Yale Increases Payments to New Haven to $20M+ a Year, Brown Says It Contributes About $6M

Yale Increases Payments to New Haven to $20M+ a Year, Brown Says It Contributes About $6M

Yale University has 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. 

In contrast, despite the record growth of its endowment and fundraising, Brown University only pays a fraction of the amount Yale contributes.

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Before the announcement, Yale already paid New Haven two-and-half times more than Brown pays Providence. Now, Yale is voluntarily making payments nearly four times the amount.

Neither amount includes fees.

Brian Clark of Brown University tells GoLocal, “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.”

Clark said the monies paid to Providence in direct payments includes "$1.4 million in voluntary payments per the terms of the 2003 Memorandum of Understanding and $2 million per the separate 2012 Memorandum of Agreement. The balance comprises municipal taxes that Brown pays for real estate we own and lease to commercial tenants, and transition payments for former commercial properties acquired by Brown and now used for institutional purposes."

"Both agreements will culminate by 2023 so there have been some preliminary, informal conversations on the right approach to considering a next agreement," he added.

Brown's math, however, may be a little fuzzy.

Numbers provided to GoLocal from the City of Providence puts Brown's contribution at $3.2 million annually.

Regardless of the number, Brown is contributing a tiny fraction of the amount Yale is investing in New Haven. And, Yale's payments are investment-driven into the city while Brown's payments are fees and de facto, real estate tax payments.

“Yale and New Haven have a bond that has been tested by time and strengthened by shared purpose,” Yale President Peter Salovey said. “As a New Haven anchor institution and the city’s largest employer, the university is proud to do its part in building a community that creates sustained inclusive growth across every neighborhood in the city. New Haven is poised for accelerated growth with increased funding from the federal government, the state, and the university. New Haven’s growing population and its support for innovation, as evidenced by new developments such as 101 College and burgeoning residential, commercial, and research space, will continue to position the city for a bright future.”

 

 

“For years people have been calling on Yale to deepen its commitment to our city,” Yale's Salovey added. “With today’s announcement, Yale takes a meaningful step in this direction. I’d like to personally thank Peter Salovey for his partnership and leadership, and I look forward to working with the entire university community to put this agreement into practice.”

 

Brown Record Investment Performance and Fundraising 

Brown announced in October that its endowment was rocketing as a result of the stock market, especially in private equities.

“Buoyed by strong performance among financial markets across the globe, the Brown University endowment generated a 51.5% return during Fiscal Year 2021. Brown closed its fiscal year on June 30, 2021, with an endowment market value of $6.9 billion,” announced Brown on October 14.

Then, on November 2, Brown announced that "more than a year ahead of its planned December 2022 end date, BrownTogether, the most ambitious fundraising campaign in Brown University history, has eclipsed its original $3 billion goal.”

 

Brown's fundraising was highlighted by:

A $100 million gift from Robert J. and Nancy D. Carney — one of the largest in the University’s history — named the Carney Institute for Brain Science in 2018. 

Separately, a $25 million gift to the Carney Institute is supporting computational brain science and endowed a program to promote innovative research.

A $50 million from Samuel and Ann Mencoff for scholars at the Warren Alpert Medical School are working to advance biomedical research and discoveries into treatments and cures for disease.

A $25 million from the Bravo Family Foundation for a new research center is enabling Brown’s economics department to expand the scope of its data-driven scholarship and to amplify its focus on training the next generation of economics researchers.

$12.5 million from the family of former Rhode Islander Alan Hassenfeld, to be to support the Hassenfeld Child Health Innovation Institute with key hospital partners, bringing together researchers, physicians, students and community partners to transform children’s health in Rhode Island and beyond.

And, a $25 million gift from Jonathan M. Nelson that supports the Nelson Center for Entrepreneurship, which provides support to students at every stage of the entrepreneurial process, works with researchers to further inquiry in entrepreneurship and partners with entrepreneurs on and off campus.