City of Boston and Boston University Announce New Landmark Five-Year PILOT Agreement

The City of Boston and Boston University today announced a major Payment-in-Lieu-of-Taxes (PILOT) agreement. The new PILOT agreement includes a commitment of more than $104.3 million in voluntary cash contributions and community benefits over the next five years. The agreement is the first written PILOT agreement between the City and Boston University in more than 25 years and the largest in Boston's history, creating a predictable and reliable schedule of valuable partnership benefits for the City.

"Boston's success has always depended on strong partnerships between the City and our anchor institutions, rooted in the shared understanding that thriving institutions and a strong, well‑resourced city go hand in hand," said Mayor Michelle Wu. "This agreement reflects Boston University's continued investment not only in innovation and education, but in the communities we call home. We thank President Gilliam and Boston University for this commitment to invest in our city, learn from one another, and collectively strengthen the foundation that allows our residents, neighborhoods, and institutions to thrive."

"Boston University is committed to Boston, its communities, and the PILOT program. This new five-year agreement reflects the priority we place on service and partnership with Boston," said Boston University President Melissa Gilliam. "We are grateful for Mayor Wu's leadership and look forward to continuing to work together to strengthen Boston and engage the people and communities that make our city exceptional."

Boston University has been a longstanding partner with the City of Boston and the lead higher-education contributor to  Boston's nation-leading PILOT program, a system launched in 2012 that governs annual voluntary cash and community benefit contributions from the City's largest private, non-profit, and tax-exempt institutions. This partnership is based on the mutual understanding that a welcoming, safe, and financially stable City that delivers high-quality essential services is critical to the continued success and financial health of Boston's large nonprofit institutions.

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Under the new five-year agreement, Boston University will increase its annual PILOT cash payments to the City from $6.3 million in FY25 to $8.3 million in FY30. This represents a 32% increase over BU's current PILOT contribution baseline, which has not changed since FY19.

"As one of the largest universities in Boston, BU and its students are an integral part of our city. This new agreement is an important step in strengthening our partnership and reaffirming the shared role our institutions have in supporting our communities," said City Councilor Sharon Durkan. "As the Chair of the Boston City Council's PILOT Agreements Committee, I frequently hear from residents asking our non-profit partners to step up, and I believe Boston University is doing exactly that with this renewed commitment. BU has consistently been one of the city's strongest contributors to the PILOT program, and as the City Councilor for its Charles River Campus, it has been a privilege to work closely with the University and witness its leadership and dedication to the City of Boston."

Additionally, Boston University commits to contributing annual PILOT community benefits valued at a total of $66.8 million over the term of the five-year agreement, benefits that will be reported annually to the City and subject to annual review to align with city and community needs. The new agreement reflects Boston University's continued work to sustain and grow its baseline community benefit commitments to support public education, access to public and institutional spaces, and a mutually agreed list of other shared City and institutional priorities. Community benefits eligible to be counted toward this goal are quantifiable and directly benefit City of Boston residents.

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"As chair of the Boston University Community Task Force representing the community, I am grateful to BU for its longstanding investment in our city. Through these agreements and its collaborative approach, BU has consistently followed through on its commitments and become a trusted partner in our neighborhoods," said Pam Beale, Chair of BU Community Task Force. "I appreciate all that the University has done and continues to do to strengthen the communities surrounding its campus and support the residents and businesses that call those neighborhoods home."

Boston University's commitment to delivering benefits in close partnership with community members to support the City's communities and address local needs predates the PILOT program, including but not limited to the University's Thomas M. Menino Scholarship and Community Leaders Scholarship. Recipients of the merit-based Menino Scholarship have their full four-year tuition covered by the award. Since its inception in 1973, the scholarship program - the oldest and largest one for BPS graduates - has awarded over $220 million to over 2,000 students. The need-based Community Leaders Scholarship meets recipients' full calculated financial need without loans. Each recipient is paired with a faculty or staff mentor to support their transition to Boston University. The award is available to BPS graduates entering BU as first-year students and to eligible transfer students.

Boston University and the City will focus on renewing a mutually agreeable voluntary PILOT agreement before the five-year agreement expires on June 30, 2030.

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