EDITORIAL: Smiley Deal With Brown Is an Insult to Providence Taxpayers

EDITORIAL: Smiley Deal With Brown Is an Insult to Providence Taxpayers

In November of 2021, Yale University announced a major increase in payments to New Haven.

“A significant increase in Yale’s voluntary payments to the city, totaling $52 million in new money over six years. When combined with Yale’s existing voluntary payments, Yale will contribute approximately $135.4 million to the city over this six-year period. This amount is unprecedented nationally,” said Yale this week. 

Providence Mayor Brett Smiley promised as a candidate to make Brown University and the other non-profits to pay their fair share.

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The hope was that a new deal would take the pressure off homeowners and commercial landlords.

No such luck.

The new deal is an insult to Providence taxpayers.

According to the Smiley administration, Brown will pay just $8.7 million a year. Brown claims that presently, it pays $6.2 million.

Brian Clark of Brown University told GoLocal in 2021, “In terms of direct payments to the city (as opposed to funding for PPSD, other programs, etc) for the most recent fiscal year, Brown paid $6.2 million to the city between the two voluntary payment agreements and commercial property taxes on property not used for educational purposes.”

Smiley's staff in the press briefing did not know how much Brown presently pays Providence.

In addition, the city will surrender valuable land to the University as part of the deal.

Providence taxpayers take this one right between the eyes.

Smiley cut a loser’s deal. He capitulated on every major deal point.

The most insulting aspect of the defense of the proposed deal is claiming Yale has a bigger endowment. 

First, Brown’s endowment is reported to be in excess of $6.5 billion. There is no shortage of financial resources.

Second, Brown spends nearly non-stop on Brown. It recently completed a new Performing Arts Center with a cost of more than $150 million.

Recently, Brown announced a flurry of new projects upwards of $100 million, including a new indoor athletic facility that is 76,000 square feet.

Lastly, the size of an endowment has nothing to do with the cost of the services provided by Providence taxpayers to Brown and its students.

Police officers responding to a Brown professor being assaulted on Thayer Street costs about the same as a New Haven police officer responding to a crime against a member of the Yale community in New Haven.  

Smiley’s deal should get him into the Brown Hall of Fame, but it is a deal that leaves Providence residents holding the bag for the Ivy League school. 

I guess those Ivy Leaguers are smarter than the rest of us -- or at least the Mayor.