PROVIDENCE, R.I. (AP) - Providence leaders say they still expect Rhode Island’s largest hospital group to make a $400,000 payment, even after the group reported a $55 million loss.
The payment from Lifespan would be in lieu of taxes, and Providence listed the payment in its $770 million budget this year, The Boston Globe reported. Nonprofit institutions, such as Lifespan, can enter into payment agreements with the city instead of paying property taxes.
Emily Crowell, a spokeswoman for the mayor, said the administration expects the payment in full.
Jane Bruno, a spokeswoman for Lifespan, said the group will decide if it will make the payment at the end of the fiscal year - next spring.
“It is still too early in our current year to make a determination,” Bruno said.
The Globe reported that city officials have complained for years that these institutions don’t contribute enough for the amount of land they own. According to tax records, more than 40% of land in the city is owned by nonprofits.
“While I recognize that Lifespan has been a good corporate citizen there’s a problem larger than Lifespan,” Democratic State Rep. Daniel McKiernan said. “Forty-two percent of the land owned in Providence doesn’t pay taxes. It puts an unfair burden on the rest of the city.”
___
This story has been corrected to show that Lifespan’s payment would be in lieu of taxes, not that there has been a promise or agreement of payment.
Please read our comment policy before commenting.