Bristol would like more from the university, but must wait

Town is locked into a 20-year agreement, set to expire in 2027

By Christy Nadalin
Posted 10/4/24

The Town of Bristol tried negotiating for a higher financial contribution from Roger Williams University a year ago, but the two sides did not reach an agreement. Locked into a 20-year pact with the …

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Bristol would like more from the university, but must wait

Town is locked into a 20-year agreement, set to expire in 2027

Posted

The Town of Bristol tried negotiating for a higher financial contribution from Roger Williams University a year ago, but the two sides did not reach an agreement. Locked into a 20-year pact with the university, the town is now biding its time until it can get back to negotiating a new agreement for when the current one expires, in 2027.

According to Rhode Island public law, universities are tax exempt — and according to Town Administrator Steven Contente, “There is no wiggle room for us to get out of that.”

That means the town receives no property tax on university-owned real estate, with the exception of the recently-purchased Wind Hill Estate just north of the university president’s residence on Ferry Road. No property taxes are paid for the main Ferry Road campus, the president’s residence, or the Almeida Court Apartments on Bay View Avenue — at current rates, that is an unmet $3,211,575 tax liability. Note that this figure does not include the sewer use fees, which are paid by the university.

Bristol recoups some of that $3.2 million shortfall through a $1.5 million PILOT paid to the town by the state for all the properties in town that are tax exempt per state law, so in addition to Roger Williams, it includes the Brown University-owned land off Tower Hill Road and the Rhode Island Veterans Home on Metacom Avenue.

In an effort to make up the difference, in 2007 the town entered into a voluntary PILOT program with Roger Williams. Prior to that, the town received no PILOT at all. The 2007 agreement was negotiated by then-Administrator Diane Mederos, and it was approved by the Bristol Town Council in a public meeting in December 2007. The town’s negotiations were informed in part by data collected by the police and fire departments about the expense of services to the university by those two departments.

The initial Memorandum of Understanding (MOU) included educational resources (scholarships, grants, and tuition remission programs), funds for the purchase of first responder equipment and vehicles ($100,000 every five years), funds for civic activities ($25,000 annually) and a voluntary payment of $150,000 annually, subject to a 1.5% annual increase beginning in 2009. Additional contributions have come in periodically, including $600,000 for recent sewer line upgrades along Ferry Road.

The agreement was for 20 years, and it calls for meetings periodically between the town administrator, the town council chairman, the university president and a second university representative of the president’s choosing. The agreement may be amended as a result of those meetings, provided the amendments are “mutually agreed-upon.” Though amendments addressing minor aspects of the MOU were agreed upon in 2008, 2010, 2011, and 2017, the university stood firm at the last set of meetings, held in April and November of 2023.

According to Contente, the town was hoping to get an increase in the voluntary payment from the university at that time, because Providence and Newport had recently renegotiated terms with their universities, resulting in much larger payouts than they had received prior. That was not to be the case in Bristol.

“After a couple of meetings, there was no mutual agreement — we had to abide by the existing agreement until 2027, and the solicitor confirmed that,” said Contente. “The way it’s written, it was way too easy for them to opt not to negotiate.”

Prior to that, Bristol’s PILOT was much more in line with what Providence and Newport were receiving. “For now, we are lagging behind,” said Contente, suggesting the 20-year term was, in hindsight, a mistake, though he doesn’t fault the architects of that agreement. “Before 2007 we were getting nothing, so I am sure it felt like a good idea to lock in at the time.”

Moving forward to 2027, Contente would like to see a new MOU with a nine-year term and renegotiation opportunities every three years. “I think ultimately we should be made whole,” he said. “It’s nice that the state gives them exemption, but we all pay a lot of taxes, and I think we need to close the gap.” He also added that the onus should not necessarily be entirely on RWU, given that this situation is due to state law. “The state could give us more, or reduce the exemption. The state isn’t exactly helping us here.”

Contente was clear that there is a process in place, but it’s a process that has been stymied by the existing long-term MOU. “There is in fact a process,” he said. “If the council doesn’t like it, they can change it, but I think it’s meaningful to have an elected official in the negotiations. It’s completely transparent — it’s a public meeting and anyone can come and comment. Though I don’t recall anyone ever doing that.”

Contente was also clear that he values the relationship between the town and the university. “We do appreciate their contributions to the community, their students’ contributions to keeping our volunteer fire department viable,” he said.  “They are our largest employer. But it’s important to close the gap. We are looking forward to 2027 when the current memorandum of understanding expires, and there are new terms.”

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