BU signs $104M PILOT agreement with city, the largest in Boston history

Boston University The City of Boston and the City of Boston have finalized the largest Payment in Lieu of Taxes (PILOT) agreement in the city’s history, officials said.

Office of Mayor Michelle Wu Announce The five-year deal, which includes more than $104.3 million in voluntary cash contributions and community benefits, was announced Tuesday.

City officials said this represents First written trial agreement Between Boston and BU in over 25 years. the initiative Large tax-exempt entities are asked to make voluntary financial donations to help cover the costs of city services they use.

“Boston’s success has always depended on strong partnerships between the city and our key institutions, rooted in the shared understanding that thriving institutions and a strong, well-resourced city go hand in hand,” Wu said in a statement. “This agreement reflects Boston University’s continued investment not only in innovation and education, but in the communities we call home.”

Under the new agreement, Boston University will pay the city $8.3 million annually through fiscal year 2030, an increase of about 32% from the university’s current pilot contribution of $6.3 million, which has remained unchanged since fiscal year 2019, according to Wu’s office.

Boston University also pledged to provide an annual experiment “Community benefitsIts total value is $66.8 million, city officials said.

“Boston University is committed to Boston, its communities, and the PILOT program,” said Melissa Gilliam, president of Boston University. “This new five-year agreement reflects the priority we place on service and partnership with Boston.”

Wu’s office said the university and the city hope to renew a “mutually agreed-upon” agreement before the terms of the current agreement expire in June 2030.

BU failed by 23 percent to meet all of its pilot requests in fiscal year 2025. However, none of the five universities from which the city asked for the most money provided the full amount requested. City data He appears.

Northeastern University signed a pilot agreement with the city last fall. Agreement to pay more than $49 million Cash and community benefits over the next five years.

Earlier this year, the city stabilized for five years Agreement with Wentworth Institute of Technology. Over the years of the agreement, the school has committed more than $5.6 million in cash and community benefits.