- MIT's new agreement with the City provides long-term tax protection for the City of Cambridge and includes a 20% increase in MIT's annual voluntary payment in lieu of tax (PILOT) contribution.
- In the course of the new 40 year agreement, MIT will pay the City a minimum of $101.4 million in PILOT contributions.
- The City will have an enhanced ability to manage its budget because of the predictability inherent in the new agreement.
- MIT is currently the largest taxpayer in the city of Cambridge.
- MIT's FY 2004 real estate tax payment to Cambridge was $23.5 million.
- Factoring in voluntary PILOT contributions and city fees and permits, MIT paid nearly $30.7 million to the City in FY 2004.
- A few, but not all, universities make payments in lieu of taxes. For instance, Brown University owns 142 tax-exempt acres in Providence, R.I. It made voluntary payments of $1.06 million to the city in FY 2004. Cornell University owns 434 tax-exempt acres in Ithaca, N.Y., and paid about $1.3 million to the city in voluntary payments.
- MIT owns 157 tax-exempt acres in Cambridge that are used for educational purposes and 84 acres of commercial land, making a total of 241 acres or 5.29 percent of the city's total land area.
- There are 201 MIT-related firms in Cambridge, with sales of $2.7 billion, employing more than 15,000 people.
- There are over 70 biotech firms located within a mile of the MIT campus. These companies, such a pharmaceuticals giant Novartis, have chosen to be near MIT in large part to have access to MIT's community of researchers and academicians.
- MIT is the second largest employer in Cambridge, with 7,114 employees.
- MIT has a "Cambridge First" purchasing policy that resulted in the purchase of $39.5 million in goods and services in Cambridge in FY 2004.
- MIT is involved in several major public improvement projects within the City. The Institute's contributions to these public projects total $18.9 million since 2000.
- When MIT purchases property for commercial purposes, the real estate tax payments increase as the Institute enhances the property for tenants. For example, the 2001 taxes paid by MIT on Technology Square, One Broadway, 640 Memorial Drive, and 28 Osborn Street was $3,272,156. After tenant improvements, these same properties paid $8,799,539 in taxes in 2004 (a 37% increase).
- MIT sponsors over 50 educational outreach programs for K through 12 students and their educators in the Cambridge and Boston public schools.
- Over 3,000 students and staff from the Cambridge Public Schools take part in MIT-sponsored science and technology outreach projects each year.
- Approximately 1,000 MIT students do volunteer work in the local community, much of it in Cambridge.
- MIT makes campus space available to over 50 community groups each year, hosting hundreds of events annually.
- The Institute annually hosts approximately 30 athletic events such as track meets, gymnastic activities, and volleyball tournaments that benefit Cambridge children.
December 6, 2004
MIT News Office