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SFCB' ProjectPlan forDevelopmentofPILOTfor the City of Springfield Page 5 Boston has $18 billion in tax-exempt properly which — if taxed at the FY05 rate ($32.68 per il�ousand} would generate over $500 million in tax revenue. Through i�r� pilot Boston receives $22 million annually. Some of the largest contributors are the MassachusettsPortAuthority (i.e. Massport, an independentpublic authority), $10 rni��io�; Boston University, $3 million; I�arvard University, $2 million; Massachusetts General Hospital, $19 million. Each agreement is also tied into an an.r�,�,Xal inflation index. Cambridge, Massachusetts Cambridge ��ad the first PILOT program in the country. In 1928 the Massachusetts Institute of Technology ��TT`� sought to purchase valuable land on the Charles River including a hotel. The City was unhappy with the impending loss of property tax revenue. The City and the university came to an agreementto compensate Cambridge for the loss of taxes through a PILOT agreement Today, Cambridge does not ha�e a fonnal program but negotiates agreements on a case by case basis. The program is managed through the City Manager's Office in coordination with otlie� City agencies on an "as needed" basis. Cambridge is unique because it is home to two of the world's most prestigious institutions ofhigher education. I�arvaz�d University contributes $1.7 million; MIT, $1.1 million; and Gambaxd�e receives another $500,000 annually from other colleges and hospitals for an annual total of $3.3 million. If all of Cambridge's $8.5 billion in tax- exemptproperty were taxed at the fiscal year 2005 tax rate ($1828 per thousand) then the City would receive $163 million in revenue. Providence, Rhode Island Providence's PILOT program is relatively new and was d�,ve�. in large part by the decision of the Rhode Island School of Design (RISD) to relocate its library facility to a previouslytax-payingdowntown bank 4 years ago. Just like Cambridge in 1928, Providence wanted to protect its tax base. Also like Cambridge, Providence is home to a well-endowed educational institution in Brown University with an endowment of over $1 billion. The Providence Mayor's Office aggressively and successfullypursued PILOT agreements with four of its local universities. The City proposed and lobbied for legislation that would change state tax-exemption law. Ultimately, the City �'zz��.�ed PILOT agreements that will pay it $3.8 million annually. The largest contributors are Brown University, $2 million; and RISD, $798,000. New Haven, Connecticut As previously mentioned, Connecticut has a very generous program for compensating local cp��u�ities for a portion of their tax-exempt property. However, beyond the stai�- funded PILOT New Haven receives direct financial supp�rt £�p� another well endowed educational institution, Yale University. Yale not only hires its own very substantial police force, but also contributes over $2 million dollars ann�a��y to New �ave�.'s Fire Department. J.F. Ryan Associates, inc. September 16,2005